Download Stair Intro to Information Systems

CHAPTER
1
Introduction to
Information
Systems
Information Concepts
RFID (Radio Frequency Management)
RFID propaganda 1 Min
RFID inventory management (2 Min)
RFID Freezer contents control
(6 Min)
Information Concepts
The body of guidelines and
procedures used to select,
organize, and manipulate data to
make it suitable for a specific
task.
Knowledge
Information
Data
A collection of facts
organized in such a way
that they have additional
value beyond the value of
facts themselves.
Raw facts
Information Concepts
KNOWLEDGE
• Knowing the value of
tracking sales for future
ordering. As the business
accumulates more and more
INFORMATION,
KNOWLEDGE increases.
INFORMATION
• Total sales of every item
for the day, week, month, and
year, and season.
DATA
• Recorded sale of every item.
Data vs. Information
The collection of information
adds to all the more knowledge.
Data vs. Information
KNOWLEDGE: Not a lot of
people like to eat hamburgers
early in the morning. Should
we open our hamburger
stand at 10:30 am or wait
until 11:00 am?
DATA: A record of each hamburger
sold during the week.
INFORMATION: The
number of hamburgers
sold from 10:30 am to 11:00
am on the average.
2 Hamburgers were sold
during this half hour
period, on the average.
6
Data vs. Information
QUESTION: Would you
open your hamburger stand
at 10:30 am to sell 2
hamburgers?
ANSWER: Probably, no.
7
Data vs. Information
Knowledge
--Air conditioner compressors get “tight” when
not used for long periods of time. This could blow
a fuse when the air-conditioners are first turned on.
Information (organized data)
--Track air-conditioner fuse sales daily, weekly,
monthly, yearly, seasonally.
--Track daily temperatures relative air-conditioner
fuse sales.
Data
--Record each air-conditioner fuse sold.
RESULT: On days when the outside temperature jumps
and air-conditioners are first turned on,
the demand for air-conditioner fuses jumps
32 times normal.
Question: What actions will management take?
8
Types of Data
Data
Represented by:
Alphanumeric Data
Image Data
Audio Data
Video Data
Numbers, letters, etc.
Graphics images or pictures
Sound
Moving images or pictures
Characteristics of Valuable
Information
Characteristics Definitions:
Accurate
Error free.
Errors: GIGO & bad programs.
GIGO: Garbage In Garbage Out
Complete
Economical
Flexible
Reliable
3:00
Has all important facts.
Are the costs worth it?
Can the information be used in
a variety of situations?
Is the source reliable?
Characteristics of Valuable
Information
Characteristics Definitions:
Relevant
Simple
Timely
Verifiable
Passenger hair color is not
relevant to a captain of a ship.
The information should be
presented in a simple way.
Last month’s weather forecast
is of no interest to a pilot today.
Can you check the correctness of
the information.
Characteristics of Valuable
Information
Characteristics Definitions:
Accessible
Secure
Information should be easily
accessible by authorized persons
and in the right format.
Information should be access by
authorized persons only.
Dr. Scanlan says, “There is no
such thing as a secure information
system.”
Characteristics of Valuable
Information
Characteristics Definitions:
Secure
Information should be access by authorized persons only.
Dr. Scanlan says, “There is no such thing as a secure
information system.”
Discussion: Are these information system secure?
Why or why not?
Checking accounts, CD’s, email, safe deposit boxes, tax
sheltered annuities, birth certificates, credit cards (especially
RFID enabled), loyalty cards, etc.
Stealing credit card information (RFID) cc (3min)
System and Modeling Concepts
Goals
What are some examples using
McDonald’s as an example?
1. Goals
-Profits
-Fast service
-Tasty food
-Inexpensive food
2. Inputs ???
3. Outputs ???
4. Elements ???
5. Process ???
S
Y
S
T
E
M
Elements
Outputs
Inputs
Process
Components of a System
Components of a System
1:30
System Classifications and
Primary Characteristics
Simple
Complex
Open
Closed
Stable
Dynamic
Adaptive
Permanent
Non-adaptive
Temporary
Name systems which have these
characteristics?
System Performance Standards
• Efficiency
 A measure of the amount of activity
or effort to produce a desired goal.
• Effectiveness
 A measure of the extent to which a
system achieves its goals.
• Performance Standard
 A specific objective of the system.
 What are the performance standards
for this course?
System Performance Standards
System Variables and Parameters
• System Variable
 A quantity or item that can be
controlled by the decision maker.

What are some system variables for a
shoe store?
• System Parameter
 A value or quantity that cannot be
controlled by the decision maker.

What are some system parameters for a
grocery store?
Modeling a System
• Model
 An abstraction or an approximation
that is used to represent reality
• Model Types




Narratives - words
Physical - tangible
Schematic - graphical
Mathematical - arithmetic
Four Types of Models
Four Types of Models
The deep connection Einstein discovered between energy and mass
is expressed in the equation E=mc² . Here E represents energy, m
represents mass, and c² is a very large number, the square of the
speed of light. Full confirmation was slow in coming. In Paris in
1933, Irène and Frédéric Joliot-Curie took a photograph showing
the conversion of energy into mass. A quantum of light, invisible
here, carries energy up from beneath. In the middle it changes into
mass -- two freshly created particles which curve away from each
other.
C = 186,282.397
miles per second,
Information System (IS)
• Information System
 A set of interrelated elements or
components that collect (input),
manipulate (process), and disseminate
(output) data and information and
provide a feedback mechanism to
meet an objective.
 What is the feedback for this course
for the instructor and the class?
Input, Processing, Output, Feedback
INPUTS
Gathering and
capturing raw data
PROCESSING
Converting or
transforming data
into useful outputs
OUTPUTS
Producing useful
information, usually in
the form of documents.
Feedback
Output that is used to
make changes to input or
processing activities
Computer-Based Information
Systems (CBIS)
• Computer-Based Information Systems
 Composed of hardware, software,
databases, telecommunications, people,
and procedures that are configured to
collect, manipulate, store, and process
data into information.
Computer-Based Information
Systems (CBIS)
Elements of a CBIS:
• Hardware
 Computer equipment used to perform
input, processing, and output activities.
• Software
 Computer programs that govern the
operation of the computer.
• Database
 Organized collection of facts and
information.
Computer-Based Information
Systems (CBIS)
Elements of a CBIS (continued):
• Telecommunications
 Electronic transmission of signals for
communications that enables
organizations to link computer
systems into effective networks.
• Networks
 Used to connect computers and
computer equipment.
Computer-Based Information
Systems (CBIS)
Elements of CBIS (continued):
• Internet
 The world’s largest
telecommunications network.
• Intranet
 A network that uses Internet
technology within an organization.
Computer-Based Information
Systems (CBIS)
Element of a CBIS (continued):
• People
 The most important elements in most
CBIS.
 Question: Are people really the most
important element?
• Procedures
 Strategies, policies, methods, and
rules for using CBIS.
Computer-Based Information Systems (CBIS)
Business Information Systems
• Transaction
 Any business related exchange.
• Transaction processing system (TPS)
 An organized collection of people,
procedures, software, databases,
and devices used to record
completed business transactions.
Question: Give some examples
class?
Transaction Processing System
E-Commerce
Ebay
E-Commerce
 Any business transaction executed
electronically between parties.
Management Information System
Too much
overtime.
Management Information System
 Organized set of people, procedures, databases, and
devices used to provide ROUTINE information to
managers and decision makers for day-to-day
decisions.

Question: Give some examples class?
Decision Support Systems
The DSS supports
locating the new
assembly plant in
Ireland.
• Decision Support Systems (DSS)
 A set of people, procedures, databases,
and devices used to support problemspecific decision making.
 Used for tactical decisions.
Information Systems
Decision
Support
Systems
Management Information
System
Transaction Processing System
Artificial Intelligence
(AI)
Artificial Intelligence (AI)
Artificial Intelligence (AI)
• A field that involves computer systems
taking on the characteristics of human
intelligence.
Robotics
Robots:
• Work 7 days a week, 24 hours/day.
• No benefit package.
• Never complains.
• Seldom makes mistakes.
• Always shows up for work.
• Has no hangover on Mondays.
• Works for about $10.00 day.
• Does not take coffee breaks.
• Always does what it is told.
Expert Systems
I said you DON’T
get the loan.
Expert Systems (ES)
 Gives the computer the ability to make
suggestions and act like an expert in a
particular field
Systems Development
Systems Development at
Whirlpool Corporation
Systems Development
Systems Development
 The activity of creating or modifying
existing business systems.
Systems Development
Five Steps in Systems Development
Investigation
Analysis
Design
Implementation
Review
Systems Development
• Systems Investigation
 The purpose is to gain a clear understanding of the
problem to be solved or opportunity to be addressed.
George, Whirlpool wants you
to investigate exactly what
the problem is and determine
if it is worth solving.
Systems Development
• Systems Investigation
 Whirlpool had a PROBLEM responding QUICKLY to
competitors’ or their own price changes.
It took weeks to adjust prices.
 When a competitor dropped its price, Whirlpool had to send out
thousands of faxes and overnight packages.
 When Whirlpool increased its prices, retail distributors got very
upset when they were billed higher than expected.

$395.00
$375.00
$325.00
$395
$425
$474
Systems Development
• Systems Analysis
 Defines what the information system must do to solve the
problem.
 Put a team together to carefully examine the existing
system’s problems and opportunities and suggest
solutions.
Analysis Team Members
$395.00
$375.00
$325.00
Systems Development
• Systems Design
 Determines how the new system will
work to meet the business needs
defined during systems analysis.
 In this stage the system is designed,
much like an architect would design a
building.

The system is not built at this time, it is
designed.
Systems Development
• Systems Implementation
 Creating or acquiring the various
system components defined in the
design step, assembling them, and
putting the new system into
operation.

Hardware, software, people, procedures,
database, communications.
Systems Development
System Maintenance and Review
 Check and modify the system so
that it continues to meet
changing business needs.
I know a lot
about computer
hardware and software
but I don’t know how to
apply it to my business
needs.
Literacy
• Computer Literacy
 A knowledge of computer systems and
equipment and the ways they function.
I need to know how to
apply this computer
technology to my
business needs.
Literacy
. Information Systems Literacy
 A knowledge of how data and
information are used by individuals,
groups, and organizations.
Information Systems in the Functional
Areas of Business

Functional Areas and Information Systems





Financial information systems
Accounting information systems
Marketing information systems
Manufacturing information systems
Human resources management information
systems
 Legal information systems
Information Systems in Industry

Airline industry

Publishing companies

Investment firms

Health care
organizations

Banks and savings and
loan companies

Retail companies

Power management &
utility companies

Transportation
industry
SAMPLE TEST QUESTIONS
1. Which computer-based system would be
responsible for capturing raw inventory data
at a grocery store cash register?
a. Decision support system
b. Transaction processing system.
c.
Management information system
d. Expert system
e.
None of the above.
SAMPLE TEST QUESTIONS
2. Which computer based system would be
responsible for producing routine business
reports?
a. Decision support system
b. Transaction processing system.
c.
Management information system
d. Expert system
e.
None of the above.
SAMPLE TEST QUESTIONS
3. Which computer based system would be
responsible helping managers make
“what-if” type decisions?
a. Decision support system
b. Transaction processing system.
c.
Management information system
d. Robot system
e.
None of the above.
SAMPLE TEST QUESTIONS
5. Which computer based system would be
responsible helping managers make
strategic decisions?
a. Decision support system
b. Transaction processing system.
c.
Management information system
d. Robot system
e.
None of the above.
SAMPLE TEST QUESTIONS
6. This acronym refers to data with errors entering
a computer system and producing erroneous
output.
a. GIGO
b. GOGI
c.
GGIO
SAMPLE TEST QUESTIONS
7. For what does GIGO stand?
a. Garbage In, Garbage Out
b. General information In, General
information Out
c.
None of the above
SAMPLE TEST QUESTIONS
8. In which stage of systems development is
computer programming done?
a. Systems investigation
b. Systems analysis
c.
Systems design
d. Systems implementation
e.
None of the above
SAMPLE TEST QUESTIONS
9. Which stage of systems development involves
an initial review of the system to see if there
is an actual problem, to see if it is worth
solving, and to see if it can be solved. This stage
also looks for opportunities.
a. Systems investigation
b. Systems analysis
c. Systems design
d. Systems implementation
e. None of the above
SAMPLE TEST QUESTIONS
10. The activity of creating or modifying existing
business systems is called:
a. Systems Development
b. Systems Analysis
c. Systems Investigation
d. Systems Design
e. Systems Implimentation
SAMPLE TEST QUESTIONS
11. Summarizing and categorizing data is involved
in collecting Information.
a. True
b. False
SAMPLE TEST QUESTIONS
12. Knowing how to summarize and categorize
data involves Knowledge?
a. True
b. False
SAMPLE TEST QUESTIONS
13. GIGO is most closely associated with
a. Completeness of information
b. Flexibility of information
c. Economy of information
d. Accuracy of information
e. Verifiability of information
SAMPLE TEST QUESTIONS
14. Dr. Scanlan believes that there are secure
information systems.
a. True
b. False
SAMPLE TEST QUESTIONS
15. A measure of the amount of activity or effort
to produce a desired goal is a definition of
a. Effectiveness
b. Efficiency
SAMPLE TEST QUESTIONS
16. A measure of the extent to which a system
achieves its goals is called:
a. Effectiveness
b. Efficiency
SAMPLE TEST QUESTIONS
17. The cost of electricity for a shoe store would
be an example of
a. A system variable
b. A system paramter
c. A system constant
SAMPLE TEST QUESTIONS
18. Which of the model types below would
best describe blueprint of a bridge?
a. Narrative
b. Physical
c. Schematic
b. Mathematical
SAMPLE TEST QUESTIONS
19. Which of the model types below would
best describe a verbal description of a
building?
a. Narrative
b. Physical
c. Schematic
b. Mathematical
SAMPLE TEST QUESTIONS
20. An information system is a set of interrelated
elements or components that collect (input),
manipulate (process), and disseminate (output)
data and information and provide a __________
mechanism to meet an objective.
a. Feedback
b. Storage
c. Objective
d. Knowledge-based
e. Subjective
SAMPLE TEST QUESTIONS
21. A computer-based information system consists
of hardware, software, databases, people and
telecommunications. This list is complete.
a. True
b. False
SAMPLE TEST QUESTIONS
22. In what processing system would raw data most
likely be stored?
a. Executive information system
b. Transaction processing system
c. Management information system
d. Expert system
e. Decision support system
SAMPLE TEST QUESTIONS
23. Which item below best illustrates E-Commerce?
a. A purchase at a local grocery store
b. A purchase at a garage sale
c. A purchase on Ebay
d. A transaction executed by a purchasing
department
e. A purchase at McDonalds
SAMPLE TEST QUESTIONS
24. This information system provides routine
information for day-to-day decision making.
a. Executive information system
b. Decision support system
c. AI systems
d. Management information systems
e. Transaction processing system.
SAMPLE TEST QUESTIONS
25. Artificial intelligence systems are limited
to taking on the characteristics of human
intelligence.
a. True
b. False
SAMPLE TEST QUESTIONS
26. Which order of steps is correct for systems
development?
a. Investigation, analysis, design, implementation,
and review.
b. Analysis, investigation, design, review,
implementation
c. Review, investigation, analysis, design and
implementation.
d. Analysis, investigation, review, design, and
implementation
SAMPLE TEST QUESTIONS
27. This stage of systems development determines
how the system will work to meet the business
needs defined during the systems analysis:
a. Systems implementation
b. Systems investigation
c. Systems design
d. Systems review
SAMPLE TEST QUESTIONS
28. A knowledge of computer systems and
equipment and the ways they function is
called:
a. Computer Literacy
b. Information system literacy
SAMPLE TEST QUESTIONS
29. A knowledge of how data and information
are used by individuals, groups, and organizations
is called:
a. Computer Literacy
b. Information system literacy