Feedback Is Data About The Performance of A System Control Involves Monitoring and Evaluating Feedback To Determine Whether A System Is Moving

Why study information systems and information technology?
• Vital component of successful businesses

• Helps businesses expand and compete
• Improves efficiency and effectiveness of
business processes
• Facilitates managerial decision making and workgroup collaboration
What is a system
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives
• By accepting inputs and producing outputs
• In an organized transformation process
Basic functions of a system

• Input
• Capturing and assembling elements that enter the system to be processed
• Processing
• Transformation process that converts input into output
• Output
• Transferring transformed elements to their ultimate destination
Cybernetic system
• All systems have input, processing, and output
• A cybernetic system, a self-monitoring, self-regulating system, adds feedback and control:
• Feedback is data about the performance of a system
• Control involves monitoring and evaluating feedback to determine whether a system is moving
toward the achievement of its goal
What is information system

• An organized combination of…
• People
• Hardware and software
• Communication networks
• Data resources
• Policies and procedures
• This system…
• Stores, retrieves, transforms, and disseminates information in an organization
Information Technologies
• All the components and resources necessary to deliver information and functions to the organization
• Could be paper based
• Hardware, software, networking, data management
What should business professional know?
Fundamentals Roles of IS in the System
Trends in Information Systems

What is e-business
• Using Internet technologies to empower…
• Business processes
• Electronic commerce
• Collaboration within a company
• Collaboration with customers, suppliers, and other business stakeholders
• In essence, an online exchange of value
How e-business is being used
• Reengineering
• Internal business processes
• Enterprise collaboration systems
• Support communications, coordination and coordination among teams and work groups
• Electronic commerce
• Buying, selling, marketing, and servicing of products and services over networks
Types of Information Systems

• 1) Operations Support Systems
• Efficiently process business transactions
• Control industrial processes
• Support communication and collaboration
• Update corporate databases
• 2) Management Support Systems
• Provide information as reports and displays
• Give direct computer support to managers during decision-making
Purposes
Operations Supports Systems

• What do they do?
• Efficiently process business transactions
• Control industrial processes
• Support communications and collaboration
• Update corporate databases
Types of Opeartions Support Systems

• 1.1 Transaction Processing Systems
• Record and process business transactions
• Examples: sales processing, inventory systems, accounting systems
• 1.2 Process Control Systems
• Monitor and control physical processes
• Example: using sensors to monitor chemical processes in a petroleum refinery
• Enterprise Collaboration Systems
• Enhance team and workgroup communication
• Examples: email, video conferencing
Two ways to process transactions

• Batch Processing
• Accumulate transactions over time and process periodically
• Example: a bank processes all checks received in a batch at night
• Online Processing
• Process transactions immediately
• Example: a bank processes an ATM withdrawal immediately
Management Support Systems

• What do they do?
• Provide information and support for effective decision making by managers
• Management information systems
• Decision support systems
• Executive information systems
Types of Management Support Systems
• 2.1 Management Information Systems (MIS)
• Reports and displays
• Example: daily sales analysis reports
• 2.2 Decision Support Systems (DSS)
• Interactive and ad hoc support
• Example: a what-if analysis to determine where to spend advertising dollars
• 2.3 Executive Information Systems (EIS)
• Critical information for executives and managers
• Example: easy access to actions of competitors
Other information systems

• 3.1 Expert Systems
• Provide expert advice
• Example: credit application advisor
• 3.2 Knowledge Management Systems
• Support creation, organization, and dissemination of business knowledge throughout company
• Example:
• 3.4 Strategic Information Systems
• Help get a strategic advantage over customer
• Examples: shipment tracking, e-commerce Web systems
• 3.5 Functional Business Systems
• Focus on operational and managerial applications of basic business functions
• Examples: accounting, finance, or marketing
IT Challenges and Opportunities
Measuring IT success
• Efficiency
• Minimize cost, time, and use of information resources
• Effectiveness
• Support business strategies
• Enable business processes
• Enhance organizational structure and culture
• Increase customer and business value
Developing IS solutions
Challenges and ethics of IT

• Application of IT
• Customer relationship management
• Human resources management
• Business intelligence systems
• Potential Harm
• Infringements on privacy
• Inaccurate information
• Collusion
• Potential Risks
• Consumer boycotts
• Work stoppages
• Government intervention
• Possible Responses
• Codes of ethics
• Incentives
• Certification
IT careers
• Economic downturns have affected all job sectors, including IT
• Rising labor costs are pushing jobs to India,
the Middle East, and Asia-Pacific countries
• However, IT employment opportunities are strong, with new jobs emerging daily
• Shortages of IT personnel are frequent
• The long-term job outlook is positive and exciting
• Job increases will be driven by…
• Rapid growth in computer system design and related services
• The need to backfill positions
• Information sharing and client/server environments
• The need for those with problem-solving skills
• Falling hardware and software prices, which will fuel expanded computerization of operations
The IS function is…

• A major functional area of business
• An important contributor to operational efficiency, employee productivity, morale, customer
service and satisfaction
• A major source of information and support for decision making
• A vital ingredient in developing competitive products and services in the global marketplace
• A dynamic and challenging career opportunity
• A key component of today’s networked business
•
System concepts help us understand…
• Technology: hardware, software, data management, telecommunications networks
• Applications: to support inter-connected information systems
• Development: developing ways to use information technology includes designing the basic
components of information systems
• Management: emphasizes the quality, strategic business value, and security of an organization’s
information systems
Other system characteristic
• If a system is one of the components of a larger system, it is a subsystem
• The larger system is an environment
• Several systems may share the same environment
• Some may be connected via a shared boundary, or interface
• Types of systems…
• Open
• Adaptive
Components of an IS
IS Resources
• 1 People Resources
• Specialists
• End users
• 2 Hardware Resources
• Machines
• Media
• 3 Software Resources
• Programs
• Procedures
• 4 Data Resources
• Product descriptions, customer records, employee files, inventory databases
• 5 Network Resources
• Communications media, communications processors, network access and control software
• 6 Information Resources
• Management reports and business documents using text and graphics displays, audio responses,
and paper forms
Data are raw facts about physical phenomena or business transactions

Information is data that has been converted into meaningful and useful context for end users
• Examples:
• Sales data….. is names, quantities, and dollar amounts
• Sales information ……is amount of sales by product type, sales territory, or salesperson
IS Activities
• Input of data resources
• Data entry activities
• Processing of data into information
• Calculations, comparisons, sorting, and so on
• Output of information products
• Messages, reports, forms, graphic images
• Storage of data resources
• Data elements and databases
• Control of system performance
• Monitoring and evaluating feedback

Feedback Is Data About The Performance of A System Control Involves Monitoring and Evaluating Feedback To Determine Whether A System Is Moving

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Why study information systems and information technology?

• Vital component of successful businesses

Basic functions of a system

What is information system

What should business professional know?

Fundamentals Roles of IS in the System

Trends in Information Systems

How e-business is being used

Types of Information Systems

Operations Supports Systems

Types of Opeartions Support Systems

Two ways to process transactions

Management Support Systems

Other information systems

IT Challenges and Opportunities

Challenges and ethics of IT

The IS function is…

Data are raw facts about physical phenomena or business transactions

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