Introduction To IS

 Information System
A set of interrelated components that collect, manipulate and disseminate data and
information and provide feedback to meet an objective.
Example: Business
Can use information system to increase revenues and reduce costs.

Information Concepts
Information-An organizations most valuable resources(often confused with data)

 Data=Raw facts
 Information= Collection of facts organized in such a way that they have value
beyond the facts themselves.
 Process=Set of logically related tasks
 Knowledge =Awareness and understanding of a set information.

Types of Data

 Alphanumeric data Numbers, Letters, and other character

 Image Data Graphic images and pictures
 Audio Data Sound, noise or tones
 Video Data Moving Images or pictures
Process of Transforming Data into Information
Data The transformation process Information
(Applying knowledge by
Selecting, organizing and
Manipulating data
 The Characteristics of Valuable Information
If an organizations information in not accurate or complete:
People can make poor decisions, costing thousands, millions of dollars
Characteristics Definitions
Accessible Information should be easily accessible by authorized users so they can
obtain it in the right format and at the right time to meet their needs.
Accurate Information which are accurate are error free. Inaccurate information is
generated because inaccurate data is fed into the transformation
process(called garbage in garbage out) GIGO
Complete Complete information contains all the important facts. For example, an
investment report that does not include all important costs is not
complete
Economical Information should also be relatively economical to produce. Decision
makers must always balance the value of information with the cost of
producing it
Flexible Flexile information can be used for a variety of purposes. For example,
information on how much inventory is at hand for a particular part can
be used by a sales representative in a closing sale, by a production
manager to determine whether more inventory is needed, and by a
financial executive to determine the total value the company has
invested in inventory.
Relevant Relevant information is important to the decision maker. Information
showing that lumber prices might drop might not be relevant to a
computer chip manufacturer
Reliable Reliable information can be trusted by users. In many cases, the
reliability of the information depends on the reliability of the data
collection method. In other circumstances, reliability depends on the
source of the information. A rumor from an unknown source that oil
prices might go up might not be reliable
Secure Information should be secure from access by unauthorized users
Simple Information should be simple, not overly complex. Sophisticated and
detailed information might not be needed, In fact, too much information
can cause information overload, whereby a decision maker has too much
information and is unable to determine what is really important
Timely Timely information is delivered when it is needed. Knowing that last
week’s weather conditions will not help when trying to decide what coat
to wear today
Verifiable Information should be verifiable. This means that you can check it to
make sure its correct, perhaps by checking many sources for the same
information.

Valuable info can help people and their organizations perform tasks more efficiently and
effectively.
System Concepts
 System:
- Set of elements or components that interact to accomplish goals.
 Components of a system :
-Inputs
-Processing Mechanism
-Outputs
-Feedback

System Performance and Standards

 Efficiency
-Measure of what is produced divided by what is consumed
 Effectiveness
-Measure of the extent to which a system attains its goals
 System performance standard
-Specific objective of the system

What is an IS?
A set of interrelated elements that
- Collect(input)
- Manipulate(process)
- Store
- Disseminate(output) data and information
- Provide a corrective reaction (feedback mechanism) to meet an objective
 Input:
- Activity of gathering and capturing raw data
 Processing:
- Converting data into useful outputs
 Output:
- Production of useful information,usually in the form of documents and reports
 Feedback:
- Information from the system that is used to make changes to input or processing
activities

Manual and Computerized Information

 An information system can be :
- Manual or computerized
 Eg: Investment analysts manually draw charts and trend lines to assist them in making
investment decisions
 Computerized information systems:
- Follow stock indexes and markets and suggest when large blocks of stocks should
be purchased or sold

Computer based information systems

 Single set of hardware, software, databases, telecommunications, people, and
procedures:
- That are configured to collect, manipulate, store, and process data into information
 Technology infrastructure:
- Includes all hardware, software, databases, telecommunications, people, and
procedures
- Configured to collect, manipulate, store, and process data into information

Components of a computer based IS

 Hardware:
 - Consists of computer equipment used to perform input, processing, and output
activities
 Software:
- Consists of the computer programs that govern the operation of the computer
 Database:
- Organized collection of facts and information, typically consisting of two or more related
data files
 Telecommunications, networks, and the Internet:
- The electronic transmission of signals for communications
 Networks
- Connect computers and equipment to enable electronic communication
 Internet
- World’s largest computer network, consisting of thousands of interconnected networks, all
freely exchanging information
- Intranet:
-Internal network that people within an organization to exchange information and work
on projects
- Extranet:
- Network that allows selected outsiders, such as business partners and customers, to
access authorized resources of a company’s intranet
 People:
- The most important element in most computer-based information systems
 Procedures:
- Include strategies, policies, methods, and rules for using the CBIS

Business Information System

• Most common types of information systems:

– Those designed for electronic and mobile commerce, transaction processing,
management information, and decision support
• Some organizations employ:
– Special-purpose systems, such as virtual reality, that not every organization uses

Electronic and Mobile Commerce

 E-commerce
- Any business transaction executed electronically between:
- Companies (business-to-business, B2B)
- Companies and consumers (business-to-consumer, B2C)
- Consumers and other consumers (consumer-to-consumer, C2C)
- Business and the public sector
- Consumers and the public sector

 Mobile Commerce(m-commerce):
- The use of mobile, wireless devices to place orders and conduct business.
 E-commerce:
- Can enhance a company’s stock prices and market value
 Electronic business(e-business):
- Uses information systems and the Internet to perform all business-related tasks
and functions

Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning

• Transaction:
– Any business-related exchange, such as payments to employees and sales to
customers
• Transaction processing system (TPS):
– Organized collection of people, procedures, software, databases, and devices
used to record completed business transactions
 • Enterprise resource planning:
– Set of integrated programs that:
• Manages the day to day and vital business operations for an entire
multisite, global organization
– Most systems provide integrated software to support manufacturing and
finance
– ERP is the vehicle for integrating people, processes, and technologies across a
modern enterprise.

 ERP
- For example: consider a company that builds cars by procuring parts and components from
multiple suppliers.
- It could use an ERP system to track the requisition and purchase of these goods and ensure
that each component across the entire procure-to-pay process uses uniform and clean
data connected to enterprise workflows, business processes, reporting, and analytics.
- When ERP is properly deployed at this automotive manufacturing company, a component,
for example, “front brake pads,” is uniformly identified by part name, size, material,
source, lot number, supplier part number, serial number, cost, and specification
- ERP makes it easier to collect, organize, analyze, and distribute this information to every
individual and system that needs it to best fulfill their role and responsibility.
- Source: Oracle

Information and Decision Support Systems

 Management Information System(MIS)
- Organized collection of people, procedures, software, databases, and devices that:
 Provides routine information to managers and decision makers

 Decision support system (DSS):

- Organized collection of people, procedures, software, databases, and devices that support
problem-specific decision making
- Used when problem is complex, and information needed to determine appropriate action
is difficult to obtain
 DSS solution types
 Optimization model – getting the best solution
 Satisficing model – getting a good, but perhaps not the best solution for a problem
 Heuristics – getting a solution via commonly used guidelines or criterias
 Model base – provides decision makers with access to different types of models
 Model Management software – coordinates the use of models
 Dialogue manager - let decision makers to access and manipulate the DSS(interface)
 Models can be:
- Project mgmt. models
- Statistical analysis models
- Financial models
- Graphical models

Specialized Business Information Systems:

Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality
 Knowledge management systems (KMSs):
- Organized collection of people, procedures, software, databases, and devices to:
- Create, store, share, and use the organization’s knowledge and experience
 Artificial intelligence
- Computer systems take on characteristics of human intelligence.

Major elements of AI
  Expert System:
- Give computer ability to make suggestions and function like an expert in a
particular field
 Virtual Reality:
- Simulation of a real or imagined environment that can be experienced visually in
three dimensions

Systems Development
 Systems Development:
- The activity of creating or modifying existing business systems
 Outsourcing:
- Allows a company to focus on what it does best and delegate other functions to
companies with expertise in systems development.

Systems Investigation and Analysis,System Design,Implementation and maintenance

And review
 Goal of systems investigation:
- To gain clear understanding of the problem to be solved or opportunity to be
addressed
 System analysis:
- Defines the problems and opportunities of the existing system
 Systems Design:
- Determines how new system will work to meet business needs defined during
systems analysis
  Systems Implementation:
- Acquiring various system components defined in design step, assembling them,
and putting the new system into operation
 Systems maintenance and review:
- Checks and modifies the system so that it continues to meet changing business
needs
Information Systems in Society, Business and Industry
 Information Systems:
- Have been developed to meet the needs of all types of organizations and people
- Speed and widespread use ,open users to a variety of threats from unethical
people

Security, Privacy, and Ethical Issues in Information Systems and the Internet
 Drawbacks of information systems:
- Personal data, including Social Security and credit card numbers, can be lost or
stolen
 To protect against threats to your privacy and data:
- Install security and control measures
 Use of information systems:
- Raises work concerns, including job loss through increased efficiency

Computer and Information Systems Literacy

 Computer Literacy:
- Knowledge of computer systems and equipment and the ways they function
 Information systems literacy:
- Knowledge of how data and information are used by individuals, groups, and
organizations
- Consists of 3 elements:
- Information Technology skills
- Analysis & problem solving skills
- Organizational and individual behavior skills

Information Systems in the Functional Areas Of Business

 Functional areas and operating divisions of business:
- Finance and accounting
- Sales and marketing
- Manufacturing
- Human resource management
- Legal information systems
 Industries:
- Airline Industries
- Investment firms
- Banks
- Transportation Industry
- Publishing companies
- Healthcare maintenance organizations (HMOs)
- Retail Companies
- Power management and utility companies
- Professional services
- Management consulting firms
Global Challenges in Information Systems
 Cultural challenges
 Language challenges
 Times and distance challenges
 Infrastructure challenges
 Currency challenges
 Product and service challenges
 Technology transfer issues
 State, regional, and national laws
 Trade agreements