An Introduction to Information

Systems
Chapter 1

Principles of Information Systems, Sixth

Edition

Principles and Learning Objectives

The value of information is directly linked to how
it helps decision makers achieve the
organizations goals.
Distinguish data from information and describe the
characteristics used to evaluate the quality of data.

Principles of Information Systems, Sixth

Edition

Principles and Learning Objectives

Models, computers, and information systems are
constantly making it possible for organizations to
improve the way they conduct business.
Name the components of an information system and
describe several system characteristics.
Identify four basic types of models and explain how
they are used.

Principles of Information Systems, Sixth

Edition

Principles and Learning Objectives

Knowing the potential impact of information
systems and having the ability to put this
knowledge to work can result in a successful
personal career, organizations that reach their
goals, and a society with a higher quality of life.
Identify the basic types of business information
systems and discuss who uses them, how they are
used, and what kinds of benefits they deliver.
Principles of Information Systems, Sixth
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Principles and Learning Objectives

System users, business managers, and
information systems professionals must work
together to build a successful information
system.
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.
Principles of Information Systems, Sixth
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Information Concepts

Principles of Information Systems, Sixth

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Information System
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

Principles of Information Systems, Sixth

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Data vs. Information

Data: raw facts
Information: collection of facts organized in
such a way that they have value beyond the
facts themselves

Principles of Information Systems, Sixth

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Types of Data

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Data vs. Information

Principles of Information Systems, Sixth

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The Characteristics of Valuable

Information

Principles of Information Systems, Sixth

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The Characteristics of Valuable

Information

Principles of Information Systems, Sixth

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The Characteristics of Valuable

Information

Principles of Information Systems, Sixth

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System and Modeling

Concepts

Principles of Information Systems, Sixth

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

Input
Processing mechanism
Feedback
Output
System boundary

Principles of Information Systems, Sixth

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Components of a System

Principles of Information Systems, Sixth

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System and Modeling Concepts

Principles of Information Systems, Sixth

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System Performance and Standards

Efficiency: output/input
Effectiveness: extent to which system attains its
goals
Performance standard: specific objective of a
system

Principles of Information Systems, Sixth

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System Variables and Parameters

System variable - item controlled by decisionmaker
System parameter - value that cannot be
controlled

Principles of Information Systems, Sixth

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Systems Classification

Principles of Information Systems, Sixth

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System Performance and Standards

Principles of Information Systems, Sixth

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Modeling a System

Principles of Information Systems, Sixth

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Modeling a System
A model is an abstraction 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
Principles of Information Systems, Sixth
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What Is An Information
System?

Principles of Information Systems, Sixth

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Components of an Information
System

Principles of Information Systems, Sixth

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Computer-Based
Information Systems (CBIS)

Principles of Information Systems, Sixth

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Computer-Based
Information Systems (CBIS)

Principles of Information Systems, Sixth

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Components of a CBIS

Principles of Information Systems, Sixth

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Telecommunications, Networks, and

the Internet

Principles of Information Systems, Sixth

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Telecommunications, Networks, and

the Internet

Principles of Information Systems, Sixth

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Business Information
Systems

Principles of Information Systems, Sixth

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Business Information Systems

Electronic Commerce
Transaction Processing Systems
Management Information Systems
Decision Support Systems

Principles of Information Systems, Sixth

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E-Commerce

Business-to-business
Business-to-consumer
Business-to-government
Government-to-consumer

Principles of Information Systems, Sixth

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Electronic Commerce

Principles of Information Systems, Sixth

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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
Principles of Information Systems, Sixth
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Payroll Transaction Processing

System

Principles of Information Systems, Sixth

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Enterprise Resource Planning (ERP)

Integrated programs that can manage a
companys entire set of business operations
Often coordinate planning, inventory control,
production, and ordering

Principles of Information Systems, Sixth

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Management Information Systems (MIS)

Routine information for routine decisions

Operational efficiency
Use transaction data as main input
Databases integrate MIS in different functional
areas

Principles of Information Systems, Sixth

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Management Information Systems (MIS)

Principles of Information Systems, Sixth

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MIS Outputs
Scheduled reports
Demand reports
Exception reports

Principles of Information Systems, Sixth

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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

Principles of Information Systems, Sixth

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Essential DSS Elements

Principles of Information Systems, Sixth

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Special-Purpose Business Information

Systems

Artificial Intelligence (AI) Systems

Virtual Reality Systems
Expert Systems
Other Special-Purpose Business Information
Systems

Principles of Information Systems, Sixth

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The Major Elements of Artificial

Intelligence

Principles of Information Systems, Sixth

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Virtual Reality

Principles of Information Systems, Sixth

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Data Glove

Principles of Information Systems, Sixth

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Systems Development

Principles of Information Systems, Sixth

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Why Learn About Information

Systems?

Advance in your career

Solve problems
Realize opportunities
Meet your career goals

Principles of Information Systems, Sixth

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Computer and Information System

Literacy
Computer literacy - knowledge of computer
systems and equipment
Information system literacy - knowledge of
how data and information are used

Principles of Information Systems, Sixth

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Information Systems in Functional

Areas of Business
Finance and Accounting
Sales and Marketing
Manufacturing

Principles of Information Systems, Sixth

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Information Systems in Industry

Investment firms
Banks
Publishing companies
Healthcare organizations
Management consulting firms

Principles of Information Systems, Sixth

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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

Principles of Information Systems, Sixth

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