1. Basics of Information Systems
Material from
Fundamentals of Information Systems, Fourth Edition By
Ralph Stair and George Reynolds

2. Information Concepts: Data, Information, and Knowledge
Data: raw facts
Alphanumeric, image, audio, and video
Information: collection of facts organized in such a way that they have additional value beyond the value of the facts themselves
Value of Information is directly linked to how it helps decision makers achieve their organization’s goals and can be measured
in time required to make a decision
Increased profits to the company

3. Figure 1.2: The Process of Transforming Data into Information
Data, Information, and Knowledge
Figure 1.2: The Process of Transforming Data into Information

4. The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information

5. The Characteristics of Valuable Information (continued)
Table 1.2: Characteristics of Valuable Information (continued)

6. What Is an Information System?
Figure 1.3: The Components of any Information System

7. Computer-Based Information Systems
Computer-based information system (CBIS): single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information

8. Computer-Based Information Systems
CBIS components
Hardware: computer equipment used to perform input, processing, and output activities
Software: computer programs that govern the operation of the computer
Database: organized collection of facts and information
Telecommunications: electronic transmission of signals for communications
Networks: connect computers and equipment in a building, around the country, and around the world

9. Business Information Systems
Most common types of information systems used in business organizations
Electronic and mobile commerce systems
Transaction processing systems
Management information systems
Decision support systems
Specialized business information systems

10. Electronic and Mobile Commerce
E-commerce: any business transaction executed electronically between parties
Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Companies and the public sector
Consumers and the public sector

11. Transaction Processing Systems
Transaction: business-related exchange
Payments to employees
Sales to customers
Payments to suppliers
Transaction processing system (TPS): organized collection of people, procedures, software, databases, and devices used to record completed business transactions

12. Additional Business Information Systems
Management Information Systems (MIS)
provide routine information to managers and decision makers
Knowledge Management Systems (KMS)
create, store, share, and use the organization’s knowledge and experience
Artificial intelligence (AI)
field in which the computer system takes on the characteristics of human intelligence
Decision support system (DSS)
used to support problem-specific decision making

13. Hardware and Software Basics

14. Hardware Components Central processing unit (CPU)
Arithmetic/logic unit (ALU): performs calculations and makes logical comparisons
Control unit: accesses, decodes and coordinates data in CPU and other devices
Primary memory: holds program instructions and data for processing
Secondary storage: more permanent storage
Input and output devices
Communications devices

15. Hardware Components (continued)
Figure 2.1: Hardware Components

16. Processing and Memory Devices: Power and Speed
System unit
Houses the components responsible for processing (the CPU and memory)
All other computer system devices are linked either directly or indirectly into the system unit housing
Clock speed
series of electronic pulses produced at a predetermined rate that affects machine cycle time
Clock speed is often measured in megahertz (MHz) for millions or gigahertz(GHz) for billions of cycles per second

17. Memory and Storage Characteristics and Functions
Types of Memory
Random access memory (RAM)
Temporary
Volatile
Read-only memory (ROM)
Usually nonvolatile
Secondary storage
Also called permanent storage
Nonvolatile
Greater capacity and greater economy than memory
Measured in bytes: kilo, mega, giga, tera
Different access methods
Sequential access: data must be accessed in the order in which it is stored
Sequential access storage devices (SASDs)
Direct access: data can be retrieved in any order
Direct access storage devices (DASDs)

18. Secondary Storage Devices
Magnetic tapes
Secondary storage used primarily for backups
Magnetic disks
Direct access secondary storage, e.g., hard disk
RAID
Stores extra bits so that data can be reconstructed if system fails
SAN
Provides high-speed connections between data storage devices and computers over a network Optical disks
Direct access optical disc, e.g., CD-ROM
Digital video disk (DVD)
Stores several gigabytes of data
Flash memory
Nonvolatile silicon computer chip

19. Input Devices Personal computer input devices
Keyboard, mouse
Speech-recognition technology
Input devices that recognize human speech
Digital cameras
Input device used with PC to record/store images in digital form
Terminals
Input and display devices that perform data entry and input at the same time
Touch-sensitive screens
Allow display screens to act as input devices as well as output devices
Bar-code scanners
Employs a laser scanner to read a bar-coded label
Magnetic ink character recognition (MICR) devices
Code data on banking forms, such as checks Pen input devices
Activate a command, enter handwritten notes, and draw objects
Radio Frequency Identification (RFID)
Employs a microchip with an antenna to broadcast its unique identifier and location to a receiver

20. Output Devices Display monitors (CRTs) Liquid crystal displays (LCDs)
Output quality measured by number of pixels and dot pitch
Liquid crystal displays (LCDs)
Easier on eyes, use less electricity, take up less space than CRTs
Organic light-emitting diodes (OLEDs)
Directly emits light rather than using backlight
Sharper colors and thinner displays Printers and plotters: hard copy output
Printers: laser, inkjet
Plotters: used for general design work
Digital audio player
Stores, organizes, and plays digital music files

21. Overview of Software
Computer programs: sequences of instructions for the computer
Documentation: describes program functions
Systems software: coordinates the activities of hardware and programs
Application software: helps users solve particular problems

22. Systems Software Controlling operations of computer hardware
Supports application programs’ problem-solving capabilities
Different types of systems software include:
Operating systems programs that control the hardware and interface with applications
Common hardware functions
Get input (e.g., keyboard)
Retrieve data from disks and store data on disks
Display information on a monitor or printer
User interface
Allows individuals to access and command the computer system
Command-based user interface: uses text commands
Graphical user interface (GUI): uses icons and menus to send commands to the computer system
Utility programs

23. Application Software
Give users the ability to solve problems and perform specific tasks
Interact with systems software; systems software then directs the hardware to perform tasks
Proprietary software: unique program for a specific application, usually developed and owned by a single company
Off-the-shelf software: existing software program that can be purchased
Customized package

24. Personal Application Software
Serves the needs of an individual user
Includes personal productivity software
Enables users to improve their personal effectiveness

25. Personal Application Software (continued)
Table 2.7: Examples of Personal Productivity Software

26. Personal Application Software (continued)
Table 2.7: Examples of Personal Productivity Software (continued)

27. Workgroup Application Software
Workgroup application software: support teamwork, whether people are in the same location or dispersed around the world
Groupware: software that helps groups of people work together more efficiently and effectively

28. Enterprise Application Software
Software that benefits an entire organization
Enterprise resource planning (ERP) software: programs that manage a company’s vital business operations for an entire multisite, global organization

29. Enterprise Application Software (continued)
Table 2.10: Examples of Enterprise Application Software

30. Information, Decision Support, and Specialized Software
Used in businesses of all sizes and types to increase profits or reduce costs
Available in every industry
Example: analysis to increase the cure rate for cancer

31. Data Management

32. Data Management
Without data and the ability to process it, an organization could not successfully complete most business activities
Data consists of raw facts
For data to be transformed into useful information, it must first be organized in a meaningful way

33. The Hierarchy of Data
Bit (a binary digit): a circuit that is either on or off
Byte: eight bits
Character: basic building block of information
Each byte represents a character
Can be an uppercase letter, lowercase letter, numeric digit, or special symbol
Field: typically a name, number, or combination of characters that describes an aspect of a business object or activityRecord: a collection of related data fields
File: a collection of related records
Database: a collection of integrated and related files
Hierarchy of data: bits, characters, fields, records, files, and databases

34. Figure 3.1: The Hierarchy of Data

35. Data Entities, Attributes, and Keys
Entity: a generalized class of people, places, or things (objects) for which data is collected, stored, and maintained
Attribute: characteristic of an entity
Data item: value of an attribute
Key: field or set of fields in a record that is used to identify the record
Primary key: field or set of fields that uniquely identifies the record

36. Data Entities, Attributes, and Keys
Figure 3.2: Keys and Attributes

37. The Database Approach Traditional approach to database management
separate data files are created for each application
Results in data redundancy (duplication)
Data redundancy conflicts with data integrity
Database approach to database management:
pool of related data is shared by multiple applications
Significant advantages over traditional approach

38. The Database Approach to Data Management
Figure 3.3: The Database Approach to Data Management

39. The Database Approach Advantages
Table 3.1: Advantages of the Database Approach

40. The Database Approach (continued)
Table 3.1: Advantages of the Database Approach (continued)

41. The Database Approach Disadvantages
Table 3.2: Disadvantages of the Database Approach

42. Data Modeling and the Relational Database Model
When building a database, consider:
Content: What data should be collected, at what cost?
Access: What data should be provided to which users and when?
Logical structure: How should data be arranged to make sense to a given user?
Physical organization: Where should data be physically located?

43. Data Modeling Building a database requires two types of designs
Logical design
Abstract model of how data should be structured and arranged to meet an organization’s information needs
Data model: a diagram of data entities and their relationships
Entity-relationship (ER) diagrams: data models that use basic graphical symbols to show the organization of and relationships between data
Physical design
Fine-tunes the logical database design for performance and cost considerations

44. ER diagram for a Customer Order Database

45. ER diagram Showing the Relationship between the Manager, Department and Project

46. Implementing the Relational Database Model
data elements are placed in two-dimensional tables (relations), which are the logical equivalent of files
Each row of a table represents a data entity
Columns of the table represent attributes
The domain of the database model consists of all of the allowable values for data attributes i

47. The Relational Database Model
Figure 3.5: A Relational Database Model

48. Manipulating Databases
Selecting: eliminates rows according to criteria
Projecting: eliminates columns in a table
Joining: combines two or more tables
Linking: relates or links two or more tables using common data attributes

49. Manipulating Data (continued)
Figure 3.7: Linking Data Tables to Answer an Inquiry

50. Database Management Systems (DBMS)
Interface between:
Database and application programs
Database and the user
Creating and implementing the right database system ensures that the database will support both business activities and goals
DBMS: a group of programs used as an interface between a database and application programs or a database and the user

51. Overview of Database Types
Flat file
Simple database program whose records have no relationship to one another
Single user
Only one person can use the database at a time
Examples: Access, FileMaker, and InfoPath
Multiple user
Allows dozens or hundreds of people to access the same database system at the same time
Examples: Oracle, Sybase, and IBM

52. Distributed Databases
Data may be spread across several smaller databases connected via telecommunications devices
Corporations get more flexibility in how databases are organized and used
Replicated database
Holds a duplicate set of frequently used data

53. Telecommunications

54. Basic Concepts of Telecommunications
Telecommunications: electronic transmission of signals for communications
Computer network: communications media, devices, and software needed to connect two or more computer systems or devices
Network types: personal area network (PAN), local area network (LAN), metropolitan area network (MAN), wide area network (WAN), and international networks

55. The Internet
Internet: collection of interconnected networks, all freely exchanging information
Internet Protocol (IP): communication standard that enables traffic to be routed from one network to another as needed
Uniform Resource Locator (URL): an assigned address on the Internet for each computer

56. Business Networks
Intranet: internal corporate network built using Internet and World Wide Web standards and protocols
Extranet: network based on Web technologies that links selected resources of a company’s intranet with its customers, suppliers, or other business partners

57. Systems Development

58. An Overview of Systems Development
Managers and employees in all functional areas work together in a business information system
Users help and often lead the way with development process
Participants in systems development:
Determine when a project fails
Are critical to systems development success

59. Participants in Systems Development
Development team consists of the following:
Project managers: coordinate system development effort
Stakeholders: directly or indirectly benefit from the project
Users: interact with the system regularly
Systems analysts: analyze and design business systems
Programmers: modify or develop programs to satisfy user requirements
Various support personnel: specialists, vendors

60. Information Systems Planning and Aligning Corporate and IS Goals
Information systems planning: translating strategic and organizational goals into systems development initiatives
Aligning organizational goals and IS goals is critical for any successful systems development effort
Determining whether organizational and IS goals are aligned can be difficult

61. Figure 8.2: Information Systems Planning
Information Systems Planning and Aligning Corporate and IS Goals (continued)
Figure 8.2: Information Systems Planning

62. Systems Development Life Cycles
The systems development process is also called a systems development life cycle (SDLC)
Common SDLCs
Prototyping
Rapid application development (RAD) Systems
development approach that employs tools, techniques, and methodologies designed to speed application development
End-user development any systems
development project in which the primary effort is undertaken by a combination of business managers and users

63. Systems Development Activities
Systems investigation:
problems and opportunities are identified and considered in light of the goals of the business
Systems analysis:
study of existing systems and work processes to identify strengths, weaknesses, and opportunities for improvement
Systems design:
defines how the information system will do what it must do to obtain the problem solution
Systems implementation:
creation or acquisition of various system components detailed in the systems design, assembling them, and placing the new or modified system into operation
Systems maintenance and review:
ensures that the system operates as intended and modifies the system so that it continues to meet changing business needs