Introduction to Information

Systems

Principles and Learning Objectives

The value of information is directly linked to how it helps
decision makers achieve the organizations goals.
Distinguish data from information and describe the
characteristics used to evaluate the quality of data.
Name the components of an information system and describe
several system characteristics.
Identify four basic types of models and explain how they are
used.
Identify the major steps of the systems development process
and state the goal of each.
Discuss why it is important to study and understand information
systems.

Information Systems Management (ISM) is the

application of information technology to
support the major functions and activities of
either a private sector business or public
sector institution.
ISM supports the process of collection,
manipulation, storage, distribution and
utilization of an organization's information
resources.

Information Concepts
System
A set of elements or components that interact to
accomplish goals
Input
Processing mechanism
Feedback
Output
System boundary

Components of a System

What Is An Information
System?

What Is an Information System?

A set of interrelated components that collect

(or retrieve), process, store, and distribute
information to support decision making and
control in an organization

Information System
2. A set of interrelated components that collect,
manipulate, and disseminate data and
information, and provide feedback to meet an
objective
Examples: ATMs, airline reservation systems,
course reservation systems

Components of an Information
System

Data vs. Information

Data: raw facts
Information: collection of facts organized in
such a way that they have value beyond the
facts themselves

Types of Data

Data vs. Information

The Characteristics of Valuable

Information

The Characteristics of Valuable

Information

System and Modeling

Concepts

Modeling a System
A model is an abstraction/approximation
that is used to represent reality
4 major types of models
A narrative model is based on words
Logical, not physical

A physical model is tangible

A schematic model is a graphic representation
Graphs and charts

A mathematical model is an arithmetic

representation

Modeling a System

System and Modeling Concepts

System Performance and Standards

Efficiency: output/input
Effectiveness: extent to which system attains its
goals
Performance standard: specific objective of a
system

System Performance and Standards

System Variables and Parameters

System variable - item controlled by decisionmaker

System parameter - value that cannot be
controlled

Systems Classification

Computer-Based
Information Systems
(CBIS)

Components of a CBIS

Business Information
Systems

Business Information Systems

Transaction Processing Systems (TPS)
Enterprise Resource Planning System (ERPS)
Customer Relationship Management Systems (CRMS)
Electronic Commerce (E-Commerce)
Management Information Systems (MIS)
Decision Support Systems (DSS)
Group Support Systems (GSS) / Group Decision Support
Systems (GDSS)
Executive Support Systems (ESS) / Executive
Information Systems (EIS)
Virtual Reality Systems (VRS)
Expert Systems (ES) / Artificial Intelligence (AI)

E-Commerce

Business-to-business (B to B)
Business-to-consumer (B to C)
Business-to-government (B to G)
Government-to-consumer (G to C)
Consumer-to-Government (C to G)
Consumer-to-Consumer (C to C)

Electronic Commerce

Transaction Processing Systems

A transaction processing system (TPS) is an organized collection of
people, procedures, software, databases, and devices used to
record completed business transactions.
Process business exchanges
Maintain records about the exchanges
Handle routine, yet critical, tasks
Perform simple calculations
Provide routing, tracking & imaging capabilities to improve business
processes
Improve productivity

Enterprise Resource Planning (ERP)

Integrated programs that can manage a

companys entire set of business operations
Often coordinate planning, inventory control,
production, and ordering

Management Information Systems (MIS)

Management information systems provide routine

information to decision makers to make structured,
recurring decisions, such as restocking decisions or
bonus awards. Management Information Systems focus
on operational efficiency.
The main input to an MIS is data collected and stored by
transaction processing systems.

Management Information Systems (MIS)

Routine information for routine decisions

Operational efficiency
Use transaction data as main input
Databases integrate MIS in different functional
areas

Management Information Systems (MIS)

MIS Outputs
Scheduled reports
Demand reports
Exception reports
Key Indicator reports
Drill-down reports

Decision Support Systems (DSS)

DSS- A decision support system is an organized
collection of people, procedures, software,
databases, and devices used to support
problem-specific decision making.
Interactive support for non-routine decisions or
problems
End-users are more involved in creating a DSS than
an MIS

Essential DSS Elements

Special-Purpose Business Information

Systems

Artificial Intelligence (AI) Systems

Virtual Reality Systems
Expert Systems
Other Special-Purpose Business Information
Systems e.g. GIS (Geographic Information
Systems

Virtual Reality

Systems Development

Why Learn About Information

Systems?
Advance in your career
Solve problems
Realize opportunities
Meet your career goals

Computer and Information System

Literacy
Computer literacy - knowledge of computer
systems and equipment
Information system literacy - knowledge of
how data and information are used

Information Systems in Functional

Areas of Business
Finance and Accounting
Sales and Marketing
Manufacturing

Information Systems in Industry

Investment firms
Banks
Publishing companies
Healthcare organizations
Management consulting firms

Management Challenges
1.

Design competitive and effective systems.

2.

Understand system requirements of global

business environment.

3.

Create information architecture that supports

organizations goal.

Management Challenges
4.

Determine business value of information

systems.

5.

Design systems people can control,

understand and use in a socially, ethically
responsible manner.

Positive Impacts of Information Systems

Faster calculations and paperwork
Analysis of customer purchase patterns and
preferences
More efficient business services
Medical advances
Instant global distribution of information

Negative Impacts of Information Systems

Automation leading to job elimination
Privacy concerns
System outages and shutdowns
Health problems, repetitive stress injury
Illegal distribution of intellectual property

Summary
Data - raw facts
Information - data transformed into a
meaningful form
System - set of elements that interact to
accomplish a goal
Systems development - creating or modifying
existing business systems