1. An Introduction to Information Systems in Organizations
Chapter 1
Chapter 1: An Introduction to Information Systems
This chapter presents basic concepts necessary to understand systems and business information systems.
Fundamentals of Information Systems, Second 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.
After completing Chapter 1, you should be able to accomplish the objectives on this slide and the following slide.
Information is key in business organizations. The value of information is closely related to how it helps decision makers achieve the organization’s goals.
Models, computers and information system help make it possible for organizations to improve
Fundamentals of Information Systems, Second Edition

3. Principles and Learning Objectives
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.
Fundamentals of Information Systems, Second Edition

4. Principles and Learning Objectives
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.
Fundamentals of Information Systems, Second Edition

5. Principles and Learning Objectives
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.
Fundamentals of Information Systems, Second Edition

6. Principles and Learning Objectives
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.
Fundamentals of Information Systems, Second Edition

7. Fundamentals of Information Systems, Second Edition
Information Concepts
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8. Fundamentals of Information Systems, Second Edition
A set of interrelated components that collect, manipulate & disseminate data & information & provide feedback to meet an objective.
Examples: ATMs; airline reservation systems; course reservation systems
An information system is a collection of related things that work together to achieve a common goal. The components collect, process or transform, and distribute data and information.
Common examples of information systems include: ATMs, point of sale (POS) systems used by grocery checkout clerks; information systems used by airlines to make reservations or schedule flights; and the system you use at your university to register for classes.
Fundamentals of Information Systems, Second Edition

9. Fundamentals of Information Systems, Second Edition
Data vs. Information
Data: raw facts
Information: collection of facts organized in such a way that they have value beyond the facts themselves
The terms data & information are often used interchangeably. However, there is an important distinction: information is value-added data. Data is processed, organized or transformed to become information.
Data are raw facts. For example, if you write down your age & grade on an English test & hand it to me, I see 2 numbers – raw data. However, if you include the average age and average test score for your class, the data would have some meaning to me as a teacher… it would become information. Interestingly, your name and grade – data to me- could very well be information to you. In the context of your life or experiences, those 2 numbers alone would most likely have meaning.
Similarly, a grocery store manager would most likely find a list of every item sold today to be of little use – it is data. However, the amount that the store’s total sales are over or under planned sales would be information.
Fundamentals of Information Systems, Second Edition

10. The Process of Transforming Data into Information
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11. Characteristics of Valuable Information
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12. The Components of an Information System
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13. Computer-Based Information Systems (CBIS)
A computer-based information system is an information system that uses computer technology to perform input, processing & output activities.
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14. Fundamentals of Information Systems, Second Edition
Components of a CBIS
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15. Fundamentals of Information Systems, Second Edition
Components of a CBIS
Hardware - computer equipment used to perform input, processing, and output activities.
Software - computer programs that govern the operation of the computer.
Database - an organized collection of facts and information, typically consisting of two or more related data files.
People - the most important element in most computer-based information systems.
Procedures - include the strategies, policies, methods, and rules for using the CBIS.
Fundamentals of Information Systems, Second Edition

16. Telecommunications, Network, and the Internet
Telecommunications - the electronic transmission of signals for communications.
Networks - used to connect computers and computer equipment in a building, around the country, or around the world to enable electronic communications.
Internet - the world’s largest computer network, actually consisting of thousands of interconnected networks
Fundamentals of Information Systems, Second Edition

17. Business Information Systems
The most common organizational business information systems are: electronic commerce systems, transaction processing systems, management information systems, and decision support systems. Some firms also use artificial intelligence systems, virtual reality systems or geographic information systems.
Fundamentals of Information Systems, Second Edition

18. Business Information Systems
Electronic Commerce
Transaction Processing Systems and ERP
Information and Decision Support Systems
Special-Purpose Business Information Systems: Artificial Intelligence, Expert Systems, and Virtual Reality
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19. Fundamentals of Information Systems, Second Edition
E-Commerce
Business-to-business
Business-to-consumer
Consumer-to-consumer
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20. E-Commerce Greatly Simplifies the Purchasing Process
Fundamentals of Information Systems, Second Edition

21. Transaction Processing Systems and ERP
Transaction processing system (TPS) - an organized collection of people, procedures, software, databases, and devices used to record completed business transactions.
Enterprise Resource Planning (ERP) System - a set of integrated programs capable of managing a company’s vital business operations for an entire multisite, global organization.
Fundamentals of Information Systems, Second Edition

22. A Payroll Transaction Processing System
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23. Fundamentals of Information Systems, Second Edition
Functional Management Information Systems Draw Data from the Organization’s TPS
Fundamentals of Information Systems, Second Edition

24. Decision Support Systems (DSS)
An organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making.
The focus of a DSS is on decision-making effectiveness.
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25. Essential DSS Elements
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26. Special-Purpose Business Information Systems
Artificial intelligence (AI) systems
Virtual reality systems
Expert systems
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27. The Major Elements of Artificial Intelligence
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28. A Head-Mounted Display
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29. Fundamentals of Information Systems, Second Edition
Data Glove
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30. Fundamentals of Information Systems, Second Edition
Systems Development
The activity of creating or modifying existing business systems.
Systems Investigation
Systems Analysis
Systems Design
Systems Implementation
Systems Maintenance and Review
Fundamentals of Information Systems, Second Edition

31. Organizations and Information Systems
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32. A General Model of an Organization
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33. The Value Chain of a Manufacturing Company
Fundamentals of Information Systems, Second Edition

34. Technology Diffusion, Infusion, and Acceptance
Technology Diffusion - a measure of how widely technology is spread throughout an organization.
Technology Infusion - is the extent to which technology permeates an area or department.
Technology Acceptance Model (TAM) - specifies the factors that can lead to higher acceptance and usage of technology in an organization
Fundamentals of Information Systems, Second Edition

35. Competitive Advantage
A significant and (ideally) long-term benefit to a company over its competition.
Factors That Lead Firms to Seek Competitive Advantage
Rivalry among Existing Competitors
Threat of New Entrants
Threat of Substitute Products and Services
Bargaining Power of Customers and Suppliers
Fundamentals of Information Systems, Second Edition

36. Strategic Planning for Competitive Advantage
Altering the Industry Structure
Creating New Products and Services
Improving Existing Product Lines and Services
Using Information Systems for Strategic Purposes
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37. Competitive Advantage Factors and Strategies
Fundamentals of Information Systems, Second Edition

38. Performance-Based Information Systems
Productivity
Quality
Return on Investment and the Value of Information Systems
Earnings Growth
Market Share
Customer Awareness and Satisfaction
Total Cost of Ownership
Fundamentals of Information Systems, Second Edition

39. Three Stages in the Business Use of IS
Fundamentals of Information Systems, Second Edition

40. The 10 Best Places to Work for IS
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41. Roles, Functions, and Careers in the Information Systems Department
Operations
Systems Development
Support
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42. The Three Primary Responsibilities of Information Systems
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43. Typical IS Titles and Functions
The Chief Information Officer
LAN Administrators
Internet Careers
Fundamentals of Information Systems, Second Edition

44. Why Learn About Information Systems?
Advance in your career
Solve problems
Realize opportunities
Meet your career goals
Fundamentals of Information Systems, Second Edition

45. Fundamentals of Information Systems, Second Edition
Summary
Data - raw facts
Information - data transformed into a meaningful form
Systems development - creating or modifying existing business systems
Organization - a formal collection of people and various other resources established to accomplish a set of goals
Fundamentals of Information Systems, Second Edition