Fundamentals of Information Systems Sixth Edition

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.

Principles and Learning Objectives (continued) 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.

Principles and Learning Objectives (continued) 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 Principles of Information Systems, Sixth Edition.

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

Principles and Learning Objectives (continued) Information systems personnel are the key to unlocking the potential of any new or modified system Define the types of roles, functions, and careers available in information systems Principles of Information Systems, Sixth Edition.

What Is an Information System? Information system (IS) Set of interrelated components: collect, manipulate, disseminate data and information. Provide feedback to meet an objective. Examples: ATMs, airline reservation systems, course reservation systems. Principles of Information Systems, Sixth Edition.

Figure 1.1: The Components of an Information System Principles of Information Systems, Sixth Edition.

1.1 Information Concepts: Data Versus Information Data: raw facts Examples: Alphanumeric, image, audio, and video Information Organized collection of facts Have value beyond the facts themselves Principles of Information Systems, Sixth Edition.

Data Versus Information (continued) Figure 1.2: The Process of Transforming Data into Information Principles of Information Systems, Sixth Edition.

1.2 The Characteristics of Valuable Information Table 1.3: Characteristics of Valuable Information Principles of Information Systems, Sixth Edition.

The Characteristics of Valuable Information (continued) Table 1.3: Characteristics of Valuable Information (continued) Principles of Information Systems, Sixth Edition.

1.3 Computer-Based Information Systems Manual versus computerized information systems . Computer-based information system (CBIS) Hardware, software, databases, telecommunications, people, and procedures. Collect, manipulate, store, and process data into information. Principles of Information Systems, Sixth Edition.

Computer-Based Information Systems (continued) Figure 1.4: The Components of a Computer-Based Information System Principles of Information Systems, Sixth Edition.

(1) Electronic and Mobile Commerce 1.3 Business Information Systems Most common types of information systems used in business organizations: (1) Electronic and Mobile Commerce E-commerce: any business transaction executed electronically between parties such as: Companies (B2B) Companies and consumers (B2C) Consumers and other consumers (C2C) Business and the public sector Consumers and the public sector Principles of Information Systems, Sixth Edition.

(2) Transaction Processing Systems and Enterprise Resource Planning Transaction: business-related exchange Payments to employees Sales to customers Payments to suppliers Transaction processing system (TPS) A collection of people, procedures, software, databases, devices Records completed business transactions Principles of Information Systems, Sixth Edition.

(3) Enterprise Resource Planning (ERP) Integrated programs that manage all business operations. Coordinate planning, inventory control, production, and ordering. Principles of Information Systems, Sixth Edition.

(4) Management Information Systems Management information system (MIS) A collection of people, procedures, software, databases, devices. Provides information to managers/decision makers. MIS outputs: Scheduled reports. Demand reports. Exception reports. Principles of Information Systems, Sixth Edition.

(5) Decision Support Systems Decision support system (DSS) A collection of people, procedures, software, databases, devices Supports problem-specific decision making Focus is on decision-making effectiveness Principles of Information Systems, Sixth Edition.

(6) Specialized Business Information Systems: Artificial intelligence (AI) systems. Expert systems. Virtual reality systems . Other special-purpose business information systems. Principles of Information Systems, Sixth Edition.

1.4 Systems Development Systems development: Creating or modifying existing business systems. Systems investigation: Gain an understanding of the problem to be solved or opportunity to be addressed. Systems analysis: Define problems and opportunities of the existing system. Principles of Information Systems, Sixth Edition.

Systems Development (continued) Systems design: Determine how the new system will work to meet the business needs defined during systems analysis. Systems implementation: Create or acquire the various system components defined in the design step, assembling them, and putting the new system into operation. Systems maintenance and review: Check and modify the system so that it continues to meet changing business needs. Principles of Information Systems, Sixth Edition.

1.5 Organizations and Information Systems Organization: A collection of people and other resources established to accomplish a set of goals. An organization is a system that has: Inputs: resources (materials, people, money). Outputs: goods or services. Principles of Information Systems, Sixth Edition.

Figure 1.5: A General Model of an Organization. Principles of Information Systems, Sixth Edition.

Organizations and Information Systems (continued) Value chain: A series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service. Upstream management: Management of raw materials, inbound logistics, and warehouse and storage facilities. Downstream management: Management of finished product storage, outbound logistics, marketing and sales, and customer service. Principles of Information Systems, Sixth Edition.

1.6 Competitive Advantage Significant, long-term benefit to a company over its competition. Ability to establish and maintain a competitive advantage is vital to a company’s success. Principles of Information Systems, Sixth Edition.

Factors That Lead Firms to Seek Competitive Advantage (1) Rivalry among existing competition. (2) Threat of new entrants. (3) Threat of substitute products and services. (4) Bargaining power of customers and suppliers. Principles of Information Systems, Sixth Edition.

Strategic Planning for Competitive Advantage Table 1.6: Competitive Advantage Factors and Strategies Principles of Information Systems, Sixth Edition.

Self Examination Questions Short Answer Questions (3 marks) 1) Differentiate between data and information. 2) What is E-commerce? Name the parties among which the transaction is carried out? 3) Define the given terms: TPS, ERP, MIS, DSS ?   Long Answer Questions (5 marks) 4) Define any FIVE characteristics of valuable Information. 5) What do you understand by CBIS? Describe the SIX most common types of Information Systems used in business organisations. 6) What is System Development? Define the different stages of the system development. 7 ) Draw and explain the general model of an Organization. 8) What is Competitive Advantage? What are Competitive Advantage Factors and Strategies? Principles of Information Systems, Sixth Edition.