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Chapter 1

Learn about the fundamental concepts of information systems and explore real-life examples such as Microsoft Word and TurboTax. Discover the components, control, feedback, and importance of information systems in business.

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Chapter 1

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  1. 0 Chapter 1 System Concepts

  2. Announcement • The Pre-lab must be completed before lab. • Let me show you what to do…

  3. What have we learned so far… • Microsoft Word (a word processor) • What kind of Information System is it?

  4. What have we learned so far… • Turbo Tax • What kind of Information System is it?

  5. 0 What is a System? • Set of inter-related components with a clearly defined boundary • Working together to achieve objectives

  6. 0 Simple Example Heating System • Objective: Control the temperature inside a building • Components: • Furnace • Thermostat • Building • Fuel

  7. 0 General Components • Every system has some form of • Input, and • Output • Processing is often required to transform the input to output • Systems have some point of Control • Systems often provide Feedback

  8. 0 Simple Example Heating System • Input: Fuel Source, Desired Temperature, Actual Temperature • Processing: If Actual Temp. < Desired then burn fuel to produce heat • Output: Heat or no heat (depending on Input)

  9. 0 Simple Example Q: In a heating system, what could trigger the furnace to turn on? Q: In a heating system, what could trigger the furnace to turn off?

  10. 0 Feedback Feedback is data about the performance of a system. Example: Data about sales performance is feedback to a sales manager In a heating system, feedback would be the change +/- of the actual temperature.

  11. 0 Control • Control involves monitoring and evaluating the feedback to determine whether the system is achieving its goals. • Heating System Example: • Goal: keep the building at 65 degrees • Feedback: Temp falls to 62. • Control: Turn on or turn up the furnace.

  12. 0 Control & Feedback • A thermostat is a control unit of a heating system. • Makes control decisions based on feedback. • Good systems have self-monitoring control built into them (Cybernetic). • Imagine trying to regulate the temperature in a room without a thermostat.

  13. 0 Important Terminology • Cybernetic System • Sub-system • Open System • Closed System • Adaptive System • System Parameter • System Variable

  14. 0 Business Systems An Information System helps process Input into Output but it is also the backbone for directing feedback to Management (Control)

  15. These are the 5 components of an IS 0 Information System Components In some sense providing Feedback is the primary objective of all these components and activities These are IS Activities

  16. Discussion Questions • Is Microsoft Word really an information system? • What is it missing that is so important to information systems? • Is Microsoft Word a business information system? • Is Turbo Tax an information system? • Is Turbo Tax a business information system?

  17. Conclusions about Word • Word can best be described as office productivity software. It makes creating and printing documents easier (Purpose) • It could be uses as part of a larger information system. Outlook can use Word to edit emails. • Word really doesn’t provided feedback in the formal sense. • Also, it has tons of uses that are not business related. • Its really not a business information system • So, I wouldn’t put it in any category.

  18. Conclusions about TurboTax • Paying your taxes is a transaction and TurboTax is specifically designed to make this transaction easier (Purpose). • The IRS has integrated it with their internal systems to facilitate data entry and accounting. • While it provides users with info that helps them make selections, these are not really decisions…but rather correct or incorrect repsonses. • It is most correct to think of Turbo Tax an important part of a bigger TPS system.

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