An Introduction to Information Systems in Organizations

Chapter 1

Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives

The value of information is directly linked to how it helps decision makers achieve the organizations goals.
Distinguish data from information and describe the characteristics used to evaluate the quality of data.

Fundamentals of Information Systems, Second Edition

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

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

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.
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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

Information Concepts

Fundamentals of Information Systems, Second Edition

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

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

The Process of Transforming Data into Information

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Characteristics of Valuable Information

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The Components of an Information System

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Computer-Based Information Systems (CBIS)

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Components of a CBIS

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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.
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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 worlds largest computer network, actually consisting of thousands of interconnected networks
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Business Information Systems

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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

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E-Commerce
Business-to-business Business-to-consumer Consumer-to-consumer

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E-Commerce Greatly Simplifies the Purchasing Process

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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 companys vital business operations for an entire multisite, global organization.

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A Payroll Transaction Processing System

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Functional Management Information Systems Draw Data from the Organizations TPS

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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.

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Essential DSS Elements

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Special-Purpose Business Information Systems

Artificial intelligence (AI) systems Virtual reality systems Expert systems

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The Major Elements of Artificial Intelligence

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A Head-Mounted Display

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Data Glove

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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

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Organizations and Information Systems

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A General Model of an Organization

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The Value Chain of a Manufacturing Company

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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

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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
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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

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Competitive Advantage Factors and Strategies

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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

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Three Stages in the Business Use of IS

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The 10 Best Places to Work for IS

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Roles, Functions, and Careers in the Information Systems Department

Operations Systems Development Support

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The Three Primary Responsibilities of Information Systems

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Typical IS Titles and Functions

The Chief Information Officer LAN Administrators Internet Careers

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Why Learn About Information Systems?

Advance in your career Solve problems Realize opportunities Meet your career goals

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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

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