Chapter 1: Introduction to Information Systems

1.1 Data, Information and knowledge Data o A collection of unprocessed, unorganized items and meaningless to users, which can include text, numbers, images, audio and video. o Such as inventory part no, employee no, total hours worked in week , password Information o Information refers to data that have been processed and organized so that they have meaning and value to the users. o o Example: Report Processing Convert or transform data in useful information Proces s Informatio
Meaningful n Useful E.g. Graph

Meaningless Useless E.g. numbers

Data

Knowledge o Awareness and understanding of a set of information & ways that information can be made useful to support a specific task / reach a decision 1.2 The characteristics of valuable Information Accessible, accurate, complete, economical, relevant, reliable, secure, simple, timely, verifiable

flexible,

1.3 The value of Information Can help people and their organizations perform tasks more efficiently and effectively Also can help managers decide whether to invest in additional information systems and technology 2.1 Introduction of Information System

 A set of interrelated components that collect (input), manipulate (process), store, and disseminate (output) data and information for specific purpose Purpose: To get the useful and right information to the right people at the right time. Example of IS: Automated Teller Machine (ATM), Ticket Reservation System, Point of Sales (POS) system and etc 2.2 Computer-based Information Systems A computer-based information system (CBIS) is a single set of hardware, software, databases, network /telecommunication, people, and procedure that are configured to collect, manipulate, store and process data into information. Use computer technology to perform some or all of their tasks and process data into information. Components of CBIS: 1. Hardware: Consists of computer equipment used to perform input, processing, and output activities 2. Software: Consists of the computer programs that govern the operation of the computer 3. Database: Organized collection of facts and information, typically consisting of two or more related data files 4. Networks and telecommunications: permits different computers to share resources 5. People: Who-manage, run (use), program (build) &maintain IS 6. Procedure: set of instructions about how to combine the hardware, software, network and people components in order to process data and generate the desired information. 3.1 Why learn about IS? Use information system to reach customers around the world. Use information system to produce information they need, to do their jobs. Example: o Register for classes (school registration system) o Pay your bills (banking system)

o Research, shop and buy products from companies or other 3.2 Information Systems in the functional areas of business Finance and accounting: to forecast revenue and business activity Sales & marketing: develop new products and service Manufacturing: develop production schedule, control inventory level/product quality Human resource management: monitor employee productivity and analyzes employee performance on the job

3.3 Information Systems in Industry Banks Transportati on industry Publishing companies

Healthcare organizations Airline industry Government

3.4 Benefits of using Information Systems Better information: reduce the persons uncertainty, and so with better information a business person is more certain about the outcome of the decision. Improved service: operate at any time of the day or night and process data faster than humans Increased productivity: people can do more work in a period of time they would be able to do if they did not have such systems. Competitive advantage: A business has a competitive advantage when customers clearly prefer its products over those of other businesses. If the business could identify and produce a new product before its competitors did, the business would have a competitive advantage.