PGDM Trimester I, 2013

Introduction to
Information
systems
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1. To understand about digital economy and
digital enterprises.
2. To know why knowledge of information
systems is important for business professionals
3. 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
Learning Objectives
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Digital Enterprise: It refers to an organization that
uses computers and information systems (ISs) to
perform or support its activities
Digital economy : The term refers to an economy
based on digital technologies and whose
members are better informed and able to
communicate because of IT. E.g:
Information and Entertainment products
Tickets and Reservations
Financial instruments
Processes and Services
Digital Economy
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New versus the Old. Few examples:
Paying for goods
E-commerce
Advantages of the new way:
Cost, Quality, speed, convenience, competitive
advantage and customer service.
Digital Economy
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Environmental Pressures
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Information technology can help all kinds of businesses
improve the efficiency and
effectiveness of their business processes,
managerial decision making, and
workgroup collaboration and
thus strengthening their competitive positions in a rapidly
changing marketplace.
Internet-based information technologies and systems are fast
becoming a necessary ingredient for business success in todays
dynamic global environment.
Why Study Information
Systems?
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Any organized combination of people,
procedure, hardware, software,
communications networks, and data resources
that collect, stores, transforms, and
disseminates information in an organization.
Examples: ATMs, airline reservation systems, course
reservation systems, retail, banking, investment firm etc.
What is Information Systems?
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Information is one of an organizations most
valuable resources
Information is different from data
Information Concepts
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Data: raw facts , represents real world things
Types of data:
Data, Information, and Knowledge
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Information: collection of facts organized in such a
way that they have additional value beyond the
facts themselves
Rules and relationships can be set up to organize
data into useful, valuable information
The type of information created depends on the
relationships defined among existing data.
Data, Information, and Knowledge
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Process: a set of logically related tasks performed
to achieve a defined outcome.
Data, Information, and Knowledge
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Knowledge: awareness and understanding of a set
of information and ways that information can be
made useful to support a specific task or reach a
decision
Knowledge workers: people who create, use and
disseminate knowledge
Data, Information, and Knowledge
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The Characteristics of Valuable
Information
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The Characteristics of Valuable
Information
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Value of information is directly linked to how it
helps decision makers achieve their
organizations goals
For example, value of information might be
measured in:
Time required to make a decision
Increased profits to company
The Value of Information
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An information system can be:
Manual
Computerized
Types of Information
Systems
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Computer-based information system (CBIS)
A single set of hardware, software, databases,
telecommunications, people, and procedures that
are configured to collect, manipulate, store, and
process data into information
Computer-Based
Information Systems
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Computer-Based
Information Systems
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The Components of a Computer-Based Information System
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Data: raw facts
Information: collection of facts organized in such a
way that they have value beyond the facts
themselves
Computer-based information system (CBIS): a
single set of hardware, software, databases,
telecommunications, people, and procedures that
are configured to collect, manipulate, store, and
process data into information
Summary
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