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2 Chapter 1 Information Systems in Business

Powered by DeSiaMore3 Our Agenda Basic Information Systems Concepts Types of Information Systems Information Systems Users Connecting Users to Information Technology Benefits of Information Systems An Approach to the Study of Information Systems

Powered by DeSiaMore4 Learning Objectives Explain what an information system is and describe the functions of an information system. Identify the components of an information system. Explain the difference between data and information.

Powered by DeSiaMore5 Learning Objectives (cont’d.) List several types of information systems and give an example of each type. Explain who information systems users are and describe how users use information systems.

Powered by DeSiaMore6 Learning Objectives (cont’d.) Explain what ethics are and why it is important to use information systems ethically. Describe how users are connected to information technology locally, nationally, and internationally. Describe several benefits of information systems.

Powered by DeSiaMore7 Basic Information System Concepts Information Systems in Business

Powered by DeSiaMore8 What is an Information System? An Information System is a collection of components that work together to provide information to help in the operations and management of an organization. Information Technology is the integration of computers, communications equipment, and other technology used in information systems.

Powered by DeSiaMore9 Components of an Information System? Components Hardware - Equipment such as computers Software - Instructions for the equipment Stored Data - Facts stored in the system Personnel - People who operate the system Procedures for the people to follow

Powered by DeSiaMore10 Examples of Information Systems An inventory control system An order entry system A production scheduling system

Powered by DeSiaMore11 Information Systems Functions Input Function accepts the input data from outside the system. Storage Function retains input data and retrieves stored data. Processing Function calculates and in other ways manipulates the input and stored data. Output Function produces results of processing for use outside the system.

Powered by DeSiaMore12 Data versus Information Data is a representation of a fact, a number, a word, an image, a picture or a sound. Information is data that is meaningful or useful to someone.

Powered by DeSiaMore13 Types of Information Systems Information Systems in Business

Powered by DeSiaMore14 Types of Information Systems Personal information systems Word Processing Spreadsheet or financial analysis Database Graphics or presentation software Workgroup information systems Electronic mail ( ) Local area network (LAN)

Powered by DeSiaMore15 Types of Information Systems (cont’d.) Organizational information systems Mainframe computers Wide area network (WAN) Interorganizational information systems Electronic Data Interchange (EDI) Electronic Funds Transfer (EFT) Global information systems Production scheduling system

Powered by DeSiaMore16 Information Systems Users Information Systems in Business

Powered by DeSiaMore17 How Users Use Information Systems Users may use an information system directly by pressing keys on a computer keyboard or by operating a piece of equipment that sends input data to a computer. A user may use an information system indirectly by having someone else enter the data and receive the output which is then given to the user.

Powered by DeSiaMore18 Ethical Use of Information Systems Ethics has to do with the standards of behavior that people follow: what is right and what is wrong.

Powered by DeSiaMore19 Ethical Use of Information Systems (cont’d.) Ethical use of information systems involves: Confidentiality of information Copying of software Use of someone else’s computer Ownership of information

Powered by DeSiaMore20 Connecting Users to Information Technology Information Systems in Business

Powered by DeSiaMore21 Networks A network is a collection of computers and related equipment connected using communications equipment so that they can communicate with each other. Local Area Networks (LAN) cover a small area such as a building. Wide Area Networks (WAN) cover a large area such as a city, region, country or several countries.

Powered by DeSiaMore22 The Internet and the World Wide Web (WWW) The Internet is a worldwide collection of interconnected networks. The World Wide Web (WWW) is a service on the Internet that links information stored on different computers.

Powered by DeSiaMore23 Electronic Commerce (E-Commerce) E-Commerce allows businesses and individuals to use networks, including the Internet, to promote and sell products and services.

Powered by DeSiaMore24 Benefits of Information Systems Information Systems in Business

Powered by DeSiaMore25 Benefits of Information Systems Better information Improved service Increased productivity Competitive advantage

Powered by DeSiaMore26 An Approach to the Study of Information Systems Information Systems in Business

Powered by DeSiaMore27 Part 1 Chapter 2 explains what a business does. Chapter 3 discusses the components of an information system.

Powered by DeSiaMore28 Part 2 Part 2 explains the technology used in information systems, including hardware and software; how computers are interconnected in networks; and how data is organized for storage and processing in information systems.

Powered by DeSiaMore29 Part 3 and Part 4 Part 3 examines common types of information systems used in business, with examples. Part 4 examines the development and management of information systems.

Powered by DeSiaMore30 Information Systems in Business Key Terms

Powered by DeSiaMore31 Key Terms Computer Application Computer Information System (CIS) Data Electronic Commerce Electronic Data Interchange (EDI) Electronic Funds Transfer (EFT) Electronic Mail ( ) Ethics Global (International) Information System Hardware Individual (Personal) Information System Information Information System (IS)

Powered by DeSiaMore32 Key Terms (cont’d.) Information Technology (IT) Input Data Input Function Internet Interorganizational Information System Network Organizational (Enterprise) Information System Output Data Output Function Personnel Procedures Processing Function

Powered by DeSiaMore33 Key Terms (cont’d.) Software Storage Function Stored Data User (End User) Workgroup (Group) Information System World Wide Web (WWW)

Powered by DeSiaMore34 Summary Basic Information Systems Concepts Types of Information Systems Information Systems Users Connecting Users to Information Technology Benefits of Information Systems An Approach to the Study of Information Systems

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