An Introduction to Information Systems in Organizations

Chapter 1

Fundamentals of Information Systems, Second Edition

1

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.

Fundamentals of Information Systems, Second Edition

2

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.

Fundamentals of Information Systems, Second Edition

3

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.

Fundamentals of Information Systems, Second Edition

4

Second Edition 5 .Principles and Learning Objectives • The use of information systems to add value to the organization can also give an organization a competitive advantage. Fundamentals of Information Systems. – Identify the value-added processes in the supply chain and describe the role of information systems within them. – Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage. – Identify some of the strategies employed to lower costs or improve service.

Second Edition 6 . functions. Fundamentals of Information Systems. – Define the types of roles. and careers available in information systems.Principles and Learning Objectives • Information systems personnel are the key to unlocking the potential of any new or modified system.

Information Concepts Fundamentals of Information Systems. Second Edition 7 .

airline reservation systems. • Examples: ATMs. manipulate & disseminate data & information & provide feedback to meet an objective. course reservation systems Fundamentals of Information Systems.Information System • A set of interrelated components that collect. Second Edition 8 .

Information • Data: raw facts • Information: collection of facts organized in such a way that they have value beyond the facts themselves Fundamentals of Information Systems.Data vs. Second Edition 9 .

The Process of Transforming Data into Information Fundamentals of Information Systems. Second Edition 10 .

Characteristics of Valuable Information Fundamentals of Information Systems. Second Edition 11 .

Second Edition 12 .The Components of an Information System Fundamentals of Information Systems.

Second Edition 13 .Computer-Based Information Systems (CBIS) Fundamentals of Information Systems.

Components of a CBIS Fundamentals of Information Systems. Second Edition 14 .

computer programs that govern the operation of the computer.Components of a CBIS • Hardware . and rules for using the CBIS. • Procedures . typically consisting of two or more related data files. and output activities. policies.the most important element in most computer-based information systems. methods. • Software .include the strategies. • Database .an organized collection of facts and information. processing. Fundamentals of Information Systems. • People . Second Edition 15 .computer equipment used to perform input.

actually consisting of thousands of interconnected networks Fundamentals of Information Systems. around the country.the world’s largest computer network. or around the world to enable electronic communications. • Networks .the electronic transmission of signals for communications. and the Internet • Telecommunications . Second Edition 16 .used to connect computers and computer equipment in a building. Network. • Internet .Telecommunications.

Second Edition 17 .Business Information Systems Fundamentals of Information Systems.

Second Edition 18 .Business Information Systems • • • • Electronic Commerce Transaction Processing Systems and ERP Information and Decision Support Systems Special-Purpose Business Information Systems: Artificial Intelligence. Expert Systems. and Virtual Reality Fundamentals of Information Systems.

Second Edition 19 .E-Commerce • Business-to-business • Business-to-consumer • Consumer-to-consumer Fundamentals of Information Systems.

E-Commerce Greatly Simplifies the Purchasing Process Fundamentals of Information Systems. Second Edition 20 .

• Enterprise Resource Planning (ERP) System .Transaction Processing Systems and ERP • Transaction processing system (TPS) . Second Edition 21 . global organization. databases.an organized collection of people. procedures. Fundamentals of Information Systems. software.a set of integrated programs capable of managing a company’s vital business operations for an entire multisite. and devices used to record completed business transactions.

A Payroll Transaction Processing System Fundamentals of Information Systems. Second Edition 22 .

Second Edition 23 .Functional Management Information Systems Draw Data from the Organization’s TPS Fundamentals of Information Systems.

Decision Support Systems (DSS) An organized collection of people. Second Edition 24 . Fundamentals of Information Systems. and devices used to support problem-specific decision making. procedures. – The focus of a DSS is on decision-making effectiveness. databases. software.

Second Edition 25 .Essential DSS Elements Fundamentals of Information Systems.

Special-Purpose Business Information Systems • Artificial intelligence (AI) systems • Virtual reality systems • Expert systems Fundamentals of Information Systems. Second Edition 26 .

The Major Elements of Artificial Intelligence Fundamentals of Information Systems. Second Edition 27 .

Second Edition 28 .A Head-Mounted Display Fundamentals of Information Systems.

Second Edition 29 .Data Glove Fundamentals of Information Systems.

Systems Development The activity of creating or modifying existing business systems. Second Edition 30 . – – – – – Systems Investigation Systems Analysis Systems Design Systems Implementation Systems Maintenance and Review Fundamentals of Information Systems.

Second Edition 31 .Organizations and Information Systems Fundamentals of Information Systems.

Second Edition 32 .A General Model of an Organization Fundamentals of Information Systems.

Second Edition 33 .The Value Chain of a Manufacturing Company Fundamentals of Information Systems.

Infusion. • Technology Infusion . and Acceptance • Technology Diffusion . • Technology Acceptance Model (TAM) .Technology Diffusion.specifies the factors that can lead to higher acceptance and usage of technology in an organization Fundamentals of Information Systems.a measure of how widely technology is spread throughout an organization. Second Edition 34 .is the extent to which technology permeates an area or department.

Second Edition 35 . • Factors That Lead Firms to Seek Competitive Advantage – – – – Rivalry among Existing Competitors Threat of New Entrants Threat of Substitute Products and Services Bargaining Power of Customers and Suppliers Fundamentals of Information Systems.Competitive Advantage A significant and (ideally) long-term benefit to a company over its competition.

Strategic Planning for Competitive Advantage • • • • Altering the Industry Structure Creating New Products and Services Improving Existing Product Lines and Services Using Information Systems for Strategic Purposes Fundamentals of Information Systems. Second Edition 36 .

Competitive Advantage Factors and Strategies Fundamentals of Information Systems. Second Edition 37 .

Performance-Based Information Systems • Productivity • Quality • Return on Investment and the Value of Information Systems – – – – Earnings Growth Market Share Customer Awareness and Satisfaction Total Cost of Ownership Fundamentals of Information Systems. Second Edition 38 .

Three Stages in the Business Use of IS Fundamentals of Information Systems. Second Edition 39 .

Second Edition 40 .The 10 Best Places to Work for IS Fundamentals of Information Systems.

Second Edition 41 . and Careers in the Information Systems Department • Operations • Systems Development • Support Fundamentals of Information Systems.Roles. Functions.

Second Edition 42 .The Three Primary Responsibilities of Information Systems Fundamentals of Information Systems.

Second Edition 43 .Typical IS Titles and Functions • The Chief Information Officer • LAN Administrators • Internet Careers Fundamentals of Information Systems.

Second Edition 44 .Why Learn About Information Systems? • • • • Advance in your career Solve problems Realize opportunities Meet your career goals Fundamentals of Information Systems.

data transformed into a meaningful form • Systems development .raw facts • Information . Second Edition 45 .Summary • Data .creating or modifying existing business systems • Organization .a formal collection of people and various other resources established to accomplish a set of goals Fundamentals of Information Systems.

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