Ch01_Business Information Systems:An Overview

MIS Group 1

Amparo, Rose Dominique L. Garcia, Delice Alessandra G.Lubrido, Mac Kiven

Business Information

Systems: An Overview

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.

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

Gardeners+: Business Systems and Information

Gardeners+ small business loan for

gardening business

obtained by Mary, Amanda and Ed

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

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

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

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

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

Why do people need Information?Individuals

EntertainmentEnlightenment

BusinessDecision makingProblem SolvingControl

The Purpose of Information Systems

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

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

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

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

Data, Information and Information Systems con’t

For information to be used, it must be:

Relevant Complete Accurate Current Cost efficient

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

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

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.

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

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

Data, Information and Information Systems con’t

Qualities of humans and computers that contribute to synergy

Data, Information and Information Systems con’tINFORMATION SYSTEMS IN ORGANIZATIONS

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

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

Data, Information and Information Systems con’t

Internet

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

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

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

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

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

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

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

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

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

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

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

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

THE END

Thank you for listening!!!