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Chapter1-AnIntroductiontoInformationSystems.pptx

Principles of Information Systems, Thirteenth Edition

Chapter 1

An Introduction to Information Systems

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Principles of Information Systems, Thirteenth Edition

Chapter 1

An Introduction to Information Systems

Objectives

After completing this chapter, you will be able to:

Distinguish data from information and knowledge, and describe the characteristics of quality data

Identify the fundamental components of an information system and describe their function

Identify the three fundamental information system types and explain what organizational complements must be in place to ensure successful implementation and use of the system

Objectives

After completing this chapter, you will be able to:

Distinguish data from information and knowledge, and describe the characteristics of quality data

Identify the fundamental components of an information system and describe their function

Identify the three fundamental information system types and explain what organizational complements must be in place to ensure successful implementation and use of the system

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Objectives

After completing this chapter, you will be able to (cont’d):

Identify and briefly describe the role of each component of an organization’s technology infrastructure

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

Describe how organizations are using business intelligence and business analytics to capitalize on the vast amount of data becoming available

Objectives

After completing this chapter, you will be able to (cont’d):

Identify and briefly describe the role of each component of an organization’s technology infrastructure

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

Describe how organizations are using business intelligence and business analytics to capitalize on the vast amount of data becoming available

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Objectives

After completing this chapter, you will be able to (cont’d):

Discuss why it is critical for business objectives and IS activities to be well aligned through system planning, development, and acquisition

Identify several major IT security threats as well as some of the legal, social, and ethical issues associated with information systems

Objectives

After completing this chapter, you will be able to (cont’d):

Discuss why it is critical for business objectives and IS activities to be well aligned through system planning, development, and acquisition

Identify several major IT security threats as well as some of the legal, social, and ethical issues associated with information systems

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An Introduction to Information Systems

Information

One of an organization’s most valuable resources

Often confused with the term data

An Introduction to Information Systems

Information

One of an organization’s most valuable resources

Often confused with the term data

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Data, Information, and Knowledge

Data: raw facts

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

Process: set of logically related tasks performed to achieve a defined outcome

Turning data into information is a process

Knowledge: awareness and understanding of a set of information and the ways it can be made useful to support a task

The process of defining relationships among data to create useful information requires knowledge

Data, Information, and Knowledge

Data: raw facts

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

Process: set of logically related tasks performed to achieve a defined outcome

Turning data into information is a process

Knowledge: awareness and understanding of a set of information and the ways it can be made useful to support a task

The process of defining relationships among data to create useful information requires knowledge

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Data, Information, and Knowledge

Data, Information, and Knowledge

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Data, Information, and Knowledge

Data, Information, and Knowledge

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The Value of Information

Valuable information helps people perform tasks more efficiently and effectively

Inaccurate data can result in loss of potential new customers and reduced customer satisfaction

© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Value of Information

Valuable information helps people perform tasks more efficiently and effectively

Inaccurate data can result in loss of potential new customers and reduced customer satisfaction

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Characteristics of Quality Information

If an organization’s information is not accurate or complete:

People can make poor decisions, costing thousands, or even millions, of dollars

Depending on the type of data you need:

Some characteristics become more important than others

Accuracy and completeness are critical for data used in accounting for the management of company assets

Characteristics of Quality Information

If an organization’s information is not accurate or complete:

People can make poor decisions, costing thousands, or even millions, of dollars

Depending on the type of data you need:

Some characteristics become more important than others

Accuracy and completeness are critical for data used in accounting for the management of company assets

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What is an Information System?

An information system (IS) is a set of interrelated elements that:

Collect (input)

Process

Store

Disseminate data and information

Provides a feedback mechanism to monitor and control its operation to make sure it continues to meet its goals and objectives

A computer-based information system (CBIS) is a single set of hardware, software, databases, networks, people, and procedures

That are configured to collect, manipulate, store, and process data into information

An organization’s technology infrastructure includes all the hardware, software, databases, networks, people, and procedures

That are configured to collect, manipulate, store, and process data into information

What is an Information System?

An information system (IS) is a set of interrelated elements that:

Collect (input)

Process

Store

Disseminate data and information

Provides a feedback mechanism to monitor and control its operation to make sure it continues to meet its goals and objectives

A computer-based information system (CBIS) is a single set of hardware, software, databases, networks, people, and procedures

That are configured to collect, manipulate, store, and process data into information

An organization’s technology infrastructure includes all the hardware, software, databases, networks, people, and procedures

That are configured to collect, manipulate, store, and process data into information

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What is an Information System?

What is an Information System?

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What is an Information System?

Procedure defines the steps to follow to achieve a specific end result

Such as enter a customer order, pay a supplier invoice, or request a current inventory report

Using a CBIS involves setting and following many procedures, including those for the

Operation, maintenance, and security of the system

What is an Information System?

Procedure defines the steps to follow to achieve a specific end result

Such as enter a customer order, pay a supplier invoice, or request a current inventory report

Using a CBIS involves setting and following many procedures, including those for the

Operation, maintenance, and security of the system

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Information Systems in Organizations

Information systems can be divided into three types:

Personal IS – includes information systems that improve the productivity of individual users

Group IS –includes information systems that improve communications and support collaboration among members of a workgroup

Enterprise IS – includes information systems that organizations use to define structured interactions among their own employees and/or external customers, suppliers, government agencies, etc…

Information Systems in Organizations

Information systems can be divided into three types:

Personal IS – includes information systems that improve the productivity of individual users

Group IS –includes information systems that improve communications and support collaboration among members of a workgroup

Enterprise IS – includes information systems that organizations use to define structured interactions among their own employees and/or external customers, suppliers, government agencies, etc…

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Information Systems in Organizations

For each type of IS, certain key organizational complements must be in place:

Well-trained workers

System support

Better teamwork

Redesigned processes

New decision rights

Information Systems in Organizations

For each type of IS, certain key organizational complements must be in place:

Well-trained workers

System support

Better teamwork

Redesigned processes

New decision rights

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Information Systems in Organizations

Information Systems in Organizations

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Hardware and Mobile Devices

Hardware

Consists of computer equipment used to perform input, processing, storage, and output activities

A trend in the industry is to produce smaller, faster, and more mobile hardware

Innovative new hardware devices include:

Advanced keyboards

Laptops and displays that connect wirelessly

Embedded 3D cameras

Very-high resolution display devices

Hardware and Mobile Devices

Hardware

Consists of computer equipment used to perform input, processing, storage, and output activities

A trend in the industry is to produce smaller, faster, and more mobile hardware

Innovative new hardware devices include:

Advanced keyboards

Laptops and displays that connect wirelessly

Embedded 3D cameras

Very-high resolution display devices

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Software and Mobile Applications

Software

Consists of the computer programs that govern the operation of a particular computing device

Two types of software:

System software – oversee basic computer operations such as start-up, controls access to system resources, and manages memory and files

Application software – allows you to accomplish specific tasks, including editing text documents, creating graphs, and playing games

Software and Mobile Applications

Software

Consists of the computer programs that govern the operation of a particular computing device

Two types of software:

System software – oversee basic computer operations such as start-up, controls access to system resources, and manages memory and files

Application software – allows you to accomplish specific tasks, including editing text documents, creating graphs, and playing games

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Software and Mobile Applications

Business application software

Can be categorized by whether it is intended to be used by an individual, a small business, or a large multinational enterprise

Consumerization of IT

The trend of consumer technology practices influencing the way business software is designed and delivered

Software and Mobile Applications

Business application software

Can be categorized by whether it is intended to be used by an individual, a small business, or a large multinational enterprise

Consumerization of IT

The trend of consumer technology practices influencing the way business software is designed and delivered

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Database Systems and Big Data

Database

An organized collection of facts and information, typically consisting of two or more related data files

Can contain facts and information on customers, employees, inventory, sales, online purchases, etc…

Data warehouse

A database that stores large amounts of historical data in a form that readily supports analysis and management decision making

Database Systems and Big Data

Database

An organized collection of facts and information, typically consisting of two or more related data files

Can contain facts and information on customers, employees, inventory, sales, online purchases, etc…

Data warehouse

A database that stores large amounts of historical data in a form that readily supports analysis and management decision making

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Database Systems and Big Data

Database Systems and Big Data

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Database Systems and Big Data

Extract-transform-lead (ETL) process

Raw data is extracted from various sources, transformed into a format that will support analysis, and then loaded into the data warehouse

Big data

A term used to describe data collections that are so enormous that traditional data management software, hardware, and analysis processes are incapable of dealing with them

Database Systems and Big Data

Extract-transform-lead (ETL) process

Raw data is extracted from various sources, transformed into a format that will support analysis, and then loaded into the data warehouse

Big data

A term used to describe data collections that are so enormous that traditional data management software, hardware, and analysis processes are incapable of dealing with them

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Database Systems and Big Data

Database Systems and Big Data

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Networks and Cloud Computing

Networks

Connect computers and equipment in a room, building, campus, city, or globally to enable electronic communication

Internet

World’s largest computer network

Public cloud computing

A service provider organization owns and manages the hardware, software, networking, and storage devices in order to provide shared resources to users via the Internet

Networks and Cloud Computing

Networks

Connect computers and equipment in a room, building, campus, city, or globally to enable electronic communication

Internet

World’s largest computer network

Public cloud computing

A service provider organization owns and manages the hardware, software, networking, and storage devices in order to provide shared resources to users via the Internet

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Networks and Cloud Computing

Intranet

Enable communication, collaboration, search functions, and information sharing between member of an organization using a Web browser

Extranet

A network based on Web technologies that allows selected outsiders to access authorized resources of a company’s intranet

Networks and Cloud Computing

Intranet

Enable communication, collaboration, search functions, and information sharing between member of an organization using a Web browser

Extranet

A network based on Web technologies that allows selected outsiders to access authorized resources of a company’s intranet

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Networks and Cloud Computing

Networks and Cloud Computing

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Networks and Cloud Computing

Internet of Things (IoT)

A network of physical objects embedded with sensors, processors, software, and network connectivity capability to enable them to exchange data with the manufacturer of the device, device operators, and other connected devices

Internet of Everything (IoE)

Encompasses not only machine-to-machine but also people-to-people and people-to-machine connections

Networks and Cloud Computing

Internet of Things (IoT)

A network of physical objects embedded with sensors, processors, software, and network connectivity capability to enable them to exchange data with the manufacturer of the device, device operators, and other connected devices

Internet of Everything (IoE)

Encompasses not only machine-to-machine but also people-to-people and people-to-machine connections

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Networks and Cloud Computing

Networks and Cloud Computing

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Business Information Systems

Information systems are used in all functional areas of business organizations, such as:

Accounting and finance

Customer service

Human resources

Manufacturing

Research and development

Sales and marketing

Business Information Systems

Information systems are used in all functional areas of business organizations, such as:

Accounting and finance

Customer service

Human resources

Manufacturing

Research and development

Sales and marketing

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Business Information Systems

Information systems are also used in nearly every industry, such as:

Agriculture

Finance

Health care

Mining

Professional services

Retail

Business Information Systems

Information systems are also used in nearly every industry, such as:

Agriculture

Finance

Health care

Mining

Professional services

Retail

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Electronic and Mobile Commerce

E-commerce involves the exchange of money for goods and services over electronic networks

Electronic and Mobile Commerce

E-commerce involves the exchange of money for goods and services over electronic networks

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Electronic and Mobile Commerce

Electronic and Mobile Commerce

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Electronic and Mobile Commerce

Mobile commerce (m-commerce): the use of mobile, wireless devices to place orders and conduct business

Used to support all forms of e-commerce:

Business-to-business (B2B)

Business-to-consumer (B2C)

Consumer-to-consumer (C2C)

Government-to-citizen (G2C)

E-business: use of information systems and the Internet to perform business-related tasks and functions

Electronic and Mobile Commerce

Mobile commerce (m-commerce): the use of mobile, wireless devices to place orders and conduct business

Used to support all forms of e-commerce:

Business-to-business (B2B)

Business-to-consumer (B2C)

Consumer-to-consumer (C2C)

Government-to-citizen (G2C)

E-business: use of information systems and the Internet to perform business-related tasks and functions

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Enterprise Systems

Transaction

Any business-related exchange, such as payments to employees and suppliers and sales to customers

Transaction processing system (TPS)

An organized collection of people, procedures, software, databases, and devices

Used to perform and record completed business transactions

Management information system (MIS)

Organized collection of people, procedures, software, databases, and devices

Provides routine information to managers and decision makers

Focuses on operational efficiency

Provides standard reports generated with data and information from the TPS or ERP

Enterprise Systems

Transaction

Any business-related exchange, such as payments to employees and suppliers and sales to customers

Transaction processing system (TPS)

An organized collection of people, procedures, software, databases, and devices

Used to perform and record completed business transactions

Management information system (MIS)

Organized collection of people, procedures, software, databases, and devices

Provides routine information to managers and decision makers

Focuses on operational efficiency

Provides standard reports generated with data and information from the TPS or ERP

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Enterprise Systems

Enterprise Systems

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Enterprise Systems

Enterprise resource planning (ERP)

A set of integrated programs

Manages the vital business operations for an entire multisite, global organization

Most ERP systems provide integrated software to support manufacturing and finance

Also provide support for business analytics and e-business

Enterprise Systems

Enterprise resource planning (ERP)

A set of integrated programs

Manages the vital business operations for an entire multisite, global organization

Most ERP systems provide integrated software to support manufacturing and finance

Also provide support for business analytics and e-business

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Enterprise Systems

Enterprise Systems

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Enterprise Systems

ERP system benefits:

Provide a global view of operational/planning data

Lower the cost of doing business

Ensure compliance

Automate core business operations

Improve customer service

Reduce time to market by sharing evolving product data

Enterprise Systems

ERP system benefits:

Provide a global view of operational/planning data

Lower the cost of doing business

Ensure compliance

Automate core business operations

Improve customer service

Reduce time to market by sharing evolving product data

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Business Intelligence and Analytics

Business intelligence (BI)

Includes a wide range of applications, practices, and technologies for the extraction, transformation, integration, visualization, analysis, interpretation, and presentation of data to support improved decision making

Business analytics

The extensive use of data and quantitative analysis to support fact-based decision making within organizations

Business Intelligence and Analytics

Business intelligence (BI)

Includes a wide range of applications, practices, and technologies for the extraction, transformation, integration, visualization, analysis, interpretation, and presentation of data to support improved decision making

Business analytics

The extensive use of data and quantitative analysis to support fact-based decision making within organizations

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Knowledge Management and Specialized Information Systems

Knowledge management systems (KMSs)

An organized collection of people, procedures, software, databases, and devices that:

Stores and retrieves knowledge

Improves collaboration

Locates knowledge sources

Captures and uses knowledge

Enhances the knowledge management process

Knowledge Management and Specialized Information Systems

Knowledge management systems (KMSs)

An organized collection of people, procedures, software, databases, and devices that:

Stores and retrieves knowledge

Improves collaboration

Locates knowledge sources

Captures and uses knowledge

Enhances the knowledge management process

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Planning, Acquiring, and Building Systems

Project

A temporary endeavor undertaken to create a unique product, service, or result

Attempts to achieve specific business objectives and is subject to certain constraints

They way much of an organization’s work gets done

Planning, Acquiring, and Building Systems

Project

A temporary endeavor undertaken to create a unique product, service, or result

Attempts to achieve specific business objectives and is subject to certain constraints

They way much of an organization’s work gets done

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Strategic Planning and Project Management

Strategic planning

Used to improve alignment between the needs of the business and the activities of the information systems organization

Alignment means that the IS organization and its resources are focused on efforts that support the key objectives defined in the strategic plan of business

Strategic Planning and Project Management

Strategic planning

Used to improve alignment between the needs of the business and the activities of the information systems organization

Alignment means that the IS organization and its resources are focused on efforts that support the key objectives defined in the strategic plan of business

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System Acquisition and Development

System acquisition

Process used to obtain the information system resources needed to provide the services necessary to meet a specific set of needs

System development

The activity of building information systems to meet users’ needs

Projects can range from small to very large

System Acquisition and Development

System acquisition

Process used to obtain the information system resources needed to provide the services necessary to meet a specific set of needs

System development

The activity of building information systems to meet users’ needs

Projects can range from small to very large

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System Acquisition and Development

System Acquisition and Development

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Information Systems in Business and Society

The speed and widespread use of information systems

Opens users to a variety of threats from unethical people

Computer-related attacks can come from individuals, groups, companies, and countries

Information Systems in Business and Society

The speed and widespread use of information systems

Opens users to a variety of threats from unethical people

Computer-related attacks can come from individuals, groups, companies, and countries

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Cybercrime and Information System Security

Cybercriminals

Motivated by the potential for monetary gain

Hack into computers systems to steal

Cyberterrorism

The intimidation of a government or a civilian population by using information technology to disable critical national infrastructure

To achieve political, religious, or ideological goals

Cybercrime and Information System Security

Cybercriminals

Motivated by the potential for monetary gain

Hack into computers systems to steal

Cyberterrorism

The intimidation of a government or a civilian population by using information technology to disable critical national infrastructure

To achieve political, religious, or ideological goals

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Cybercrime and Information System Security

Cybercrime and Information System Security

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Ethical, Legal, and Social Issues of Information Systems

Ethics

A set of beliefs about right and wrong behavior

Ethical behavior

Conforms to generally accepted social norms

The use of information about people

Requires balancing the needs of those who want to use the information against the rights and desires of the people whose information may be used

Ethical, Legal, and Social Issues of Information Systems

Ethics

A set of beliefs about right and wrong behavior

Ethical behavior

Conforms to generally accepted social norms

The use of information about people

Requires balancing the needs of those who want to use the information against the rights and desires of the people whose information may be used

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Ethical, Legal, and Social Issues of Information Systems

© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Ethical, Legal, and Social Issues of Information Systems

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Ethical, Legal, and Social Issues of Information Systems

Internet censorship

The control or suppression of the publishing or accessing of information on the Internet

Digital divide

A term used to describe the gulf between those who do and those who don’t have access to modern information and communications technology

Net neutrality

The principle that Internet service providers (ISPs) should be required to treat all Internet traffic running over their networks the same

Ethical, Legal, and Social Issues of Information Systems

Internet censorship

The control or suppression of the publishing or accessing of information on the Internet

Digital divide

A term used to describe the gulf between those who do and those who don’t have access to modern information and communications technology

Net neutrality

The principle that Internet service providers (ISPs) should be required to treat all Internet traffic running over their networks the same

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Summary

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

Information systems are composed of fundamental components that must be carefully assembled and integrated to work well together

Managers have an essential role to play in the successful implementation and use of information systems-that role changes depending on which type of IS system is being implemented

Summary

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

Information systems are composed of fundamental components that must be carefully assembled and integrated to work well together

Managers have an essential role to play in the successful implementation and use of information systems-that role changes depending on which type of IS system is being implemented

51

Summary

An organization’s infrastructure technology forms the foundation upon which its systems and applications are built

Organizations employ a variety of information systems to improve the way they conduct business and make fact-based decisions

Strategic planning and project management are keys to ensuring that the organization is working effectively on the right projects

Information systems must be applied thoughtfully and carefully so that society, organizations, and individuals around the globe can reap their enormous benefits

Summary

An organization’s infrastructure technology forms the foundation upon which its systems and applications are built

Organizations employ a variety of information systems to improve the way they conduct business and make fact-based decisions

Strategic planning and project management are keys to ensuring that the organization is working effectively on the right projects

Information systems must be applied thoughtfully and carefully so that society, organizations, and individuals around the globe can reap their enormous benefits

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