Download What Is An Information System?

An Introduction to Information
Systems
Chapter 1
Principles of Information Systems,
Sixth Edition
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Chapter 1 Outline
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Information Concepts
System and Modeling Concepts
What’s an Information System?
Computer-based Information Systems
Business Information Systems
Systems Development
Why Learn About Information Systems?
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Information Concepts
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Definition of an Information System
“A set of interrelated components that collect,
manipulate, and disseminate data and
information, and provide feedback to meet an
objective”
• Examples: ATMs, airline reservation systems,
course reservation systems
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Data vs. Information
• Data: raw facts
• Information: a collection of facts that are
organized so that they have value (often for
decision making) beyond that of the facts
themselves
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Types of Data
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The Characteristics of Valuable Information
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The Characteristics of Valuable Information
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Transforming Data Into Information
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System and Modeling
Concepts
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Definition of a System
“A set of elements that interact to accomplish goals”
Systems consist of:
• Input(s)
• Processing
• Output(s)
• Feedback: output used to make changes to inputs or
processing
• Other system terms:
– System boundary: distinguishes the system from its
environment
– A configuration: the way system elements are organized or
arranged.
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Components of a System: Input,
Processing, Output and Feedback
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System and Modeling Concepts
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Classifying System Types
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More System Terms and Concepts
• Performance and Standards
– Efficiency: output/input
– Effectiveness: extent to which
system attains its goals
– Performance standard: specific
objective of a system
• System variable - item controlled by
decision-maker
• System parameter - value that cannot
be controlled
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System Performance and Standards
System variableitem controlled by
decision-maker
System parametervalue that cannot be
controlled
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System Models
• “an abstraction used to represent reality”
• 4 major types of models:
• 1. A narrative model is based on words
and is a logical, not physical model
• 2. A physical model is a tangible
representation of reality
• 3. A schematic model represents reality
using graphs and charts
• 4. A mathematical model uses formulas
and calculations to represent reality
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System Model Types
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What Is An Information
System?
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Components of an Information
System
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Computer-Based
Information Systems (CBIS)
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CBIS Components: hardware, software,
databases, telecom, people and procedures
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CBIS Elements
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Hardware
Software
Databases
Telecommunications, Networks and the
Internet (Connectivity)
• People
• Procedures
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7 Firms Making Excellent Use of the Internet
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7 Firms Making Excellent Use of the Internet
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Business Information
Systems
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Business Information Systems
• Electronic Commerce (EC)
– E-Commerce Types: B2B, B2C, C2C, B2G, G2C
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Transaction Processing Systems (TPS)
Management Information Systems (MIS)
Decision Support Systems (DSS)
Enterprise Resource Planning Systems (ERP)
Artificial Intelligence (AI) Systems
Virtual Reality Systems (VR)
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Electronic Commerce (including EDI)
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Transaction Processing Systems
“an organized collection of people,
procedures, software, databases and
devices used to record completed business
transactions”
Examples include:
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Processing business exchanges
Maintaining records about the exchanges
Handling routine, yet critical, tasks
Performing simple calculations
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Example of a TPS: Payroll
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Enterprise Resource Planning (ERP)
• “an integrated group of programs that can
manage a company’s entire set of business
operations”
• Often used to coordinate planning, inventory
control, production, and ordering
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Management Information Systems (MIS)
“an organized collection of people, procedures,
software, databases and devices used to provide
routine information to managers and decision
makers”
• Focus is on improving operational efficiency (“doing
things right”)
• Uses transaction data as main input
• Databases are used to integrate MIS from different
functional areas
• MIS Output types:
– Scheduled reports
– Demand reports
– Exception reports
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Management Information Systems (MIS)
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Decision Support Systems (DSS)
• “an organized collection of people, procedures,
software, databases and devices used to
support problem-specific decision making”
• Focus on decision-making effectiveness (“doing
the right thing”)
• Typically used for:
– Interactive support for non-routine decisions or
problems
– End-users (and their expertise) are more involved in
creating a DSS than an MIS
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Essential DSS Elements
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Special-Purpose Business Information
Systems
• Artificial Intelligence (AI) Systems
– Expert Systems
– Learning Systems
• Virtual Reality Systems
• Other Special-Purpose Business Information
Systems
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The Major Elements of Artificial
Intelligence
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Virtual Reality: Head Mounted
Display
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Virtual
Reality:
Data
Glove
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Systems Development Life
Cycle
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Systems Development Life Cycle
(SDLC)
• Systems development is “the activity of creating
or modifying existing business systems.
• The SDLC is a formal way of looking at this
process.
• Nearly every company will develop or use some
sort of proprietary software, and the process
involves more than just IS personnel.
• So, it’s important to understand the SDLC to
participate effectively in corporate environment.
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Systems
Development
Life Cycle
Note: this last block
is really two phases:
system maintenance
and system review
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Why Learn About
Information Systems?
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Why Learn About Information
Systems?
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Advance in your career
Solve problems
Realize opportunities
Meet your career goals
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Computer and Information System
Literacy
• Computer literacy - knowledge of computer
systems and equipment
• Information system literacy - knowledge of
how data and information are used
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Where are Information Systems used in
Business and Industry?
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Finance and Accounting
Sales and Marketing
Manufacturing
Investment firms
Banks
Publishing companies
Healthcare organizations
Management consulting firms
– i.e., pretty much everywhere
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Summary
• Data - raw facts
• Information - data transformed into a
meaningful form
• System - set of elements that interact to
accomplish a goal
• Systems development - creating or modifying
existing business systems
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Principles and Learning Objectives
• The value of information is directly linked to how
it helps decision makers achieve the
organization’s goals.
– DISTINGUISH DATA FROM INFORMATION AND
DESCRIBE THE CHARACTERISTICS USED TO
EVALUATE THE QUALITY OF DATA.
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Principles and Learning Objectives
• Models, computers, and information systems are
constantly making it possible for organizations to
improve the way they conduct business.
– NAME THE COMPONENTS OF AN INFORMATION
SYSTEM AND DESCRIBE SEVERAL SYSTEM
CHARACTERISTICS.
– IDENTIFY FOUR BASIC TYPES OF MODELS AND
EXPLAIN HOW THEY ARE USED.
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Principles and Learning Objectives
• Knowing the potential impact of information
systems and having the ability to put this
knowledge to work can result in a successful
personal career, organizations that reach their
goals, and a society with a higher quality of life.
– IDENTIFY THE BASIC TYPES OF BUSINESS
INFORMATION SYSTEMS AND DISCUSS WHO
USES THEM, HOW THEY ARE USED, AND WHAT
KINDS OF BENEFITS THEY DELIVER.
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Principles and Learning Objectives
• System users, business managers, and
information systems professionals must work
together to build a successful information
system.
– IDENTIFY THE MAJOR STEPS OF THE SYSTEMS
DEVELOPMENT PROCESS AND STATE THE GOAL
OF EACH.
– DISCUSS WHY IT IS IMPORTANT TO STUDY AND
UNDERSTAND INFORMATION SYSTEMS.
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End of Chapter 1
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