2. Basic Themes Information  Information helps meet goals 
Systems are artifacts 
Organizations run on information 
Systems provide careers  
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3. Principles and Learning Objectives-1
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
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Information
Organization
GOAL
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4. Principles and Learning Objectives -2
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
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5. Principles and Learning Objectives-3
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
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6. Principles and Learning Objectives-4
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
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7. Principles and Learning Objectives-5
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
Can (and will) also include many users
Will (most certainly) include all workers
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8. What is Information, really? Why have it?
Introduction
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
What is Information, really? Why have it?
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9. What Your Mother Taught You
Say
Think
See Do
Something
Happens
Response
Required
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10. What Herbert Simon Won the Nobel Prize For
Choice
Design
Intelli-gence
Execution
Something
Happens
Mgmt Decision
Required
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11. What’s Behind the Model of Rational Decision Making
Optimize or Satisfice?
Select one alternative course of action
Reflect against what is known
Intelli-gence
Implement the decision
Gather information about pertinent events
Something
Happens
Mgmt Decision
Required
All activity depends on requirements and resources available
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12. What ‘s Wrong with This Model?
Choice
Design
Intelli-gence
Execute
Something
Happens
Mgmt Decision
Required
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13. Information Concepts: Data Versus Information
Data: raw facts
Alphanumeric, image, audio, and video
Information
Organized collection of facts
Have value beyond the facts themselves
Recordings of machines’ experiences
data or other information
components themselves
Information is “information” only to the extent that it informs a user or consumer. That means that the informationness of an experience depends on the observer and what the observer has to do (intention)!
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14. Data Versus Information (continued)
Figure 1.1: Defining and Organizing Relationships Among Data Creates Information
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15. Data Versus Information (continued)
Selecting, organizing and manipulating, conditioned by existing models and subsequent need for action.
Figure 1.2: The Process of Transforming Data into Information
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16. The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information
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17. The Characteristics of Valuable Information (continued)
Table 1.2: Characteristics of Valuable Information (continued)
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18. What Is an Information System?
This is only one view. A system is much more complex. A behavioral view will keep in mind intentions, skills, judgments, and prior knowledge (theory)
Figure 1.3: The Components of an Information System
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19. Computer-Based Information Systems
Manual versus computerized information systems
Computers are NOT necessary in information systems, but they have certain efficiencies
Computer-based information system (CBIS)
Hardware, software, databases, telecommunications, people, and procedures
Collect, manipulate, store, and process data into information 
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20. Computer-Based Information Systems (continued)
The infrastructure (left)
What you ex-perience (above)
Figure 1.4: The Components of a Computer-Based Information System
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21. 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 
These are detailed next.
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22. 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 
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23. Transaction Processing Systems
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
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24. Transaction Processing Systems (continued)
Figure 1.7: A Payroll Transaction Processing System
The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)
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25. Enterprise Resource Planning
Integrated programs that manage all business operations
Coordinate planning, inventory control, production, and ordering among others
Historically based in production systems
Hard to translate to other types of business
Necessarily complex 
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26. Management Information Systems
Management information system (MIS)
A collection of people, procedures, software, databases, devices
Provides information to managers/decision makers
Primary focus is operational efficiency
MIS outputs
Scheduled reports
Demand reports
Exception reports
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27. Management Information Systems (continued)
Figure 1.8: Functional management information systems draw data from the organization’s transaction processing system
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28. 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
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29. Decision Support Systems (continued)
Figure 1.9: Essential DSS Elements
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30. 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
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31. 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 
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32. Organizations and Information Systems
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
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33. Organizations and Information Systems (continued)
Figure 1.13: A General Model of an Organization
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34. 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
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35. Organizations and Information Systems (continued)
Figure 1.14: The Value Chain of a Manufacturing Company
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36. Organizations in a Global Society
As companies rely on virtual structures and outsourcing to a greater extent, businesses can operate around the world
Challenges to operating in a global society
Every country has a set of customs, cultures, standards, politics, and laws
Language barriers
Difficulty in managing and controlling operations in different countries
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37. 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
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38. Factors That Lead Firms to Seek Competitive Advantage
Rivalry among existing competition
Threat of new entrants
Threat of substitute products and services
Bargaining power of customers and suppliers
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39. Strategic Planning for Competitive Advantage
Change the structure of the industry
Create new products or services
Improve existing products or services
Use information systems for strategic purposes
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40. Strategic Planning for Competitive Advantage (continued)
Table 1.5: Competitive Advantage Factors and Strategies
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41. Strategic Planning for Competitive Advantage (continued)
Table 1.5: Competitive Advantage Factors and Strategies (continued)
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42. Return on Investment and the Value of Information Systems
Earnings growth
Market share
Customer awareness and satisfaction
Total cost of ownership 
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43. Careers in Information Systems
Degree programs
Degrees in information systems
Business degrees with a global or international orientation
Computer systems are making IS professionals’ work easier
Opportunities in information systems are not confined to single countries
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44. Careers in Information Systems (continued)
Figure 1.16: The Three Primary Responsibilities of Information Systems
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45. Roles, Functions, and Careers in the IS Department
Primary responsibilities in information systems
Operations: focuses on the efficiency of information
Systems development: focuses on development projects and ongoing maintenance and review
Support: provides user assistance
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46. Typical IS Titles and Functions
Chief information officer (CIO): uses IS department equipment and personnel
LAN administrators: set up and manage the network hardware, software, and security processes
Internet careers
Strategists
Programmers
Web site operators
Chief Internet officer
Other IS careers 
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47. Summary Data: raw facts Information: organized collection of facts
System components: input, processing, output, and feedback
Computer-based information system (CBIS)
Hardware, software, databases, telecommunications, people, and procedures
Collect, manipulate, store, and process data into information
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48. Summary (continued)
Transaction processing system (TPS): a collection of people, procedures, software, databases, and devices used to record completed business transactions
Management information system (MIS): a collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers
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49. Summary (continued)
Decision support system (DSS): a collection of people, procedures, software, databases, and devices used to support problem-specific decision making
Systems development: creating or modifying existing business systems
Competitive advantage: significant, long-term benefit to a company over its competition
Primary responsibilities in information systems: operations, systems development, and support
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