An Introduction to Information Systems in Organizations Chapter 1 Chapter 1: An Introduction to Information Systems This chapter presents basic concepts necessary to understand systems and business information systems. Fundamentals of Information Systems, Second Edition

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. After completing Chapter 1, you should be able to accomplish the objectives on this slide and the following slide. Information is key in business organizations. The value of information is closely related to how it helps decision makers achieve the organization’s goals. Models, computers and information system help make it possible for organizations to improve Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives 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. Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives 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. Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives 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. Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives 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. Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition Information Concepts Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition 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 An information system is a collection of related things that work together to achieve a common goal. The components collect, process or transform, and distribute data and information. Common examples of information systems include: ATMs, point of sale (POS) systems used by grocery checkout clerks; information systems used by airlines to make reservations or schedule flights; and the system you use at your university to register for classes. Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition Data vs. Information Data: raw facts Information: collection of facts organized in such a way that they have value beyond the facts themselves The terms data & information are often used interchangeably. However, there is an important distinction: information is value-added data. Data is processed, organized or transformed to become information. Data are raw facts. For example, if you write down your age & grade on an English test & hand it to me, I see 2 numbers – raw data. However, if you include the average age and average test score for your class, the data would have some meaning to me as a teacher… it would become information. Interestingly, your name and grade – data to me- could very well be information to you. In the context of your life or experiences, those 2 numbers alone would most likely have meaning. Similarly, a grocery store manager would most likely find a list of every item sold today to be of little use – it is data. However, the amount that the store’s total sales are over or under planned sales would be information. Fundamentals of Information Systems, Second Edition

The Process of Transforming Data into Information Fundamentals of Information Systems, Second Edition

Characteristics of Valuable Information Fundamentals of Information Systems, Second Edition

The Components of an Information System Fundamentals of Information Systems, Second Edition

Computer-Based Information Systems (CBIS) A computer-based information system is an information system that uses computer technology to perform input, processing & output activities. Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition Components of a CBIS Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition 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. Fundamentals of Information Systems, Second Edition

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 Fundamentals of Information Systems, Second Edition

Business Information Systems The most common organizational business information systems are: electronic commerce systems, transaction processing systems, management information systems, and decision support systems. Some firms also use artificial intelligence systems, virtual reality systems or geographic information systems. Fundamentals of Information Systems, Second Edition

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 Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition E-Commerce Business-to-business Business-to-consumer Consumer-to-consumer Fundamentals of Information Systems, Second Edition

E-Commerce Greatly Simplifies the Purchasing Process Fundamentals of Information Systems, Second Edition

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. Fundamentals of Information Systems, Second Edition

A Payroll Transaction Processing System Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition Functional Management Information Systems Draw Data from the Organization’s TPS Fundamentals of Information Systems, Second Edition

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. Fundamentals of Information Systems, Second Edition

Essential DSS Elements Fundamentals of Information Systems, Second Edition

Special-Purpose Business Information Systems Artificial intelligence (AI) systems Virtual reality systems Expert systems Fundamentals of Information Systems, Second Edition

The Major Elements of Artificial Intelligence Fundamentals of Information Systems, Second Edition

A Head-Mounted Display Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition Data Glove Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition Systems Development The activity of creating or modifying existing business systems. Systems Investigation Systems Analysis Systems Design Systems Implementation Systems Maintenance and Review Fundamentals of Information Systems, Second Edition

Organizations and Information Systems Fundamentals of Information Systems, Second Edition

A General Model of an Organization Fundamentals of Information Systems, Second Edition

The Value Chain of a Manufacturing Company Fundamentals of Information Systems, Second Edition

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 Fundamentals of Information Systems, Second Edition

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 Fundamentals of Information Systems, Second Edition

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 Fundamentals of Information Systems, Second Edition

Competitive Advantage Factors and Strategies Fundamentals of Information Systems, Second Edition

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 Fundamentals of Information Systems, Second Edition

Three Stages in the Business Use of IS Fundamentals of Information Systems, Second Edition

The 10 Best Places to Work for IS Fundamentals of Information Systems, Second Edition

Roles, Functions, and Careers in the Information Systems Department Operations Systems Development Support Fundamentals of Information Systems, Second Edition

The Three Primary Responsibilities of Information Systems Fundamentals of Information Systems, Second Edition

Typical IS Titles and Functions The Chief Information Officer LAN Administrators Internet Careers Fundamentals of Information Systems, Second Edition

Why Learn About Information Systems? Advance in your career Solve problems Realize opportunities Meet your career goals Fundamentals of Information Systems, Second Edition

Fundamentals of Information Systems, Second Edition 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