1 / 37

Chapter 1 Business Information Systems: An Overview

This chapter provides an overview of information systems in business, including how computers process data into useful information, the functions of different types of information systems, the role of telecommunications and database technology, and the ethical conflicts created by widespread use of information systems.

ncarpenter
Download Presentation

Chapter 1 Business Information Systems: An Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 1Business Information Systems: An Overview Management Information Systems, 4th Edition

  2. Learning Objectives • Explain why information systems are essential to business • Describe how computers process data into useful information for problem solving and decision making • Identify the functions of different types of information systems • Describe how different information systems serve different levels within an organization Management Information Systems, 4th Edition

  3. Learning Objectives (Cont.) • Evaluate how telecommunications and database technology can help implement the goals of information systems • Recognize the role of information technology in e-commerce • List major factors to consider when evaluating information systems and their roles in organizations • Identify major ethical and societal conflicts created by widespread use of information systems Management Information Systems, 4th Edition

  4. Information Systems • Why Do People Need Information? • Individuals: Entertainment and enlightenment • Businesses: Decision making and problem solving • Gathering • Storing • Manipulating Management Information Systems, 4th Edition

  5. Data, Information, and Systems • Data vs. Information • Data • A “given” or fact: a number, a statement, or a picture • The raw materials in the production of information • Information • Data that have meaning within a context • Raw data or data that have been manipulated Management Information Systems, 4th Edition

  6. Data Manipulation • Raw data • Time-consuming to read • Difficult to understand • Manipulated Data • Provides useful information Management Information Systems, 4th Edition

  7. Generating Information • Raw data are processed in an IS to create final useful information • Process: Manipulation of data • Computer-based ISs: process data to produce information Management Information Systems, 4th Edition

  8. Information: Important Resource • Information must be useful • Relevant • Complete • Accurate • Current • Cost effective in business Management Information Systems, 4th Edition

  9. What Is a System? • System: A set of components that work together to achieve a common goal • Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal • Closed system: Stand-alone system that has no contact with other systems • Open system: System that interfaces with other systems Management Information Systems, 4th Edition

  10. Systems and Subsystems Management Information Systems, 4th Edition

  11. Information and Managers • Systems thinking: • Viewing organization in terms of suborganizations or subsystems • A framework for problem solving and decision making • Managers focus on overall goals and operations of business Management Information Systems, 4th Edition

  12. Information and Managers (Cont.) • Systems thinking (Cont.) • Information Map: data and information flow within an organization • Information Technology: all technologies that facilitate construction and maintenance of information systems Management Information Systems, 4th Edition

  13. The Benefits of Human-Computer Synergy • Synergy: combined resources produce output exceeding the sum of the outputs of the same resources employed separately • Translates human thought into efficient processing of large amounts of data Management Information Systems, 4th Edition

  14. Information Systems in Organizations • Data • Hardware • Software • People • Procedures Management Information Systems, 4th Edition

  15. Trends • Power of computers increasing; prices dropping • Increase in programming variety and ingenuity • Internet access faster and more reliable • Internet growth resulting in opportunities • Increasing ratio of computer-literate workforce Management Information Systems, 4th Edition

  16. Components of an Information System Management Information Systems, 4th Edition

  17. The Four Stages of Data Processing • Input: Data are collected and entered into computer • Data processing: Data are manipulated into information using mathematical, statistical, and other tools • Output: Information is displayed or presented • Storage: Data and information are maintained for later use Management Information Systems, 4th Edition

  18. Computer Equipment for Information System • Input devices: introduce data into the IS • Processor: manipulates data through the IS • Output devices: display information • Storage devices: store data and information Management Information Systems, 4th Edition

  19. Input-process-output-storage devices Management Information Systems, 4th Edition

  20. ISs: From Recording Transactionsto Providing Expertise • Transaction Processing Systems (TPS) • Record data and perform basic processing • Cash registers and ATMs • Management Information Systems (MIS) • Recorded transactions and other data produce information for problem solving and decision making Management Information Systems, 4th Edition

  21. Types of MISs • Decision Support Systems (DSS) • Contain models, or formulas, that manipulate data into information • Often answer “what if?” questions • Group Decision Support Systems (GDSS) • Generate ideas, establish priorities, and reach decisions in group environment Management Information Systems, 4th Edition

  22. Types of MISs (Cont.) • Executive Information Systems (EIS) • Can gather information from vast amounts of data for high-level executives • Highly useful in control and planning • Expert Systems (ES) • Programmed with human expertise • Can help solve problems of unstructured nature Management Information Systems, 4th Edition

  23. Types of MISs (Cont.) • Geographic Information Systems (GIS) • Represents local conditions or features • Allows planning, decision-making, and monitoring of local conditions or activities • On-demand Output • Managers can obtain reports tailored to their needs at any time Management Information Systems, 4th Edition

  24. ISs in Functional Business Areas • Accounting • Record business transactions, produce periodic financial statements, and create reports required by law • Finance • Organize budgets, manage the flow of cash, analyze investments, and make decisions that could reduce interest payments and increase revenues Management Information Systems, 4th Edition

  25. ISs in Functional Business Areas (Cont.) • Marketing • Analyze demand for various products in different regions and population groups • Human Resources • Help with record keeping and employee evaluation Management Information Systems, 4th Edition

  26. ISs in Different Business Sectors • Manufacturing • Allocate resources such as personnel, raw material, and time • Control inventory, process customer orders, prepare production schedules, perform quality assurance, and prepare shipping documents Management Information Systems, 4th Edition

  27. ISs in Different Business Sectors (Cont.) • Service • ISs are often the backbone of service organizations • Retail • Some retail stores (e.g., Wal-Mart, Sears) are now linked to communication networks by satellite • Management can determine which items move quickly and which do not Management Information Systems, 4th Edition

  28. ISs in Different Business Sectors (Cont.) • New Businesses • ISs have made new products and services possible, such as credit reports and shipment tracking • Government • Tax authorities, national insurance and welfare agencies, defense departments, economic organizations, immigration authorities Management Information Systems, 4th Edition

  29. Shared Data Resources • Effective way to operate: different systems share same data from same pool • Company’s database: one of the most powerful resources • Categorized and structured data can be manipulated to produce useful information Management Information Systems, 4th Edition

  30. Shared Data Resources (Cont.) Management Information Systems, 4th Edition

  31. E-Commerce • Business-to-business and business-to-consumer transactions done electronically via networks • Database management online makes information cheaper to distribute • E-commerce is now synonymous with “doing business on the Internet” Management Information Systems, 4th Edition

  32. Why Study IS? • Knowledge Workers • Employers seek computer-literate professionals who know how to use information technology • Degrees in IS • Computer Science and Management Information Systems • Information Systems Careers • Systems analyst, specialist in enterprise resource planning (ERP), database administrator, telecommunications specialist, consulting, etc. Management Information Systems, 4th Edition

  33. Ethical and Societal IssuesThe Not-So-Bright Side • Consumer Privacy • Organizations collect (and sometimes sell) huge amounts of data on individuals • Employee Privacy • IT supports remote monitoring of employees, violating privacy and creating stress Management Information Systems, 4th Edition

  34. Ethical and Societal IssuesThe Not-So-Bright Side • Freedom of Speech • Opportunities increase for pornography, hate speech, intellectual property crime, and other intrusions • Prevention may abridge free speech Management Information Systems, 4th Edition

  35. Ethical and Societal IssuesThe Not-So-Bright Side • IT Professionalism • No mandatory or enforced code of ethics for IT professionals--unlike other professions • Social Inequality • Less than 20% of the world’s population have ever used a PC; less than 3% have Internet access Management Information Systems, 4th Edition

  36. Information Systems Data, Information, and Systems ISs: From Recording Transactionsto Providing Expertise Information Systems in Business Shared Data Resources E-Commerce Why Study IS? Ethical and Societal IssuesThe Not-So-Bright Side Business Information Systems: An Overview Management Information Systems, 4th Edition

  37. Summary • Information Systems are essential to business • Data is processed into useful information for problem solving and decision making • Information systems provide information for different levels within an organization • There are major factors to consider when evaluating information systems Management Information Systems, 4th Edition

More Related