CHAPTER 1

BUSINESS INFORMATION SYSTEM ; AN OVERVIEW

Learning objectives :• 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.

THE PURPOSE OF INFORMATION SYSTEMS

• People require information for many reasons and in varied ways.• however, people and organizations seek and use information mainly

to make decisions and to solve problems• businesses use information systems to support daily operations, such

as electronic commerce, making airline reservations, and many other activities

DATA, INFORMATION, AND INFORMATION SYSTEMS

DATA VS INFORMATION (ITS NOT SAME)• The word data is derived from the Latin datum : which might

take the form of a number, a statement, or a picture.• Information : is facts or conclusions that have meaning within

a context.• system is 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

The Benefits of Human-Computer Synergy

The Four Stages of Processing• • Entering data into the IS (input).• • Changing and manipulating the data in the IS (data

processing).• • Getting information out of the IS (output).• • Storing data and information (storage).

TYPES OF INFORMATION SYSTEMS• Transaction Processing Systems• Supply Chain Management Systems• Customer Relationship Management Systems• Business Intelligence Systems• Decision Support and Expert Systems• Geographic Information Systems

Transaction Processing Systems

• is to record data collected at the boundaries of organizations, in other words, at the point where the organization transacts business with other parties.

• For example, they record the movement of parts from one phase of manufacturing to another, from raw materials to finished products

Supply Chain Management Systems

• refers to the sequence of activities involved in producing and selling a product or service.

• In industries that produce goods, the activities include marketing, purchasing raw materials, manufacturing and assembly, packing and shipping, billing, collection, and after-the-sale services.

• such systems are called enterprise resource planning (ERP) systems

Customer Relationship Management Systems• systems help manage an organization’s relationships with its

customers.• simple ones that help maintain customer records to sophisticated

systems that dynamically analyze

Geographic Information Systems

• can be used to tie data to physical locations.• application accesses a database that contains data about a

building, neighborhood, city, county, state, country, or even the entire world

INFORMATION SYSTEMS IN BUSINESS FUNCTIONS• Accounting

• Finance

• Marketing

• Human Resources

CAREERS IN INFORMATION SYSTEMS

• Help Desk Technician• Systems Analyst• Database Administrator• Webmaster• Chief Information Officer and Chief Technology Officer• Network Administrator, and many more ……

Thanks for your attention