Transcript ss - Department of Computer Engineering | CMPE

An Introduction to Information
Systems in Organizations
Chapter 1
Fundamentals of Information
Systems, Second Edition
1
Learning Objectives
– What is information?
– What are the differences between data
and information?
– How can you evaluate the quality of
data?
– When is information valuable?
Fundamentals of Information
Systems, Second Edition
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Learning Objectives
– What is an information system?
– What are the basic types of business
information systems?
– Who uses them for which purposes?
– What are their benefits?
Fundamentals of Information
Systems, Second Edition
3
Learning Objectives
– How do you develop information
systems?
– What are the major steps?
– Who are involved in these steps?
– What does each step accomplish?
Fundamentals of Information
Systems, Second Edition
4
Learning Objectives
– What are the value-added processes in the
supply chain?
– How do information systems help these
processes?
– How can the costs of an organization be
lowered? How can an organization offer better
service?
– What is a competitive advantage?
– Can organizations that use information
systems to gain an advantage?
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Systems, Second Edition
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Learning Objectives
– What roles are involved in designing,
developing, and maintaining information
systems?
– What are the functions of each role?
– What careers are available in
information systems?
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Systems, Second Edition
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Information Concepts
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Systems, Second Edition
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Information System
• A set of interrelated components that
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Collect data
Manipulate data
Disseminate data & information
Provide feedback to meet an objective.
• Examples: ATMs; airline reservation systems;
course reservation systems
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Systems, Second Edition
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Data vs. Information
• Data: Raw facts
– Example: Name, last name, courses registered
• Information: Collection of facts organized in
such a way that they have value beyond the
facts themselves
– Example: Number of people that register for a course
is more than a the course quota.
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Systems, Second Edition
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The Process of Transforming Data into
Information
• Easy to come up with arbitrary transformations
(easy to generate information)
• Difficult to come up with a useful transformation
(difficult to generate valuable information)
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Systems, Second Edition
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Characteristics of Valuable Information
(1)
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Accurate: Does not contain errors
Complete: Contains all related facts
Economical: Time-wise and Cost-wise
Flexible: Can be used for different purposes
Reliable: The combined data is correct
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Systems, Second Edition
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Characteristics of Valuable Information
(2)
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Relevant: Can be used by the organization
Simple: Easily understandable and usable
Timely: Delivered when it can still be used
Verifiable: Can be derived and confirmed again
Accessible: Those that want to use the
information can locate and receive it
• Secure: Accessible only to authorized
individuals
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Systems, Second Edition
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The Components of an Information
System
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Scan barcodes
Type user name
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Wrong price
Missing course
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Calculate price
Look up
schedule
Fundamentals of Information
Systems, Second Edition
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Print receipt
Display schedule
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Computer-Based
Information Systems (CBIS)
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Systems, Second Edition
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Components of a CBIS
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Systems, Second Edition
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Components of a CBIS
• Hardware - computer equipment used to perform
input, processing, and output activities.
• Software - computer programs that govern the
operation of the computer.
• Database - an organized collection of facts and
information, typically consisting of two or more
related data files.
• People - the most important element in most
computer-based information systems.
• Procedures - include the strategies, policies,
methods, and rules for using the CBIS.
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Systems, Second Edition
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Telecommunications, Network, and the
Internet
• Telecommunications - the electronic
transmission of signals for communications.
• Networks - used to connect computers and
computer equipment in a building, around the
country, or around the world to enable electronic
communications.
• Internet - the world’s largest computer network,
actually consisting of thousands of
interconnected networks
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Systems, Second Edition
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Business Information
Systems
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Systems, Second Edition
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Business Information Systems
• Electronic Commerce
• Transaction Processing Systems and Enterprise
Resource Planning (ERP)
• Information and Decision Support Systems
• Special-Purpose Business Information Systems:
Artificial Intelligence, Expert Systems, and
Virtual Reality
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Systems, Second Edition
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E-Commerce
• Business-to-consumer
– Example: Bookstore selling books to
customers (amazon.com)
• Business-to-business
– Example: A data processing company
handling data services for a company
(adp.com)
• Consumer-to-consumer
– Example: A customer selling goods to another
customer (e-bay.com)
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Systems, Second Edition
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E-Commerce Greatly Simplifies the
Purchasing Process
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Systems, Second Edition
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Transaction Processing Systems
and ERP
• Transaction processing system (TPS) - an organized
collection of people, procedures, software, databases,
and devices used to record completed business
transactions.
• Enterprise Resource Planning (ERP) System - a set
of integrated programs capable of managing a
company’s vital business operations for an entire
multisite, global organization.
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Systems, Second Edition
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A Payroll Transaction Processing
System
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Systems, Second Edition
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Management Information System (MIS)
(Help do things right)
Report on number
of components that
need to be sold
Report on number
of components
produced
Report on budget
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Systems, Second Edition
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Decision Support Systems (DSS)
(Help do the right thing)
– Organizations often have to make
decisions.
– DSSs help making decisions for
particular problems.
– The focus of a DSS is on decisionmaking effectiveness.
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Systems, Second Edition
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Essential DSS Elements
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Systems, Second Edition
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Special-Purpose Business Information
Systems
• Artificial intelligence (AI) systems
• Virtual reality systems
– Improve personal experience
– Virtual tour of a real-estate
• Expert systems
– Improve business intelligence
– Suggest products
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Systems, Second Edition
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The Major Elements of Artificial
Intelligence
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Systems, Second Edition
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A Head-Mounted Display
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Systems, Second Edition
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Systems Development
The activity of creating or modifying existing
business systems.
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Systems Investigation
Systems Analysis
Systems Design
Systems Implementation
Systems Maintenance and Review
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Systems, Second Edition
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Organizations and
Information Systems
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Systems, Second Edition
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A General Model of an Organization
Material,
money
Goods,
services
• Organization - a formal
collection of people and
various other resources
established to accomplish
a set of goals
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Systems, Second Edition
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The Value Chain of a Manufacturing
Company
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Systems, Second Edition
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Information Systems in
Supply Chain Management
Where does the information system
stand?
– Outside the process
–Supports monitoring, reporting, etc.
– Inside the process
–Participate actively by creating service
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Systems, Second Edition
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Technology Diffusion, Infusion, and
Acceptance
• Technology Diffusion - a measure of how widely
technology is spread throughout an organization.
• Technology Infusion - is the extent to which technology
permeates an area or department.
• Technology Acceptance Model (TAM) - specifies the
factors that can lead to higher acceptance and usage of
technology in an organization
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Systems, Second Edition
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Competitive Advantage
A significant and (ideally) long-term benefit to a
company over its competition.
• Factors That Lead Firms to Seek Competitive
Advantage
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Rivalry among Existing Competitors
Threat of New Entrants
Threat of Substitute Products and Services
Bargaining Power of Customers and Suppliers
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Systems, Second Edition
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Strategic Planning for Competitive
Advantage
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Altering the Industry Structure
Creating New Products and Services
Improving Existing Product Lines and Services
Using Information Systems for Strategic
Purposes
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Systems, Second Edition
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Competitive Advantage Factors and Strategies
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Systems, Second Edition
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Performance-Based Information Systems
• Productivity= Achieved Output/ Required Input
• Quality: Satisfy customers’ needs
• Return on Investment and the Value of
Information Systems
– Earnings Growth: Increase in Profit
– Market Share: Company Sales/Total Market
– Customer Awareness and Satisfaction: Measure by
surveys
– Total Cost of Ownership: Includes setting up, training,
maintaining, and so on
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Systems, Second Edition
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Three Stages in the Business Use of IS
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Systems, Second Edition
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Roles, Functions, and Careers in the
Information Systems Department
• Operations
– Make sure IS works efficiently
– Start, stop, maintain hardware
– System & network operators, data-entry operators
• Systems Development
– Identify needs
– Produce programs
– System analyst, computer programmer
• Support
– Administration and assistance
– Train users; help maintain the system
– Web and database administrators; help-desk staff
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Systems, Second Edition
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The Three Primary Responsibilities of Information
Systems
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Systems, Second Edition
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Typical IS Titles and Functions
• The Chief Information Officer
• LAN Administrators
• Internet Careers
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Systems, Second Edition
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Why Learn About Information
Systems?
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Advance in your career
Solve problems
Realize opportunities
Meet your career goals
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Systems, Second Edition
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