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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
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, Third Edition


Principles and learning objectives continued
Principles and Learning Objectives (continued)

  • 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, Third Edition


Principles and learning objectives continued1
Principles and Learning Objectives (continued)

  • 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, Third Edition


Principles and learning objectives continued2
Principles and Learning Objectives (continued)

  • 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, Third Edition


Principles and learning objectives continued3
Principles and Learning Objectives (continued)

  • 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, Third Edition


Introduction
Introduction

  • Information system (IS)

    • Set of interrelated components: collect, manipulate, disseminate data and information

    • Provide feedback to meet an objective

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

Fundamentals of Information Systems, Third Edition


Information concepts data versus information
Information Concepts: Data Versus Information

  • Data: raw facts

    • Alphanumeric, image, audio, and video

  • Information

    • Organized collection of facts

    • Have value beyond the facts themselves

Fundamentals of Information Systems, Third Edition


Data Versus Information (continued)

Figure 1.1: Defining and Organizing Relationships Among Data Creates Information

Fundamentals of Information Systems, Third Edition


Data Versus Information (continued)

Figure 1.2: The Process of Transforming Data into Information

Fundamentals of Information Systems, Third Edition


The characteristics of valuable information
The Characteristics of Valuable Information

Table 1.2: Characteristics of Valuable Information

Fundamentals of Information Systems, Third Edition


The characteristics of valuable information continued
The Characteristics of Valuable Information (continued)

Table 1.2: Characteristics of Valuable Information (continued)

Fundamentals of Information Systems, Third Edition


What is an information system
What Is an Information System?

Figure 1.3: The Components of an Information System

Fundamentals of Information Systems, Third Edition


Computer based information systems
Computer-Based Information Systems

  • Manual versus computerized information systems

  • Computer-based information system (CBIS)

    • Hardware, software, databases, telecommunications, people, and procedures

    • Collect, manipulate, store, and process data into information

Fundamentals of Information Systems, Third Edition


Computer based information systems continued
Computer-Based Information Systems (continued)

Figure 1.4: The Components of a Computer-Based Information System

Fundamentals of Information Systems, Third Edition


Business information systems
Business Information Systems

  • Most common types of information systems used in business organizations:

    • Electronic and mobile commerce systems

    • Transaction processing systems

    • Management information systems

    • Decision support systems

    • Specialized business information systems

Fundamentals of Information Systems, Third Edition


Electronic and mobile commerce
Electronic and Mobile Commerce

  • E-commerce: any business transaction executed electronically between parties such as:

    • Companies (B2B)

    • Companies and consumers (B2C)

    • Consumers and other consumers (C2C)

    • Business and the public sector

    • Consumers and the public sector

Fundamentals of Information Systems, Third Edition


Transaction processing systems and enterprise resource planning
Transaction Processing Systems and Enterprise Resource Planning

  • Transaction: business-related exchange

    • Payments to employees

    • Sales to customers

    • Payments to suppliers

  • Transaction processing system (TPS)

    • A collection of people, procedures, software, databases, devices

    • Records completed business transactions

Fundamentals of Information Systems, Third Edition


Transaction processing systems and enterprise resource planning continued
Transaction Processing Systems and Enterprise Resource Planning (continued)

Figure 1.7: A Payroll Transaction Processing System

The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)

Fundamentals of Information Systems, Third Edition


Enterprise resource planning
Enterprise Resource Planning Planning (continued)

  • Integrated programs that manage all business operations

  • Coordinate planning, inventory control, production, and ordering

Fundamentals of Information Systems, Third Edition


Information and decision support systems management information systems
Information and Decision Support Systems: Management Information Systems

  • Management information system (MIS)

    • A collection of people, procedures, software, databases, devices

    • Provides information to managers/decision makers

  • Primary focus is operational efficiency

  • MIS outputs

    • Scheduled reports

    • Demand reports

    • Exception reports

Fundamentals of Information Systems, Third Edition


Management information systems continued
Management Information Systems (continued) Information Systems

Figure 1.8: Functional management information systems draw data from the organization’s transaction processing system

Fundamentals of Information Systems, Third Edition


Decision support systems
Decision Support Systems Information Systems

  • Decision support system (DSS)

    • A collection of people, procedures, software, databases, devices

    • Supports problem-specific decision making

  • Focus is on decision-making effectiveness

Fundamentals of Information Systems, Third Edition


Decision support systems continued
Decision Support Systems (continued) Information Systems

Figure 1.9: Essential DSS Elements

Fundamentals of Information Systems, Third Edition


Specialized business information systems artificial intelligence expert systems and virtual reality
Specialized Business Information Systems: Artificial Intelligence, Expert Systems, and Virtual Reality

  • Artificial intelligence (AI) systems

  • Expert systems

  • Virtual reality systems

  • Other special-purpose business information systems

Fundamentals of Information Systems, Third Edition


Artificial intelligence
Artificial Intelligence Intelligence, Expert Systems, and Virtual Reality

Figure 1.10: The Major Elements of Artificial Intelligence

Fundamentals of Information Systems, Third Edition


Systems development
Systems Development Intelligence, Expert Systems, and Virtual Reality

  • Systems development

    • Creating or modifying existing business systems

  • Systems investigation: gain an understanding

  • of the problem to be solved or opportunity to be addressed

  • Systems analysis: define problems and opportunities of the existing system

Fundamentals of Information Systems, Third Edition


Systems development continued
Systems Development (continued) Intelligence, Expert Systems, and Virtual Reality

  • Systems design: determine how the new system will work to meet the business needs defined during systems analysis

  • Systems implementation: create or acquire the various system components defined in the design step, assembling them, and putting the new system into operation

  • Systems maintenance and review: check and modify the system so that it continues to meet changing business needs

Fundamentals of Information Systems, Third Edition


Organizations and information systems
Organizations and Information Systems Intelligence, Expert Systems, and Virtual Reality

  • Organization: a collection of people and other resources established to accomplish a set of goals

  • An organization is a system

    • Inputs: resources (materials, people, money)

    • Outputs: goods or services

Fundamentals of Information Systems, Third Edition


Organizations and information systems continued
Organizations and Information Systems (continued) Intelligence, Expert Systems, and Virtual Reality

Figure 1.13: A General Model of an Organization

Fundamentals of Information Systems, Third Edition


Organizations and information systems continued1
Organizations and Information Systems (continued) Intelligence, Expert Systems, and Virtual Reality

  • Value chain: a series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service

  • Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities

  • Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service

Fundamentals of Information Systems, Third Edition


Organizations and information systems continued2
Organizations and Information Systems (continued) Intelligence, Expert Systems, and Virtual Reality

Figure 1.14: The Value Chain of a Manufacturing Company

Fundamentals of Information Systems, Third Edition


Organizational culture and change
Organizational Culture and Change Intelligence, Expert Systems, and Virtual Reality

  • Organizational culture

    • Major understandings and assumptions

    • Influences information systems

  • Organizational change

    • How organizations plan for, implement, and handle change

Fundamentals of Information Systems, Third Edition


Technology diffusion infusion and acceptance
Technology Diffusion, Infusion, and Acceptance Intelligence, Expert Systems, and Virtual Reality

  • Technology diffusion: measure of widespread use of technology

  • Technology infusion: extent to which technology permeates a department

  • Technology acceptance model (TAM): specifies factors that can lead to higher acceptance and usage of technology

Fundamentals of Information Systems, Third Edition


Organizations in a global society
Organizations in a Global Society Intelligence, Expert Systems, and Virtual Reality

  • As companies rely on virtual structures and outsourcing to a greater extent, businesses can operate around the world

  • Challenges to operating in a global society

    • Every country has a set of customs, cultures, standards, politics, and laws

    • Language barriers

    • Difficulty in managing and controlling operations in different countries

Fundamentals of Information Systems, Third Edition


Competitive advantage
Competitive Advantage Intelligence, Expert Systems, and Virtual Reality

  • Significant, long-term benefit to a company over its competition

  • Ability to establish and maintain a competitive advantage is vital to a company’s success

Fundamentals of Information Systems, Third Edition


Factors that lead firms to seek competitive advantage
Factors That Lead Firms to Seek Competitive Advantage Intelligence, Expert Systems, and Virtual Reality

  • Rivalry among existing competition

  • Threat of new entrants

  • Threat of substitute products and services

  • Bargaining power of customers and suppliers

Fundamentals of Information Systems, Third Edition


Strategic planning for competitive advantage
Strategic Planning for Competitive Advantage Intelligence, Expert Systems, and Virtual Reality

  • Change the structure of the industry

  • Create new products or services

  • Improve existing products or services

  • Use information systems for strategic purposes

Fundamentals of Information Systems, Third Edition


Strategic planning for competitive advantage continued
Strategic Planning for Competitive Advantage (continued) Intelligence, Expert Systems, and Virtual Reality

Table 1.5: Competitive Advantage Factors and Strategies

Fundamentals of Information Systems, Third Edition


Strategic planning for competitive advantage continued1
Strategic Planning for Competitive Advantage (continued) Intelligence, Expert Systems, and Virtual Reality

Table 1.5: Competitive Advantage Factors and Strategies (continued)

Fundamentals of Information Systems, Third Edition


Performance based information systems
Performance-Based Information Systems Intelligence, Expert Systems, and Virtual Reality

  • Consider both strategic advantage and costs

  • Use productivity, return on investment (ROI), net present value, and other measures of performance

Fundamentals of Information Systems, Third Edition


Performance based information systems continued
Performance-Based Information Systems (continued) Intelligence, Expert Systems, and Virtual Reality

Figure 1.15: Three Stages in

the Business Use of

Information Systems

Fundamentals of Information Systems, Third Edition


Productivity
Productivity Intelligence, Expert Systems, and Virtual Reality

  • Output achieved divided by input required

  • Higher level of output for a given level of input means greater productivity

Fundamentals of Information Systems, Third Edition


Return on investment and the value of information systems
Return on Investment and the Value of Information Systems Intelligence, Expert Systems, and Virtual Reality

  • Earnings growth

  • Market share

  • Customer awareness and satisfaction

  • Total cost of ownership

Fundamentals of Information Systems, Third Edition


Careers in information systems
Careers in Information Systems Intelligence, Expert Systems, and Virtual Reality

  • Degree programs

    • Degrees in information systems

    • Business degrees with a global or international orientation

  • Computer systems are making IS professionals’ work easier

  • Opportunities in information systems are not confined to single countries

Fundamentals of Information Systems, Third Edition


Careers in information systems continued
Careers in Information Systems (continued) Intelligence, Expert Systems, and Virtual Reality

Figure 1.16: The Three Primary Responsibilities of Information Systems

Fundamentals of Information Systems, Third Edition


Roles functions and careers in the is department
Roles, Functions, and Careers in the IS Department Intelligence, Expert Systems, and Virtual Reality

  • Primary responsibilities in information systems

    • Operations: focuses on the efficiency of information

    • Systems development: focuses on development projects and ongoing maintenance and review

    • Support: provides user assistance

Fundamentals of Information Systems, Third Edition


Typical is titles and functions
Typical IS Titles and Functions Intelligence, Expert Systems, and Virtual Reality

  • Chief information officer (CIO): uses IS department equipment and personnel

  • LAN administrators: set up and manage the network hardware, software, and security processes

  • Internet careers

    • Strategists

    • Programmers

    • Web site operators

    • Chief Internet officer

  • Other IS careers

Fundamentals of Information Systems, Third Edition


Summary
Summary Intelligence, Expert Systems, and Virtual Reality

  • Data: raw facts

  • Information: organized collection of facts

  • System components: input, processing, output, and feedback

  • Computer-based information system (CBIS)

    • Hardware, software, databases, telecommunications, people, and procedures

    • Collect, manipulate, store, and process data into information

Fundamentals of Information Systems, Third Edition


Summary continued
Summary (continued) Intelligence, Expert Systems, and Virtual Reality

  • Transaction processing system (TPS): a collection of people, procedures, software, databases, and devices used to record completed business transactions

  • Management information system (MIS): a collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers

Fundamentals of Information Systems, Third Edition


Summary continued1
Summary (continued) Intelligence, Expert Systems, and Virtual Reality

  • Decision support system (DSS): a collection of people, procedures, software, databases, and devices used to support problem-specific decision making

  • Systems development: creating or modifying existing business systems

  • Competitive advantage: significant, long-term benefit to a company over its competition

  • Primary responsibilities in information systems: operations, systems development, and support

Fundamentals of Information Systems, Third Edition


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