1. Principles of Information Systems, Sixth Edition An Introduction to Information Systems Chapter 1

2. Principles of Information Systems, Sixth Edition 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.

3. Principles of Information Systems, Sixth Edition Principles and Learning Objectives 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 four basic types of models and explain how they are used.

4. Principles of Information Systems, Sixth Edition 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.

5. Principles of Information Systems, Sixth Edition 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. –Discuss why it is important to study and understand information systems.

6. Principles of Information Systems, Sixth Edition Information Concepts

7. Principles of Information Systems, Sixth Edition Information System 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

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

9. Principles of Information Systems, Sixth Edition Types of Data

10. Principles of Information Systems, Sixth Edition Data vs. Information

11. Principles of Information Systems, Sixth Edition The Characteristics of Valuable Information

12. Principles of Information Systems, Sixth Edition The Characteristics of Valuable Information

13. Principles of Information Systems, Sixth Edition The Characteristics of Valuable Information

14. Principles of Information Systems, Sixth Edition System and Modeling Concepts

15. Principles of Information Systems, Sixth Edition System A set of elements or components that interact to accomplish goals Input Processing mechanism Feedback Output System boundary

16. Principles of Information Systems, Sixth Edition Components of a System

17. Principles of Information Systems, Sixth Edition System and Modeling Concepts

18. Principles of Information Systems, Sixth Edition System Performance and Standards Efficiency: output/input Effectiveness: extent to which system attains its goals Performance standard: specific objective of a system

19. Principles of Information Systems, Sixth Edition System Variables and Parameters System variable - item controlled by decision- maker System parameter - value that cannot be controlled

20. Principles of Information Systems, Sixth Edition Systems Classification

21. Principles of Information Systems, Sixth Edition System Performance and Standards

22. Principles of Information Systems, Sixth Edition Modeling a System

23. Principles of Information Systems, Sixth Edition Modeling a System A model is an abstraction that is used to represent reality –4 major types of models A narrative model is based on words –Logical, not physical A physical model is tangible A schematic model is a graphic representation –Graphs and charts A mathematical model is an arithmetic representation

24. Principles of Information Systems, Sixth Edition What Is An Information System?

25. Principles of Information Systems, Sixth Edition Components of an Information System

26. Principles of Information Systems, Sixth Edition Computer-Based Information Systems (CBIS)

27. Principles of Information Systems, Sixth Edition Components of a CBIS

28. Principles of Information Systems, Sixth Edition Telecommunications, Networks, and the Internet

29. Principles of Information Systems, Sixth Edition Telecommunications, Networks, and the Internet

30. Principles of Information Systems, Sixth Edition Business Information Systems

31. Principles of Information Systems, Sixth Edition Business Information Systems Electronic Commerce Transaction Processing Systems Management Information Systems Decision Support Systems

32. Principles of Information Systems, Sixth Edition E-Commerce Business-to-business Business-to-consumer Business-to-government Government-to-consumer

33. Principles of Information Systems, Sixth Edition Electronic Commerce

34. Principles of Information Systems, Sixth Edition Transaction Processing Systems A transaction processing system (TPS) is an organized collection of people, procedures, software, databases, and devices used to record completed business transactions. Process business exchanges Maintain records about the exchanges Handle routine, yet critical, tasks Perform simple calculations

35. Principles of Information Systems, Sixth Edition Payroll Transaction Processing System

36. Principles of Information Systems, Sixth Edition Enterprise Resource Planning (ERP) Integrated programs that can manage a company’s entire set of business operations Often coordinate planning, inventory control, production, and ordering

37. Principles of Information Systems, Sixth Edition Management Information Systems (MIS) Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas

38. Principles of Information Systems, Sixth Edition Management Information Systems (MIS)

39. Principles of Information Systems, Sixth Edition MIS Outputs Scheduled reports Demand reports Exception reports

40. Principles of Information Systems, Sixth Edition Decision Support Systems (DSS) DSS- A decision support system is an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making. –Interactive support for non-routine decisions or problems –End-users are more involved in creating a DSS than an MIS

41. Principles of Information Systems, Sixth Edition Essential DSS Elements

42. Principles of Information Systems, Sixth Edition Special-Purpose Business Information Systems Artificial Intelligence (AI) Systems Virtual Reality Systems Expert Systems Other Special-Purpose Business Information Systems

43. Principles of Information Systems, Sixth Edition The Major Elements of Artificial Intelligence

44. Principles of Information Systems, Sixth Edition Virtual Reality

45. Principles of Information Systems, Sixth Edition Data Glove

46. Principles of Information Systems, Sixth Edition Systems Development

47. Principles of Information Systems, Sixth Edition Why Learn About Information Systems? Advance in your career Solve problems Realize opportunities Meet your career goals

48. Principles of Information Systems, Sixth Edition Computer and Information System Literacy Computer literacy - knowledge of computer systems and equipment Information system literacy - knowledge of how data and information are used

49. Principles of Information Systems, Sixth Edition Information Systems in Functional Areas of Business Finance and Accounting Sales and Marketing Manufacturing

50. Principles of Information Systems, Sixth Edition Information Systems in Industry Investment firms Banks Publishing companies Healthcare organizations Management consulting firms

51. Principles of Information Systems, Sixth Edition Summary Data - raw facts Information - data transformed into a meaningful form System - set of elements that interact to accomplish a goal Systems development - creating or modifying existing business systems