Management information system ralp 7e ch01

• The value of information is directly linked to how it helps decision makers achieve the organization’s goals • Discuss why it is important to study and understand information systems • Distinguish data from information and describe the characteristics used to evaluate the quality of data Principles of Information Systems, Seventh Edition • Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business • Name the components of an information system and describe several system characteristics • Identify the basic types of models and explain how they are used Principles of Information Systems, Seventh Edition • Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life • List the components of a computer-based information system • Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver Principles of Information Systems, Seventh Edition • System users, business managers, and information systems professionals must work together to build a successful information system • Identify the major steps of the systems development process and state the goal of each Principles of Information Systems, Seventh Edition • Information systems must be applied thoughtfully and carefully so that society, business, and industry can reap their enormous benefits • Describe some of the threats to security and privacy that information systems and the Internet can pose • Discuss the expanding role and benefits of information systems in business and industry Principles of Information Systems, Seventh Edition Introduction • Information system (IS) • A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective • Examples: ATMs, airline reservation systems, course reservation systems Principles of Information Systems, Seventh Edition Information Concepts: Data Versus Information • Data: raw facts • Information: collection of facts organized in such a way that they have additional value beyond the facts themselves Principles of Information Systems, Seventh Edition Table 1.1: Types of Data Principles of Information Systems, Seventh Edition Figure 1.1: Defining and Organizing Relationships Among Data Creates Information Principles of Information Systems, Seventh Edition 10 Specialized Business Information Systems • Artificial intelligence (AI) systems • Virtual reality systems • Expert systems • Other special-purpose business information systems Principles of Information Systems, Seventh Edition 36 Figure 1.14: The Major Elements of Artificial Intelligence Principles of Information Systems, Seventh Edition 37 Systems Development • Systems development: the activity of creating or modifying existing business systems • Systems investigation: gaining a clear understanding of the problem to be solved or opportunity to be addressed • Systems analysis: defines the problems and opportunities of the existing system Principles of Information Systems, Seventh Edition 38 Figure 1.17: An Overview of Systems Development Principles of Information Systems, Seventh Edition 39 Systems Development (continued) • Systems design: determines how new system will work to meet business needs defined during systems analysis • Systems implementation: creating or acquiring the various system components defined in design step, assembling them, and putting new system into operation • Systems maintenance and review: check and modify system so that it continues to meet changing business needs Principles of Information Systems, Seventh Edition 40 Information Systems in Society, Business, and Industry • Information systems must be implemented thoughtfully and carefully • Information systems face a variety of threats from unethical people Principles of Information Systems, Seventh Edition 41 Figure 1.18: Attacks on Businesses and Other Organizations in One Year Principles of Information Systems, Seventh Edition 42 Figure 1.19: The Cost and Cause of Computer Attacks Principles of Information Systems, Seventh Edition 43 Computer and Information Systems Literacy • Computer literacy: knowledge of computer systems and equipment and the ways they function • Information systems literacy: knowledge of how data and information are used Principles of Information Systems, Seventh Edition 44 Information Systems in the Functional Areas of Business • Finance and accounting (e.g., forecast revenues and business activity; analyze investments; perform audits) • Sales and marketing (e.g., product analysis; promotion analysis; price analysis) • Manufacturing (e.g., process orders; develop schedules; control inventory) Principles of Information Systems, Seventh Edition 45 Information Systems in Industry • Airline industry (e.g., Internet auction sites) • Investment firms (e.g., analyze stocks and bonds) • Banks (e.g., online check payment) • Transportation industry (e.g., schedule trucks and trains) • Publishing companies (e.g., analyze markets) Principles of Information Systems, Seventh Edition 46 Information Systems in Industry (continued) • Healthcare organizations (e.g., track patient records) • Retail companies (e.g., process customer orders) • Power management and utility companies (e.g., monitor and control power generation and usage) • Professional services (e.g., provide information on products and services to its consultants) Principles of Information Systems, Seventh Edition 47 Summary • Data: raw facts • Information: collection of facts organized in such a way that they have value beyond the facts themselves • System: a set of elements that interact to accomplish a goal • Components of a system: input, processing, output, and feedback • A model is an abstraction that is used to represent reality Principles of Information Systems, Seventh Edition 48 Summary (continued) • Computer-based information system (CBIS): a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information • Transaction processing system (TPS): an organized collection of people, procedures, software, databases, and devices used to record completed business transactions Principles of Information Systems, Seventh Edition 49 Summary (continued) • Management information system (MIS): an organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers • Decision support system (DSS): an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making • Systems development: the activity of creating or modifying existing business systems Principles of Information Systems, Seventh Edition 50 ... Components of a Computer-Based Information System Principles of Information Systems, Seventh Edition 25 Business Information Systems • Most common types of information systems used in business organizations... • Electronic and mobile commerce systems • Transaction processing systems • Management information systems • Decision support systems Principles of Information Systems, Seventh Edition 26 Electronic... Systems Principles of Information Systems, Seventh Edition 32 Management Information Systems • MIS outputs • Scheduled reports • Demand reports • Exception reports Principles of Information Systems,