An Introduction to Information Systems

Chapter 1

Principles of Information Systems, Sixth Edition 1

Chapter 1 Outline
• Information Concepts
• System and Modeling Concepts
• What’s an Information System?
• Computer-based Information Systems
• Business Information Systems
• Systems Development
• Why Learn About Information Systems?

Principles of Information Systems, Sixth Edition 2

 Information Concepts

Principles of Information Systems, Sixth Edition 3

Definition of an 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 Edition 4

Data vs. Information

• Data: raw facts

• Information: a collection of facts that are organized so that they have

value (often for decision making) beyond that of the facts themselves

Principles of Information Systems, Sixth Edition 5

Types of Data

Principles of Information Systems, Sixth Edition 6

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition 7

The Characteristics of Valuable Information

Principles of Information Systems, Sixth Edition 8

Transforming Data Into Information

Principles of Information Systems, Sixth Edition 9

 System and Modeling Concepts

Principles of Information Systems, Sixth Edition 10

 Definition of a System
“A set of elements that interact to accomplish goals”

Systems consist of:

• Input(s)
• Processing
• Output(s)
• Feedback: output used to make changes to inputs or
processing
• Other system terms:
• System boundary: distinguishes the system from its environment
• A configuration: the way system elements are organized or arranged.

Principles of Information Systems, Sixth Edition 11

Components of a System: Input, Processing,
Output and Feedback

Principles of Information Systems, Sixth Edition 12

System and Modeling Concepts

Principles of Information Systems, Sixth Edition 13

Classifying System Types

Principles of Information Systems, Sixth Edition 14

More System Terms and Concepts

• Performance and Standards

• Efficiency: output/input
• Effectiveness: extent to which system attains its goals
• Performance standard: specific objective of a system
• System variable - item controlled by decision-maker
• System parameter - value that cannot be controlled

Principles of Information Systems, Sixth Edition 15

 System Performance and Standards

System variable-
item controlled by
decision-maker

System parameter-
value that cannot be
controlled

Principles of Information Systems, Sixth Edition 16

System Models
• “an abstraction used to represent reality”
• 4 major types of models:
• 1. A narrative model is based on words and is a
logical, not physical model
• 2. A physical model is a tangible representation
of reality
• 3. A schematic model represents reality using
graphs and charts
• 4. A mathematical model uses formulas and
calculations to represent reality

Principles of Information Systems, Sixth Edition 17

System Model Types

Principles of Information Systems, Sixth Edition 18

 What Is An Information System?

Principles of Information Systems, Sixth Edition 19

Components of an Information System

Principles of Information Systems, Sixth Edition 20

 Computer-Based Information
Systems (CBIS)

Principles of Information Systems, Sixth Edition 21

CBIS Components: hardware, software,
databases, telecom, people and procedures

Principles of Information Systems, Sixth Edition 22

CBIS Elements

• Hardware
• Software
• Databases
• Telecommunications, Networks and the Internet
(Connectivity)
• People
• Procedures

Principles of Information Systems, Sixth Edition 23

7 Firms Making Excellent Use of the Internet

Principles of Information Systems, Sixth Edition 24

7 Firms Making Excellent Use of the Internet

Principles of Information Systems, Sixth Edition 25

Business Information Systems

Principles of Information Systems, Sixth Edition 26

Business Information Systems
• Electronic Commerce (EC)
• E-Commerce Types: B2B, B2C, C2C, B2G, G2C
• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Decision Support Systems (DSS)
• Enterprise Resource Planning Systems (ERP)
• Artificial Intelligence (AI) Systems
• Virtual Reality Systems (VR)

Principles of Information Systems, Sixth Edition 27

Electronic Commerce (including EDI)

Principles of Information Systems, Sixth Edition 28

Transaction Processing Systems
“an organized collection of people, procedures,
software, databases and devices used to record
completed business transactions”
Examples include:
• Processing business exchanges
• Maintaining records about the exchanges
• Handling routine, yet critical, tasks
• Performing simple calculations

Principles of Information Systems, Sixth Edition 29

Example of a TPS: Payroll

Principles of Information Systems, Sixth Edition 30

Enterprise Resource Planning (ERP)
• “an integrated group of programs that can manage a
company’s entire set of business operations”
• Often used to coordinate planning, inventory control,
production, and ordering

Principles of Information Systems, Sixth Edition 31

Management Information Systems (MIS)
“an organized collection of people, procedures, software,
databases and devices used to provide routine
information to managers and decision makers”
• Focus is on improving operational efficiency (“doing
things right”)
• Uses transaction data as main input
• Databases are used to integrate MIS from different
functional areas
• MIS Output types:
• Scheduled reports
• Demand reports
• Exception reports

Principles of Information Systems, Sixth Edition 32

Management Information Systems (MIS)

Principles of Information Systems, Sixth Edition 33

Decision Support Systems (DSS)
• “an organized collection of people, procedures,
software, databases and devices used to support
problem-specific decision making”
• Focus on decision-making effectiveness (“doing the
right thing”)
• Typically used for:
• Interactive support for non-routine decisions or problems
• End-users (and their expertise) are more involved in
creating a DSS than an MIS

Principles of Information Systems, Sixth Edition 34

Essential DSS Elements

Principles of Information Systems, Sixth Edition 35

Special-Purpose Business Information Systems

• Artificial Intelligence (AI) Systems

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

Principles of Information Systems, Sixth Edition 36

The Major Elements of Artificial Intelligence

Principles of Information Systems, Sixth Edition 37

Virtual Reality: Head Mounted Display

Principles of Information Systems, Sixth Edition 38

Virtual
Reality: Data
Glove

Principles of Information Systems, Sixth Edition 39

Check Practical Post Test

40
• CBIS >> Sistem Absensi SION
• Goals >> Mengelola absensi kehadiran dosen dan mahasiswa
• Data Representation >> Alphanumeric data
• Elements
• Hardware : Laptopn/PC/Handphone
• Software : Browser
• People : Dosen, Mahasiswa, Admin
• Telecomunication : Internet
• Prosedure : Panduan Perkuliahan
• Database : Mata Kuliah, Mahasiswa, Kurikulum, Jadwal, etc
• System Modeling
• Input : Data Kehadiran (Waktu, NIP/NIM)
• Processing : Set H pada Waktu untuk NIP/NIM pada Jadwal
• Output : Daftar Presensi
• Feedback : Riwayat Perkuliahan

41
Systems Development Life Cycle

Principles of Information Systems, Sixth Edition 42

Systems Development Life Cycle
(SDLC)
• Systems development is “the activity of creating or
modifying existing business systems.
• The SDLC is a formal way of looking at this process.
• Nearly every company will develop or use some sort
of proprietary software, and the process involves
more than just IS personnel.
• So, it’s important to understand the SDLC to
participate effectively in corporate environment.

Principles of Information Systems, Sixth Edition 43

 Systems
Development
Life Cycle

Note: this last block

is really two phases:
system maintenance
and system review

Principles of Information Systems, Sixth Edition 44

 Why Learn About Information
Systems?

Principles of Information Systems, Sixth Edition 45

Why Learn About Information Systems?

• Advance in your career

• Solve problems
• Realize opportunities
• Meet your career goals

Principles of Information Systems, Sixth Edition 46

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 Edition 47

Where are Information Systems used in Business
and Industry?
• Finance and Accounting
• Sales and Marketing
• Manufacturing
• Investment firms
• Banks
• Publishing companies
• Healthcare organizations
• Management consulting firms
• i.e., pretty much everywhere

Principles of Information Systems, Sixth Edition 48

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 Edition 49

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.

Principles of Information Systems, Sixth Edition 50

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 51

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 Edition 52

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 Edition 53

 End of Chapter 1

Principles of Information Systems, Sixth Edition 54