Principles of Information

Systems, Thirteenth
Edition

Chapter 1
An Introduction to Information
Systems
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 Data, Information, and Knowledge

• Data: raw facts

• Information: collection of data organized in such a way that they have value
beyond the facts themselves
• Process: set of logically related tasks performed to achieve a defined outcome
• Turning data into information is a process
• Knowledge: awareness and understanding of a set of information and the ways
it can be made useful to support a task
• The process of defining relationships among data to create useful information requires
knowledge

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or otherwise on a password-protected website for classroom use.
Data, Information, and Knowledge

© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service 3
or otherwise on a password-protected website for classroom use.
Data, Information, and Knowledge

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or otherwise on a password-protected website for classroom use.
 The Value of Information

• Valuable information helps people perform tasks more efficiently and

effectively
• Inaccurate data can result in loss of potential new customers and reduced customer
satisfaction
• Accuracy and completeness are critical for data used in accounting for the
management of company assets

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or otherwise on a password-protected website for classroom use.
 What is an Information System?

• An information system (IS) is a set of interrelated elements that:

• Collect (input)
• Process
• Store
• Publish data and information
• Provides a feedback mechanism to monitor and control its operation to make sure it
continues to meet its goals and objectives
• A computer-based information system (CBIS) is a single set of hardware,
software, databases, networks, people, and procedures
• That are configured to collect, manipulate, store, and process data into information
• An organization’s technology infrastructure includes all the hardware, software,
databases, networks, people, and procedures
• That are configured to collect, manipulate, store, and process data into information

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or otherwise on a password-protected website for classroom use.
What is an Information System?

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 What is an Information System?

• Procedure defines the steps to follow to achieve a specific end result

• Such as enter a customer order, pay a supplier invoice, or request a current inventory
report
• Using a CBIS involves setting and following many procedures, including those
for the
• Operation, maintenance, and security of the system

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or otherwise on a password-protected website for classroom use.
 Information Systems in Organizations

• Information systems can be divided into three types:

• Personal IS – includes information systems that improve the productivity of individual
users
• Group IS –includes information systems that improve communications and support
collaboration among members of a workgroup
• Enterprise IS – includes information systems that organizations use to define
structured interactions among their own employees and/or external customers,
suppliers, government agencies, etc…

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or otherwise on a password-protected website for classroom use.
 Information Systems in Organizations

• For each type of IS, certain key organizational complements must be in place:
• Well-trained workers
• System support
• Better teamwork
• Redesigned processes
• New decision rights

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 Hardware and Mobile Devices

• Hardware
• Consists of computer equipment used to perform input, processing, storage, and
output activities
• A trend in the industry is to produce smaller, faster, and more mobile hardware
• Innovative new hardware devices include:
• Advanced keyboards
• Laptops and displays that connect wirelessly
• Very-high resolution display devices

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 Software and Mobile Applications

• Software
• Consists of the computer programs that govern the operation of a particular
computing device
• Two types of software:
• System software – oversee basic computer operations such as start-up, controls access
to system resources, and manages memory and files
• Application software – allows you to accomplish specific tasks, including editing text
documents, creating graphs, and playing games

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or otherwise on a password-protected website for classroom use.
 Database Systems and Big Data

• Database
• An organized collection of facts and information, typically consisting of two or more
related data files
• Can contain facts and information on customers, employees, inventory, sales, online
purchases, etc…
• Data warehouse
• A database that stores large amounts of historical data in a form that readily supports
analysis and management decision making

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 Database Systems and Big Data

• Extract-transform-lead (ETL) process

• Raw data is extracted from various sources, transformed into a format that will
support analysis, and then loaded into the data warehouse
• Big data
• A term used to describe data collections that are so enormous that traditional data
management software, hardware, and analysis processes are incapable of dealing
with them

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or otherwise on a password-protected website for classroom use.
Database Systems and Big Data

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 Networks and Cloud Computing

• Networks
• Connect computers and equipment in a room, building, campus, city, or globally to
enable electronic communication
• Internet
• World’s largest computer network
• Public cloud computing
• A service provider organization owns and manages the hardware, software,
networking, and storage devices in order to provide shared resources to users via the
Internet

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 Networks and Cloud Computing

• Intranet
• Enable communication, collaboration, search functions, and information sharing
between member of an organization using a Web browser
• Extranet
• A network based on Web technologies that allows selected outsiders to access
authorized resources of a company’s intranet

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or otherwise on a password-protected website for classroom use.
 Business Information Systems

• Information systems are used in all functional areas of business organizations,

such as:
• Accounting and finance
• Customer service
• Human resources
• Manufacturing
• Research and development
• Sales and marketing

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 Business Information Systems

• Information systems are also used in nearly every industry, such as:
• Agriculture
• Finance
• Health care
• Mining
• Professional services
• Retail

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 Electronic and Mobile Commerce

• E-commerce involves the exchange of money for goods and services over
electronic networks

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 Electronic and Mobile Commerce

• Mobile commerce (m-commerce): the use of mobile, wireless devices to place

orders and conduct business
• Used to support all forms of e-commerce:
- Business-to-business (B2B)
- Business-to-consumer (B2C)
- Consumer-to-consumer (C2C)
- Government-to-citizen (G2C)

• E-business: use of information systems and the Internet to perform business-

related tasks and functions

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or otherwise on a password-protected website for classroom use.
 Enterprise Systems

• Transaction
• Any business-related exchange, such as payments to employees and suppliers and
sales to customers
• Transaction processing system (TPS)
• An organized collection of people, procedures, software, databases, and devices
• Used to perform and record completed business transactions
• Management information system (MIS)
• Organized collection of people, procedures, software, databases, and devices
• Provides routine information to managers and decision makers
• Focuses on operational efficiency
• Provides standard reports generated with data and information from the TPS or ERP

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or otherwise on a password-protected website for classroom use.
 Enterprise Systems

• Enterprise resource planning (ERP)

• A set of integrated programs
• Manages the vital business operations for an entire multisite, global organization
• Most ERP systems provide integrated software to support manufacturing and
finance
• Also provide support for business analytics and e-business

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 Business Intelligence and Analytics

• Business intelligence (BI)

• Includes a wide range of applications, practices, and technologies for the extraction,
transformation, integration, visualization, analysis, interpretation, and presentation of
data to support improved decision making
• Business analytics
• The extensive use of data and quantitative analysis to support fact-based decision
making within organizations

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 Planning, Acquiring, and Building Systems

• Project
• A temporary endeavor undertaken to create a unique product, service, or result
• Attempts to achieve specific business objectives and is subject to certain constraints
• They way much of an organization’s work gets done

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or otherwise on a password-protected website for classroom use.
 Strategic Planning and Project Management

• Strategic planning
• Used to improve alignment between the needs of the business and the activities of
the information systems organization
• Alignment means that the IS organization and its resources are focused on efforts that
support the key objectives defined in the strategic plan of business

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 System Acquisition and Development

• System acquisition
• Process used to obtain the information system resources needed to provide the
services necessary to meet a specific set of needs
• System development
• The activity of building information systems to meet users’ needs
• Projects can range from small to very large

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or otherwise on a password-protected website for classroom use.
 Cybercrime and Information System Security

• Cybercriminals
• Motivated by the potential for monetary gain
• Hack into computers systems to steal
• Cyberterrorism
• The intimidation of a government or a civilian population by using information
technology to disable critical national infrastructure
• To achieve political, religious, or ideological goals

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 Ethical, Legal, and Social Issues of Information Systems

• Ethics
• A set of beliefs about right and wrong behavior
• Ethical behavior
• Conforms to generally accepted social norms
• The use of information about people
• Requires balancing the needs of those who want to use the information against the
rights and desires of the people whose information may be used

© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service 29
or otherwise on a password-protected website for classroom use.