Intro to Business Information System

Chapter 2 : Introduction to Information System and Technologies

Click to edit Master subtitle style

Sarah Nur Ahmad

11 4/6/2011

What is Information System?

Can be defined technically as set of interrelated component that working together to collect, Process, Store and distribute information to support decision making, control, analysis and visualization in an organization. Information system may also help managers and workers analyze problem and create new product.

Sarah Nur Ahmad

22 4/6/2011

Main activities in IS

Input
Captures or collection of raw data from within the organization or from its external environment for processing an information system

Processing
Convert the raw input into more meaningful form.

Sarah Nur Ahmad

33 4/6/2011

 Output

Transfers the processed information to the people who will use it or to the activities for which it will be used.

IS also required feedback, which is output that is returned to the appropriate members of the organization to help them evaluate or correct the input.

Sarah Nur Ahmad

44 4/6/2011

Figure 1-1:Function of an information system

Sarah Nur Ahmad

4/6/2011

Business Perspective on IS
From

business perspective, IS is an important instrument for creating value for the firm. enable firm to increase its revenue or decrease its costs by providing information that helps managers make better decisions.

IS

Sarah Nur Ahmad

4/6/2011

Sarah Nur Ahmad

4/6/2011

 Using

Information System effectively requires an understanding of the organization, management and information technology shaping the systems.

Sarah Nur Ahmad

4/6/2011

Using IT for Strategic Advantages

Information

Management

Technology Supports Strategic

Innovative applications: Create innovative applications that provide direct strategic advantage to organizations. Cost leadership : Becoming a low cost producer of product and services in the industry or finding ways to help suppliers or customers reduce their costs or increase the cost competitors. Competitive weapons: Information systems themselves are recognized as a competitive weapon Changes in processes: IT supports changes in business Nur Ahmad that translate Sarah processes 4/6/2011 to strategic advantage

The challenge of IS
Key

management issues

How can organizations obtain business value from their information systems? What complementary assets are needed to use information technology effectively? How can firms understand the business and system requirements of a global economic environment? How can organization develop an information architecture and information technology Sarah Nur Ahmad 4/6/2011
10

Positive and Negative impacts of IS

Benefit

Is can helps companies learn more about purchase pattern and preference of their customer Information system provide new efficiencies through services such as ATM, telephone system, air terminal etc IS have made possible new medical advance in surgery, radiology and patient monitoring The internet distribute information instantly to millions of people across the world.

Sarah Nur Ahmad

4/6/2011

11

 Negative

impacts

By automating activities that were previously perform by people, IS may eliminate jobs IS may allow organization to collect personal details that violate their privacy concern Miscommunication Users of IS may suffer repetitive stress injury, techno stress, health problems. Internet can course of distribute of illegal copies of software, book, articles and etc

Sarah Nur Ahmad

4/6/2011

12