Introduction to Information

Systems
 Principles and Learning Objectives

The value of information is directly linked to how it helps

decision makers achieve the organization’s goals.

– Distinguish data from information and describe the

characteristics used to evaluate the quality of data.
– Name the components of an information system and describe
several system characteristics.
– Identify four basic types of models and explain how they are
used.
– Identify the major steps of the systems development process
and state the goal of each.
– Discuss why it is important to study and understand information
systems.
Information Systems Management (ISM) is the
application of information technology to
support the major functions and activities of
either a private sector business or public
sector institution.

ISM supports the process of collection,

manipulation, storage, distribution and
utilization of an organization's information
resources.
 Information Concepts

System
A set of elements or components that interact to
accomplish goals

Input
Processing mechanism
Feedback
Output
Components of a System
What Is An Information
System?
 What Is an Information System?

A set of interrelated components that collect

(or retrieve), process, store, and distribute
information to support decision making and
control in an organization
 Information System

2. 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 reservation systems
Components of an Information
System
 Data vs. Information

Data: raw facts

Information: collection of facts organized in

such a way that they have value beyond the
facts themselves
Types of Data
Data vs. Information
The Characteristics of Valuable
Information
The Characteristics of Valuable
Information
System and Modeling
Concepts
 Modeling a System

A model is an abstraction/approximation
that is used to represent reality
– 4 major types of models
A narrative model is based on words
– Logical, not physical
A physical model is tangible
A schematic model is a graphic representation
– Graphs and charts
A mathematical model is an arithmetic
representation
Modeling a System
System and Modeling Concepts
 System Performance and Standards

Efficiency: output/input
Effectiveness: extent to which system attains its
goals
Performance standard: specific objective of a
system
System Performance and Standards
 System Variables and Parameters

System variable - item controlled by decision-

maker

System parameter - value that cannot be

controlled
Systems Classification
 Computer-Based
Information Systems
(CBIS)
Components of a CBIS
Business Information
Systems
 Business Information Systems
Transaction Processing Systems (TPS)
Enterprise Resource Planning System (ERPS)
Customer Relationship Management Systems (CRMS)
Electronic Commerce (E-Commerce)
Management Information Systems (MIS)
Decision Support Systems (DSS)
Group Support Systems (GSS) / Group Decision Support
Systems (GDSS)
Executive Support Systems (ESS) / Executive
Information Systems (EIS)
Virtual Reality Systems (VRS)
Expert Systems (ES) / Artificial Intelligence (AI)
 E-Commerce

Business-to-business (B to B)
Business-to-consumer (B to C)
Business-to-government (B to G)
Government-to-consumer (G to C)
Consumer-to-Government (C to G)
Consumer-to-Consumer (C to C)
Electronic Commerce
 Transaction Processing Systems

A transaction processing system (TPS) is an organized collection of

people, procedures, software, databases, and devices used to
record completed business transactions.

 Process business exchanges

 Maintain records about the exchanges
 Handle routine, yet critical, tasks
 Perform simple calculations
 Provide routing, tracking & imaging capabilities to improve business
processes
 Improve productivity
 Enterprise Resource Planning (ERP)

Integrated programs that can manage a

company’s entire set of business operations

Often coordinate planning, inventory control,

production, and ordering
Management Information Systems (MIS)

Management information systems provide routine

information to decision makers to make structured,
recurring decisions, such as restocking decisions or
bonus awards. Management Information Systems focus
on operational efficiency.

The main input to an MIS is data collected and stored by

transaction processing systems.
Management Information Systems (MIS)

Routine information for routine decisions

Operational efficiency
Use transaction data as main input
Databases integrate MIS in different functional
areas
Management Information Systems (MIS)
 MIS Outputs

Scheduled reports
Demand reports
Exception reports
Key Indicator reports
Drill-down reports
 Decision Support Systems (DSS)
DSS- A decision support system is an organized
collection of people, procedures, software,
databases, and devices used to support
problem-specific decision making.

– Interactive support for non-routine decisions or

problems
– End-users are more involved in creating a DSS than
an MIS
Essential DSS Elements
 Special-Purpose Business Information
Systems

Artificial Intelligence (AI) Systems

Virtual Reality Systems
Expert Systems
Other Special-Purpose Business Information
Systems e.g. GIS (Geographic Information
Systems
Virtual Reality
Systems Development
 Why Learn About Information
Systems?

Advance in your career

Solve problems
Realize opportunities
Meet your career goals
 Computer and Information System
Literacy

Computer literacy - knowledge of computer

systems and equipment

Information system literacy - knowledge of

how data and information are used
 Information Systems in Functional
Areas of Business

Finance and Accounting

Sales and Marketing
Manufacturing
 Information Systems in Industry

Investment firms
Banks
Publishing companies
Healthcare organizations
Management consulting firms
 Management Challenges

1. Design competitive and effective systems.

2. Understand system requirements of global

business environment.

3. Create information architecture that supports

organization’s goal.
 Management Challenges

4. Determine business value of information

systems.

5. Design systems people can control,

understand and use in a socially, ethically
responsible manner.
Positive Impacts of Information Systems

Faster calculations and paperwork

Analysis of customer purchase patterns and
preferences
More efficient business services
Medical advances
Instant global distribution of information
Negative Impacts of Information Systems

Automation leading to job elimination

Privacy concerns
System outages and shutdowns
Health problems, repetitive stress injury
Illegal distribution of intellectual property
 Summary

Data - raw facts

Information - data transformed into a
meaningful form
System - set of elements that interact to
accomplish a goal
Systems development - creating or modifying
existing business systems