fundamentals of information systems, second edition 1 an introduction to information systems in...

Fundamentals of Information Systems, Second Edition

1

An Introduction to Information Systems in Organizations

Chapter 1


2

Principles and Learning Objectives

• The value of information is directly linked to how it helps decision makers achieve the organization’s goals.

– Distinguish data from information and describe the characteristics used to evaluate the quality of data.


3


• Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life.

– Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver.


4


• System users, business managers, and information systems professionals must work together to build a successful information system.

– Identify the major steps of the systems development process and state the goal of each.


5


• The use of information systems to add value to the organization can also give an organization a competitive advantage.

– Identify the value-added processes in the supply chain and describe the role of information systems within them.

– Identify some of the strategies employed to lower costs or improve service.

– Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage.


6


• Information systems personnel are the key to unlocking the potential of any new or modified system.

– Define the types of roles, functions, and careers available in information systems.


7

Information Concepts


8

Information System

• A set of interrelated components that collect, manipulate & disseminate data & information & provide feedback to meet an objective.

• Examples: ATMs; airline reservation systems; course reservation systems


9

Data vs. Information

• Data: raw facts

• Information: collection of facts organized in such a way that they have value beyond the facts themselves


10

The Process of Transforming Data into Information


11

Characteristics of Valuable Information


12

The Components of an Information System


13

Computer-Based Information Systems (CBIS)


14

Components of a CBIS


15

Components of a CBIS• Hardware - computer equipment used to perform input, processing,

and output activities.

• Software - computer programs that govern the operation of the computer.

• Database - an organized collection of facts and information, typically consisting of two or more related data files.

• People - the most important element in most computer-based information systems.

• Procedures - include the strategies, policies, methods, and rules for

using the CBIS.


16

Telecommunications, Network, and the Internet

• Telecommunications - the electronic transmission of signals for communications.

• Networks - used to connect computers and computer equipment in a building, around the country, or around the world to enable electronic communications.

• Internet - the world’s largest computer network, actually consisting of thousands of interconnected networks


17

Business Information Systems


18

Business Information Systems

• Electronic Commerce• Transaction Processing Systems and ERP• Information and Decision Support Systems• Special-Purpose Business Information Systems: Artificial

Intelligence, Expert Systems, and Virtual Reality


19

E-Commerce

• Business-to-business

• Business-to-consumer

• Consumer-to-consumer


20

E-Commerce Greatly Simplifies the Purchasing Process


21

Transaction Processing Systems and ERP

• Transaction processing system (TPS) - an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.

• Enterprise Resource Planning (ERP) System - a set of integrated programs capable of managing a company’s vital business operations for an entire multisite, global organization.


22

A Payroll Transaction Processing System


23

Functional Management Information Systems Draw Data from the Organization’s TPS


24

Decision Support Systems (DSS)

An organized collection of people, procedures, software, databases, and devices used to

support problem-specific decision making.

– The focus of a DSS is on decision-making effectiveness.


25

Essential DSS Elements


26

Special-Purpose Business Information Systems

• Artificial intelligence (AI) systems

• Virtual reality systems

• Expert systems


27

The Major Elements of Artificial Intelligence


28

A Head-Mounted Display


29

Data Glove


30

Systems Development

The activity of creating or modifying existing business systems. – Systems Investigation– Systems Analysis– Systems Design– Systems Implementation– Systems Maintenance and Review


31

Organizations and Information Systems


32

A General Model of an Organization


33

The Value Chain of a Manufacturing Company


34

Technology Diffusion, Infusion, and Acceptance

• Technology Diffusion - a measure of how widely technology is spread throughout an organization.

• Technology Infusion - is the extent to which technology permeates an area or department.

• Technology Acceptance Model (TAM) - specifies the factors that can lead to higher acceptance and usage of technology in an organization


35

Competitive Advantage

A significant and (ideally) long-term benefit to a company over its competition.

• Factors That Lead Firms to Seek Competitive Advantage– Rivalry among Existing Competitors – Threat of New Entrants– Threat of Substitute Products and Services– Bargaining Power of Customers and Suppliers


36

Strategic Planning for Competitive Advantage

• Altering the Industry Structure• Creating New Products and Services• Improving Existing Product Lines and Services• Using Information Systems for Strategic

Purposes


37

Competitive Advantage Factors and Strategies


38

Performance-Based Information Systems

• Productivity• Quality• Return on Investment and the Value of

Information Systems– Earnings Growth– Market Share– Customer Awareness and Satisfaction– Total Cost of Ownership


39

Three Stages in the Business Use of IS


40

The 10 Best Places to Work for IS


41

Roles, Functions, and Careers in the Information Systems Department

• Operations• Systems Development• Support


42

The Three Primary Responsibilities of Information Systems


43

Typical IS Titles and Functions

• The Chief Information Officer• LAN Administrators• Internet Careers


44

Why Learn About Information Systems?

• Advance in your career• Solve problems• Realize opportunities• Meet your career goals


45

Summary

• Data - raw facts• Information - data transformed into a

meaningful form • Systems development - creating or modifying

existing business systems• Organization - a formal collection of people and

various other resources established to accomplish a set of goals

fundamentals of information systems, second edition 1 an introduction to information systems in...

Documents