1. Fundamentals of Information Systems
Sixth Edition

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

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

9. 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.

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

11. 1.2 The Characteristics of Valuable Information
Table 1.3: Characteristics of Valuable Information
Principles of Information Systems, Sixth Edition.

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

13. 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.

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

15. (1) Electronic and Mobile Commerce
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.

16. (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.

17. (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.

18. (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.

19. (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.

20. (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.

21. 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.

22. 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.

23. 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.

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

25. 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.

26. 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.

27. 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.

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

29. 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.