chapter 2 – introduction to information systems information systems, first edition john wiley...

Chapter 2 – Introduction to Information Systems

Information Systems, First Edition John Wiley & Sons, Inc

by France Belanger and Craig Van SlykeContributor: Brian West, University of Louisiana

at Lafayette

Copyright 2012 John Wiley & Sons, Inc. 2-1

Learning Objectives• Describe the major functions of an information system• Explain why it is important for business professionals to

understand information systems• Explain key concepts related to systems• Describe the information processing cycle• Describe the critical elements of an information system• Explain how information systems help managers deal with

information• Give examples of business rules• Discuss how information systems facilitate organizational

change• Compare and contrast common information systems


Registering for classes in 1981

First, you get a copy of the printed schedule of classes. After spending quite a bit of time studying the course offerings you finally come up with an ideal schedule. Head to the student union and join the very long line for registration, constantly checking to see if any of your classes have closed out.If one of your classes happens to close in between the time you’re checking out the overheads and your data actually get entered, you’re sent to the “problem table.” After a couple of hours (if you’re lucky), you’re registered!


Focusing Questions

Compare the 1982 scenario to your course registration process.

• Name four ways the current process is better for students.

• Name four ways the current process is better for universities.


Information Systems

• An ________________ is a combination of technology, data, people and processes that is directed towards the collection, manipulation, storage, organization, retrieval and communication of information.

• The system you use to register for classes is an example of an information system.

• Identify three information systems that you use frequently.


Information Systems

• Everyone in business needs to be an information systems manager to some extent.

• Each of us interacts with many information systems throughout our day.

• Information systems are so prevalent that we often do not even notice them.


Information Systems

• Learning how to effectively use these systems can help you be more effective and successful in your career.

• Sales representatives that know how to use customer relationship management systems

• Accountants that know the ins-and-outs of a company’s enterprise system

• Finance managers who know how to use a spreadsheet to analyze different investment scenarios


Components of a System

Consider a video game system, personal computer, or home video system•Sketch the different components (pieces) of the system. •Draw lines to indicate which components interact. •Repeat using your school’s course registration system


Overview of Systems

__________- set of interacting components, working together to form a complex, integrated whole in order to achieve some goal by taking inputs and processing them to produce outputs.•A system is made up of different pieces, called components. •__________ can take many different forms ranging from human organs to computer software.


Overview of Systems

• Components work together; they are interrelated.

• A system has some purpose or goal.• The goal is achieved by taking inputs and

processing them to produce outputs.• A system is separated from its environment by

the system’s boundary


Overview of Systems


Inputs

Outputs

CC C

C

Environment

System

Figure 2.1 A system and Its Environment (Note: Components are labeled “C”)

Overview of Systems

• Most systems are ___________, which means that they interact with their environments.

• Many systems incorporate _________, a process by which a system regulates itself by monitoring its own output

• Systems are often made up of __________ or a system that is part of a larger system


Overview of Systems

• ___________ is the idea that in an open system there are many different potential paths to the final outcome

• Systems follow an input-process-output sequence

• Feedback and _________ - systems often have a feedback loop, which may change its behavior based on the feedback


Components of Business IS

Use either an online ordering system, gym membership tracking system, or hotel reservation system•Identify at least five components of the system•Briefly describe the purpose of each component.


Foundations of IS

• An information system does not require a computer

• Information systems existed for hundreds of years before the invention of the electronic computer

• People are the most important component of any information system


Information Processing Cycle• ________: Collection of data and its conversion

into a form that allows processing.• _________: Manipulation and transformation of

data.• __________: Storage of data so that it can be

retrieved at a later time• ___________: Transformation of processed data

into a form that can be understood by its eventual user.

• ___________: Enforcement of correct processing procedures.


Information Processing Cycle


Input Processing Output

Storage

Control

Figure 2.2 Information Processing Cycle

Elements of an Information System• _________: raw facts, text, numbers, images and

the like that serve as the raw inputs for producing information.

• __________: physical devices such as the processor, storage media and peripheral devices (such as printers and displays).

• __________: set of instructions that govern the operation of an information system.

• ___________: set of devices and protocols (rules) that enable computers to communicate with each other.


Elements of an Information System

• ___________: instructions for the proper use of the information system.

• ___________: individuals who use the information system.


Figure 2.3 Elements of an Information System

Software

There are two types of software•________________includes operating systems, such as Windows and Linux and utilities such as anti-virus and data compression software.•_________________, which lets you do what you really want to do with the computer such as word processors, spreadsheets, accounting packages, games, and media players


Hotel Information System

• Data:

• Hardware:

• Software:


Hotel Information System

• Communication media:

• Procedures:

• People:


IS Help Us Deal with Information

Information systems . . .•let us gather large amounts of data quickly, easily and reliably•allow businesses to store and organize very large amounts of data•perform their data manipulations quickly, accurately and consistently•let us retrieve and output information in a variety of forms, depending on what is useful to the user


Business Rules

A ____________ is a statement that defines or constrains an aspect of a business with the intent of controlling behaviors within the business•All businesses have rules that govern the operation of the business

– A hotel reservation system that will not allow assigning a room that is already occupied.

– A course registration system that does not allow registering for a course that is full.


Information Systems and Change

Research a process that has been substantially improved by information systems. •Briefly describe the before and after processes.•Describe how the process was improved?•Was the process more efficient/effective for both the organization and its customers? How?


Organizational change

There are many ways in which information systems help managers bring about organizational change. •Process improvements

–

•Automation–



• Control – An information system can ensure that business

rules are followed throughout a process•

• Information flow– Improve communication and information flow in

organizations•



The ways in which information systems enable change combine to allow for changing organizational forms.•Members of virtual teams are not necessarily located in the same place; they may literally be spread across the globe•Information systems allow these teams to function by providing communication functions such as email and video conferencing•Information systems help companies flatten their organizational structure


Common Information Systems• Personal applications

– These systems serve to help make individuals daily work more efficient and effective. Office automation systems (such as office suites like Microsoft Office)

• Transaction processing systems– Collect, monitor, process and store large volumes of

data that are created by business processes• Functional and management information systems

– Financial management systems, sales force automation systems, materials requirements planning (MRP) systems and benefits administration systems


Common Information Systems• Integrated enterprise systems

– Integrated, enterprise-wide systems that impact multiple functional areas

• Interorganizational systems– Span organizational boundaries to connect companies

to suppliers and customers. Electronic data interchange (EDI) is at the heart of many of these systems. EDI allows the systems in one organization to directly interact with those in a partner organization

• Global systems– Interorganizational systems that cross national

boundaries


Common Information Systems


Rea

ch

Transaction Processing Systems

Personal Applications

Functional and Management Information Systems

Integrated Enterprise Systems

Global Systems

Interorganizational Systems

Individual

Entire organization

Multiple organization

Figure 2.5 Levels of Information Systems

Summary• Information systems combine technology, data, people and

processes to help collect, manipulate, store, organize, retrieve and communicate information.

• In today’s information-rich business environment, business professionals must be skilled at dealing with a variety of information systems.

• Systems are made up of components that work together to achieve a goal by taking inputs and processing them into outputs.

• The information processing cycle consists of input, processing, storage, output and control.

• Information systems are made up of six critical elements, data, hardware, software, communication media, procedures and people.


Summary• Information systems help managers deal with

information by improving how data are collected, organized, manipulated and output.

• Information systems can help enforce business rules.• Information systems facilitate organizational change

through improving, automating and controlling processes and improving information flow.

• Categories of common information systems include personal applications, transaction processing systems, functional and management information systems, integrated enterprise systems and global information systems.


Copyright 2012 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.


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