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This document provides an overview of information systems and their use in organizations. It discusses key concepts like data, information, knowledge and how information systems are used to collect, process, store and disseminate data. It also summarizes the functions of different types of information systems like transaction processing systems, management information systems and decision support systems. The document explains how these systems support various business functions and managerial activities. Finally, it compares management information systems and decision support systems.

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54 views26 pages

BI Summary

This document provides an overview of information systems and their use in organizations. It discusses key concepts like data, information, knowledge and how information systems are used to collect, process, store and disseminate data. It also summarizes the functions of different types of information systems like transaction processing systems, management information systems and decision support systems. The document explains how these systems support various business functions and managerial activities. Finally, it compares management information systems and decision support systems.

Uploaded by

rahul2689
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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An Introduction to

Information Systems

Session Slides

Principles of Information Systems,


Eighth Edition
Why Learn About IS?
• Information systems used in most professions
– Sales reps, Managers, Corporate lawyers
• Indispensable for achieving career goals

• Information system (IS)


– 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

Principles of Information Systems, Eighth Edition 2


1. Information Concepts
• Information is one of an organization’s most
valuable resources. Information is different from
data
• Data: raw facts
• Information: collection of facts organized in such a
way that they have value beyond the facts
themselves
• Knowledge: awareness and understanding of a
set of information and ways that information can be
made useful to support a specific task or reach a
decision

1
Principles of Information Systems, Eighth Edition 4
3. What Is An Information System?
• Input: activity of gathering and capturing raw data
• Processing: converting or transforming data into
useful outputs
• Output: production of useful information, usually in
the form of documents and reports
• Feedback: output that is used to make changes to
input or processing activities

3
Principles of Information Systems, Eighth Edition 11
Computer-Based Information Systems
• An information
system can be:
– Manual
– Computerized
• Computer-based
information system
(CBIS)
– A single set of hardware,
software, databases,
telecommunications,
people, and procedures
that are configured to
collect, manipulate,

3
store, and process data
into information
Principles of Information Systems, Eighth Edition 12
4. Business Information Systems
• Most common types of
information systems
used in business
organizations
– Electronic and mobile
commerce systems
– Transaction processing
systems
– Management
information systems
– Decision support
systems

4
Principles of Information Systems, Eighth Edition 13
3. Management Information Systems
• Management
information system
(MIS): an organized
collection of people,
procedures, software,
databases, and
devices that provides
routine information to
managers and
decision makers
• Primary focus of an

4
MIS is operational
efficiency
Principles of Information Systems, Eighth Edition 18
IS in Organizations
(The digital firm)

Session Slides

Principles of Information Systems,


Eighth Edition
1. Organizations and IS
• Organization: a formal
collection of people and
other resources established
to accomplish a set of goals
• An organization is a system
- has inputs, processing
mechanisms, outputs, and
feedback
– Inputs to the system:
resources such as
materials, people, and
money

1
– Outputs to the environment:
goods or services
Principles of Information Systems, Eighth Edition 3
Organizations and IS (2)
• Value chain: series (chain) of
activities that includes
– inbound logistics
– warehouse and storage
– Production
– finished product storage
– outbound logistics
– marketing and sales
– customer service
• Upstream management:
management of
– raw materials
– inbound logistics
– warehouse and storage
facilities
• Downstream management:
management of
– finished product storage

1
– outbound logistics
– marketing and sales
– customer service
Principles of Information Systems, Eighth Edition 4
Traditional Organizational Structure
• A hierarchical structure
• Major department heads report to a president or
top-level manager
• Managerial pyramid shows the hierarchy of
decision making and authority

1
Principles of Information Systems, Eighth Edition 6
Project & Team Organizational Structures
• Project organizational structure: centered on
major products or services
– Many project teams are temporary
• Team organizational structure: centered on
work teams or groups
– Team can be temporary or permanent, depending
on tasks

1Principles of Information Systems, Eighth Edition 8


2. Competitive Advantage

• Significant and (ideally) long-term benefit to a


company over its competition
• Ability to establish and maintain competitive
advantage is vital to the company’s success

2
Principles of Information Systems, Eighth Edition 13
Enterprise Systems

Session Slides
An Overview of Enterprise Systems:
Transaction Processing Systems and
Enterprise Resource Planning (2)

1
Figure 9.1: TPS, MIS/DSS, and Special Information Systems in Perspective

Principles of Information Systems, Eighth Edition 9


Transaction Processing Activities (2)

• Transaction processing cycle


– Data collection
– Data editing
– Data correction
– Data manipulation
– Data storage
– Document production

2
Principles of Information Systems, Eighth Edition 16
Order Processing Systems

4
Figure 9.7: Traditional TPS Systems That Support the Order Processing
Business Function
Principles of Information Systems, Eighth Edition 29
Order Processing Systems (2)

4
Table 9.3: IPO of the Traditional TPS Systems That Support Order
Processing
Principles of Information Systems, Eighth Edition 30
Traditional Transaction Processing
Methods and Objectives (2)

1 Figure 9.3: Integration of a Firm’s TPSs


Principles of Information Systems, Eighth Edition 12
MIS and DSS

Session Slides
MIS in Perspective

2 Figure 10.3: Sources of Managerial Information


Principles of Information Systems, Eighth Edition 17
Functional Aspects of the MIS (2)

3 Figure 10.6: An Organization’s MIS


Principles of Information Systems, Eighth Edition 25
Marketing Management Information
Systems
• Marketing MIS: supports managerial activities in
product development, distribution, pricing
decisions, and promotional effectiveness
• Subsystems
– Marketing research
– Product development
– Promotion and advertising
– Product pricing
– Sales analysis

3
Principles of Information Systems, Eighth Edition 30
Marketing Management Information
Systems (2)

3 Figure 10.9: Overview of a Marketing MIS


Principles of Information Systems, Eighth Edition 31
5. Components of a Decision Support
System
• Database
• Model base
• Dialogue manager: user
interface that allows
decision makers to:
– Easily access and
manipulate the DSS
– Use common business
terms and phrases
• Access to the Internet,
networks, and other
computer-based systems

5
Figure 10.15: Conceptual Model of a DSS
Principles of Information Systems, Eighth Edition 45
A Comparison of DSS and MIS

4 Principles of Information Systems, Eighth Edition 42

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