1. Lesson-8 Information System Building Blocks
Describe the difference between data and information.
Define the product called an information system, and describe the role of information technology in information systems.
Differentiate between front- and back-office information systems.
Describe five classes of information system applications (transaction processing, management information, decision support, expert, and office automation systems) and how they interoperate.
Describe the role of information systems architecture in system development.
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2. Chapter Map Teaching Notes
This is the capstone figure for the chapter—the complete information systems building blocks framework.
Teaching Tips
Emphasize that ALL building blocks are relevant to ALL information systems that the student will encounter or develop during the course of their career.
Emphasize that the building blocks must be synchronized both horizontally and vertically when building information systems.
Vertical synchronization ensures that each block represents fully the perspectives of the other blocks in the same column. For example, a database schema must implement the intended data requirements.
Horizontal synchronization ensures that each block in a given row is consistent and complete with respect to the other blocks in that same row. For example, each table in a database schema requires application software and specifications to maintain the data stored in those tables.

3. Data and Information
Data are raw facts about the organization and its business transactions. Most data items have little meaning and use by themselves.
Information is data that has been refined and organized by processing and purposeful intelligence. The latter, purposeful intelligence, is crucial to the definition People provide the purpose and the intelligence that produces true information.
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4. Information Systems & Technology
An information system (IS) is an arrangement of people, data, processes, communications, and information technology that interact to support and improve day-to-day operations in a business as well as support the problem-solving and decision making needs of management and users.
Information technology is a contemporary term that describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks).
Conversion Notes
In previous editions, we tried to distinguish between “information systems” and “computer applications” (the latter being a subset of the former). This created more confusion with students than it was worth.
Some books use the term “computer technology.” We prefer the more contemporary term, “information technology” as a superset of computer technology.

5. Front- and Back-Office Information Systems
Front-office information systems support business functions that reach out to customers (or constituents).
Marketing
Sales
Customer management
Back-office information systems support internal business operations and interact with suppliers (of materials, equipment, supplies, and services).
Human resources
Financial management
Manufacturing
Inventory control
Conversion Notes
This classification scheme comes from popular usage in the trade literature.
Teaching Tips
This terminology is not to be confused with office automation. In fact, office automation systems can be either front-office or back-office, just as with other types of information system applications.

6. A Federation of Information Systems
Teaching Tips
This slide visually illustrates front- and back-office applications and highlights the following:
Many organizations purchase their back-office systems in the form of enterprise resource planning (ERP) products such as SAP, PeopleSoft, and Oracle.
The ERP industry is trying to expand into the front-office applications.
It might be noted that electronic commerce and business extensions are being added to both front- and back-office applications in order to streamline interfaces to both customers and suppliers.
E-commerce is being driven by the Internet (and private extranets).
E-business is being enabled by intranets.

7. Classes of Information Systems
Transaction processing systems
Management information systems
Decision support systems
Expert systems
Office automation systems
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8. Transaction Processing
Transaction processing systems are information system applications that capture and process data about business transactions.
Includes data maintenance, which provides for custodial updates to stored data.
Business process redesign (BPR) is the study, analysis, and redesign of fundamental business (transaction) processes to reduce costs and/or improve value added to the business.
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9. Management Information Systems
A management information system (MIS) is an information system application that provides for management-oriented reporting. These reports are usually generated on a predetermined schedule and appear in a prearranged format.
Conversion Notes
In some previous editions and other textbooks, MIS is referred to as “management reporting.”

10. Decision Support Systems
A decision support system (DSS) is an information system application that provides its users with decision-oriented information whenever a decision-making situation arises. When applied to executive managers, these systems are sometimes called executive information systems (EIS).
A data warehouse is a read-only, informational database that is populated with detailed, summary, and exception data and information generated by other transaction and management information systems. The data warehouse can then be accessed by end-users and managers with DSS tools that generate a virtually limitless variety of information in support of unstructured decisions.
Conversion Notes
Some books treat DSS and EIS as distinct; however, if definitions are closely examined, the differences are subtle – they only differ in audience. Both DSS and EIS tend to support the same decision-oriented activities and basically work the same.
Data warehouse concepts are also taught in most database textbooks and courses. The design of a data warehouse differs significantly from traditional, operational databases.

11. Expert Systems
An expert system is a programmed decision-making information system that captures and reproduces the knowledge and expertise of an expert problem solver or decision maker and then simulates the “thinking” or “actions” of that expert.
Expert systems are implemented with artificial intelligence technology that captures, stores, and provides access to the reasoning of the experts.
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12. Office Automation Systems
Office automation (OA) systems support the wide range of business office activities that provide for improved work flow and communications between workers, regardless of whether or not those workers are located in the same office.
Personal information systems are those designed to meet the needs of a single user. They are designed to boost an individual’s productivity.
Work group information systems are those designed to meet the needs of a work group. They are designed to boost the group’s productivity.
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13. Information Systems Applications
Teaching Tips
It may be useful to walk through this diagram in class. The textbook coverage included numbered annotations that highlight portions of this diagram.
Remind students that any given information system may include many instances of each of these IS application processes and databases.
Information Systems Applications

14. Information Systems Architecture
Information systems architecture provides a unifying framework into which various people with different perspectives can organize and view the fundamental building blocks of information systems.
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