1 California State University, Fullerton Chapter 1 Information Systems in Business

California State University, Fullerton 2 What is an Information System? An Information System (IS) is a collection of components that work together to provide information to help in the operations and management of an organization. Information Technology is the integration of computers, communications equipment, and other technologies used in information systems.

California State University, Fullerton 3 Data versus Information Data represents a fact, a number, a word, an image, a picture or a sound. Information is data that is meaningful or useful to someone.

California State University, Fullerton 4 Components of an Information System? Components Hardware - Equipment such as computers and Communication devices Software - Instructions for the equipment Stored Data - Facts stored in the system Personnel - People who use and manage the system Procedures - Instructions for the people to follow

California State University, Fullerton 5 What is a Computer A computer is a device that is 1.Electronic 2.Can store data 3.Can store and follow a set of software instructions, called a program.

California State University, Fullerton 6 Computer hardware Input devices Output devices Secondary storage Primary storage Central Processing Unit (CPU)

California State University, Fullerton 7 Input devices An input device accepts data from outside the computer and converts it into an electronic form the computer can understand. Examples include keyboard, Mouse, trackball

California State University, Fullerton 8 Output devices An output device converts data from an electronic form inside the computer to a form that can be used outside the computer. Examples include printer, Monitor, Plotter

California State University, Fullerton 9 Secondary storage devices Secondary storage, also called auxiliary storage, stores data not currently being processed by the computer and represents permanent storage. Data is usually transferred to and from Secondary storage. Examples include hard disk drive, floppy disk drive, ZIP disk drive, CDROM, and DVD.

California State University, Fullerton 10 Primary storage Primary storage, also called internal storage, is the “memory”, or RAM, of the computer. Primary storage, which is temporary storage, is dependent upon continuous electrical power. Any interruption of electrical power causes the contents of primary storage to be lost.

California State University, Fullerton 11 Central Processing Unit The CPU, or processor, carries out the instructions of the program. It contains circuits that control the operations of the hardware and the circuitry that performs arithmetic and logical operations. Control Unit (CU) Arithmetic Logic Unit (ALU)

California State University, Fullerton 12 Software System software – designed to make computers usable. It includes operating system. Application software – designed for specific computer applications for a business or organization. Examples include accounting Software, Word processing software.

California State University, Fullerton 13 Stored Data Data that is stored in a machine readable form.

California State University, Fullerton 14 Personnel Users IS personnel

California State University, Fullerton 15 How Users Use Information Systems Users may use an information system directly by pressing keys on a computer keyboard or by operating a piece of equipment that sends input data to a computer. A user may use an information system indirectly by having someone else enter the data and receive the output which is then given to the user.

California State University, Fullerton 16 Procedures Instructions for: Users IS personnel

California State University, Fullerton 17 Examples of Information Systems An order entry system Point-of-sale system An inventory control system Purchasing System Receiving System A production scheduling system Sales analysis system General ledger system

California State University, Fullerton 18 Information Systems Functions Input Function accepts the input data from outside the system. Storage Function retains input data and retrieves stored data. Processing Function calculates and in other ways manipulates the input and stored data. Output Function produces results of processing for use outside the system.

California State University, Fullerton 19 Types of IS Personnal or Information Systems Workgroup information systems Organizational information systems Interorganizational information systems Global information systems

California State University, Fullerton 20 Types of Information Systems Personal information systems Word Processing Spreadsheet or financial analysis Database Graphics or presentation software Workgroup information systems Electronic mail ( ) Teleconferencing system

California State University, Fullerton 21 Types of Information Systems (cont’d.) Organizational information systems Account receivable system Payroll System Interorganizational information systems Electronic Data Interchange (EDI) Electronic Funds Transfer (EFT) Global information systems Production scheduling system for an international company

California State University, Fullerton 22 Ethical Use of Information Systems Ethics has to do with the standards of behavior that people follow: what is right and what is wrong.

California State University, Fullerton 23 Ethical Use of Information Systems (cont’d.) Ethical use of information systems involves: Confidentiality of information Copying of software Use of someone else’s computer Ownership of information

California State University, Fullerton 24 Networks A network is a collection of computers and related equipment connected using communications equipment so that they can communicate with each other. Local Area Networks (LAN) cover a small area such as a building. Wide Area Networks (WAN) cover a large area such as a city, region, country or several countries.

California State University, Fullerton 25 The Internet and the World Wide Web (WWW) The Internet is a worldwide collection of interconnected networks. The World Wide Web (WWW) is a service on the Internet that links information stored on different computers.

California State University, Fullerton 26 Electronic Commerce (E-Commerce) E-Commerce allows businesses and individuals to use networks, including the Internet, to promote and sell products and services.

California State University, Fullerton 27 Benefits of Information Systems Better information Improved service Increased productivity Competitive advantage