ch01_business information systems:an overview
DESCRIPTION
This is an MIS subject presentation covering the first chapter "BUSINESS INFORMATION SYSTEMS:An Overview" .The reference for this presentation is the book entitled "Principles of management Information Systems, Philippine Edition".TRANSCRIPT
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MIS Group 1
Amparo, Rose Dominique L. Garcia, Delice Alessandra G.Lubrido, Mac Kiven
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Business Information
Systems: An Overview
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Learning ObjectivesAfter this chapter, we will be able to:
Explain why information technology matters. Define digital information and explain why digital systems
are so powerful and useful. 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. Describe careers in information technology. Identify major ethical and societal concerns created by
widespread use of information technology.
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Topic Outline
I. Gardeners+ : Business Systems and Information
II. Does Information Technology Matter?III. The Power of Digital SystemsIV. The Purpose of Information SystemsV. Data, Information, and Information SystemsVI. From Recording Transactions to Providing
Expertise: Types of Information SystemsVII.Information Systems in Business FunctionsVIII.Web Empowered EnterprisesIX. Careers in Information Systems
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Gardeners+: Business Systems and Information
Gardeners+ small business loan for
gardening business
obtained by Mary, Amanda and Ed
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SOLVING PROBLEMS AND MAKING DECISIONS• set up a small office in Ed’s garage with
telephone and a personal computer • marketing consists of flyers and advertisements • Julian would distribute business cards • Amanda purchased a small software package • Mary handled all transactions and gardeners
feedback• after a week of pilot testing ,and evaluating
results they decided to:– add new type of service: a single-job contract – add free confirmation call the day before scheduled
work
Gardeners+: Business Systems and Information
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Gardeners+: Business Systems and Information
GENERATING BUSINESS INFORMATION flyers ads in newspapers and magazines business cards adjustments to software configuration business suite’s word processing program to
create ads, basic forms, and business stationery spreadsheets – keep track of sales, revenues,
expenses, taxes, and profit
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Gardeners+: Business Systems and InformationMANAGING DATA contract and subscription systems were
functioning well spreadsheet was sufficient for their needsPROBLEM: data transcription was starting to take a toll
which leads to falling behind of schedule on their paperwork
GATHERING USEFUL INFORMATION FROM CUSTOMERS they went back to initial business models and fed them
with real historical rather than projected data they revised the models to include the services they had
already added
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Does Information Technology Matter?
Hackkett Group(a strategic advisory firm)answered YES world’s best performing companies
spent 7 % more per employee on information technology
today’s business professionals are expected to know how to develop and use IT significantly
regardless of major field of expertise, those who have the proper IT knowledge and skills stand a better chance of receiving more lucrative job offers and faster promotions
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digital systems a system that uses two digits used to represent information that contains numbers or
quantities can also represent any information as combinations of
zeroes and ones
digital information consists of zeroes and ones representing two states stored and communicated by way of electromagnetic
signals (e.g. electricity , magnetism, light)Advantages of Digital System Capable of delivering data and information(e.g. quantities,
sound, pictures, videos) original information can be re-created with complete
accuracy storage, retrieval, processing, and communication of
digital information are extremely fast
The Power of Digital Systems
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Why do people need Information?Individuals
EntertainmentEnlightenment
BusinessDecision makingProblem SolvingControl
The Purpose of Information Systems
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Data, Information and Information SystemsDATA VS. INFORMATION
dataderived from the Latin datum, literally a given or
a fact which might take the form of a number, a statement or a picture
is the raw material in the production of information
information are facts or conclusions that have meaning
within a contextNOTES: Raw data is rarely meaningful or useful as information To become information, data is manipulated through
tabulation, statistical analysis, or any other operation
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DATA MANIPULATIONGathering of data of the management of a car manufacturer from the customers
Demographic datao Gendero Ageo Annual income
Complaints about different performance areas
Features that satisfy buyers most Courtesy of the dealer’s personnel
Data, Information and Information Systems con’t
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Data, Information and Information Systems con’tDATA MANIPULATION
Categorize complaints by topicTotal the number of complaints for
each type of dissatisfaction and each car model
Calculate the average age and income of current buyers
the company can now generate new information to improve marketing
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GENERATING INFORMATIONRaw data-processed in an IS to create final useful informationProcess-manipulation of dataComputer-based IS’s-process data to produce information
Data, Information and Information Systems con’t
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Data, Information and Information Systems con’t
For information to be used, it must be:
Relevant Complete Accurate Current Cost efficient
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Data, Information and Information Systems con’t
What is a System? an array of components that work
together to achieve a common goal, or multiple goals by accepting input, processing it, and producing output in an organized manner
Systems and Subsystems Subsystems
components of a larger system – with subgoals, all contributing to meeting the main goal
can receive input from, and transfer output to, other systems or subsystems
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CLOSED VS. OPEN SYSTEMS Closed system
a system that stands alone, with no connection to another system: nothing flows in from another system, nothing flows out to another system
Example: a small check-producing system – prints and cuts checks when an employee enters data through a keyboard
Open System a system that interfaces and interacts with other
systemsExample: An accounting system that records accounts receivable, accounts payable, and cash flow is open if it receives its payroll figures from the payroll system
Data, Information and Information Systems con’t
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Data, Information and Information Systems con’tINFORMATION SYSTEM (IS)
Consists of all the components that work together to process data and produce information
INFORMATION AND MANAGERS systems thinking
Viewing organization in terms of sub-organizations or subsystems
Creates a framework for problem solving and decision making.
Keeps managers focused on overall goals and operations of business.
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Data, Information and Information Systems con’tINFORMATION AND MANAGERS
con’t
Information Mapdata and information flow within an
organization
Information Technologyall technologies that facilitate
construction and maintenance of information systems
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THE BENEFITS OF HUMAN-COMPUTER SYNERGY
Synergy (from the Greek “work together”) combined resources produce output exceeding the sum
of the outputs of the same resources employed separately
Allows human thought to be translated into efficient processing of large amounts of data
Data, Information and Information Systems con’t
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Data, Information and Information Systems con’t
Qualities of humans and computers that contribute to synergy
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Data, Information and Information Systems con’tINFORMATION SYSTEMS IN ORGANIZATIONS
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Data, Information and Information Systems con’t
THE FOUR STAGES OF PROCESSING
1. Input – entering data into the IS 2. Data Processing – changing and
manipulating the data in the IS3. Output – getting information out of
the IS4. Storage – storing data and
information
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COMPUTER EQUIPMENT FOR INFORMATION SYSTEMS Input Devices
introduce data into the IS Processor(Computer)
processes data through the IS Output Devices
display Information Storage Devices
store data and information Networking Devices and Communication Lines
Transfer data and information over various distance
Data, Information and Information Systems con’t
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Data, Information and Information Systems con’t
Internet
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Transaction Processing Systems (TPS) record data and perform basic processing
Supply Chain Management Systems (SCM) often called enterprise resource planning (ERP)
system involve purchasing, manufacturing, shipping, and
billing operations, often supported by an ERP system
From Recording Transactions to Providing Expertise: Types of Information Systems
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Customer Relationship Management Systems (CRM) help manage an organization’s relationships with its
customers main goals include :
to increase the quality of customer service to reduce the amount of labor involved in serving
customers to learn as much as possible about the buying
habits and service preferences of individual customers
Business Intelligence Systems (BI) Purpose: to glean from raw data relationships and
trends that night help organizations compete better
From Recording Transactions to Providing Expertise: Types of Information Systems con’t
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From Recording Transactions to Providing Expertise: Types of Information Systems con’t Decision Support and Expert Systems
Decision Support Systems(DSSs) designed to help make decisions rely on models and formulas often answers “what if?” questions
Expert Systems (ESs) rely on artificial intelligence techniques to support
knowledge-intensive decision-making process
Geographic Information Systems (GISs) represent local conditions or features allow planning, decision-making and monitoring of
local conditions and activities
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Information Systems in Business Functions
Accounting record business transactions, produce
periodic financial statements, and create reports required by law
Finance facilitate financial planning and
business transactions organize budgets, manage cash flow,
analyze investments, and make decisions that could reduce interest payments and increase revenues from financial transactions
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Marketing analyze demand for various products in different
regions and population groups help answer questions as “How can an advertising
campaign affect our profit?”
Human Resource help with record-keeping, employee evaluation, and
employee benefits
Information Systems in Business Functions con’t
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Web Empowered Enterprises
E- Commerce buying and selling goods and services via a
telecommunications network
Internet a vast network of computer connected across the globe
that can share both information and processing
Web a way of organizing, presenting and accessing the
Information on the Internet
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Help Desk Technician supports end users in their daily use of IT, especially
applications often required to have knowledge of wide variety of PC
applications
Systems Analyst Programmer/analysts
start of career of many IT professionals, are then promoted to systems analysts
partly involved in the analysis of business needs and ISs
position that requires a broad range of skills responsible for searching, planning, and recommending
software and systems choices
Careers in Information Systems
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Systems Analyst con’t responsible for developing cost analyses, design
considerations, implementation timelines, and feasibility studies of a computer system
develops alternative system plans based on1. analyzing system requirements provided by user
input2. documenting development efforts and system
features, and3. providing adequate specifications for programmers
must possess excellent skills to translate users’ descriptions of business processes into system concepts
Careers in Information Systems con’t
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Careers in Information Systems con’tDatabase Administrator (DBA)
responsible for the databases and data warehouses of an organization
very sensitive and powerful position responsible for acquiring database applications must adhere to federal, state, and corporate regulations
to protect the privacy of customers and employees
Network Administrator responsible for acquiring, implementing, managing,
maintaining, and troubleshooting local area networks throughout the organization
involved in selecting and implementing network security measures such as firewalls and access codes
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Careers in Information Systems con’t
System Administrator often referred to as “sys admin” responsible for managing an
organization’s computer operating systems
Also responsible for the day-to-day maintenance of an organization’s operating systems (backup, recovery, adding deleting user accounts, software upgrades)
Webmaster responsible for creating and
maintaining the organization’s Web site as well as its intranet and extranet
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Chief Security Officer (CSO) created because of the growing threat to the
information security persons in this position reports to the chief information
officer(CIO) major challenge: misperception of other executives that
IT security is an inhibitor rather than an enabler to operations
Chief Information Officer and Chief Technology Officer
Chief Information Officer(CIO) responsible for all aspects of an organization’s ISs often, but not always, a corporate vice president some companies prefer to call this position Chief
Technology Officer(CTO)
Careers in Information Systems con’t
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Careers in Information Systems con’t
Chief Information Officer
BUSINESS EXECUTIVE-must understand business processes, the market , and the competition.-must think like a CEO and tie IT strategy into corporate strategy
TECHNOLOGIST-must understand current and developing IT: does not have to be great technician but must know to ask the proper questions about technology
LEADERMust know how to inspire staff, foster enthusiasm for new projects, and lead by personal example.
ENTREPRENEURMust be entrepreneurial, proposing development of new products and services that can be supported with innovative IT.
Traits of a successful CIO
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THE END
Thank you for listening!!!