An Introduction to Information Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 1

Chapter 1

Principles and Learning Objectives

• The value of information is directly linked to how it helps decision makers achieve the organization’s goals.

– Distinguish data from information and describe the characteristics used to evaluate the quality of data.

• Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business.

– Name the components of an information system and describe several system characteristics.

– Identify four basic types of models and explain how they are used.

• Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life.

– Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver.

• System users, business managers, and information systems professionals must work together to build a successful information system.

– 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 Concepts

Information System

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

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

System and Modeling Concepts

System

A set of elements or components that interact to accomplish goals

• Input • Processing mechanism• Feedback• Output• System boundary

Components of 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 Variables and Parameters

• System variable - item controlled by decision-maker

• System parameter - value that cannot be controlled

Systems Classification

System Performance and Standards

Modeling a System

• A model is an abstraction 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

What Is An Information System?

Components of an Information System

Computer-Based Information Systems (CBIS)

Components of a CBIS

Telecommunications, Networks, and the Internet

Business Information Systems

• Electronic Commerce• Transaction Processing Systems• Management Information Systems• Decision Support Systems

E-Commerce

• Business-to-business• Business-to-consumer• Business-to-government• Government-to-consumer

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

Payroll Transaction ProcessingSystem

Enterprise Resource Planning (ERP)

• Integrated programs that can manage a company’s entire set of business operations

• Often coordinate planning, inventory control, production, and ordering

Management Information Systems (MIS)

• Routine information for routine decisions• Operational efficiency• Use transaction data as main input• Databases integrate MIS in different functional

Management Information Systems (MIS)

MIS Outputs

• Scheduled reports• Demand reports• Exception 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

The Major Elements of Artificial Intelligence

Virtual Reality

Data Glove

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

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

An Introduction to Information Systems

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