1 INTRODUCTION TO INFORMATION SYSTEMS TECHNOLOGY BUS Abdou Illia, Spring 2007 (Week 1, Thursday 1/11/2007)

2 LEARNING GOALS  Describe major characteristics of digital world  Explain difference between data an information  Identify main components of information systems  Describe kinds of information systems.  Describe ethics and the ethical problems posed by the digital world.

3 Introducing Stan & BRJ  Stan L. lives and works in a digital world Digital house Digital paper Portable, digital communications everywhere  Stan owns BRJ Consulting Completely digital company No offices  Stan and BRJ have a new client – the Bead Bar

4 Introducing the Bead Bar  Founded in 1998 by Meredith S.  Create your own bead jewelry Bead Bar provides  Beads  Wire  String Customer designs and constructs product with Bead Bar materials and instruction  Three divisions Studios – six Franchises – five Bead Bar on Board  15 full-time employees and 20 part-time  $1.5M annual revenues

5 Data versus Information  Data – raw facts Temperature – 75° F  Information – facts within a given context The temperature at midnight in Times Square, NYC was 75° F I P O

6 The Value of Information  Accuracy (Is information correct? Can we rely on it?)  Timeliness (How current is the information?)  Accessibility (Can the information be accessed when needed?)  Engagement (Is the information capable of affecting a decision?)  Application (Is the information relevant to the current context?)  Rarity (Is the information previously known?)

7 Information Systems  A set of interrelated information technologies that work together to collect, store, process, and distribute information  Major components of information systems Hardware (physical parts of a computer or other computing devices) Software (Instructions that tell hardware what to do) Databases (Software that enables storage/retrieval of data) Networks (Computing devices that communicate with each other) People Information Technologies

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9 Information Systems in Organizations  An organization is an administrative and functional structure applied to people working toward a specific goal.  Understanding the organizations IT needs means understanding the administrative and functional structure. Hierarchical Matrix Other

10 Administrative Information Systems  Transaction Processing Systems (TPS)  Office Automation Systems (OAS)  Knowledge Work Systems (KWS)  Management Information Systems (MIS)  Decision Support Systems (DSS)  Executive Information Systems (EIS)  InterOrganizational Systems (IOS)

11 Functional Information Systems  Finance and Accounting Systems  Marketing and Sales Systems  Manufacturing and Operations Systems  Human Resources Management Systems

12 Types of Information Systems SystemMain targeted users Type of Tasks supported Other Characteristics TPS Operational-level employees Routine day-to-day transactions Primarily used to process internal data OAS Office workersOffice workE.g.: Word processing KWS Knowledge workersSpecialized jobsE.g.: Expert systems MIS Middle managersRoutine structured tasks Process internal data to produce reports, graphs… DSS Middle managersNon-routine semi- structured tasks Use complex analytical tools E.g: Sensitivity analysis, Simulation EIS Top executivesNon-routine tasks, Strategic planning Use both internal & external source of data IOS Provide information links between companies. E.g.: Electronic Data Interchange (EDI) systems for order processing. ERP Systems that support all administrative levels and all functional areas.

13 Interaction of Administrative and Functional IS

14 Working in the Digital World  The digital world caused major changes in business and in the ways individuals work.  Creation of knowledge workers People who create new knowledge or modify existing knowledge Mental not physical Advanced education  College degree  Professional certifications – MCSAMCSA  Telecommuting – working from home or other remote location

15 Ethics in the Digital World  Ethics A set of principles of right conduct The rules or standards governing the conduct of a person or the members of a profession  Ethical is not always the same as legal.  Ethics in the digital world are confusing.  Legal system has not kept pace with the technology developments.

16 Major Ethical Issues in the Digital World  Privacy Identify theft Sale of confidential personal information  Intellectual Property Old Napster  Freedom of Speech

17 Bead Bar: Exercise 1 1. Visit the U.S. Patent and Trademark Office Web site at Using the Basic Form Search, research the availability of the Bead Bar trademark. How many trademarks that include the name Bead Bar are currently registered or are in process at the U.S. Patent and Trademark Office? Check the status of one of the trademarks that appeared called NANTUCKET BEADBAR and mention its current status and filling date. For the Bead Bar company described in your textbook, search for a trademark not registered or being process with the U.S. Patent and Trademark Office. What available trademark did you find?

18 Summary Questions MalagaNotes 1)Distinguish between Data and Information 85 2) List/Explain main components of an information system 97 3) What is the difference between Transaction Processing Systems (TPS) and Decision Support Systems (DSS) in terms of their targeted users? )What is the difference between Transaction Processing Systems (TPS) and Executive Information Systems (EIS) in terms of the kind of tasks they address? )Students, Engineers, Lawyers, and doctors are all examples of knowledge workers. T F 13,17 6)What is the difference between a knowledge worker and a data worker? )What does ethics mean? 19

Summary Questions (cont.)  Given the illustration above, what could be an information? a) Rate = $10/hour b) Mrs. Johnson’s weekly salary is $450 c) WS = 10 * 45  The accuracy of an information could be affected by the accuracy of the input data?T F I P O Rate = $10/hour Hours = 45 Mrs. Johnson’s weekly salary is $450. WS = numeric variable WS = 10 * 45

20 Information system vs. Information Technology Information System Information Technologies HardwareSoftware Databases Network Information