1. Introduction to Information Systems
Chapter 1
Introduction to Information Systems

2. Information Concepts Data vs. Information Data Information Raw facts
Distinct pieces of information, usually formatted in a special way
Information
A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves

3. Data versus Information
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No
Item Qty Sold Price
TM Shoes $100
West Charles Mann
79154 TM Shoes

4. Examples Transformation
Data – thermometer readings of temperature taken every hour:
16.0, 17.0, 16.0, 18.5, 17.0,15.5….
Information – ?
Today's High – 18.5
Today’s Low – 15.5
Transformation

5. Types of Data Data Represented by Alphanumeric data
Numbers, letters, and other characters
Image data
Graphic images or pictures
Audio data
Sound, noise, tones
Video data
Moving images or pictures

6. Data  Information
Data
Transformation
Information

7. Characteristics of Valuable Information
Accurate
Complete
Economical
Flexible
Reliable
Relevant
Simple
Timely
Verifiable
Accessible
Secure

8. System
Definition
A set of elements or components that interact to accomplish goals
A combination of components working together

9. System Example System Elements Goal Inputs Processing elements Outputs
Movie
Actors, director, staff, sets, equipment
Filming, editing, special effects, distribution
Finished film delivered to movie studio
Entertaining movie, film awards, profits

10. Information System (IS)
Definition
A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective
(IS) Pronounced as separate letters, and short for Information Systems or Information Services. For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).

11. The importance of Information Systems
An information system is a set of people , procedures and resources that:
collect
transform
disseminates
information in an organization.
Information is used for better management
Companies cannot operate any more without automated information systems

12. A Framework for Business Users

13. A Framework for Business Users
Foundation Concepts
Fundamental concepts about the components and roles of information systems.
Information Technologies
Major concepts, developments, and management issues in information technology.

14. A Framework for Business Users
Business Applications
The major uses of information systems for operations, management, and competitive advantage.
Development Processes
How business professionals and information specialists plan, develop, and implement information systems.
Management Challenges
The challenge of managing ethically and effectively.

15. Business Processes and Operations
Major Roles of IS
Support
Strategies
for
Competitive
Advantage
Support
Business
Decision Making
Support of
Business Processes and Operations

16. Expanding Roles of Information Systems
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
- TPS
Information
Systems
- Ad hoc
Reports
Computing
Exec Info Sys
Expert Systems
SIS
Business &
-Internetworked
E-Business &

17. Expanding Roles of Information Systems
1950s-1960s: Data Processing
Electronic Data Processing systems, Transaction Processing, Record keeping, Traditional accounting
1960s-1970s: Management reporting
Management Information Systems
Mgt. reports for pre-specified information to support decision making
1970s-1980s: Decision Support
Decision Support Systems
Interactive ad hoc support of the managerial decision process

18. Expanding Roles of Information Systems
1980s-1990s:Strategic and End User Support
End User Computing Systems: direct productivity support
Executive Information Systems : Critical Information
Expert Systems: Knowledge based expert advise for end users
Strategic Information Systems: for competitive advantage
1990s – 2000s : Global internetworking
Internet worked information systems
For end-user, enterprise, and inter-organizational computing, collaboration, including global operations and management on the internet and other interconnected enterprise and global networks.

19. The Future..
E-Business
The use of Internet technologies to internet work and empower…
Business processes
Electronic commerce, and
Enterprise communication & collaboration within a company & with its customers, suppliers, & other business stakeholders.

20. } The System Concept Input Processing Output Feedback Control System:
A group of interrelated components or interacting elements forming a unified whole.
Input
Processing
Output
Feedback
Control }
- Environment
- Other systems

21. Environment Other Systems
Manufacturing
Process
Input of
Raw Materials
Output of
Finished Products
Environment
Other Systems
Control by
Management
Control
Signals
Feedback
System Boundary

22. 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

23. Organisation as a System
Organization: a collection of people and other resources established to accomplish a set of goals.
An organization is a system
Inputs: resources (materials, people, money)
Outputs: goods or services

25. Information systems in the Company

26. Purchase Order - Traditional

27. Purchase Order – E-commerce

28. Electronic Banking
Account status
Exchange rates
Economic information
Bank transfers
Reports
Batch payments
Security via magnetic cards, password, control totals

29. Decision Support Financial models What-if analyze Goal seeking
Risk analysis
Statistical analysis
Management models
Graphical representations
Personal databases

30. Hospital Information Systems
Patient registration
Laboratory management
Medical files
Pharmacy
Stock management and purchasing
Human resources and scheduling
Billing and A/C receivable
Book keeping
Operation theater

31. Other Applications Transport Insurance Tourism Department stores
Just in time
Routing
Shipping
Insurance
Tourism
Department stores

32. Components of an Information System
Communications media and network support
People Resources :
End users and IS specialists
Data , Model , and Knowledge Bases
Data Resources
Control of System Performance
Input of
Data
Resources
Processing
Data into
Information
Output of
Information
Products
Programs and Procedures
Software Resources
Machines and Media
Hardware Resources
Storage of Data resources
Communications media and network support
Network resources

33. IS Resources and Products
People Resources
Specialists: system analysts, programmers, operators
End users : anyone else using the system
Hardware Resources
Machines: computers, video monitors, disks, printers, scanners
Media: floppies, tapes, disks, plastic cards, paper forms, ...
Software Resources system, application, procedures
Programs: OS , spreadsheet programs, payroll programs ,
Procedures: data entry, error correction, paycheck distribution, ...

34. IS Resources and Products
Data Resources database, model base, knowledge base
Product descriptions, customer records, inventory databases,...
Network resources
Communication media, network support, ...

35. Information System Activities
Input
Processing
Output
Storage
Control

36. IS Activities Input of Data Resources:
Data about business transactions and other events must be captured and prepared for processing by the input activity.
Input typically takes the form of data entry activities such as recording and editing.
Once entered, data may be transferred onto a machine-readable medium such as magnetic disk or tape, until needed for processing.
Eg: Optical Scanning of bar-coded tags on merchandise

37. IS Activities Processing of Data into Information
Data is typically subjected to processing activities such as calculating, comparing, sorting, classifying, and summarizing.
These activities organize, analyze, and manipulate data, thus converting them into information for end users.
A continual process of correcting and updating activities must maintain quality of data stored in an information system.
Eg: Calculating employee pay, taxes and other payroll deductions

38. IS Activities Output of Information Products
Information in various forms is transmitted to end users and made available to them in the output activity.
The goal of IS is to produce information products for end users.
Common information products include messages, reports, forms and graphic images
Eg : Producing reports and displays about sales performance.

39. IS Activities Storage of Data Resources:
Storage is a basic system component of information systems.
Storage is the information system activity in which data and information are retained in an organized manner for later use.
Eg: Maintaining records on customers, employees and products.

40. IS Activities Control of System Performance:
An important information system activity is the control of its performance.
An information system should produce feedback about its input, processing, output, and storage activities.
Feedback must be monitored and evaluated to determine if the system is meeting established performance standards.
Feedback is used to make adjustments to system activities to correct deficiencies.
Eg: Generating audible signals to indicate proper entry of sales data

41. Types of Information Systems

42. Types of Information Systems
Operations Support Systems – efficiently process business transactions, control industrial processes, support enterprise collaboration and update corporate database
Transaction processing systems
Batch – transaction data accumulate over time, processed periodically.
Real-time – data processed immediately after a transaction occurs.

43. Operations Support system
Process Control Systems – monitor & control physical processes. (Electronic Sensors)
Enterprise Collaboration Systems – enhance team and workgroup communications and productivity.

45. Types of Information Systems
Management Support Systems
Management Information Systems – pre-specified reports & displays to support decision-making.
Decision Support Systems – provide interactive ad hoc support.
Executive Information Systems – critical information tailored to the information needs of executives.

46. Other Classification of IS
Expert System – provide expert advice for operational chores like equipment diagnostics or managerial decisions such as loan portfolio management.
Knowledge Management Systems – Knowledge based IS that support creation, organisation and dissemination of business knowledge to employees and managers throughout the company
Functional Business System – IS that focus on operational and managerial application in support of basic functions such as marketing, accounting etc.,
Strategic IS – Apply IT to a firms products, services or business processes to help it gain a strategic advantage over its competitors

47. END OF PART - I