Fundamentals of Information Systems, Second Edition 1 Information Systems in Organizations

Fundamentals of Information Systems, Second Edition 2 Principles and Learning Objectives The value of information is directly linked to how it helps decision makers achieve the organization’s goals.

Fundamentals of Information Systems, Second Edition 3 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.

Fundamentals of Information Systems, Second Edition 4 Principles and Learning Objectives System users, business managers, and information systems professionals must work together to build a successful information system.

Fundamentals of Information Systems, 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, Second Edition 6 Principles and Learning Objectives Information systems personnel are the key to unlocking the potential of any new or modified system.

Fundamentals of Information Systems, Second Edition 7 Information Concepts

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

Fundamentals of Information Systems, Second Edition 9 Data vs. 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, Second Edition 10 The Process of Transforming Data into Information

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

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

Fundamentals of Information Systems, Second Edition 15 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.

Fundamentals of Information Systems, Second Edition 16 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

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

Fundamentals of Information Systems, Second Edition 21 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.

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

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

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

Fundamentals of Information Systems, Second Edition 25 Essential DSS Elements

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

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

Fundamentals of Information Systems, Second Edition 28 Systems Development The activity of creating or modifying existing business systems. –Systems Investigation –Systems Analysis –Systems Design –Systems Implementation –Systems Maintenance and Review

Fundamentals of Information Systems, Second Edition 29 Organizations and Information Systems

Fundamentals of Information Systems, Second Edition 30 A General Model of an Organization

Fundamentals of Information Systems, Second Edition 31 The Value Chain of a Manufacturing Company

Fundamentals of Information Systems, Second Edition 32 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

Fundamentals of Information Systems, Second Edition 33 Competitive Advantage A significant and (ideally) long-term benefit to a company over its competition. 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, Second Edition 34 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 35 Competitive Advantage Factors and Strategies

Fundamentals of Information Systems, Second Edition 36 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 37 Three Stages in the Business Use of IS

Fundamentals of Information Systems, Second Edition 38 Roles, Functions, and Careers in the Information Systems Department Operations Systems Development Support

Fundamentals of Information Systems, Second Edition 39 The Three Primary Responsibilities of Information Systems

Fundamentals of Information Systems, Second Edition 40 Typical IS Titles and Functions The Chief Information Officer LAN Administrators Internet Careers

Fundamentals of Information Systems, Second Edition 41 Why Learn About Information Systems? Advance in your career Solve problems Realize opportunities Meet your career goals

Fundamentals of Information Systems, Second Edition 42 Summary Data - raw facts Information - data transformed into a meaningful form Systems development - creating or modifying existing business systems Organization - a formal collection of people and various other resources established to accomplish a set of goals