Why Learn About IS?

• Information systems used in most professions

– Sales reps, Managers, Corporate lawyers
• Indispensable for achieving career goals
An Introduction to
Information Systems • Information system (IS)
– A set of interrelated components that collect,
manipulate, and disseminate data and information,
and provide feedback to meet an objective
– Examples: ATMs, airline reservation systems, course
Session Slides reservation systems

Principles of Information Systems,

Principles of Information Systems, Eighth Edition 2
Eighth Edition

1. Information Concepts
Contents • Information is one of an organization’s most
valuable resources. Information is different from
1. Information Concepts
data
2. System Concept • Data: raw facts
3. What is an Information System? • Information: collection of facts organized in such a
4. Business Information Systems way that they have value beyond the facts
5. Systems Development themselves
6. Global Challenges • Knowledge: awareness and understanding of a
7. Summary set of information and ways that information can be
made useful to support a specific task or reach a
decision

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 Data, Information, and Knowledge The Value of Information
• Value of information is directly linked to how it helps
decision makers achieve their organization’s goals
• For example, value of information might be
measured in:
– Time required to make a decision
– Increased profits to company

Table 1.1: Types of Data

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Figure 1.2: The Process of Transforming Data into Information
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Characteristics of Valuable Information 2. System Concepts

• System
– A set of elements or components that interact to accomplish
goals
• Components of a system
– Input
– Processing
– Output
– Feedback

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 System Concepts (continued) System Performance and Standards

• Efficiency: measure of what

is produced divided by what
is consumed

• Effectiveness: extent to
which system attains its goals

• System performance
standard: a specific objective
Figure 1.3: Components of a System

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of the system
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3. What Is An Information System?

Computer-Based Information Systems
• Input: activity of gathering and capturing raw data
• An information
• Processing: converting or transforming data into
system can be:
useful outputs
– Manual
• Output: production of useful information, usually in
– Computerized
the form of documents and reports
• Computer-based
• Feedback: output that is used to make changes to information system
input or processing activities (CBIS)
– A single set of hardware,
software, databases,
telecommunications,
people, and procedures
that are configured to
collect, manipulate,

3 3
store, and process data
into information
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 1. Electronic and Mobile Commerce
4. Business Information Systems • E-commerce: any business
transaction executed
• Most common types of electronically between
information systems parties such as:
used in business
organizations – Companies (business-to-
business, B2B)
– Electronic and mobile
commerce systems – Companies and consumers
– Transaction processing (business-to-consumer,
systems B2C)
– Management – Consumers and other
information systems consumers (consumer-to-
– Decision support consumer, C2C)
systems – Business and the public
sector

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– Consumers and the public
Principles of Information Systems, Eighth Edition 13
sector
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2. Enterprise Systems: 2.1 Transaction Processing Systems

Transaction Processing Systems
and Enterprise Resource Planning
• An effective TPS provides a number of benefits to a company
• A TPS can speed business activities and reduce clerical costs
• Transaction: any business-related exchange, such • Data stored in TPSs is used to help managers make better
decisions
as payments to employees, sales to customers,
and payments to suppliers
• Transaction processing system (TPS): an
organized collection of people, procedures,
software, databases, and devices used to record
completed business transactions

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 3. Management Information Systems
2.2 Enterprise Resource Planning
• Management
information system
• A set of integrated programs that manages the vital (MIS): an organized
business operations for an entire multisite, global collection of people,
organization procedures, software,
• Can replace many applications with one unified set databases, and
of programs, making the system easier to use and devices that provides
more effective routine information to
managers and
decision makers
• Primary focus of an

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MIS is operational
efficiency
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4. Decision Support Systems Specialized Business Information

Systems:
• Decision support Knowledge Management, Artificial Intelligence, Expert
system (DSS): an Systems, and Virtual Reality
organized collection
of people, • Knowledge management systems (KMSs): an
procedures, software, organized collection of people, procedures,
databases, and software, databases, and devices to create, store,
devices used to share, and use the organization’s knowledge and
support problem- experience
specific decision • Artificial intelligence (AI): field in which the
making computer system takes on the characteristics of
• Focus of a DSS is on human intelligence
decision-making

4 effectiveness
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 5. Systems Development Systems Investigation and Analysis
• Systems development: the • Systems investigation: gain a clear understanding
activity of creating or of the problem to be solved or opportunity to be
modifying existing business addressed
systems • Systems analysis: defines the problems and
• A systems development opportunities of the existing system
project can be:
– Done by people within the
company
– Outsourced
• To improve results of a
systems development

5 5
project, it is divided into
several steps
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Systems Design, Implementation, and 6. Global Challenges in IS

Maintenance and Review
• Systems design: how the new system will work to
meet the business needs defined during systems
analysis
• Systems implementation: creating or acquiring 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
• Cultural challenges
• Language challenges
• Time and distance challenges
• Infrastructure challenges
• Currency challenges
• Product and service challenges
• Technology transfer issues
• State, regional, and national laws
• Trade agreements

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 7. Summary
• Data: raw facts
• Information: collection of facts organized in such a
way that they have value beyond the facts
themselves
• System: a set of elements that interact to
accomplish a goal
• Components of an information system: input,
processing, output, and feedback
Summary (2)
• 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
• Transaction processing system (TPS): an
organized collection of people, procedures,
software, databases, and devices used to record
completed business transactions

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Summary (3)
• Management information system (MIS): an
organized collection of people, procedures,
software, databases, and devices that provides
routine information to managers and decision
makers
• Decision support system (DSS): an organized
collection of people, procedures, software,
databases, and devices used to support problem-
specific decision making
• Systems development: creating or modifying
existing business systems

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