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An Overview

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 in business

Objectives Describe careers in information technology Identify major ethical and societal concerns created by widespread use of information technology

The Purpose of Information Systems

Businesses use information systems
To make sound decisions To solve problems

Problem is any undesirable situation Decision arises when more than one solution to problem exists

The Purpose of Information Systems Problem solving and decision making require information Keys to success in business are
Gathering correct information Storing information Using information

Data, Information, and Information Systems

Data, information and system are commonly used terms Important to understand their similarities and differences

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

Data vs. Information Data: a given or fact Can be number, statement, or picture Information: facts or conclusions that have meaning within context Composed of data that is manipulated

Data Manipulation Data is manipulated to make useful information Survey is common method of collecting data Raw data is hard to read Information is more useful to business than data

Generating Information A process is manipulation of data Process usually produces information Process may produce more data A piece of information in one context may be considered data in another context

Generating Information


Information in Context

Not all information is useful Useful information is

Relevant Complete Accurate

Information in Context (continued)

Useful information is
Current Obtained economically (in business)

Characteristics of Useful information


What Is a System?

System: array of components that work together to achieve goal or goals System
Accepts input Processes input Produces output

What is a system? (continued)

System may have multiple goals System may contain subsystems Subsystems have sub-goals that meet main goal Subsystems transfer output to other subsystems

What is a system? (continued) Closed system: has no connections with other systems Open system: interfaces and interacts with other systems
Often a subsystem of a bigger system

Information system: processes data and produces information

Data, Information, and Systems


Data, Information, and Systems

Farmington High School is one subsystem within the Farmington school system.


Information and Managers Systems thinking: thinking of an organization in terms of subsystems Database: collection of electronic records Information systems automate exchange among subsystems Information map: network of information systems Information technology: technologies that facilitate construction and maintenance of information systems 20

The Benefits of Human-Computer Synergy

Humans are relatively slow and make mistakes Computers cannot make decisions Synergy: combining resources to produce greater output

The Benefits of Human-Computer Synergy

Information Systems in Organizations Computer-based Information system: system with computer at center Certain trends have made information systems important in business Organizations lag behind if they do not use information systems

Components of information systems

Management Information Systems, Fifth Edition


The Four Stages of Processing

Input: collect and introduce data to system
Transaction: a business event, usually entered as input

Data processing: perform calculations on input Output: what is produced by the information system Storage: vast amounts of data stored on optical discs

Computer Equipment for Information Systems

Input devices: receive input Computer: process data Output: displays information Storage devices: store data Network devices: transfer data

Computer Equipment for Information Systems


From Recording Transactions to Providing Expertise: Types of Information Systems

Many types of information systems Capabilities of applications have been combined and merged Management Information System: supports planning, control, and making decisions

What is Information Systems?





What is Information Systems?

Information Systems (IS) are more than just computer hardware and software. It is not just developing business applications programs Information Systems include: Information Technology Management Organization Ultimately, IS are used as strategic tool to improve an organizations competitive advantage.

How you can apply MIS ... To improve the information content of the data, to present the valuable information in a user-friendly, intuitive, and easy to understand way, and to empower knowledge workers of today and tomorrow.

Objectives of the MIS

Deliver the right information to the right people, at the right time, with the right form. Ultimately, MIS should improve the workers productivity. who has what information about whom and when, where, and how will all be decided in the process of building an information system.

The Twenty-first Century will ... The twenty-first century will witness only two kinds of companies:

those that exploit Information Technology (IT) those that are out of business

Therefore, this class is about the need, the value,and the means of acquiring, creating, and using the information in the information age.

Roles of Information Systems

Automates (Efficiency)

Informates (???)

Innovates/ Transforms

Information System (IS) should be an organizational and management solution, based on information technology (IT), to a challenge posed by the environment.

Roles of Information Systems




Dr. Chen, Information Age

TM -37

Transaction Processing Systems

Most widely used type of system Records data collected at point where organization interacts with other parties Encompasses cash registers, ATMs and purchase order systems

Supply Chain Management Systems

Supply chain: sequence of activities involved in producing products

Activities include marketing, purchasing raw materials, manufacturing, shipping, billing, collection, and after-sale services

Also known as enterprise resource planning systems

Customer Relationship Management Systems

Customer relationship management: managing relations with customers Used in combination with telephones to provide customer service Often linked to Web applications that track online transactions

Business Intelligence Systems

Business Intelligence: gather data to help organization compete

Often contains statistical models Access large pools of data

Data warehouse: large database that usually store transactional records

Decision Support and Expert Systems

Decision support system: supports decision-making

Relies on models to produce tables Extrapolates data to predict outcomes

Expert system: supports knowledge-intensive decisionmaking

Uses artificial intelligence

Geographic Information Systems Geographic information system: ties data to physical locations Represents data on a map in different formats May reflect demographic information in addition to geographic May use information from GPS satellites

Geographic Information Systems

Information Systems in Business Functions

Functional business area: services within a company that support main business
Includes accounting, finance, marketing, and human resources Part of a larger enterprise system


Information systems help record transactions Produce periodic statements Create required reports for law Create supplemental reports for managers


Finance systems facilitate financial planning and business transactions Tasks include organizing budgets, managing cash flow, analyzing investments, and making decisions


Pinpoint likely customers and promote products Marketing information systems analyze demand for products in regions and demographic groups
Identify trends in demand for products/services

Web provides opportunity to collect marketing data

Human Resources

Human resource management systems aid record-keeping

Must keep accurate records Aids recruiting, selection, placement, and reward analysis

Performance evaluation systems provide grading utilities

Web Empowered Enterprises

E-commerce: Buying and selling goods and services through Internet Internet is a vast network of computers connected globally Web has a profound impact on information systems


Four Major Types of Information Systems



Careers in Information Systems

Information technology professionals are increasingly in demand Networking, system analyst, software engineering, and database administrator jobs are increasing in demand

Systems Analyst

System analyst: designs and updates information systems Involves analyzing system requirements, documenting development efforts, and providing specifications for programmers Requires communication and presentation skills

Database Administrator

Database administrator: responsible for databases

Develops and acquires database applications Must protect privacy of customers and employees Responsible for securing the database

Network Administrator

Network administrator: acquires, implements, manages, maintains, troubleshoots networks Implements security
Firewalls Access codes


Webmaster: creates and maintains Web site Designs and codes the page Demand for Webmasters grows as more businesses use Web

Chief Security Officer

Chief security officer: supervises security of information system Position exists due to growing threat to information security Reports to chief information officer

Chief Information Officer and Chief Technology Officer

Chief information officer: responsible for all aspects of information system
Often the vice president

Chief technology officer: has similar duties as CIO

Chief Information Officer and Chief Technology Officer

Computer-based information systems pervade almost every aspect of our lives A system is a set of components that work together to achieve a common goal Subsystem: a system performs a limited task that produces an end result, which must be combined with other products from other systems to reach an ultimate goal Data processing has four stages

Summary (continued)
Any IS that helps in management is a management information system (MIS) Many different types of MIS Enterprise application systems (SCM or ERP) tie together different functional areas of a business ISs are used in accounting, finance, marketing, and human resources

Management Information Systems, Fifth Edition


Summary (continued)
The job prospects for IT professionals are bright IT has created societal concerns

Management Information Systems, Fifth Edition