1. Introduction to Information Systems
Chapter 1
Introduction to Information Systems
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2. Learning Objectives
To describe an information system’s integration with business processes and the organization
To describe the business professional’s role in the current information technology-driven environment
To illustrate the attributes of information and the importance of data quality
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3. Three Themes of the Text
Enterprise systems
Electronic business (E-Business)
Information technology
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4. Enterprise Systems
Integrated software packages designed to provide complete integration of an organization’s information processing systems and all related data
Modules:
Logistics
Accounting
Manufacturing
Human resources
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5. E-Business
Application of electronic networks (including the Internet) to undertake business processes between individuals and organizations
Interaction between front-office and back-office processes
Electronic networks include:
The Internet
Electronic data interchange (EDI)
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6. Information Technology
Any hardware, software or communications technology that might be adopted by an organization to:
Support or control a business process
Enable management decisions
Provide a competitive advantage.
IT may be used to support enterprise systems and e-business applications.
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7. Elements in the Study of Information Systems
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FIGURE 1.1

8. What Is an Information System?
A set of interdependent elements that together accomplish specific objectives
Subsystem
A component part of a system that, together with other interrelated components, is integrated into a system structure.
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9. Systems and Subsystems
FIGURE 1.2
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10. Functional Model of an Information System
NOTE:
System outputs result in user actions. Some actions (i.e., feedback) in turn become subsequent system inputs.
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FIGURE 1.3

11. Data Activities Business event data stores
Capturing and converting input data
Machine-readable form
Master stores updating of standing data
Information processing
Data maintenance
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12. Business Process Components
Information process
The use of IS in coordinating all of the business processes of an organization
Operations process
The system that accomplishes the work of the organization
Management process
The system that management uses to plan and control the organization
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13. A Logical Model of a Business Process for Ordering Books Online
FIGURE 1.4
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14. Information System Output Flow and Users
Because Figure 1.5 depicts data from business events, the vertical information flows upward. Other data, such as budgets, would flow downward.
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FIGURE 1.5

15. Data versus Information
Data presented in a form that is useful in a decision-making activity
Reduces uncertainty and increases knowledge
Data
Facts and figures in raw form
Measurements or observations of objects or events
The basic function of an information system is to transform data into useful information.
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16. Qualities of Information
Effectiveness
Efficiency
Confidentiality
Integrity
Availability
Compliance
Reliability of information
Source: Reprinted with permission from COBIT: Control Objectives for Information and Related Technology—Framework, 3rd ed. (Rolling Meadows, IL: The Information Systems Audit and Control Foundation, 2000): 14.
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EXHIBIT 1.1

17. A Hierarchy of Information Qualities
FIGURE 1.6
Source: Adapted from Statement of Financial Accounting Concepts No. 2: Qualitative Characteristics of Accounting Information, Financial Accounting Standards Board (FASB), May 1980, p. 15. Copyright by Financial Accounting Standards Board, 401 Merritt 7, P.O. Box 5116, Norwalk, CT Reprinted with permission. Copies of complete document are available from the FASB.
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18. Questions to Ask About an IS
What will be recorded as a business event?
What data stores will be used to record the event?
When will the event be recorded: before or after occurrence?
What controls will be necessary to provide valid, accurate, and complete records; to protect assets; and to ensure that the IS can be audited?
What reports will be produced, and when will they be produced?
How much detail will the reports include?
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