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Fundamentals of Information Systems Fourth Edition

Fundamentals of Information Systems Fourth Edition. Chapter 1 An Introduction to Information Systems in Organizations. Principles and Learning Objectives. The value of information is directly linked to how it helps decision makers achieve the organization’s goals

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Fundamentals of Information Systems Fourth Edition

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  1. Fundamentals of Information SystemsFourth Edition Chapter 1 An Introduction to Information Systems in Organizations

  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 Fundamentals of Information Systems, Fourth Edition

  3. Principles and Learning Objectives (continued) • 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, Fourth Edition

  4. Principles and Learning Objectives (continued) • 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, Fourth Edition

  5. Principles and Learning Objectives (continued) • 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, Fourth Edition

  6. Principles and Learning Objectives (continued) • 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, Fourth Edition

  7. Why Learn About Information Systems in Organizations? • Information systems (ISs) can cut costs and increase profits • Students in most fields need to know ISs • Management major might be hired to design a system to improve productivity • Biochemistry major might be hired to conduct drug research using computer techniques Fundamentals of Information Systems, Fourth Edition

  8. Introduction • Information system (IS) • Set of interrelated components: collect, manipulate, store, and disseminate data and information • Provides feedback to meet an objective • Examples: ATMs, airline reservation systems, course reservation systems Fundamentals of Information Systems, Fourth Edition

  9. 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 Fundamentals of Information Systems, Fourth Edition

  10. Data, Information, and Knowledge (continued) Table 1.1: Types of Data Fundamentals of Information Systems, Fourth Edition

  11. Data, Information, and Knowledge(continued) Figure 1.1: Defining and Organizing Relationships Among Data Creates Information Fundamentals of Information Systems, Fourth Edition

  12. Data, Information, and Knowledge (continued) Figure 1.2: The Process of Transforming Data into Information Fundamentals of Information Systems, Fourth Edition

  13. The Characteristics of Valuable Information Table 1.2: Characteristics of Valuable Information Fundamentals of Information Systems, Fourth Edition

  14. The Characteristics of Valuable Information (continued) Table 1.2: Characteristics of Valuable Information (continued) Fundamentals of Information Systems, Fourth Edition

  15. The Value of Information • Value of information is directly linked to how it helps decision makers achieve their organization’s goals • For example, value of information might be measured in: • Time required to make a decision • Increased profits to the company Fundamentals of Information Systems, Fourth Edition

  16. What Is an Information System? Figure 1.3: The Components of an Information System Fundamentals of Information Systems, Fourth Edition

  17. Input, Processing, Output, Feedback • Input: the activity of gathering and capturing raw data • Processing: converting or transforming data into useful outputs • Output: production of useful information, usually in the form of documents and reports • Feedback: output that is used to make changes to input or processing activities Fundamentals of Information Systems, Fourth Edition

  18. Manual and Computerized Information Systems • An information system can be: • Manual • Example: developing patterns and trends on graph paper for stock analysis • Computerized • Example: using program trading to track the market and trade large blocks of stocks when discrepancies occur Fundamentals of Information Systems, Fourth Edition

  19. 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 Fundamentals of Information Systems, Fourth Edition

  20. Computer-Based Information Systems (continued) Figure 1.4: The Components of a Computer-Based Information System Fundamentals of Information Systems, Fourth Edition

  21. Computer-Based Information Systems (continued) • 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 Fundamentals of Information Systems, Fourth Edition

  22. Computer-Based Information Systems (continued) • CBIS components (continued) • Internet: world’s largest computer network • People: manage, run, program, and maintain the system • Procedures: strategies, policies, methods, and rules for using a CBIS Fundamentals of Information Systems, Fourth Edition

  23. BusinessInformation 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 Fundamentals of Information Systems, Fourth Edition

  24. BusinessInformation Systems (continued) Figure 1.5: Business Information Systems Fundamentals of Information Systems, Fourth Edition

  25. 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 Fundamentals of Information Systems, Fourth Edition

  26. Electronic and Mobile Commerce (continued) Figure 1.8: Electronic Business Fundamentals of Information Systems, Fourth Edition

  27. Enterprise Systems: Transaction Processing Systems and Enterprise Resource Planning • 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 Fundamentals of Information Systems, Fourth Edition

  28. Transaction Processing Systems (continued) Figure 1.9: A Payroll Transaction Processing System Fundamentals of Information Systems, Fourth Edition

  29. Enterprise Resource Planning • Integrated programs capable of managing a company’s vital business operations for an entire multisite organization • Coordinate planning, inventory control, production, and ordering Fundamentals of Information Systems, Fourth Edition

  30. Information and Decision Support Systems • An effective TPS provides a number of benefits to a company • A TPS can speed business activities and reduce clerical costs • Data stored in TPSs is used to help managers make better decisions Fundamentals of Information Systems, Fourth Edition

  31. Management Information Systems • Management information system (MIS) • Organized collection of people, procedures, software, databases, and devices • Provides routine information to managers/decision makers • Primary focus is operational efficiency Fundamentals of Information Systems, Fourth Edition

  32. Management Information Systems (continued) Figure 1.10: Management Information System Fundamentals of Information Systems, Fourth Edition

  33. Decision Support Systems • Decision support system (DSS) • Organized collection of people, procedures, software, databases, and devices • Supports problem-specific decision making • Focus is on decision-making effectiveness Fundamentals of Information Systems, Fourth Edition

  34. Decision Support Systems (continued) Figure 1.11: Essential DSS Elements Fundamentals of Information Systems, Fourth Edition

  35. Specialized Business Information Systems: Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality • Knowledge management systems (KMSs): an organized collection of people, procedures, software, databases, and devices to 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 Fundamentals of Information Systems, Fourth Edition

  36. Artificial Intelligence Figure 1.12: The Major Elements of Artificial Intelligence Fundamentals of Information Systems, Fourth Edition

  37. Expert Systems • Give the computer the ability to make suggestions and act like an expert in a particular field • Allow organizations to capture and use the wisdom of experts and specialists • The knowledge base contains the collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome Fundamentals of Information Systems, Fourth Edition

  38. Virtual Reality • Simulation of a real or imagined environment that can be experienced visually in three dimensions • Immersive virtual reality • Applications that are not fully immersive • Can be a powerful medium for communication, entertainment, and learning Fundamentals of Information Systems, Fourth Edition

  39. Systems Development • Systems development: creating or modifying existing business systems • Systems development can be: • Performed in-house • Outsourced • To improve results of a systems development project, it is divided into several steps Fundamentals of Information Systems, Fourth Edition

  40. Systems Development (continued) Figure 1.14: An Overview of Systems Development Fundamentals of Information Systems, Fourth Edition

  41. Systems Investigation and Analysis • Systems investigation: gain understanding of the problem to be solved or opportunity to be addressed • Systems analysis: defines problems and opportunities of the existing system Fundamentals of Information Systems, Fourth Edition

  42. Systems Design, Implementation, Maintenance, and Review • Systems design: how the new system will work to meet the business needs defined during systems analysis • Systems implementation: creating or acquiring 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 Fundamentals of Information Systems, Fourth Edition

  43. Organizations and Information Systems • Organization: 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 Fundamentals of Information Systems, Fourth Edition

  44. Organizations and Information Systems (continued) Figure 1.15: A General Model of an Organization Fundamentals of Information Systems, Fourth Edition

  45. Organizations and Information Systems (continued) • Value chain: 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 Fundamentals of Information Systems, Fourth Edition

  46. Organizations and Information Systems (continued) Figure 1.16: The Value Chain of a Manufacturing Company Fundamentals of Information Systems, Fourth Edition

  47. Organizations and Information Systems (continued) • Supply chain management (SCM) • Determines required supplies, needed quantities, processing, and shipment • Customer relationship management (CRM) • Helps company manage all aspects of customer encounters, including marketing, advertisement, sales, service, and maintaining loyalty Fundamentals of Information Systems, Fourth Edition

  48. Organizational Culture and Change • Organizational culture • Major understandings and assumptions • Influences information systems • Organizational change • How organizations plan for, implement, and handle change • Can be sustaining or disruptive Fundamentals of Information Systems, Fourth Edition

  49. User Satisfaction and Technology Acceptance • Technology Acceptance Model (TAM): specifies factors that can lead to higher acceptance and usage of technology • Technology diffusion: measure of widespread use of technology • Technology infusion: extent to which technology permeates a department Fundamentals of Information Systems, Fourth Edition

  50. User Satisfaction and Technology Acceptance (continued) • Competitive advantage: significant, long-term benefit to a company over its competition • Ability to establish and maintain a competitive advantage is vital to the company’s success Fundamentals of Information Systems, Fourth Edition

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