2001 Business & Information Systems 2/e 1

Lecture 1
Information Systems in Business
2001 Business & Information Systems 2/e 2
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
2001 Business & Information Systems 2/e 3
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.
2001 Business & Information Systems 2/e 4
Learning Objectives (contd.)
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.
2001 Business & Information Systems 2/e 5
Learning Objectives (contd.)
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.
2001 Business & Information Systems 2/e 6
Basic Information System
Concepts
Information Systems in Business
2001 Business & Information Systems 2/e 7
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.
2001 Business & Information Systems 2/e 8
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

2001 Business & Information Systems 2/e 9
Examples of Information
Systems
An inventory control system
An order entry system
A production scheduling system

2001 Business & Information Systems 2/e 10
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.
2001 Business & Information Systems 2/e 11
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.
2001 Business & Information Systems 2/e 12
Types of Information
Systems
Information Systems in Business
2001 Business & Information Systems 2/e 13
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)
2001 Business & Information Systems 2/e 14
Types of Information Systems
(contd.)
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
2001 Business & Information Systems 2/e 15
Information Systems Users
Information Systems in Business
2001 Business & Information Systems 2/e 16
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.
2001 Business & Information Systems 2/e 17
Ethical Use of Information
Systems
Ethics has to do with the standards of
behavior that people follow: what is
right and what is wrong.
2001 Business & Information Systems 2/e 18
Ethical Use of Information
Systems (contd.)
Ethical use of information systems
involves:
Confidentiality of information
Copying of software
Use of someone elses computer
Ownership of information
2001 Business & Information Systems 2/e 19
Connecting Users to
Information Technology
Information Systems in Business
2001 Business & Information Systems 2/e 20
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.
2001 Business & Information Systems 2/e 21
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.
2001 Business & Information Systems 2/e 22
Electronic Commerce
(E-Commerce)
E-Commerce allows businesses and
individuals to use networks, including
the Internet, to promote and sell
products and services.
2001 Business & Information Systems 2/e 23
Benefits of Information
Systems
Information Systems in Business
2001 Business & Information Systems 2/e 24
Benefits of Information
Systems
Better information
Improved service
Increased productivity
Competitive advantage
2001 Business & Information Systems 2/e 25
Information Systems in
Business
Key Terms
2001 Business & Information Systems 2/e 26
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)
2001 Business & Information Systems 2/e 27
Key Terms (contd.)
Information Technology
(IT)
Input Data
Input Function
Internet
Interorganizational
Information System
Network
Organizational
(Enterprise) Information
System
Output Data
Output Function
Personnel
Procedures
Processing Function
2001 Business & Information Systems 2/e 28
Key Terms (contd.)
Software
Storage Function
Stored Data
User (End User)
Workgroup (Group)
Information System
World Wide Web
(WWW)
2001 Business & Information Systems 2/e 29
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