INFORMATION SYSTEMS

For Managers

Subject Code : IS01

Session 1 :
Covered Chapters

• Information Systems : An Overview

• Computers: machines behind computing
• Database Systems
• Personal, Legal, Ethical and Organization
issues of Information Systems
Le a r n i n g o u t c o m e s for chapter 1
: Information Systems : An Overview

LO1 Discuss common applications of computers and

information systems.
LO2 Explain the differences between computer literacy
and information literacy.
LO3 Define transaction processing systems and
management information systems.
LO4 Describe the four major components of an
information system.
LO5 Discuss the differences between data and
information.
l e a r n i n g o u t c o m e s (cont’d.)
LO6 Explain the importance and applications of
information systems in functional areas of a
business.
LO7 Discuss how information technologies are used to
gain a competitive advantage.
LO8 Explain the Five Forces Model and strategies for
gaining a competitive advantage.
LO9 Summarize the future outlook of information
systems.
Few Examples of Technology usage in our daily lives
• Every time you use a debit or credit card in a shop till, it
uses a terminal connected to other computers via a
network. Your identification details are automatically
transferred from your card to your bank or credit card
company for verification, and your balance adjusted
accordingly.

• When you shop online, or over the phone (when booking a

cinema ticket, for example) or use ATMs to check your
bank balance or withdraw cash from wherever you are in
the world, the machines are networked to a central
computer, which has records of your account.
 Information Literacy and Computer Literacy

Information literacy is the ability to recognize the extent and nature of

an information need, then to locate, evaluate, and effectively use the
needed information

Computer Literacy : Understanding computers and related systems.

 Transaction processing system

Most basic business system and the heart of most organizations

 Study of Information systems
It focusses on four slightly separate, but related objectives:
• digital technologies, their characteristics and capabilities.
• people who use information systems
• tasks that they wish to accomplish
• the social / organizational structure in which information
systems is set up.
Management Information Systems (cont’d.)
• Designing an MIS
• Define objectives
• Collect and analyze data
• Provide information in useful format
• Used in both the private and public sector
• Many organizations use information systems to gain a
competitive advantage
• Examples ….
Management Information Systems

• Management information system (MIS)

• Organized integration of hardware and software technologies, data,
processes, and human elements
• Designed to produce timely, integrated, relevant, accurate, and useful
information
• For decision-making purposes
• Include:
• Hardware components
• MIS software
• Processes
Major Components of an Information System

• Data
• Database
• Process
• Information
Using Information Technologies for a
Competitive Advantage
• Michael Porter
• Professor at Harvard Business School identified three strategies
for competing in the marketplace successfully
• Overall cost leadership, Differentiation, Focus
• For analyzing an organization, its position in the marketplace,
and how information systems could be used to make it more
competitive, Porter devised a Five Forces Model :

• Buyer power
• Supplier power
• Threat of substitute products or services
• Threat of new entrants
• Rivalry among existing competitors
The Five Forces Model
Future Outlooks

• Hardware and software costs continue to decline

• Processing information less expensive in the future
• Artificial intelligence and related technologies will continue to
improve and expand
• Computer literacy will improve
• Networking technology will improve
• Personal computers will continue to improve in power and quality
• Internet growth and acceptance will continue
• Computer criminals will become more sophisticated
• Protecting personal identity information will become more difficult
Summary

• Examples of uses for computers and information systems

• Difference between computer literacy and information literacy
• Management information system (MIS)
• Data, database, process, and information
• Porter
• Three competitive strategies
• Five Forces Model
 Machines behind computers
1 Define a computer system, its components
2 History of computer hardware and software
3 Factors distinguishing the computing power of
computers
4 Summarize computer operations
5 Input, Output and Memory Devices
6 Software & Computer Languages
Data (covered in 1 st chapter)
DATA AND INFORMATION.
• Data consist of raw facts, such as customer names
and addresses.
• Information is a collection of facts organized in such a
way that it has more value beyond the facts
themselves.
• Turning data into information is a process or a set of
logically related tasks performed to achieve a defined
outcome.
Databases
• A database management system (DBMS) is a group of
programs used as an interface between a database and an
applications program.

• DBMSs are classified by the type of database model they

support. A relational DBMS would follow the relational
model, for example. The functions of a DBMS include data
storage and retrieval, database modifications, data
manipulation, and report generation.
What Is a Data Warehouse?
• A data warehouse is a database designed to enable business
intelligence activities: it exists to help users understand and enhance
their organization's performance. This helps in:
• Maintaining historical records
• Analyzing the data to gain a better understanding of the business and
to improve the business
Data Warehouse Architecture
Data Marts
• Data mart :
• Provides Primary access to the data stored in the data warehouse or
operational data store.

• It is a subset of data sourced from the data warehouse or operational data

store

• It is specifically focused on a business function or set of related business

functions
 Business Analytics
• Business analytics is the combination of skills, technologies,
applications and processes used by organizations to gain
insight in to their business based on data and statistics to
drive business planning.

• Business analytics solutions typically use data, statistical and

quantitative analysis and fact-based data to measure past
performance to guide an organization's business planning.
FUTURE TRENDS
• A private database is compiled from individual
consumer or business customer names and addresses
maintained by a company for use in its own marketing
efforts.

• Such a database may have originated as a public

database, once the company begins adding or
removing information it is considered a private
database.
Risks Associated with Information
Technologies
• Misuse of information technology

• Invade users’ privacy

• Commit computer crimes

Spyware and Adware

• Spyware
• Software that secretly gathers information about users while they browse the
Web
• Can be used maliciously
• Adware
• Form of spyware
• Collects information about the user to display advertisements in the Web
browser
Phishing & Spoofing

Phishing : Sending fraudulent e-mails that seem to come from legitimate

sources

• Direct e-mail recipients to false Web sites

• To capture private information

• Spoofing:
• Attempt to gain access to a network by posing as an authorized user to find
sensitive information
Computer Crime and Fraud
• Computer fraud
• Unauthorized use of computer data for personal gain
• Social networking sites
• Used for committing computer crime
• Examples
• Denial-of-service attacks
• Identity theft
• Software piracy
• E-mail spamming
Privacy Issues

• Concerns about privacy in the workplace

• Misuse and abuse of information gathered by:

• Number of databases increasing rapidly
• Direct marketing companies major user of this information

• Acceptable use policies

E-mail

• Presents some serious privacy issues

• Unsolicited e-mail sent for advertising purpose
• Sent in bulk by using automated mailing software
• Ease of access
• People should assume that others could have access to their messages
• Any e-mails sent on company-owned computers are the property of the
organization
Ethical Issues of Information Technologies

• Information technology offers many opportunities for unethical

behavior
• Cybercrime, cyberfraud, identity theft, and intellectual property theft
• Many experts believe management can reduce employees’ unethical
behavior
• Codes of ethics
• Many associations promote ethically responsible use of information
systems and technologies
• Codes of ethics
Intellectual Property

• Intellectual property
• Industrial property
• Inventions, trademarks, logos, industrial designs
• Copyrighted material
• Registering, selling, or using a domain name to profit from someone else’s
trademark
The Impact of Information Technology in the
Workplace
• New jobs
• Telecommuting and virtual work
• Job deskilling
• Job upgrading
• One skilled worker might be capable doing the job of
several workers
• Virtual organizations
• Green Computing
• promotes a sustainable environment and consumes the least
amount of energy
Information Technology and Health Issues

• Reports of health-related issues caused by video display terminals (VDTs)

• No conclusive study
• Health problems associated with the environment in which computers are used

• Other reports of health problems

• Vision
• Musculoskeletal
• Skin
• Reproductive
• Stress-related
• Amount of time some people spend on the Web
Green Computing

• Computing that promotes a sustainable environment and consumes

the least amount of energy

• Helps an organization save on energy costs

• Improves the quality of the environment in which we live and work

 Summary
• Privacy issues related to information technologies
• Methods for protecting privacy: Personal information and
organizations’ data resources
• Ethical issues related to information systems
• Censorship, intellectual property laws, digital divide
• Effect of information systems on the workplace and
possible heath issues
• Green computing
• Impact on the environment
End of Week-1