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Fundamentals of Information Systems, Second Edition
1
An Introduction to Information Systems in Organizations
Chapter 1
Fundamentals of Information Systems, Second Edition
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Principles and Learning Objectives
• The value of information is directly linked to how it helps decision makers achieve the organization’s goals.
– Distinguish data from information and describe the characteristics used to evaluate the quality of data.
Fundamentals of Information Systems, Second Edition
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Principles and Learning Objectives
• Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life.
– Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver.
Fundamentals of Information Systems, Second Edition
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Principles and Learning Objectives
• System users, business managers, and information systems professionals must work together to build a successful information system.
– Identify the major steps of the systems development process and state the goal of each.
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Principles and Learning Objectives
• The use of information systems to add value to the organization can also give an organization a competitive advantage.
– Identify the value-added processes in the supply chain and describe the role of information systems within them.
– Identify some of the strategies employed to lower costs or improve service.
– Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage.
Fundamentals of Information Systems, Second Edition
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Principles and Learning Objectives
• Information systems personnel are the key to unlocking the potential of any new or modified system.
– Define the types of roles, functions, and careers available in information systems.
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Information Concepts
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Information System
• A set of interrelated components that collect, manipulate & disseminate data & information & provide feedback to meet an objective.
• Examples: ATMs; airline reservation systems; course reservation systems
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Data vs. Information
• Data: raw facts
• Information: collection of facts organized in such a way that they have value beyond the facts themselves
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The Process of Transforming Data into Information
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Characteristics of Valuable Information
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The Components of an Information System
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Computer-Based Information Systems (CBIS)
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Components of a CBIS
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Components of a CBIS• Hardware - computer equipment used to perform input, processing,
and output activities.
• Software - computer programs that govern the operation of the computer.
• Database - an organized collection of facts and information, typically consisting of two or more related data files.
• People - the most important element in most computer-based information systems.
• Procedures - include the strategies, policies, methods, and rules for
using the CBIS.
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Telecommunications, Network, and the Internet
• Telecommunications - the electronic transmission of signals for communications.
• Networks - used to connect computers and computer equipment in a building, around the country, or around the world to enable electronic communications.
• Internet - the world’s largest computer network, actually consisting of thousands of interconnected networks
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Business Information Systems
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Business Information Systems
• Electronic Commerce• Transaction Processing Systems and ERP• Information and Decision Support Systems• Special-Purpose Business Information Systems: Artificial
Intelligence, Expert Systems, and Virtual Reality
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E-Commerce
• Business-to-business
• Business-to-consumer
• Consumer-to-consumer
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E-Commerce Greatly Simplifies the Purchasing Process
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Transaction Processing Systems and ERP
• Transaction processing system (TPS) - an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.
• Enterprise Resource Planning (ERP) System - a set of integrated programs capable of managing a company’s vital business operations for an entire multisite, global organization.
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A Payroll Transaction Processing System
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Functional Management Information Systems Draw Data from the Organization’s TPS
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Decision Support Systems (DSS)
An organized collection of people, procedures, software, databases, and devices used to
support problem-specific decision making.
– The focus of a DSS is on decision-making effectiveness.
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Essential DSS Elements
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Special-Purpose Business Information Systems
• Artificial intelligence (AI) systems
• Virtual reality systems
• Expert systems
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The Major Elements of Artificial Intelligence
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A Head-Mounted Display
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Data Glove
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Systems Development
The activity of creating or modifying existing business systems. – Systems Investigation– Systems Analysis– Systems Design– Systems Implementation– Systems Maintenance and Review
Fundamentals of Information Systems, Second Edition
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Organizations and Information Systems
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A General Model of an Organization
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The Value Chain of a Manufacturing Company
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Technology Diffusion, Infusion, and Acceptance
• Technology Diffusion - a measure of how widely technology is spread throughout an organization.
• Technology Infusion - is the extent to which technology permeates an area or department.
• Technology Acceptance Model (TAM) - specifies the factors that can lead to higher acceptance and usage of technology in an organization
Fundamentals of Information Systems, Second Edition
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Competitive Advantage
A significant and (ideally) long-term benefit to a company over its competition.
• Factors That Lead Firms to Seek Competitive Advantage– Rivalry among Existing Competitors – Threat of New Entrants– Threat of Substitute Products and Services– Bargaining Power of Customers and Suppliers
Fundamentals of Information Systems, Second Edition
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Strategic Planning for Competitive Advantage
• Altering the Industry Structure• Creating New Products and Services• Improving Existing Product Lines and Services• Using Information Systems for Strategic
Purposes
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Competitive Advantage Factors and Strategies
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Performance-Based Information Systems
• Productivity• Quality• Return on Investment and the Value of
Information Systems– Earnings Growth– Market Share– Customer Awareness and Satisfaction– Total Cost of Ownership
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Three Stages in the Business Use of IS
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The 10 Best Places to Work for IS
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Roles, Functions, and Careers in the Information Systems Department
• Operations• Systems Development• Support
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The Three Primary Responsibilities of Information Systems
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Typical IS Titles and Functions
• The Chief Information Officer• LAN Administrators• Internet Careers
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Why Learn About Information Systems?
• Advance in your career• Solve problems• Realize opportunities• Meet your career goals
Fundamentals of Information Systems, Second Edition
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Summary
• Data - raw facts• Information - data transformed into a
meaningful form • Systems development - creating or modifying
existing business systems• Organization - a formal collection of people and
various other resources established to accomplish a set of goals