1. SYSTEMS, DATA, AND INFORMATION
A system is:
A set of interrelated components
That interact
To achieve a goal

2. SYSTEMS, DATA, AND INFORMATION
Most systems are composed of smaller subsystems . . .
. . . and vice versa!

3. SYSTEMS, DATA, AND INFORMATION
Every organization has goals.
The subsystems should be designed to maximize achievement of the organization’s goals.
Even to the detriment of the subsystem itself.
EXAMPLE: The production department (a subsystem) of a company might have to forego its goal of staying within its budget in order to meet the organization’s goal of delivering product on time.

4. SYSTEMS, DATA, AND INFORMATION
Goal conflict occurs when the activity of a subsystem is not consistent with another subsystem or with the larger system.
Goal congruence occurs when the subsystem’s goals are in line with the organization’s goals.
The larger and more complicated a system, the more difficult it is to achieve goal congruence.

5. SYSTEMS, DATA, AND INFORMATION
The systems concept encourages integration (i.e., minimizing the duplication of recording, storing, reporting, and processing).
Data are facts that are collected, recorded, stored, and processed by an information system.
Organizations collect data about:
Events that occur
Resources that are affected by those events
Agents who participate in the events

6. SYSTEMS, DATA, AND INFORMATION
Information is different from data.
Information is data that have been organized and processed to provide meaning to a user.
Usually, more information and better information translates into better decisions.

7. SYSTEMS, DATA, AND INFORMATION
However, when you get more information than you can effectively assimilate, you suffer from information overload.
Example: Final exams week!
When you’ve reached the overload point, the quality of decisions declines while the costs of producing the information increases.

8. SYSTEMS, DATA, AND INFORMATION
Benefits of information - Cost of producing information Value of information
Benefits of information may include:
Reduction of uncertainty
Improved decisions
Improved ability to plan and schedule activities

9. SYSTEMS, DATA, AND INFORMATION
Benefits of information - Cost of producing information Value of information
Costs may include time and resources spent:
Collecting data
Processing data
Storing data
Distributing information to users

10. SYSTEMS, DATA, AND INFORMATION
Benefits of information - Cost of producing information Value of information
Costs and benefits of information are often difficult to quantify, but you need to try when you’re making decisions about whether to provide information.

11. SYSTEMS, DATA, AND INFORMATION
Characteristics that make information useful:
Relevance
It reduces uncertainty by helping you predict what will happen or confirm what already has happened.

12. SYSTEMS, DATA, AND INFORMATION
Characteristics that make information useful:
Relevance
Reliability
It’s dependable, i.e., free from error or bias and faithfully portrays events and activities.

13. SYSTEMS, DATA, AND INFORMATION
Characteristics that make information useful:
Relevance
Reliability
Completeness
It doesn’t leave out anything that’s important.

14. SYSTEMS, DATA, AND INFORMATION
Characteristics that make information useful:
Relevance
Reliability
Completeness
Timeliness
You get it in time to make your decision.

15. SYSTEMS, DATA, AND INFORMATION
Characteristics that make information useful:
Relevance
Reliability
Completeness
Timeliness
Understandability
It’s presented in a manner you can comprehend and use.

16. SYSTEMS, DATA, AND INFORMATION
Characteristics that make information useful:
Relevance
Reliability
Completeness
Timeliness
Understandability
Verifiability
A consensus notion—the nature of the information is such that different people would tend to produce the same result.

17. SYSTEMS, DATA, AND INFORMATION
Characteristics that make information useful:
Relevance
Reliability
Completeness
Timeliness
Understandability
Verifiability
Accessibility
You can get to it when you need it and in a format you can use.

18. SYSTEMS, DATA, AND INFORMATION
Information is provided to both:
External users
Internal users

19. SYSTEMS, DATA, AND INFORMATION
Information is provided to both:
External users
Internal users

20. SYSTEMS, DATA, AND INFORMATION
External users primarily use information that is either:
MANDATORY INFORMATION—required by a governmental entity, such as Form 10-K required by the SEC; or
ESSENTIAL INFORMATION—required to conduct business with external parties, such as purchase orders.

21. SYSTEMS, DATA, AND INFORMATION
In providing mandatory or essential information, the focus should be on:
Minimizing costs.
Meeting regulatory requirements.
Meeting minimum standards of reliability and usefulness.

22. SYSTEMS, DATA, AND INFORMATION
Information is provided to both:
External users
Internal users

23. SYSTEMS, DATA, AND INFORMATION
Internal users primarily use discretionary information.
The primary focus in producing this information is ensuring that benefits exceed costs, i.e., the information has positive value.

24. What is an Information System?
An organized combination of…
People
Hardware and software
Communication networks
Data resources
Policies and procedures
This system…
Stores, retrieves, transforms, and disseminates information in an organization

25. Information Technologies
Information Systems
All the components and resources necessary to deliver information and functions to the organization
Could be paper based
Information Technologies
Hardware, software, networking, data management
Our focus will be on computer-based information systems (CBIS)