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Fundamentals & Ethics of Information Systems IS 201

Fundamentals & Ethics of Information Systems IS 201. Chapter 1 An Introduction to Information Systems in Organizations. Principles and Learning Objectives. Distinguish data from information and describe the characteristics used to evaluate the quality of data

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Fundamentals & Ethics of Information Systems IS 201

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  1. Fundamentals & Ethics of Information SystemsIS 201 Chapter 1 An Introduction to Information Systems in Organizations Chapter1 – Introduction to Information Systems in Organizations Slide 1

  2. Principles and Learning Objectives • Distinguish data from information and describe the characteristics used to evaluate the quality of data • Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver • Identify the major steps of the systems development process and state the goal of each • Define the types of roles, functions, and careers available in information systems Chapter1 – Introduction to Information Systems in Organizations Slide 2

  3. Chapter Overview • Introduction • Information Concepts: Data, Information, and Knowledge • What Is an Information System? • Business Information Systems • Systems Development • Organizations and Information Systems • Careers In Information Systems • Summary Chapter1 – Introduction to Information Systems in Organizations Slide 3

  4. Why Learn About Information Systems in Organizations? • Information systems (ISs) can cut costs and increase profits • Students in most fields need to know ISs. For Instance: • Management major might be hired to design a system to improve productivity • Biochemistry major might be hired to conduct drug research using computer techniques • Etc. Chapter1 – Introduction to Information Systems in Organizations Slide 4

  5. 1. Introduction • Information system (IS) • Set of interrelated components: collect, manipulate, store, and disseminate data and information • Provides feedback to meet an objective • Examples: airline reservation systems, course registration systems, library management system, … Chapter1 – Introduction to Information Systems in Organizations Slide 5

  6. 2. Information Concepts: Data, Information, and Knowledge • Data • Raw facts • Distinct pieces of information, usually formatted in a special way • Information • A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves • Knowledge • Information put in its context Chapter1 – Introduction to Information Systems in Organizations Slide 6

  7. Example • Data • Thermometer readings of temperature taken every hour: • 16.0, 17.0, 16.0, 18.5, 17.0,15.5…. • Information • Today’s high: 18.5, Today’s low: 15.5 • Knowledge • Today the weather will be fine. • No need to take a coat Chapter1 – Introduction to Information Systems in Organizations Slide 7

  8. Types of Data Chapter1 – Introduction to Information Systems in Organizations Slide 8

  9. Data  Information Chapter1 – Introduction to Information Systems in Organizations Slide 9

  10. The Characteristics of Valuable Information Chapter1 – Introduction to Information Systems in Organizations Slide 10

  11. The Characteristics of Valuable Information (continued) Chapter1 – Introduction to Information Systems in Organizations Slide 11

  12. Example: Health Information • You want the information about you in a health information system to be: • As accurate as possible (e.g. your age, sex) • As complete as possible • Relevant • To be reliable • Should be available in a timely manner (e.g. information about your drug allergies are available before your operation!) Chapter1 – Introduction to Information Systems in Organizations Slide 12

  13. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 13

  14. 3. What Is an Information System? Chapter1 – Introduction to Information Systems in Organizations Slide 14

  15. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 15

  16. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 16

  17. Computer-Based Information Systems (continued) The Components of a Computer-Based Information System Chapter1 – Introduction to Information Systems in Organizations Slide 17

  18. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 18

  19. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 19

  20. 4. Business Information Systems • Most common types of information systems used in business organizations • Electronic and mobile commerce systems • Enterprise systems • Management information systems • Decision support systems • Specialized business information systems Chapter1 – Introduction to Information Systems in Organizations Slide 20

  21. Business Information Systems (continued) Business Information Systems Chapter1 – Introduction to Information Systems in Organizations Slide 21

  22. 4.1. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 22

  23. Electronic and Mobile Commerce (continued) Electronic Business Chapter1 – Introduction to Information Systems in Organizations Slide 23

  24. 4.2. Enterprise Systems: • Two types of systems: • Transaction processing system (TPS) • Enterprise Resource Planning (ERP) Chapter1 – Introduction to Information Systems in Organizations Slide 24

  25. 4.2.1. Transaction Processing System: • 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 Chapter1 – Introduction to Information Systems in Organizations Slide 25

  26. 4.2.1. Transaction Processing Systems (continued) A Payroll Transaction Processing System Chapter1 – Introduction to Information Systems in Organizations Slide 26

  27. 4.2.1. Transaction Processing Systems (continued) • 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 Chapter1 – Introduction to Information Systems in Organizations Slide 27

  28. 4.2.2. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 28

  29. 4.3. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 29

  30. 4.4. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 30

  31. 4.4. Decision Support Systems (continued) Essential DSS Elements Chapter1 – Introduction to Information Systems in Organizations Slide 31

  32. 4.5. Specialized Business Information Systems • Knowledge Management • Artificial Intelligence • Expert Systems • Virtual Reality Chapter1 – Introduction to Information Systems in Organizations Slide 32

  33. 4.5.1. Knowledge Management Systems • 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 Chapter1 – Introduction to Information Systems in Organizations Slide 33

  34. 4.5.2. Artificial Intelligence • Artificial intelligence (AI): field in which the computer system takes on the characteristics of human intelligence Chapter1 – Introduction to Information Systems in Organizations Slide 34

  35. 4.5.2. Artificial Intelligence (Cont.) The Major Elements of Artificial Intelligence Chapter1 – Introduction to Information Systems in Organizations Slide 35

  36. 4.5.3. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 36

  37. 4.5.4. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 37

  38. 5. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 38

  39. Systems Development (continued) An Overview of Systems Development Chapter1 – Introduction to Information Systems in Organizations Slide 39

  40. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 40

  41. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 41

  42. 6. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 42

  43. Organizations and Information Systems (continued) A General Model of an Organization Chapter1 – Introduction to Information Systems in Organizations Slide 43

  44. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 44

  45. Organizations and Information Systems (continued) The Value Chain of a Manufacturing Company Chapter1 – Introduction to Information Systems in Organizations Slide 45

  46. 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 Chapter1 – Introduction to Information Systems in Organizations Slide 46

  47. 7. 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 limited to single countries Chapter1 – Introduction to Information Systems in Organizations Slide 47

  48. Roles, Functions, and Careers in the IS Department • Primary responsibilities in information systems • Operations: focuses on the efficiency of IS functions • Systems development: focuses on development projects and ongoing maintenance and review • Support: provides user assistance, data administration, user training, and Web administration Chapter1 – Introduction to Information Systems in Organizations Slide 48

  49. Roles, Functions, and Careers in the IS Department (cont.) The Three Primary Responsibilities of Information Systems Chapter1 – Introduction to Information Systems in Organizations Slide 49

  50. Typical IS Titles and Functions • Chief Information Officer (CIO) • Employs IS department’s equipment and personnel to help the organization attain its goals • LAN administrators • Set up and manage the network hardware, software, and security processes Chapter1 – Introduction to Information Systems in Organizations Slide 50

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