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Information Systems in Business

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1 Information Systems in Business
UOITC Business Information Technology Department Information Systems in Business Dr. Alla Talal Yassin Lecture : 01

2 Why study Information Systems and Information Technology?
Vital component of successful businesses Helps businesses expand and compete Businesses use IS and IT To improve efficiency and effectiveness of business processes For managerial decision making For workgroup collaboration You might just as well ask why study accounting, finance, operations management, marketing, human resources, management. Most business majors include a class in IS.







9 Objectives of Information systems
The use of information systems facilitates better decision making in the company. management is able to review all the present practices and norms and formulate new ones for the future. Information systems are used across all realms and functions of the business. management is able to better control its people and processes and attain organizational goals.

10 Is a set of interrelated components With a clearly defined boundary
What is a system? A system Is a set of interrelated components With a clearly defined boundary Working together to achieve a common set of objectives Almost everything is a system One system can be made up of other systems or can be part of a bigger system

11 What is a System? Environment Control by Management Output of Input of
Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Feedback System Boundary

12 What is an Information System?
This is a simple definition that we will expand upon later What’s an example? Smoke signals to transmit information Card catalogs in a library Book bag with day planner, notebooks, that allows you organize inputs from lectures, presentations and discussions. The output is homework and good exam grades Cash register at restaurant Other examples?

13 What is an Information System?
An organized combination of People Hardware Software Communications networks Data resources Policies and procedures That stores, retrieves, transforms, and disseminates information in an organization

14 The Components of a Computer-Based Information System

15 Types of Information Systems
Transaction Processing Systems Process Control Enterprise Collaboration Operations Support Management Information Decision Executive Information Systems


17 Need of information systems
Utilization of large quantity of data and information. Decision Support Data and information Information flexibility Information Security Information Sharing Smooth running of operations

18 Information System (IS) versus Information Technology (IT)
IS is all the components and resources necessary to deliver information and functions to the organization IT is hardware, software, networking and data management In theory, IS could be paper based But we will focus on Computer-Based Information Systems (CBIS) Definition of IS from prior slide: An organized combination of People Hardware Software Communications networks Data resources Policies and procedures That stores, retrieves, transforms, and disseminates information in an organization In theory, an IS could be pencil and paper based

19 Computer-Based Information Systems
Computer-based information system (CBIS) A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information Examples: a company’s payroll systems, order entry system, and inventory control systems



22 keyboard, mouse hardware data storage;
A computer-based IS is a whole that consists of (1) data, (2) computer hardware and software (information technologies), and (3) procedures applied to data, software & hardware.* ENVIRONMENT keyboard, mouse hardware data storage; processors for transforming data running software screen, printer hardware Data Transformed & Organized INPUT part PROCESSING part OUTPUT part Do not forget procedures! A procedure is a certain way of doing something, usually including steps in a certain sequence. This is similar to the concept of business process used in this course, but the latter is a broader concept and may include many procedures. Procedures are applied to data at the input point (e.g., formatting), to hardware (e.g., typing on a keyboard), and to the use of software (how to do these various tasks with data). Procedures are also called know-how (know-how-to-do). So, they are a particular kind of knowledge. Important: Know-how procedures of an IS are often work procedures. For example, when an accountant updates an account in an Accounting Information System (AIS), the AIS procedures he uses are the procedures of the accounting job. In other words, accounting procedures are coded in the AIS. Or, when a marketer determines groups of customers by using a Marketing IS (MktIS), the MktIS procedures she uses make the marketing job. Data are the heart of IS. Inputted data are different than outputted data. Basic Concepts

23 Objectives of information system
Information should be accurate, timely, right, right format, right people and to filter unwanted and unnecessary information. SMART Ratio: Specific, Measurable, Agreed, Realistic, and Time Specific. Judging the performance of the system. 23 of 17

24 IS Knowledge Framework for Business Professionals :

25 Major Roles of Information Systems
Support of Strategic Advantage Managerial Decision Making Business Operations

26 What should a Business Professional know about IS?
Foundation Concepts: fundamental behavioral, technical, business and managerial concepts Information Technology: Hardware, software, networks, data management and Internet-based technology Business Applications: Major uses of the IS in the organization Development Processes: How to plan, develop and implement IS to meet business opportunities Management Challenges: The challenges of effectively and ethically managing IT Refers back to figure 1.2 on prior slide Foundation Concepts: Examples: general systems theory, competitive strategies. Covered in chapters 1, 2 Information Technology: Covered in chapters 3-6 Business Applications: Chapter 7: applications in functional areas, Chapter 8: electronic commerce applications and Chapter 9: decision making Development Processes: By both business professionals and IS specialists. Chapter 10. Management Challenges: Managing IT at the end user, enterprise and global levels of a business. Chapter 11 is security challenges and Chapter 12 is how to manage IT in global businesses.

27 Support of business processes and operations.
Fundamental Roles of IS in Business Support of business processes and operations. Support of decision making by employees and managers. Support of strategies for competitive advantage.

28 What is an Information System?
Input of Data Resources Processing Output of Information Products Control of System Performance Storage of Data Resources

29 What does IS do for a business?
Examples of business processes: record purchases, track inventory, pay employees, etc. Business would stop without such IS. Examples of decision making: what lines of merchandise need to be added, what kind of investment required. Examples of competitive advantage: put kiosk in store to connect to e-commerce website. Help gain advantage over competitor without such a kiosk.

30 Decision Making as a Component of Problem Solving (continued)
Principles of Information Systems, Ninth Edition

31 Trends in Information Systems
Note that while IS has expanded, they are still doing the same basic things that they’ve been doing. What has changed is: more integration of functions, greater connectivity across components, better use for maximum advantage of business and strategic opportunities

32 Developing IS Solutions

33 Information systems model
Major components of an information: people, hardware, software, data and networks. These components perform input, processing, output, storage, and control activities.

34 Components of an IS People Resources Hardware Resources
End users: the people who use the IS or the information from the IS IS specialists: the people who develop and operate IS Hardware Resources All physical devices used in information processing Machines, data media, peripherals Software Resources All information processing instructions including programs and procedures System software, application software and procedures Hardware: Peripherals include keyboard, mouse, video screen, printer

35 Classifications of IS by scope
Functional business systems Focus on operational and managerial applications of basic business functions Examples: support accounting, finance or marketing Strategic information systems Help get a strategic advantage over its customers Examples: shipment tracking, e-commerce web systems Cross-functional information systems Systems that are combinations of several types of information systems Provide support for many functions In reality most systems are Cross-functional

36 Measuring success of an IS
Efficiency Minimize cost, time and use of information resources Effectiveness Support business strategies Enable business processes Enhance organizational structure and culture Increase the customer and business value What’s the difference between Efficiency and Effectiveness?

37 IS Activities Input of data resources
Data entry activities Processing of data into information E.g., calculate, compare, sort, classify, summarize Output of information products Messages, reports, forms and graphic images Storage of data resources Data elements and databases Control of system performance Monitoring and evaluating feedback

38 Recognizing IS As a business professional, you should be able to look at an IS and identify The people, hardware, software, data and network resources they use The type of information products they produce The way they perform input, processing, output, storage and control activities

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