Business Informaton Systems
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BUSINESS INFORMATION SYSTEMS: AN
OVERVIEW
Dr. Aziz AltamimiLawrence Technological University
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Phone Call
Computer Chatting
Flight Reservation Sale Point
Library System
ATM Data Entry
Online Order
Data Analysis
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Information Systems3
Why Do People Need Information? Individuals - Entertainment and
enlightenment Businesses - Decision making and problem
solving Gathering Storing Manipulating
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Data, Information, and Systems
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Data vs. Information Data
A “given,” or fact: a number, a statement, or a picture
The raw materials in the production of information
Information Data that have meaning within a context Raw data or data that have been manipulated
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Data, Information,and Systems
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Data Manipulation Example: customer survey
Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful.
When manipulated, the surveys may provide useful information.
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Data, Information,and Systems
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Generating Information Computer-based ISs take data as raw material,
process it, and produce information as output.
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Data, Information, & Systems
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Characteristics of useful information
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Data, Information, and Systems
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What Is a System? System: A set of components that work
together to achieve a common goal Subsystem: One part of a system where the
products of more than one system are combined to reach an ultimate goal
Closed system: Stand-alone system that has no contact with other systems
Open system: System that interfaces with other systems
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Data, Information,and Systems
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Data, Information, and Systems10
Farmington High School is one subsystem within the Farmington school system.
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Data, Information,and Systems11
Information and Managers Systems thinking
Creates a framework for problem solving and decision making.
Keeps managers focused on overall goals and operations of business.
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Data, Information,and Systems
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The Benefits of Human-Computer Synergy Synergy
When combined resources produce output that exceeds 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
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Data, Information,and Systems
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Data, Information,and Systems
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In an organization, an information systems consists of: Data Hardware Software People Procedures
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Data, Information, and Systems
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The Four Stages of Data Processing Input: Data are collected and entered into
computer. Data processing: Data are manipulated into
information using mathematical, statistical, and other tools.
Output: Information is displayed or presented.
Storage: Data and information are maintained for later use.
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Data, Information, and Systems
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Computer Equipment for Information System Input devices introduce data into the IS. The computer processes data through the
IS. Output devices display information. Storage devices store data and information.
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Data, Information,and Systems
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ISs From Recording Transactions
to Providing Expertise 18
Transaction Processing Systems (TPS) Record data and perform basic processing
Cash registers and ATMs Management Information Systems (MIS)
Use recorded transactions and other data to produce information for problem solving and decision making.
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ISs From Recording Transactions
to Providing Expertise19
Types of MISs Decision Support Systems (DSS)
Contain models, or formulas, that manipulate data into information
Often answer “what if?” questions Group Decision Support Systems
(GDSS) help groups generate ideas, establish priorities, and reach decisions
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ISs From Recording Transactionsto Providing Expertise
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Executive Information Systems (EIS) Can gather information from vast amounts of
data for high-level executives Highly useful in control and planning
Expert Systems (ES) Programmed with human expertise Can help solve problems of unstructured
nature
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ISs From Recording Transactions
to Providing Expertise21
Geographic Information Systems (GISS) Represents local conditions or features Allows planning, decision-making, and
monitoring of local conditions or activities On-demand Output
Managers can obtain reports tailored to their needs at any time
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Information Systems in Business
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ISs in Functional Business Areas Accounting
Record business transactions, produce periodic financial statements, and create reports required by law
Finance Organize budgets, manage the flow of
cash, analyze investments, and make decisions that could reduce interest payments and increase revenues
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Information Systemsin Business
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Marketing Analyze demand for various products in
different regions and population groups Human Resources
Help with record keeping and employee evaluation
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Information Systemsin Business
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ISs in Different Business Sectors Manufacturing
Allocate resources such as personnel, raw material, and time
Control inventory, process customer orders, prepare production schedules, perform quality assurance, and prepare shipping documents
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Information Systemsin Business
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Government Tax authorities, national insurance and
welfare agencies, defense departments, economic organizations, immigration authorities
Service ISs are often the backbone of service
organizations
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Information Systemsin Business
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Retail Some retail stores (e.g., Wal-Mart, Kmart)
are now linked to communication networks by satellite.
Management can determine which items move quickly and which do not.
New Businesses ISs have made new products and services
possible, such as credit reports and shipment tracking.
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Shared Data Resources
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Most effective way to operate: different systems share same data from same pool
Company’s database: one of the most powerful resources
Categorized and structured data can be manipulated to produce useful information
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Shared Data Resources
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Shared Data Resources
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E-Commerce30
E-Commerce Business-to-business and business-to-
consumer transactions take place in electronic form via computer networks.
Database management online makes information cheaper to distribute.
E-commerce is now synonymous with “doing business on the Internet.”
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Why Study IS?31
Knowledge Workers Employers seek computer-literate professionals
who know how to use information technology. Degrees in IS
Computer Science and Management Information Systems
Information Systems Careers Systems analyst, specialist in enterprise
resource planning (ERP), database administrator, telecommunications specialist, consulting, etc.
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