1. Fundamentals of Information Systems Fourth Edition Chapter 1 An Introduction to Information Systems in Organizations

2. Fundamentals of Information Systems, Fourth Edition2 Why Learn About Information Systems in Organizations? Information systems (ISs) can cut costs and increase profits Students in most fields need to know ISs –Management major might be hired to design a system to improve productivity –Biochemistry major might be hired to conduct drug research using computer techniques

3. Fundamentals of Information Systems, Fourth Edition3 Introduction Information system (IS) –Set of interrelated components: collect, manipulate, store, and disseminate data and information –Provides feedback to meet an objective –Examples: ATMs, airline reservation systems, course reservation systems

4. Fundamentals of Information Systems, Fourth Edition4 Information Concepts: Data, Information, and Knowledge Data: raw facts –Alphanumeric, image, audio, and video Information: collection of facts organized in such a way that they have additional value beyond the value of the facts themselves

5. Fundamentals of Information Systems, Fourth Edition5 Data, Information, and Knowledge (continued) Table 1.1: Types of Data

6. Fundamentals of Information Systems, Fourth Edition6 Figure 1.1: Defining and Organizing Relationships Among Data Creates Information Data, Information, and Knowledge (continued)

7. Fundamentals of Information Systems, Fourth Edition7 Figure 1.2: The Process of Transforming Data into Information Data, Information, and Knowledge (continued)

8. Fundamentals of Information Systems, Fourth Edition8 The Characteristics of Valuable Information Table 1.2: Characteristics of Valuable Information

9. Fundamentals of Information Systems, Fourth Edition9 The Characteristics of Valuable Information (continued) Table 1.2: Characteristics of Valuable Information (continued)

10. Fundamentals of Information Systems, Fourth Edition10 The Value of Information Value of information is directly linked to how it helps decision makers achieve their organization’s goals For example, value of information might be measured in: –Time required to make a decision –Increased profits to the company

11. Fundamentals of Information Systems, Fourth Edition11 What Is an Information System? Figure 1.3: The Components of an Information System

12. Fundamentals of Information Systems, Fourth Edition12 Input, Processing, Output, Feedback Input: the activity of gathering and capturing raw data Processing: converting or transforming data into useful outputs Output: production of useful information, usually in the form of documents and reports Feedback: output that is used to make changes to input or processing activities

13. Fundamentals of Information Systems, Fourth Edition13 Manual and Computerized Information Systems An information system can be: –Manual Example: developing patterns and trends on graph paper for stock analysis –Computerized Example: using program trading to track the market and trade large blocks of stocks when discrepancies occur

14. Fundamentals of Information Systems, Fourth Edition14 Computer-Based Information Systems Computer-based information system (CBIS): single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information

15. Fundamentals of Information Systems, Fourth Edition15 Computer-Based Information Systems (continued) Figure 1.4: The Components of a Computer-Based Information System

16. Fundamentals of Information Systems, Fourth Edition16 Computer-Based Information Systems (continued) CBIS components –Hardware: computer equipment used to perform input, processing, and output activities –Software: computer programs that govern the operation of the computer –Database: organized collection of facts and information –Telecommunications: electronic transmission of signals for communications –Networks: connect computers and equipment in a building, around the country, and around the world

17. Fundamentals of Information Systems, Fourth Edition17 Computer-Based Information Systems (continued) CBIS components (continued) –Internet: world’s largest computer network –People: manage, run, program, and maintain the system –Procedures: strategies, policies, methods, and rules for using a CBIS

18. Fundamentals of Information Systems, Fourth Edition18 Business Information Systems Most common types of information systems used in business organizations –Electronic and mobile commerce systems –Transaction processing systems –Management information systems –Decision support systems –Specialized business information systems

19. Fundamentals of Information Systems, Fourth Edition19 Business Information Systems (continued) Figure 1.5: Business Information Systems

20. Fundamentals of Information Systems, Fourth Edition20 Electronic and Mobile Commerce E-commerce: any business transaction executed electronically between parties –Companies (B2B) –Companies and consumers (B2C) –Consumers and other consumers (C2C) –Companies and the public sector –Consumers and the public sector

21. Fundamentals of Information Systems, Fourth Edition21 Electronic and Mobile Commerce (continued) Figure 1.8: Electronic Business

22. Fundamentals of Information Systems, Fourth Edition22 Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning Transaction: business-related exchange –Payments to employees –Sales to customers –Payments to suppliers Transaction processing system (TPS): organized collection of people, procedures, software, databases, and devices used to record completed business transactions

23. Fundamentals of Information Systems, Fourth Edition23 Transaction Processing Systems (continued) Figure 1.9: A Payroll Transaction Processing System

24. Fundamentals of Information Systems, Fourth Edition24 Enterprise Resource Planning Integrated programs capable of managing a company’s vital business operations for an entire multisite organization Coordinate planning, inventory control, production, and ordering

25. Fundamentals of Information Systems, Fourth Edition25 Information and Decision Support Systems An effective TPS provides a number of benefits to a company A TPS can speed business activities and reduce clerical costs Data stored in TPSs is used to help managers make better decisions

26. Fundamentals of Information Systems, Fourth Edition26 Management Information Systems Management information system (MIS) –Organized collection of people, procedures, software, databases, and devices –Provides routine information to managers/decision makers Primary focus is operational efficiency

27. Fundamentals of Information Systems, Fourth Edition27 Management Information Systems (continued) Figure 1.10: Management Information System

28. Fundamentals of Information Systems, Fourth Edition28 Decision Support Systems Decision support system (DSS) –Organized collection of people, procedures, software, databases, and devices –Supports problem-specific decision making Focus is on decision-making effectiveness

29. Fundamentals of Information Systems, Fourth Edition29 Decision Support Systems (continued) Figure 1.11: Essential DSS Elements

30. Fundamentals of Information Systems, Fourth Edition30 Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality Knowledge management systems (KMSs): an organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience Artificial intelligence (AI): field in which the computer system takes on the characteristics of human intelligence

31. Fundamentals of Information Systems, Fourth Edition31 Artificial Intelligence Figure 1.12: The Major Elements of Artificial Intelligence

32. Fundamentals of Information Systems, Fourth Edition32 Expert Systems Give the computer the ability to make suggestions and act like an expert in a particular field Allow organizations to capture and use the wisdom of experts and specialists The knowledge base contains the collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome

33. Fundamentals of Information Systems, Fourth Edition33 Virtual Reality Simulation of a real or imagined environment that can be experienced visually in three dimensions Immersive virtual reality Applications that are not fully immersive Can be a powerful medium for communication, entertainment, and learning

34. Fundamentals of Information Systems, Fourth Edition34 Systems Development Systems development: creating or modifying existing business systems Systems development can be: –Performed in-house –Outsourced To improve results of a systems development project, it is divided into several steps

35. Fundamentals of Information Systems, Fourth Edition35 Systems Development (continued) Figure 1.14: An Overview of Systems Development

36. Fundamentals of Information Systems, Fourth Edition36 Systems Investigation and Analysis Systems investigation: gain understanding of the problem to be solved or opportunity to be addressed Systems analysis: defines problems and opportunities of the existing system

37. Fundamentals of Information Systems, Fourth Edition37 Systems Design, Implementation, Maintenance, and Review Systems design: how the new system will work to meet the business needs defined during systems analysis Systems implementation: creating or acquiring the various system components defined in the design step, assembling them, and putting the new system into operation Systems maintenance and review: check and modify the system so that it continues to meet changing business needs

38. Fundamentals of Information Systems, Fourth Edition38 Organizations and Information Systems Organization: collection of people and other resources established to accomplish a set of goals An organization is a system –Inputs: resources (materials, people, money) –Outputs: goods or services

39. Fundamentals of Information Systems, Fourth Edition39 Organizations and Information Systems (continued) Figure 1.15: A General Model of an Organization

40. Fundamentals of Information Systems, Fourth Edition40 Organizations and Information Systems (continued) Value chain: series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service

41. Fundamentals of Information Systems, Fourth Edition41 Organizations and Information Systems (continued) Figure 1.16: The Value Chain of a Manufacturing Company

42. Fundamentals of Information Systems, Fourth Edition42 Organizations and Information Systems (continued) Supply chain management (SCM) –Determines required supplies, needed quantities, processing, and shipment Customer relationship management (CRM) –Helps company manage all aspects of customer encounters, including marketing, advertisement, sales, service, and maintaining loyalty

43. Fundamentals of Information Systems, Fourth Edition43 Careers In Information Systems Degree programs –Degrees in information systems –Business degrees with a global or international orientation Computer systems are making IS professionals’ work easier Opportunities in information systems are not confined to single countries

44. Fundamentals of Information Systems, Fourth Edition44 Roles, Functions, and Careers in the IS Department Primary responsibilities in information systems –Operations: focuses on the efficiency of IS functions –Systems development: focuses on development projects and ongoing maintenance and review –Support: provides user assistance, data administration, user training, and Web administration

45. Fundamentals of Information Systems, Fourth Edition45 Roles, Functions, and Careers in the IS Department (continued) Figure 1.19: The Three Primary Responsibilities of Information Systems

46. Fundamentals of Information Systems, Fourth Edition46 Typical IS Titles and Functions Chief Information Officer (CIO) –Employs IS department’s equipment and personnel to help the organization attain its goals LAN administrators –Set up and manage the network hardware, software, and security processes

47. Fundamentals of Information Systems, Fourth Edition47 Typical IS Titles and Functions (continued) Internet careers –Internet strategists and administrators –Internet systems developers –Internet programmers –Internet or Web site operators Certification –Examples: Microsoft Certified Systems Engineer, Certified Information Systems Security Professional (CISSP), and Oracle Certified Professional

48. Fundamentals of Information Systems, Fourth Edition48 Other IS Careers New and exciting careers have developed in security and fraud detection and prevention –Chief Information Security Officer –Chief Security Officer –Chief Privacy Officer Working for a large consulting firm such as Accenture, IBM, and EDS Developing or selling products for a hardware or software vendor Video game development

49. Fundamentals of Information Systems, Fourth Edition49 Global Challenges in Information Systems Cultural challenges Language challenges Time and distance challenges Infrastructure challenges Currency challenges

50. Fundamentals of Information Systems, Fourth Edition50 Global Challenges in Information Systems (continued) Product and service challenges Technology transfer issues State, regional, and national laws Trade agreements