1. Introduction to Information Systems
Chapter 1
Introduction to Information Systems

2. Information Concepts (1)
Data vs. Information
Data
Raw facts
Distinct pieces of information, usually formatted in a special way
Information
A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves

3. Data ‘Discussion’ (1)
(1) Distinct pieces of information, usually formatted in a special
way. All software is divided into two general categories: data and
programs. Programs are collections of instructions for manipulating
data.
Data can exist in a variety of forms -- as numbers or text on pieces
of paper, as bits and bytes stored in electronic memory, or as facts
stored in a person's mind.
Strictly speaking, data is the plural of datum, a single piece of

4. information. In practice, however, people use data as both the
singular and plural form of the word.
(2) The term data is often used to distinguish binary
machine-readable information from textual human-readable
information. For example, some applications make a distinction
between data files (files that contain binary data) and text files
(files that contain ASCII data).
(3) In database management systems, data files are the files that
store the database information, whereas other files, such as index
files and data dictionaries, store administrative information, known
as metadata.

5. Homework Q Is the term “data”generally used in the singular or plural
(a) in the textbook, and
(b) in the zdwebopedia web site?

6. Terminology
Process
A set of logically related tasks performed to achieve a defined outcome
(n) An executing program. The term is used loosely as a synonym of task.
(v) To perform some useful operations on data.

7. Terminology Knowledge Knowledge base
An awareness and understanding of a set of information and how that information can be made useful to support a specific task
Knowledge base
The collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome

8. Types of Data Data Represented by Alphanumeric data
Numbers, letters, and other characters
Image data
Graphic images or pictures
Audio data
Sound, noise, tones
Video data
Moving images or pictures

9. Data  Information
Data
Transformation
Information

10. Characteristics of Valuable Information
Accurate, complete, economical, flexible, reliable, relevant, simple, timely, verifiable, accessible, secure

11. System
System
A set of elements or components that interact to accomplish goals
A combination of components working together

12. System ‘Discussion’
(1) Refers to a combination of components working together. For
example, a computer system includes both hardware and software.
A Windows system is a personal computer running the Windows
operating system. A desktop publishing system is a computer
running desktop publishing software.
(2) Short for computer system.
(3) Short for operating system.
(4) An organization or methodology. The binary numbering system,
for instance, is a way to count using only two digits.

13. System Elements
Inputs
Processing mechanisms
Outputs

14. System Example System Elements Goal Inputs Processing elements Outputs
Movie
Actors, director, staff, sets, equipment
Filming, editing, special effects, distribution
Finished film delivered to movie studio
Entertaining movie, film awards, profits

15. System Components and Concepts
System boundary
Defines the system and distinguishes it from everything else
System types
Simple vs. complex
Open vs. closed
Stable vs. dynamic
Adaptive vs. nonadaptive
Permanent vs. temporary

16. System Performance and Standards
Efficiency
A measure of what is produced divided by what is consumed
Effectiveness
A measure of the extent to which a system achieves its goals
System performance standard
A specific objective of the system (next 2 slides)

17. Figure 1.5a

18. Figure 1.5b

19. System Variables and Parameters
A quantity or item that can be controlled by the decision maker
E.g. the price a company charges for a product
System parameter
A value or quantity that cannot be controlled by the decision maker
E.g., cost of a raw material

20. Modeling a System Model Types of models
An abstraction or an approximation that is used to represent reality
Types of models
Narrative (aka descriptive)
Physical
Schematic
Mathematical
Next slide

22. Information System (IS)
Definition
A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective
(IS) Pronounced as separate letters, and short for Information Systems or Information Services. For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).

23. What is an Information System?
Schematic model of an information system
Feedback
Input
Processing
Output

24. Input, Processing, Output,
The activity of gathering and capturing data
Whatever goes into the computer
Processing
Converting or transforming data into useful outputs
Output
Useful information, usually in the form of documents and/or reports
Anything that comes out of a computer

25. Input ‘Discussion’
(n) Whatever goes into the computer. Input can take a variety of forms, from commands you enter on a keyboard to data from another computer or device. A device that feeds data into a computer, such as a keyboard or mouse, is called an input device.
(v) The act of entering data into a computer

26. Output ‘Discussion’
(n) Anything that comes out of a computer. Output can be meaningful information or gibberish, and it can appear in a variety of forms -- as binary numbers, as characters, as pictures, and as printed pages. Output devices include display screens, loudspeakers, and printers.
(v) To give out. For example, display screens output images, printers output print, and loudspeakers output sounds.

27. Feedback Feedback Forecasting
Output that is used to make changes to input or processing activities
Forecasting
A proactive approach to feedback
Use for estimating future sales or inventory needs

28. Manual vs. Computerized Systems
Manual systems still widely used
E.g., some investment analysts manual draw charts and trend lines to assist them in making investment decisions
Computerized systems
E.g., the above trends lines can be drawn by computer
Evolution
Many computerized system began as manual systems
E.g., directory assistance (“411”)

29. Computer-based Information Systems
A CBIS is composed of…
Hardware
Software
Databases
Telecommunications
People
Procedures
Together they are…
Configured to collect, manipulate, store, and process data into information

30. Technology Infrastructure
Another term for CBIS
Consists of the shared information system (IS) resources that form the foundation of the information system

31. Parts of a CBIS Five parts Hardware Software Database
Telecommunications
Networks

32. Parts of a CBIS Five parts Hardware Software Database
Telecommunications
Networks

33. Hardware
Hardware
Computer equipment used to perform input, processing, and output activities
The objects that you can actually touch, like disks, disk drives, display screens, keyboards, printers, boards, and chips.

34. Hardware ‘Discussion’
Hardware refers to objects that you can actually touch, like disks, disk drives, display screens, keyboards, printers, boards, and chips. In contrast, software is untouchable. Software exists as ideas, concepts, and symbols, but it has no substance.
Books provide a useful analogy. The pages and the ink are the hardware, while the words, sentences, paragraphs, and the overall meaning are the software. A computer without software is like a book full of blank pages -- you need software to make the computer useful just as you need words to make a book meaningful.

35. Parts of a CBIS Five parts Hardware Software Database
Telecommunications
Networks

36. Software
Software
Computer programs that govern/determine/control the operation of the computer
Computer instructions or data

37. Software ‘Discussion’ (1)
Software is computer instructions or data. Anything that can be stored electronically is software. The storage devices and display devices are hardware.
The terms software and hardware are used as both nouns and adjectives. For example, you can say: "The problem lies in the software," meaning that there is a problem with the program or data, not with the computer itself. You can also say: "It's a software problem.“

38. Software ‘Discussion’ (2)
The distinction between software and hardware is sometimes confusing because they are so integrally linked. Clearly, when you purchase a program, you are buying software. But to buy the software, you need to buy the disk (hardware) on which the software is recorded.
Software is often divided into two categories. Systems software includes the operating system and all the utilities that enable the computer to function. Applications software includes programs that do real work for users. For example, word processors, spreadsheets, and database management systems fall under the category of applications software.

39. Parts of a CBIS Five parts Hardware Software Database
Telecommunications
Networks

40. Database Database An organized collection of facts and information
A collection of information organized in such a way that a computer program can quickly select desired pieces of data

41. Database ‘Discussion’ (1)
A database is a collection of information organized in such a way that a computer program can quickly select desired pieces of data.
You can think of a database as an electronic filing system. Traditional databases are organized by fields, records, and files. A field is a single piece of information; a record is one complete set of fields; and a file is a collection of records. For example, a telephone book is analogous to a file. It contains a list of records, each of which consists of three fields: name, address, and telephone number.

42. Database ‘Discussion’ (2)
An alternative concept in database design is known as Hypertext. In a Hypertext database, any object, whether it be a piece of text, a picture, or a film, can be linked to any other object. Hypertext databases are particularly useful for organizing large amounts of disparate information, but they are not designed for numerical analysis.
To access information from a database, you need a database management system (DBMS). This is a collection of programs that enables you to enter, organize, and select data in a database.

43. Database ‘Discussion’ (3)

44. Parts of a CBIS Five parts Hardware Software Database
Telecommunications
Networks

45. Telecommunications Telecommunications
The electronic transmission of signals for communications; enables organizations to link computer systems into effective networks
Refers to all types of data transmission, from voice to video

46. Parts of a CBIS Five parts Hardware Software Database
Telecommunications
Networks

47. Networks
Network
Used to connect computers and computer equipment in a building, around the country, across the world, to enable electronic communications
A group of two or more computer systems linked together

48. Network ‘Discussion’ (1)
There are many types of computer networks, including:
local-area networks (LANs) : The computers are
geographically close together (that is, in the same building).
wide-area networks (WANs) : The computers are farther apart and are connected by telephone lines or radio waves.

49. Network ‘Discussion’ (2)
In addition to these types, the following characteristics are also used to categorize different types of networks:
topology : The geometric arrangement of a computer system. Common topologies include a bus, star, and ring.
protocol : The protocol defines a common set of rules and signals that computers on the network use to communicate. One of the most popular protocols for LANs is called Ethernet. Another popular LAN protocol for PCs is the IBM token-ring network .
architecture : Networks can be broadly classified as using either a peer-to-peer or client/server architecture.

50. Network ‘Discussion’ (3)
Computers on a network are sometimes called nodes.
Computers and devices that allocate resources for a network are called servers.

51. Network ‘Discussion’ (4)

52. Internet and Intranet Internet Intranet
The world’s largest telecommunications network
A network of networks
Free exchange of information
A global network connecting millions of computers
Intranet
A network that uses Internet technology within an organization
A network belonging to an organization

53. People and Procedures People Procedures
The most important element in most computer-based information systems
Includes people who manage, run, program, and maintain the system
E.g., IT professionals (you!)
Procedures
Includes the strategies, policies, methods, and rules for using the CBIS

54. Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems

55. Transactions Processing Systems
Any business-related exchange
E.g., generating a weekly payroll
Transaction processing system (TPS)
An organized collection of people, procedures, software, databases, and devices used to record completed for for business related exchanges

56. Payroll transaction processing
Payroll Example
Hours worked
Payroll transaction processing
Payroll checks
Pay rate

57. Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems

58. E-Commerce System E-commerce
Involves any business transaction executed electronically
Conducting business on-line
For example, between…
Companies
Companies and consumers
Business and the public sector
Consumers and the public sector
Example for placing a purchase order

59. Purchase Order - Traditional

60. Purchase Order – E-commerce

61. Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems

62. Management Information Systems
An MIS is…
An organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers

63. Schematic of MIS Marketing management Manufacturing management
information
system
Manufacturing
management
Information
system
Common
databases
Financial
management
Information
system
Order
management
information
system
TPS

64. MIS ‘Discussion’ Short for management information system or management
information services, and pronounced as separate letters, MIS
refers to a class of software that provides managers with tools for
organizing and evaluating their department. Typically, MIS systems
are written in COBOL and run on mainframes or minicomputers.
Within companies and large organizations, the department
responsible for computer systems is sometimes called the MIS
department. Other names for MIS include IS (Information Services)
and IT (Information Technology).

65. Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems

66. Decision Support Systems
A DSS is…
An organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making
A DSS helps a manger “do the right thing”

67. Business Information Systems
Types
Transaction processing systems
E-commerce systems
Management information systems
Decision support systems
Expert systems

68. Expert Systems An expert system is…
A computer application that performs a task that would otherwise be performed by a human expert
gives the computer the ability to make suggestions and to act like an expert in a particular field
Examples: diagnose human illnesses, make financial forecasts, schedule routes for delivery vehicles
Expert systems typically include “artificial intelligence” (next slide)

69. Artificial Intelligence (1)
The branch of computer science concerned with making computers
behave like humans. The term was coined in 1956 by John McCarthy
at the Massachusetts Institute of Technology. Artificial intelligence
includes
games playing: programming computers to play games such as chess and checkers
expert systems : programming computers to make decisions in real-life situations (for example, some expert systems help doctors diagnose diseases based on symptoms)
natural language : programming computers to understand natural human languages

70. Artificial Intelligence (2)
neural networks : Systems that simulate intelligence by attempting to reproduce the types of physical connections that occur in animal brains
robotics : programming computers to see and hear and react to other sensory stimuli
Currently, no computers exhibit full artificial intelligence (that is, are
able to simulate human behavior). The greatest advances have
occurred in the field of games playing. The best computer chess
programs are now capable of beating humans. In May, 1997, an IBM
super-computer called Deep Blue defeated world chess champion

71. Artificial Intelligence (3)
Gary Kasparov in a chess match.
In the area of robotics, computers are now widely used in assembly
plants, but they are capable only of very limited tasks. Robots have
great difficulty identifying objects based on appearance or feel, and
they still move and handle objects clumsily.
Natural-language processing offers the greatest potential rewards
because it would allow people to interact with computers without
needing any specialized knowledge. You could simply walk up to a

72. Artificial Intelligence (4)
computer and talk to it. Unfortunately, programming computers to
understand natural languages has proved to be more difficult than
originally thought. Some rudimentary translation systems that
translate from one human language to another are in existence, but
they are not nearly as good as human translators. There are also
voice recognition systems that can convert spoken sounds into
written words, but they do not understand what they are writing;
they simply take dictation. Even these systems are quite limited --
you must speak slowly and distinctly.

73. Artificial Intelligence (5)
In the early 1980s, expert systems were believed to represent the
future of artificial intelligence and of computers in general. To date,
however, they have not lived up to expectations. Many expert
systems help human experts in such fields as medicine and
engineering, but they are very expensive to produce and are helpful
only in special situations.
Today, the hottest area of artificial intelligence is neural networks,
which are proving successful in a number of disciplines such as voice
recognition and natural-language processing.

74. Artificial Intelligence (6)
There are several programming languages that are known as AI
languages because they are used almost exclusively for AI
applications. The two most common are LISP and Prolog.

75. Working with Systems (1)
Systems development
The activity of creating or modifying an existing business system
Systems investigation and analysis
Defines the problems and opportunities of an existing system
Systems design
Determine how a new system will work to meet business needs

76. Working with Systems (2)
Systems implementation
Creating and acquiring system components defined in the design
Systems maintenance and review
Checks and modifies the system so that it continues to meet changing business needs

77. End of Chapter 1
Chapter 2