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Foundations of
Information Systems in
Business
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Improves efficiency andeffectiveness of
business processes
Facilitates managerialdecision making
& workgroupcollaboration
Strengthenscompetitive position in
rapidly changingmarketplaces
Vital component ofsuccessful businesses
Why studyinformation systems andinformation technology?
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eCourier Tracks customer
satisfaction in real time
Immediate attention to
complaints, problems Allows GPS tracking of
couriers and orders
Books 95% of deliveriesonline
Uses See Why softwareto spot trends and anomalies
Optimizes system on an ongoing basis
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Cablecom
Uses online surveys to retain customers
Responds to complaints and problems within 24hours
Bryan Cave
Optimizes resources while delivering highestcustomer value
Allows lawyers to track budgets in real time Provides diversity dashboard
Enables firm to monitor client needs
Allows quick response to demands
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Any organizedcombination of
Policies andprocedures
Data resources
Communicationnetworks
Hardware and
software
Stores, retrieves, transforms,and disseminates information
in an organization
People
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The use of computer hardware and
software, telecommunications
networks, computer-based data
resource management techniques
and technologies to transform data
resources into a variety of
information products for consumersand business professionals.
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They werent computerized
Smoke signals
Library card catalogs
Book bag, day planner, and notebooks Cash registers
Accounting ledger
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Hardware, software, datamanagement, telecommunications
networks
To support inter-connected
information systems
Finding ways to use informationtechnology; includes designing basic
information system components
Emphasizes the quality, strategicbusiness value, and security of anorganizations information systems
Technology
Applications
Development
Management
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A system is
A set of interrelated components
With a clearly defined boundary
Working together
To achieve a common set of objectives
By accepting inputs and producing outputs
In an organized transformation process
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Input
Capturingandassemblingelementsthat enter
the systemto be
processed
Processing
Transforma-tion processconvertsinput into
output
Output
Transferringtransformedelements to
theirultimate
destination
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All systems have input, processing, output
A cybernetic system, a self-monitoring, self-
regulating system, adds
Feedback system performance data
Control monitoring and evaluating feedback to
determine whether a system is moving toward the
achievement of its goal
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A system that is a component of a larger system is asubsystem
The larger system is an environment
Several systems may share one environment
Connected via a shared boundary (interface)
Types of systems
Open and Adaptive
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InformationSystem Resources
People Information
Hardware Networks
Software Data
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PEOPLE RESOURCES
Specialists- system analysts, software developers, system operatorsEnd users anyone else who uses information systems
HARDWARE RESOURCES
Machines computers, video monitors, magnetic disk drives, printers, optical
scanners,
Media floppy disks, magnetic tape, optical disks, plastic cards, paper forms
SOFTWARE RESOURCES
Programs operating systems, spreadsheet, word processing payroll
Procedures data entry procedures, error correction procedures, paycheck
distribution procedures
DATA RESOURCES
Product descriptions, customer records, employee files, inventory databases
NETWORK RESOURCES
Communications media, communication processors, network access, control software
INFORMATION PRODUCTS
Management reports and business documents using text and graphic displays, audioresponses and paper forms
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Data are raw facts, typically about physicalphenomena or business transactions Specifically, objective measurements of the attributes of
entities
Information is data that was converted intomeaningful and useful context for end users
Aggregated, manipulated, and organized
Analyzed and evaluated
Placed in proper context for a human user
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Output
Input
Processing
Storage
Control
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INPUT: optical scanning of bar-coded tags on merchandise
PROCESSING: Calculating employee pay, taxes, and other payroll
deductions
OUTPUT: Producing reports and displays about sales performance
STORAGE: Maintaining records on customers, employees, and
products.
CONTROL: Generating audible signals to indicate proper entry of
sales data.
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Business professionals should be able to look at an
information system and identify
The people, hardware, software, data, and network
resources they use The type of information products they produce
The way they perform input, processing, output, storage,
and control activities
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In groups of 5 students, List down all datacontained in the following system: Submit
and discuss.
Sales and
Marketing
Finance
/accounting
Human
resourcesystem
University
Customer
service
Sales order
Sales reportSales
commission
Promotional
Payroll
Billing
Accounts
receivableledger
Employee
records
Benefits
TrainingCompensation
Employee skills
inventory
Registration
Admission
Student records
Grade recordsCourse records
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After having gathered the data for eachdepartment: finance, sales, Human resource,
university. Create only one form using
spreadsheet, from one of the items listed.
For example:
in sales , create a sales report using excel, with
all data it should contain
In finance: create a payroll form in excel
In Human resource: create an employee record
form in excel
In university: create a registration form.
Submit through email for each group
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Jefferson State University: Recognizing IS components
Students in the College of Business Administration of Jefferson StateUniversity use their desktop and laptop microcomputers for a variety ofassignments. For example, a student may use a word processingprogram stored on the microcomputer systems hard disk drive andproceed to type a case study analysis . When the analysis is typed,edited, and properly formatted to an instructors specifications, thestudent may save it on a floppy disk, e-mail a copy to the instructor via
the internet, and print out a copy on the systems printer. If thestudent tries to save the case study analysis using a file name he or shehas already used for saving another document, the program will displaya warning message and wait until it receives and additional command.
Make an outline to identify the information system components in theexample:
Identify the people, hardware, software, network, and dataresources and the information products of the informationsystem.
Identify the input, processing , output, storage and controlactivities that occurred.
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How could the use of information technology helpa small business to be more successful such as thefollowing:
Describe the organizations mission and vision.
Bayan telecommunications First web academy
Department of Science and technology.
Identify the people, hardware, software,network, and data resources and the
information products of the informationsystem.
Identify the input, processing , output,storage and control activities that occurred.
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Operations
Transaction processing
Process control
Enterprise collaboration
Updating of corporate databases
ManagementDecision support systems
Executive information systems
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Transaction Processing SystemsRecord and process business transactions
Sales, inventory, and accounting
Process Control Systems
Monitor and control physical processes
Using sensors to monitor refinery processes
Enterprise Collaboration Systems
Enhance team/workgroup communication
Email, video conferencing
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Batch Processing
Accumulate
transactions over timeand then process
periodically
Ex: Banks process all
checks in a batch at night
Online Processing
Process all
transactionsimmediately
Ex: A bank processes
ATM withdrawalsimmediately
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What do they do?
Provide information and support for
effective decision making by managers
Management
informationsystems
Decision
supportsystems
Executive
informationsystems
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Management Information Systems (MIS)
Reports and displays
Example: daily sales analysis reports
Decision Support Systems (DSS)
Interactive and ad hoc support
Example: a what-if analysis to determine where tospend advertising dollars
Executive Information Systems (EIS) Critical information for executives and managers
Example: easy access to actions of competitors
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Provides expert advice
Credit application advisor
Expert
Systems
Creation, organization, disseminationof knowledge throughout company
Intranet access to
best business practices
KnowledgeManagement
Systems
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Helps get strategic advantage
Shipment tracking, e-commerce
StrategicInformation
Systems
Focus on operational and managerialapplication of basic business functions
Accounting, finance, marketing
Functional
Business
Systems
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Efficiency
Minimizes cost, time,
use of information
resources
Effectiveness
Supports business strategies
Enables business processes
Enhances organizational structure and culture
Increases customer and business value
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Application of IT
Businessintelligence
systems
Customerrelationship
management
Humanresource
management
Potential Harm
CollusionPrivacy
infringementInaccurateinformation
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Work stoppagesPotential
Risks
Government intervention
Consumer boycotts
IncentivesPossibleResponses
Certification
Codes of ethics
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What uses of IT might be considered improperor harmful to other individuals or society?
What is the proper business use of the Internetor a companys IT resources?
How can you protect yourself from computercrime?
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Economic downturns affecting all jobsectors, including IT
Rising labor costs are pushing jobs toIndia, the Middle East, Asia-Pacific
Negative
IT employment opportunities strong,with new jobs emerging daily
Frequent shortages of IT personnel
Long-term job outlook is positiveand exciting
Positive
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