2. The value of information is directly linked to how it helps decision makers achieve the organization’s goals
Discuss why it is important to study and understand information systems
Distinguish data from information and describe the characteristics used to evaluate the quality of data
Principles of Information Systems, Seventh Edition

3. Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business
Name the components of an information system and describe several system characteristics
Identify the basic types of models and explain how they are used
Principles of Information Systems, Seventh Edition

4. 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
List the components of a computer-based information system
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, Seventh Edition

5. 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, Seventh Edition

6. Information systems must be applied thoughtfully and carefully so that society, business, and industry can reap their enormous benefits
Describe some of the threats to security and privacy that information systems and the Internet can pose
Discuss the expanding role and benefits of information systems in business and industry
Principles of Information Systems, Seventh Edition

7. Introduction Information system (IS)
A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective
Examples: ATMs, airline reservation systems, course reservation systems
Principles of Information Systems, Seventh Edition

8. Information Concepts: Data Versus Information
Data: raw facts
Information: collection of facts organized in such a way that they have additional value beyond the facts themselves
Principles of Information Systems, Seventh Edition

9. Table 1.1: Types of Data
Principles of Information Systems, Seventh Edition

10. Figure 1.1: Defining and Organizing Relationships Among Data Creates Information
Principles of Information Systems, Seventh Edition

11. Figure 1.2: The Process of Transforming Data into Information
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12. Table 1.2: Characteristics of Valuable Data
Principles of Information Systems, Seventh Edition

13. Table 1.2: Characteristics of Valuable Data (continued)
Principles of Information Systems, Seventh Edition

14. System and Modeling Concepts
System: a set of elements or components that interact to accomplish goals
Components of a system
Input
Processing
Output
Feedback
Principles of Information Systems, Seventh Edition

15. Figure 1.3: Components of a System
Principles of Information Systems, Seventh Edition

16. System Components and Concepts
System boundary: defines the system and distinguishes it from everything else (i.e., the environment)
Configuration: the way system elements are organized or arranged
Systems can be classified as simple or complex, open or closed, stable or dynamic, adaptive or nonadaptive, and permanent or temporary
Principles of Information Systems, Seventh Edition

17. Table 1.3: Systems Classifications and Their Primary Characteristics
Principles of Information Systems, Seventh Edition

18. System Performance and Standards
Efficiency: a measure of what is produced divided by what is consumed
Effectiveness: extent to which system attains its goals
System performance standard: a specific objective of a system
Principles of Information Systems, Seventh Edition

19. System Variables and Parameters
System variable: quantity or item controlled by the decision maker
System parameter: value or quantity that cannot be controlled (e.g., the cost of a raw material)
Principles of Information Systems, Seventh Edition

20. Modeling a System
Model: an abstraction that is used to represent reality
Four major types of models: narrative (based on words); physical (tangible); schematic (graphic representation); mathematical (arithmetic representation)
Principles of Information Systems, Seventh Edition

21. Figure 1.6: Four Types of Models
Principles of Information Systems, Seventh Edition

22. Figure 1.7: The Components of an Information System
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23. Input, Processing, Output, Feedback
Input: activity of gathering and capturing raw data
Processing: converting or transforming data into useful outputs
Output: production of useful information, usually in form of documents and reports
Feedback: output used to make changes to input or processing activities
Principles of Information Systems, Seventh Edition

24. Computer-Based Information Systems
Computer-based information system (CBIS)
A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information
Examples: a company’s payroll systems, order entry system, and inventory control systems
Principles of Information Systems, Seventh Edition

25. Figure 1.8: The Components of a Computer-Based Information System
Principles of Information Systems, Seventh Edition

26. Business Information Systems
Most common types of information systems used in business organizations include:
Electronic and mobile commerce systems
Transaction processing systems
Management information systems
Decision support systems
Principles of Information Systems, Seventh Edition

27. Electronic and Mobile Commerce
E-commerce: any business transaction executed electronically between parties
Parties involved include companies (B2B); companies and consumers (B2C); consumers and other consumers (C2C); businesses and the public sector; consumers and the public sector
Principles of Information Systems, Seventh Edition

28. Transaction Processing Systems and Enterprise Resource Planning
Transaction: any business-related exchange, such as payments to employees, sales to customers, and payments to suppliers
Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions
Principles of Information Systems, Seventh Edition

29. Figure 1.11: A Payroll Transaction Processing System
The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)
Principles of Information Systems, Seventh Edition

30. Enterprise Resource Planning
Enterprise resource planning (ERP) system: set of integrated programs that can manage a company’s entire set of business operations
ERP systems often coordinate planning, inventory control, production, and ordering
Principles of Information Systems, Seventh Edition

31. Information and Decision Support Systems
Management information system (MIS): an organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers
Primary focus of an MIS is on operational efficiency
Principles of Information Systems, Seventh Edition

32. Figure 1.12: Functional Management Information Systems
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33. Management Information Systems
MIS outputs
Scheduled reports
Demand reports
Exception reports
Principles of Information Systems, Seventh Edition

34. Decision Support Systems
Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making
Focus of a DSS is on decision-making effectiveness
Principles of Information Systems, Seventh Edition

35. Figure 1.13: Essential DSS Elements
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36. Specialized Business Information Systems
Artificial intelligence (AI) systems
Virtual reality systems
Expert systems
Other special-purpose business information systems
Principles of Information Systems, Seventh Edition

37. Figure 1.14: The Major Elements of Artificial Intelligence
Principles of Information Systems, Seventh Edition

38. Systems Development
Systems development: the activity of creating or modifying existing business systems
Systems investigation: gaining a clear understanding of the problem to be solved or opportunity to be addressed
Systems analysis: defines the problems and opportunities of the existing system
Principles of Information Systems, Seventh Edition

39. Figure 1.17: An Overview of Systems Development
Principles of Information Systems, Seventh Edition

40. Systems Development (continued)
Systems design: determines how new system will work to meet business needs defined during systems analysis
Systems implementation: creating or acquiring the various system components defined in design step, assembling them, and putting new system into operation
Systems maintenance and review: check and modify system so that it continues to meet changing business needs
Principles of Information Systems, Seventh Edition

41. Information Systems in Society, Business, and Industry
Information systems must be implemented thoughtfully and carefully
Information systems face a variety of threats from unethical people
Principles of Information Systems, Seventh Edition

42. Figure 1.18: Attacks on Businesses and Other Organizations in One Year
Principles of Information Systems, Seventh Edition

43. Figure 1.19: The Cost and Cause of Computer Attacks
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44. Computer and Information Systems Literacy
Computer literacy: knowledge of computer systems and equipment and the ways they function
Information systems literacy: knowledge of how data and information are used
Principles of Information Systems, Seventh Edition

45. Information Systems in the Functional Areas of Business
Finance and accounting (e.g., forecast revenues and business activity; analyze investments; perform audits)
Sales and marketing (e.g., product analysis; promotion analysis; price analysis)
Manufacturing (e.g., process orders; develop schedules; control inventory)
Principles of Information Systems, Seventh Edition

46. Information Systems in Industry
Airline industry (e.g., Internet auction sites)
Investment firms (e.g., analyze stocks and bonds)
Banks (e.g., online check payment)
Transportation industry (e.g., schedule trucks and trains)
Publishing companies (e.g., analyze markets)
Principles of Information Systems, Seventh Edition

47. Information Systems in Industry (continued)
Healthcare organizations (e.g., track patient records)
Retail companies (e.g., process customer orders)
Power management and utility companies (e.g., monitor and control power generation and usage)
Professional services (e.g., provide information on products and services to its consultants)
Principles of Information Systems, Seventh Edition

48. Summary Data: raw facts
Information: collection of facts organized in such a way that they have value beyond the facts themselves
System: a set of elements that interact to accomplish a goal
Components of a system: input, processing, output, and feedback
A model is an abstraction that is used to represent reality
Principles of Information Systems, Seventh Edition

49. Summary (continued)
Computer-based information system (CBIS): a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information
Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions
Principles of Information Systems, Seventh Edition

50. Summary (continued)
Management information system (MIS): an organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers
Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making
Systems development: the activity of creating or modifying existing business systems
Principles of Information Systems, Seventh Edition