Welcome to IS I

INF1002S, 2018
KEVIN JOHNSTON (KJ)
KEVIN.JOHNSTON@UCT.AC.ZA
021-650-2266 OR 083 415 0892
BASED ON SLIDES BY PROF ULRIKE RIVETT

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 Warnings

» I am part of a previous generation

– If I use any terms which any of you deem to
be inappropriate or offensive, PLEASE let
me know, and please forgive me
– It is not my intention to insult or offend
anyone
» I don’t follow a textbook rigidly
» Favour and promote a Questioning
Culture
» Always have my cell phone ON 2
 Welcome to Information Systems

• All lectures are based on the book:

• Principles of Business Information Systems,
3rd Edition
• All info is on the slides made available on your
Vula 1002S
• Exam: Material on slides and what was said in
lectures
• The lecture slides are an edited version of the
slides on Vula – there is no content difference
• Questions: Post them on the Chatroom on Vula!

For use with Principles of Business Information Systems, 3e

by Stair, Reynolds & Chesney
© 2018 Cengage Learning 3
 WDYLIST?
What did you learn in school today?
» Forgive “dear little boy of mine”

» https://
www.youtube.com/watch?v=rvr30mQF
9ek

» https://www.youtube.com/watch?v=_
Gn8U_4trpE
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 What is the difference?

• Why are you sitting in this course?

• What is the difference between Computer Science
and IS?
• Which field is without computers?
• Why do we use computers?
• Why do you need to know how computers, the internet
and mobile phones work?
• 68% of the SA population (37.5 million) have a phone
• 52% utilise the Internet in some format
• 27% use social media platforms
• Mobile is responsible for over 75% of all web traffic in
SA For use with Principles of Business Information Systems, 3e
by Stair, Reynolds & Chesney
© 2018 Cengage Learning 4
 Defining an Information System 1

What is a system?
• A system is a set of elements or components that
interact (collaborate/combine) to accomplish goals
(aims/purpose). Eg. Respiratory system, car, www etc
• Systems have inputs, processing mechanisms,
outputs, and feedback
• A system processes the input to create the output

For use with Principles of Business Information Systems, 3e

by Stair, Reynolds & Chesney
© 2018 Cengage Learning 5
 What is Information?
Data - elementary description of things, events,
activities, & transactions that are recorded,
classified, & stored, but not organized to
convey any meaning. Eg. 0216502266
Information is data that have been organized
or processed so that they have meaning and value. Can take
many forms – text, numbers, images, audio clips and video
clips. Data put into context. Data & Information are often used
interchangeably. Eg. 021-650-2266
Knowledge "know-how" is understanding what the information
means or implies. Experience, learning, & expertise – eg what
to do with information. Eg. 021-650 is prefix of a UCT
telephone number
Wisdom – where put Knowledge, experience, and analytical
skills to create new knowledge & adapt to situation. Insight.
Eg.021-650-2266 is KJs office number, and he is unlikely to
answer Benson & Standing p 3; Turban et al; Post & Anderson; Rainer et9 al
 Data, Information, Knowledge & Wisdom
Wisdom
Insight to create new
K, to adapt

Knowledge
Global warming
Understand meaning of Info

Decisions
What can I do?
Information
Data Temperature anomaly
i ng
Eg 1980 es s Data in context
r oc
P
Data & Information = What; Knowledge = How; Wisdom = Why
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 How did Britain win the
Battle of Britain?
21
36

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 Defining an Information System

Information People
Useful, accurate, relevant, Management, employees,
timely, reliable customers, suppliers

CS IS
Business
Technology Processes
Hardware, software,
activity undertaken to develop
databases, networks
& deliver products or
services to customers

An information system (IS) is a set of 4 interrelated components

(People, business processes, information and technology) that
collect (input), Process (manipulate & store), and Output (disseminate)
information, and provide feedback to meet an objective for someone in a
business environment Feedback Environment

Inputs Processes Outputs

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 Business Information Systems

• Information systems used in business organizations are those designed for

electronic and mobile commerce (E and m-commerce), transaction
processing, management information, and decision support
• They are often integrated into one product and delivered by the same
software package – Really – I HAVE NEVER SEEN THIS?
For use with Principles of Business Information Systems, 3e
by Stair, Reynolds & Chesney
© 2018 Cengage Learning 9
 Standard Bank - 2017

• Standard Bank Group IT ran over 2,500 software systems,

supporting 8,815 Automatic Teller Machines (ATMs) across
Africa, and managed over 500 IT projects
• The two data centers housed
• six IBM mainframes plus
• over 12,500 Windows servers,
• 2500 UNIX servers and
• 1000 LINUX servers

Kevin Johnston & Grandon Gill (2017). Standard Bank: The Agile Transformation.
Muma Case Review, 2(7). 1-31. Retrieved from: 
http://pubs.mumacasereview.org/2017/MCR-02-07-Johnston-StandardBank-p1-3
1.pdf For use with Principles of Business Information Systems, 3e
by Stair, Reynolds & Chesney
© 2018 Cengage Learning 10
 Types of Business Systems

• Transaction Processing System (TPS) • Marks process

• E-Commerce & M-Commerce • B2B
• Management Information System (MIS) • Marks Summary
• Decision Support System (DSS) • Entrance
• Enterprise resource planning (ERP) • SAP & Oracle
• Knowledge Management Systems (KMS) • Research
• Artificial Intelligence (AI) • IS Lab
• Virtual Reality (VR) • IS Lab
• Augmented Reality (AR) • IS Lab

For use with Principles of Business Information Systems, 3e

by Stair, Reynolds & Chesney
© 2018 Cengage Learning 11
Types of Business Systems
Functional Silos

Strategic-Level Applications
ESS/EIS(exec) Sales Operating Budget Profit Manpower
Forecasting plan forecasting planning planning

Management-Level Applications
KMS Sales Mgt Inventory Budgeting Capital Relocation
control investments analysis
MIS CRM
Sales Production Cost Pricing Contract cost

ERP
DSS Analysis scheduling analysis analysis analysis

Knowledge-Level Applications
Engineering workstations Graphics works Managerial works
DMS Word processing Imaging Elec. calendars
OAS
Operational-Level Applications
Order Machine Securities Gen.Ledger Payroll
POS tracking & control & trading Accounts Training &
TPS
Workflow processing scheduling Cash Mgt payable & development
SCM Material cntrl receivable Emp. records
ESS(emp) Sales & Mkting Manufact Finance Accounts HR
E/MC

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 Transaction Processing Systems

• A Transaction Processing System (TPS) is an

‘Operational System’
• Operational systems help organizations perform and
integrate important tasks, such as paying employees and
suppliers, controlling inventory, sending out invoices,
and ordering supplies
• A transaction is any business-related exchange such as
payments to employees, sales to customers, or payments
to suppliers

For use with Principles of Business Information Systems, 3e

by Stair, Reynolds & Chesney
© 2018 Cengage Learning 13
 Management Information Systems

• A management information system (MIS) provides

routine information to managers and decision makers
• An MIS focuses on operational efficiency
• The output of a TPS is the input to a MIS
• MIS typically provide standard managerial reports
generated with data and information from the TPS
• EG Payroll summary
• Logistics Management
• Inventory Management
For use with Principles of Business Information Systems, 3e
by Stair, Reynolds & Chesney
© 2018 Cengage Learning 14
 Specialized Business Information
Systems
• Knowledge management systems (KMS): to create, store, share, and use
the organization’s knowledge and experience. EG Lesson Learned
Databases, Expertise Location, Communities of Practice
• Artificial Intelligence (AI): attempts to have the computer system take on
the characteristics of human intelligence. Applications include robotics
and natural language processing. EG. Robotics, ANNs, Expert Systems
• Virtual reality (VR): simulation of a real or imagined environment that
can be experienced visually in three dimensions. EG Real Estate
viewing, Crime scene reconstruction
• Augmented reality (AR): is an interactive experience of a real-world
environment whose elements are "augmented" by computer-generated
perceptual information. EG Pokemon GO

For use with Principles of Business Information Systems, 3e

by Stair, Reynolds & Chesney
© 2018 Cengage Learning 15
Security, Privacy, and Ethical Issues

• Security - protection from accidental or intentional misuse

or damage
• Privacy – the right to be left alone
• Cyberbullying -  bullying that takes place over digital
devices like cell phones, PCs etc
• Ethical behaviour - Acting in ways consistent with what
society and individuals typically think are good values –
HUGE LOOPHOLE – Nazi German Society?
• Fake news - deliberate misinformation or hoaxes spread
via traditional news broadcasters

For use with Principles of Business Information Systems, 3e

by Stair, Reynolds & Chesney
© 2018 Cengage Learning 16
 EXERCISE
o Watch a short DVD of 2 teams
passing a ball
o One team is in white t-shirts
o Other team is in black t-shirts

o Count how many passes are made between

players (OK if ball bounces on floor) in white t-shirts
o Please be quiet as many struggle to count in a noisy
environment
o Hint last pass freezes, so do not count it

Weiner & Brown 21

 Spot the gorilla in your midst
o Inattentional blindness – more you focus on
something, less able to see unexpected
o Focus on numbers, on answers
o Older you get, more K you acquire,
more gets loaded into your consciousness
o Consciousness becomes your thinking,
your beliefs, and your problem-solving
o Specialised K although necessary, blocks your vision,
limits your freedom of understanding, and pushes you
into a walled & turreted world
o “When walls are breached you can go down fighting
new K, or you can learn and conquer”
o Need to think in Future – do not overlook obvious
Weiner & Brown 22
 To close off – a Quiz

• Go onto the Vula site

• Check under Assignments & Quiz
• First Quiz: Check your knowledge…
• How much of the lecture did you get and keep?
• Do it immediately after the lecture

See you all next week!

For use with Principles of Business Information Systems, 3e

by Stair, Reynolds & Chesney
© 2018 Cengage Learning 17