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An Introduction to Information Systems in Organizations. Chapter 1. Principles and Learning Objectives. The value of information is directly linked to how it helps decision makers achieve the organization’s goals.

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An Introduction to Information Systems in Organizations

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An introduction to information systems in organizations l.jpg

An Introduction to Information Systems in Organizations

Chapter 1

Fundamentals of Information Systems, Second Edition


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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.

Fundamentals of Information Systems, Second Edition


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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.

Fundamentals of Information Systems, Second Edition


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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.

Fundamentals of Information Systems, Second Edition


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Principles and Learning Objectives

  • The use of information systems to add value to the organization can also give an organization a competitive advantage.

    • Identify the value-added processes in the supply chain and describe the role of information systems within them.

    • Identify some of the strategies employed to lower costs or improve service.

    • Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage.

Fundamentals of Information Systems, Second Edition


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Principles and Learning Objectives

  • Information systems personnel are the key to unlocking the potential of any new or modified system.

    • Define the types of roles, functions, and careers available in information systems.

Fundamentals of Information Systems, Second Edition


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Information Concepts

Fundamentals of Information Systems, Second Edition


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Information System

  • A set of interrelated components that collect, manipulate & disseminate data & information & provide feedback to meet an objective.

  • Examples: ATMs; airline reservation systems; course reservation systems

Fundamentals of Information Systems, Second Edition


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Data vs. Information

  • Data: raw facts

  • Information: collection of facts organized in such a way that they have value beyond the facts themselves

Fundamentals of Information Systems, Second Edition


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The Process of Transforming Data into Information

Fundamentals of Information Systems, Second Edition


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Characteristics of Valuable Information

Fundamentals of Information Systems, Second Edition


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The Components of an Information System

Fundamentals of Information Systems, Second Edition


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Computer-Based Information Systems (CBIS)

Fundamentals of Information Systems, Second Edition


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Components of a CBIS

Fundamentals of Information Systems, Second Edition


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Components 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 - an organized collection of facts and information, typically consisting of two or more related data files.

  • People - the most important element in most computer-based information systems.

  • Procedures - include the strategies, policies, methods, and rules for using the CBIS.

Fundamentals of Information Systems, Second Edition


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Telecommunications, Network, and the Internet

  • Telecommunications - the electronic transmission of signals for communications.

  • Networks - used to connect computers and computer equipment in a building, around the country, or around the world to enable electronic communications.

  • Internet - the world’s largest computer network, actually consisting of thousands of interconnected networks

Fundamentals of Information Systems, Second Edition


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Business Information Systems

Fundamentals of Information Systems, Second Edition


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Business Information Systems

  • Electronic Commerce

  • Transaction Processing Systems and ERP

  • Information and Decision Support Systems

  • Special-Purpose Business Information Systems: Artificial Intelligence, Expert Systems, and Virtual Reality

Fundamentals of Information Systems, Second Edition


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E-Commerce

  • Business-to-business

  • Business-to-consumer

  • Consumer-to-consumer

Fundamentals of Information Systems, Second Edition


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E-Commerce Greatly Simplifies the Purchasing Process

Fundamentals of Information Systems, Second Edition


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Transaction Processing Systems and ERP

  • Transaction processing system (TPS) - an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.

  • Enterprise Resource Planning (ERP) System - a set of integrated programs capable of managing a company’s vital business operations for an entire multisite, global organization.

Fundamentals of Information Systems, Second Edition


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A Payroll Transaction Processing System

Fundamentals of Information Systems, Second Edition


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Functional Management Information Systems Draw Data from the Organization’s TPS

Fundamentals of Information Systems, Second Edition


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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.

  • The focus of a DSS is on decision-making effectiveness.

Fundamentals of Information Systems, Second Edition


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Essential DSS Elements

Fundamentals of Information Systems, Second Edition


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Special-Purpose Business Information Systems

  • Artificial intelligence (AI) systems

  • Virtual reality systems

  • Expert systems

Fundamentals of Information Systems, Second Edition


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The Major Elements of Artificial Intelligence

Fundamentals of Information Systems, Second Edition


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A Head-Mounted Display

Fundamentals of Information Systems, Second Edition


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Data Glove

Fundamentals of Information Systems, Second Edition


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Systems Development

The activity of creating or modifying existing business systems.

  • Systems Investigation

  • Systems Analysis

  • Systems Design

  • Systems Implementation

  • Systems Maintenance and Review

Fundamentals of Information Systems, Second Edition


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Organizations and Information Systems

Fundamentals of Information Systems, Second Edition


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A General Model of an Organization

Fundamentals of Information Systems, Second Edition


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The Value Chain of a Manufacturing Company

Fundamentals of Information Systems, Second Edition


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Technology Diffusion, Infusion, and Acceptance

  • Technology Diffusion - a measure of how widely technology is spread throughout an organization.

  • Technology Infusion - is the extent to which technology permeates an area or department.

  • Technology Acceptance Model (TAM) - specifies the factors that can lead to higher acceptance and usage of technology in an organization

Fundamentals of Information Systems, Second Edition


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Competitive Advantage

A significant and (ideally) long-term benefit to a company over its competition.

  • Factors That Lead Firms to Seek Competitive Advantage

    • Rivalry among Existing Competitors

    • Threat of New Entrants

    • Threat of Substitute Products and Services

    • Bargaining Power of Customers and Suppliers

Fundamentals of Information Systems, Second Edition


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Strategic Planning for Competitive Advantage

  • Altering the Industry Structure

  • Creating New Products and Services

  • Improving Existing Product Lines and Services

  • Using Information Systems for Strategic Purposes

Fundamentals of Information Systems, Second Edition


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Competitive Advantage Factors and Strategies

Fundamentals of Information Systems, Second Edition


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Performance-Based Information Systems

  • Productivity

  • Quality

  • Return on Investment and the Value of Information Systems

    • Earnings Growth

    • Market Share

    • Customer Awareness and Satisfaction

    • Total Cost of Ownership

Fundamentals of Information Systems, Second Edition


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Three Stages in the Business Use of IS

Fundamentals of Information Systems, Second Edition


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The 10 Best Places to Work for IS

Fundamentals of Information Systems, Second Edition


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Roles, Functions, and Careers in the Information Systems Department

  • Operations

  • Systems Development

  • Support

Fundamentals of Information Systems, Second Edition


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The Three Primary Responsibilities of Information Systems

Fundamentals of Information Systems, Second Edition


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Typical IS Titles and Functions

  • The Chief Information Officer

  • LAN Administrators

  • Internet Careers

Fundamentals of Information Systems, Second Edition


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Why Learn About Information Systems?

  • Advance in your career

  • Solve problems

  • Realize opportunities

  • Meet your career goals

Fundamentals of Information Systems, Second Edition


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Summary

  • Data - raw facts

  • Information - data transformed into a meaningful form

  • Systems development - creating or modifying existing business systems

  • Organization - a formal collection of people and various other resources established to accomplish a set of goals

Fundamentals of Information Systems, Second Edition


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