chp 1 business information systems
TRANSCRIPT
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Business Information Systems:An Overview
- Prof. (Ms.) Avani Rachh
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Objectives
Explain why information systems are essential to
business
Describe how computers process data into
useful information for problem solving anddecision making
Identify the functions of different types of
information systems in business
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Objectives (continued)
Describe careers in information technology
Identify major ethical and societal concerns
created by widespread use of information
technology
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The Purpose of Information Systems
Businesses use information systems
To make sound decisions
To solve problems
Problem is any undesirable situation
Decision arises when more than one solution to
problem exists
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The Purpose of Information Systems
(continued)
Problem solving and decision making require
information
Keys to success in business are
Gathering correct information
Storing information
Using information
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Data, Information, and Information
Systems
Data, information and system are commonly
used terms
Important to understand their similarities and
differences
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Data vs. Information
Data: a given or fact
Can be number, statement, or picture
Information: facts or conclusions that have
meaning within context
Composed of data that is manipulated
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Data Manipulation
Data is manipulated to make useful information
Survey is common method of collecting data
Raw data is hard to read
Information is more useful to business than data
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Generating Information
A process is manipulation of data
Process usually produces information
Process may produce more data
A piece of information in one context may be
considered data in another context
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Generating Information (continued)
Figure 1.1: Input-process-output
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Information in Context
Not all information is useful
Useful information is
Relevant
Complete
Accurate
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Information in Context (continued)
Useful information is
Current
Obtained economically (in business)
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Information in Context (continued)
Figure 1.2: Characteristics of useful information
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What Is a System?
System: array of components that work together
to achieve goal or goals
System
Accepts input
Processes input
Produces output
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What is a system? (continued)
System may have multiple goals
System may contain subsystems
Subsystems have sub-goals that meet main goal
Subsystems transfer output to other subsystems
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What is a system? (continued)
Closed system: has no connections with other
systems
Open system: interfaces and interacts with
other systems Often a subsystem of a bigger system
Information system: processes data and
produces information
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Information and Managers
Systems thinking: thinking of an organization interms of subsystems
Database: collection of electronic records
Information systems automate exchange amongsubsystems
Information map: network of informationsystems
Information technology: technologies thatfacilitate construction and maintenance ofinformation systems
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The Benefits of Human-Computer
Synergy
Humans are relatively slow and make mistakes
Computers cannot make decisions
Synergy: combining resources to produce
greater output
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The Benefits of Human-Computer
Synergy (Continued)
Figure 1.4: Qualities of humans and computers that contribute to synergy
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Information Systems in Organizations
Computer-based Information system: system
with computer at center
Certain trends have made information systems
important in business
Organizations lag behind if they do not use
information systems
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Components of information systems
Figure 1.5: Components of an information system
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The Four Stages of Processing
Input: collect and introduce data to system
Transaction: a business event, usually entered
as input
Data processing: perform calculations on input
Output: what is produced by the information
system
Storage: vast amounts of data stored on opticaldiscs
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Computer Equipment for Information
Systems
Input devices: receive input
Computer: process data
Output: displays information
Storage devices: store data
Network devices: transfer data
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Computer Equipment for Information
Systems (continued)
Figure 1.6: Input, process, output, storage, and networking devices
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From Recording Transactions to
Providing Expertise: Types of
Information Systems Many types of information systems
Capabilities of applications have been combined
and merged Management Information System: supports
planning, control, and making decisions
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Transaction Processing Systems
Most widely used type of system
Records data collected at point where
organization interacts with other parties
Encompasses cash registers, ATMs and
purchase order systems
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Supply Chain Management Systems
Supply chain: sequence of activities involved in
producing products
Activities include marketing, purchasing raw
materials, manufacturing, shipping, billing,collection, and after-sale services
Also known as enterprise resource planning
systems
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Customer Relationship Management
Systems
Customer relationship management:
managing relations with customers
Used in combination with telephones to provide
customer service Often linked to Web applications that track online
transactions
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Business Intelligence Systems
Business Intelligence: gather data to help
organization compete
Often contains statistical models
Access large pools of data
Data warehouse: large database that usually
store transactional records
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Decision Support and Expert Systems
Decision support system: supports decision-
making
Relies on models to produce tables
Extrapolates data to predict outcomes
Expert system: supports knowledge-intensive
decision-making
Uses artificial intelligence
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Geographic Information Systems
Geographic information system: ties data to
physical locations
Represents data on a map in different formats May reflect demographic information in addition
to geographic
May use information from GPS satellites
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Geographic Information Systems
(continued)
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Information Systems in Business
Functions
Functional business area: services within a
company that support main business
Includes accounting, finance, marketing, and
human resources Part of a larger enterprise system
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Accounting
Information systems help record transactions
Produce periodic statements
Create required reports for law
Create supplemental reports for managers
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Finance
Finance systems facilitate financial planning and
business transactions
Tasks include organizing budgets, managing
cash flow, analyzing investments, and makingdecisions
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Marketing
Pinpoint likely customers and promote products
Marketing information systems analyze demand
for products in regions and demographic groups
Identify trends in demand for products/services
Web provides opportunity to collect marketing
data
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Human Resources
Human resource management systems aid
record-keeping
Must keep accurate records
Aids recruiting, selection, placement, and rewardanalysis
Performance evaluation systems provide
grading utilities
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Web Empowered Enterprises
E-commerce: Buying and selling goods and
services through Internet
Internet is a vast network of computers
connected globally Web has a profound impact on information
systems
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Careers in Information Systems
Information technology professionals are
increasingly in demand
Networking, system analyst, software
engineering, and database administrator jobsare increasing in demand
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Systems Analyst
System analyst: designs and updates
information systems
Involves analyzing system requirements,
documenting development efforts, and providingspecifications for programmers
Requires communication and presentation skills
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Database Administrator
Database administrator: responsible for
databases
Develops and acquires database applications
Must protect privacy of customers and employees
Responsible for securing the database
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Network Administrator
Network administrator: acquires, implements,
manages, maintains, troubleshoots networks
Implements security
Firewalls
Access codes
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Webmaster
Webmaster: creates and maintains Web site
Designs and codes the page
Demand for Webmasters grows as more
businesses use Web
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Chief Security Officer
Chief security officer: supervises security of
information system
Position exists due to growing threat to
information security Reports to chief information officer
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Chief Information Officer and Chief
Technology Officer
Chief information officer: responsible for all
aspects of information system
Often the vice president
Chief technology officer: has similar duties asCIO
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Chief Information Officer and Chief
Technology Officer (continued)
Figure 1.7: Traits of a successful CIO
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Summary
Computer-based information systems pervade
almost every aspect of our lives
A system is a set of components that work
together to achieve a common goal Subsystem: a system performs a limited task
that produces an end result, which must be
combined with other products from other
systems to reach an ultimate goal
Data processing has four stages
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Summary (continued)
Any IS that helps in management is a
management information system (MIS)
Many different types of MIS
Enterprise application systems (SCM or ERP) tietogether different functional areas of a business
ISs are used in accounting, finance, marketing,
and human resources
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Summary (continued)
The job prospects for IT professionals are bright
IT has created societal concerns