chp 1 business information systems

7/29/2019 Chp 1 Business Information Systems

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Business Information Systems:An Overview

- Prof. (Ms.) Avani Rachh


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Objectives

Explain why information systems are essential to

business

Describe how computers process data into

useful information for problem solving anddecision making

Identify the functions of different types of

information systems in business


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Objectives (continued)

Describe careers in information technology

Identify major ethical and societal concerns

created by widespread use of information

technology


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The Purpose of Information Systems

Businesses use information systems

To make sound decisions

To solve problems

Problem is any undesirable situation

Decision arises when more than one solution to

problem exists


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The Purpose of Information Systems

(continued)

Problem solving and decision making require

information

Keys to success in business are

Gathering correct information

Storing information

Using information


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Data, Information, and Information

Systems

Data, information and system are commonly

used terms

Important to understand their similarities and

differences


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Data vs. Information

Data: a given or fact

Can be number, statement, or picture

Information: facts or conclusions that have

meaning within context

Composed of data that is manipulated


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Data Manipulation

Data is manipulated to make useful information

Survey is common method of collecting data

Raw data is hard to read

Information is more useful to business than data


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Generating Information

A process is manipulation of data

Process usually produces information

Process may produce more data

A piece of information in one context may be

considered data in another context


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Generating Information (continued)

Figure 1.1: Input-process-output


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Information in Context

Not all information is useful

Useful information is

Relevant

Complete

Accurate


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Information in Context (continued)

Useful information is

Current

Obtained economically (in business)


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Information in Context (continued)

Figure 1.2: Characteristics of useful information


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What Is a System?

System: array of components that work together

to achieve goal or goals

System

Accepts input

Processes input

Produces output


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What is a system? (continued)

System may have multiple goals

System may contain subsystems

Subsystems have sub-goals that meet main goal

Subsystems transfer output to other subsystems


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What is a system? (continued)

Closed system: has no connections with other

systems

Open system: interfaces and interacts with

other systems Often a subsystem of a bigger system

Information system: processes data and

produces information


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Information and Managers

Systems thinking: thinking of an organization interms of subsystems

Database: collection of electronic records

Information systems automate exchange amongsubsystems

Information map: network of informationsystems

Information technology: technologies thatfacilitate construction and maintenance ofinformation systems


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The Benefits of Human-Computer

Synergy

Humans are relatively slow and make mistakes

Computers cannot make decisions

Synergy: combining resources to produce

greater output


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The Benefits of Human-Computer

Synergy (Continued)

Figure 1.4: Qualities of humans and computers that contribute to synergy


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Information Systems in Organizations

Computer-based Information system: system

with computer at center

Certain trends have made information systems

important in business

Organizations lag behind if they do not use

information systems


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Components of information systems

Figure 1.5: Components of an information system


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The Four Stages of Processing

Input: collect and introduce data to system

Transaction: a business event, usually entered

as input

Data processing: perform calculations on input

Output: what is produced by the information

system

Storage: vast amounts of data stored on opticaldiscs


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Computer Equipment for Information

Systems

Input devices: receive input

Computer: process data

Output: displays information

Storage devices: store data

Network devices: transfer data


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Computer Equipment for Information

Systems (continued)

Figure 1.6: Input, process, output, storage, and networking devices


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From Recording Transactions to

Providing Expertise: Types of

Information Systems Many types of information systems

Capabilities of applications have been combined

and merged Management Information System: supports

planning, control, and making decisions


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Transaction Processing Systems

Most widely used type of system

Records data collected at point where

organization interacts with other parties

Encompasses cash registers, ATMs and

purchase order systems


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Supply Chain Management Systems

Supply chain: sequence of activities involved in

producing products

Activities include marketing, purchasing raw

materials, manufacturing, shipping, billing,collection, and after-sale services

Also known as enterprise resource planning

systems


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Customer Relationship Management

Systems

Customer relationship management:

managing relations with customers

Used in combination with telephones to provide

customer service Often linked to Web applications that track online

transactions


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Business Intelligence Systems

Business Intelligence: gather data to help

organization compete

Often contains statistical models

Access large pools of data

Data warehouse: large database that usually

store transactional records


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Decision Support and Expert Systems

Decision support system: supports decision-

making

Relies on models to produce tables

Extrapolates data to predict outcomes

Expert system: supports knowledge-intensive

decision-making

Uses artificial intelligence


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Geographic Information Systems

Geographic information system: ties data to

physical locations

Represents data on a map in different formats May reflect demographic information in addition

to geographic

May use information from GPS satellites


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Geographic Information Systems

(continued)


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Information Systems in Business

Functions

Functional business area: services within a

company that support main business

Includes accounting, finance, marketing, and

human resources Part of a larger enterprise system


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Accounting

Information systems help record transactions

Produce periodic statements

Create required reports for law

Create supplemental reports for managers


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Finance

Finance systems facilitate financial planning and

business transactions

Tasks include organizing budgets, managing

cash flow, analyzing investments, and makingdecisions


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Marketing

Pinpoint likely customers and promote products

Marketing information systems analyze demand

for products in regions and demographic groups

Identify trends in demand for products/services

Web provides opportunity to collect marketing

data


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Human Resources

Human resource management systems aid

record-keeping

Must keep accurate records

Aids recruiting, selection, placement, and rewardanalysis

Performance evaluation systems provide

grading utilities


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Web Empowered Enterprises

E-commerce: Buying and selling goods and

services through Internet

Internet is a vast network of computers

connected globally Web has a profound impact on information

systems


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Careers in Information Systems

Information technology professionals are

increasingly in demand

Networking, system analyst, software

engineering, and database administrator jobsare increasing in demand


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Systems Analyst

System analyst: designs and updates

information systems

Involves analyzing system requirements,

documenting development efforts, and providingspecifications for programmers

Requires communication and presentation skills


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Database Administrator

Database administrator: responsible for

databases

Develops and acquires database applications

Must protect privacy of customers and employees

Responsible for securing the database


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Network Administrator

Network administrator: acquires, implements,

manages, maintains, troubleshoots networks

Implements security

Firewalls

Access codes


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Webmaster

Webmaster: creates and maintains Web site

Designs and codes the page

Demand for Webmasters grows as more

businesses use Web


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Chief Security Officer

Chief security officer: supervises security of

information system

Position exists due to growing threat to

information security Reports to chief information officer


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Chief Information Officer and Chief

Technology Officer

Chief information officer: responsible for all

aspects of information system

Often the vice president

Chief technology officer: has similar duties asCIO


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Chief Information Officer and Chief

Technology Officer (continued)

Figure 1.7: Traits of a successful CIO


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Summary

Computer-based information systems pervade

almost every aspect of our lives

A system is a set of components that work

together to achieve a common goal Subsystem: a system performs a limited task

that produces an end result, which must be

combined with other products from other

systems to reach an ultimate goal

Data processing has four stages


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Summary (continued)

Any IS that helps in management is a

management information system (MIS)

Many different types of MIS

Enterprise application systems (SCM or ERP) tietogether different functional areas of a business

ISs are used in accounting, finance, marketing,

and human resources


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Summary (continued)

The job prospects for IT professionals are bright

IT has created societal concerns

chp 1 business information systems

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