Chapter 1

Information Systems in Business

1
 Our Agenda
 Basic Information Systems Concepts
 Types of Information Systems
 Information Systems Users
 Connecting Users to Information
Technology
 Benefits of Information Systems
 An Approach to the Study of
Information Systems
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 Learning Objectives
 Explain what an information system is
and describe the functions of an
information system.
 Identify the components of an
information system.
 Explain the difference between data
and information.

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 Learning Objectives (cont’d.)
 List several types of information
systems and give an example of each
type.
 Explain who information systems users
are and describe how users use
information systems.

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 Learning Objectives (cont’d.)
 Explain what ethics are and why it is
important to use information systems
ethically.
 Describe how users are connected to
information technology locally,
nationally, and internationally.
 Describe several benefits of information
systems.

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 Basic Information System
Concepts

Information Systems in Business

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 What is an Information
System?
 An Information System is a collection of
components that work together to provide
information to help in the operations and
management of an organization.
 Information Technology is the integration of
computers, communications equipment, and
other technology used in information
systems.

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 Components of an
Information System?
 Components
 Hardware - Equipment such as computers
 Software - Instructions for the equipment
 Stored Data - Facts stored in the system
 Personnel - People who operate the system
 Procedures for the people to follow

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 Examples of Information
Systems
 An inventory control system
 An order entry system
 A production scheduling system

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 Information Systems
Functions
 Input Function accepts the input data from
outside the system.
 Storage Function retains input data and
retrieves stored data.
 Processing Function calculates and in other
ways manipulates the input and stored
data.
 Output Function produces results of
processing for use outside the system.

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 Data versus Information
 Data is a representation of a fact, a
number, a word, an image, a picture or
a sound.
 Information is data that is meaningful
or useful to someone.

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 Types of Information
Systems

Information Systems in Business

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 Types of Information Systems
 Personal information systems
 Word Processing
 Spreadsheet or financial analysis
 Database
 Graphics or presentation software
 Workgroup information systems
 Electronic mail (e-mail)
 Local area network (LAN)

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 Types of Information Systems
(cont’d.)
 Organizational information systems
 Mainframe computers
 Wide area network (WAN)
 Interorganizational information systems
 Electronic Data Interchange (EDI)
 Electronic Funds Transfer (EFT)
 Global information systems
 Production scheduling system

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 Information Systems Users

Information Systems in Business

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 How Users Use Information
Systems
 Users may use an information system directly
by pressing keys on a computer keyboard or
by operating a piece of equipment that sends
input data to a computer.
 A user may use an information system
indirectly by having someone else enter the
data and receive the output which is then
given to the user.

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 Ethical Use of Information
Systems
 Ethics has to do with the standards of
behavior that people follow: what is
right and what is wrong.

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 Ethical Use of Information
Systems (cont’d.)
 Ethical use of information systems
involves:
 Confidentiality of information
 Copying of software
 Use of someone else’s computer
 Ownership of information

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 Connecting Users to
Information Technology

Information Systems in Business

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 Networks
 A network is a collection of computers and
related equipment connected using
communications equipment so that they can
communicate with each other.
 Local Area Networks (LAN) cover a small area
such as a building.
 Wide Area Networks (WAN) cover a large
area such as a city, region, country or several
countries.
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 The Internet and the World
Wide Web (WWW)
 The Internet is a worldwide collection of
interconnected networks.
 The World Wide Web (WWW) is a
service on the Internet that links
information stored on different
computers.

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 Electronic Commerce
(E-Commerce)
 E-Commerce allows businesses and
individuals to use networks, including
the Internet, to promote and sell
products and services.

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 Benefits of Information
Systems

Information Systems in Business

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 Benefits of Information
Systems
 Better information
 Improved service
 Increased productivity
 Competitive advantage

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