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Chapter 1

Information Systems in Business


Our Agenda Basic Information Systems

Concepts Types of Information Systems Information Systems Users Connecting Users to Information

Technology Benefits of Information Systems An Approach to the Study of

Information Systems


Learning Objectives Explain what an information

system is and describe the functions of an information system.

Identify the components of an information system.

Explain the difference between data and information.


Learning Objectives (cont’d.) List several types of information

systems and give an example of each type.

Explain who information systems users are and describe how users use information systems.


Learning Objectives (cont’d.) Explain what ethics are and why it

is important to use information systems ethically.

Describe how users are connected to information technology locally, nationally, and internationally.

Describe several benefits of information systems.


Basic Information System Concepts



What is an Information System? An Information System is a collection of

components that work together to provide information to help in the operations and management of an organization.

Information Technology is the integration of computers, communications equipment, and other technology used in information systems.


Components of an Information System? Components

Hardware - Equipment such as computers

Software - Instructions for the equipment

Stored Data - Facts stored in the system

Personnel - People who operate the system

Procedures for the people to follow


Examples of Information Systems An inventory control system An order entry system A production scheduling system


Information Systems Functions

Input Function accepts the input data from outside the system.

Storage Function retains input data and retrieves stored data.

Processing Function calculates and in other ways manipulates the input and stored data.

Output Function produces results of processing for use outside the system.


Data versus Information Data is a representation of a fact, a

number, a word, an image, a picture or a sound.

Information is data that is meaningful or useful to someone.


Types of Information Systems



Types of Information Systems Personal information systems

Word Processing Spreadsheet or financial analysis Database Graphics or presentation software

Workgroup information systems Electronic mail (e-mail) Local area network (LAN)


Types of Information Systems (cont’d.) Organizational information

systems Mainframe computers Wide area network (WAN)

Interorganizational information systems Electronic Data Interchange (EDI) Electronic Funds Transfer (EFT)

Global information systems Production scheduling system


Information Systems Users



How Users Use Information Systems Users may use an information system

directly by pressing keys on a computer keyboard or by operating a piece of equipment that sends input data to a computer.

A user may use an information system indirectly by having someone else enter the data and receive the output which is then given to the user.


Ethical Use of Information Systems Ethics has to do with the standards

of behavior that people follow: what is right and what is wrong.


Ethical Use of Information Systems (cont’d.) Ethical use of information systems

involves: Confidentiality of information Copying of software Use of someone else’s computer Ownership of information


Connecting Users to Information Technology



Networks A network is a collection of computers

and related equipment connected using communications equipment so that they can communicate with each other.

Local Area Networks (LAN) cover a small area such as a building.

Wide Area Networks (WAN) cover a large area such as a city, region, country or several countries.


The Internet and the World Wide Web (WWW) The Internet is a worldwide

collection of interconnected networks.

The World Wide Web (WWW) is a service on the Internet that links information stored on different computers.


Electronic Commerce(E-Commerce) E-Commerce allows businesses

and individuals to use networks, including the Internet, to promote and sell products and services.


Benefits of Information Systems



Benefits of Information Systems Better information Improved service Increased productivity Competitive advantage


An Approach to the Study of Information Systems



Part 1 Chapter 2 explains what a business

does. Chapter 3 discusses the

components of an information system.


Part 2 Part 2 explains the technology

used in information systems, including hardware and software; how computers are interconnected in networks; and how data is organized for storage and processing in information systems.


Part 3 and Part 4 Part 3 examines common types of

information systems used in business, with examples.

Part 4 examines the development and management of information systems.



Key Terms


Key Terms Computer Application Computer Information System (CIS) Data Electronic Commerce Electronic Data Interchange (EDI) Electronic Funds Transfer (EFT)

Electronic Mail (e-mail) Ethics Global (International) Information System Hardware Individual (Personal) Information System Information Information System (IS)


Key Terms (cont’d.) Information Technology (IT) Input Data Input Function Internet Interorganizational Information System Network

Organizational (Enterprise) Information System Output Data Output Function Personnel Procedures Processing Function


Key Terms (cont’d.) Software Storage Function Stored Data User (End User) Workgroup (Group) Information System World Wide Web (WWW)


Summary Basic Information Systems

Concepts Types of Information Systems Information Systems Users Connecting Users to Information

Technology Benefits of Information Systems An Approach to the Study of

Information Systems

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Lead Black Slide Powered by DeSiaMore1. 2 Chapter 1 Information Systems in Business