Week 2-3 - Business Computing Skills | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố HCM

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Foundations of
Information Systems in
Business
Chapter One
Learning Objectives
1. Understand the concept of a system and how it relates to information
systems.
2. Explain why knowledge of information systems is important for
business professionals and identify five areas of information systems
knowledge they need.
3. Give examples to illustrate how the business applications of
information systems can support a firm’s business processes,
managerial decision making, and strategies for competitive advantage.
4. Provide examples of several major types of information systems from
your experiences with business organizations in the real world.
12/7/2022 INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 2
Learning Objectives
5. Identify several challenges that a business manager might face in
managing the successful and ethical development and use of
information technology in a business.
6. Provide examples of the components of real-world information
systems. Illustrate that in an information system, people use
hardware, software, data and networks as resources to perform input,
processing, output, storage, and control activities that transform data
resources into information products.
7. Demonstrate familiarity with the myriad of career opportunities in
information systems.
12/7/2022 INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 3
Section 1
Foundation Concepts:
Information Systems in
Business
Why study Information Systems and
Information Technology?
Vital component of successful businesses
Helps businesses expand and compete
Businesses use IS and IT
To improve efficiency and effectiveness of business processes
For managerial decision making
For workgroup collaboration
12/7/2022 INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 5
What is a system?
A system
Is a set of interrelated components
With a clearly defined boundary
Working together to achieve a common set of objectives
12/7/2022 INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 6
One system can be made up of other systems or can be
part of a bigger system
What is an Information System?
An organized combination of
People
Hardware
Software
Communications networks
Data resources
Policies and procedures
That stores, retrieves, transforms, and disseminates information in an
organization
12/7/2022 INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 7
Information System (IS) versus Information Technology (IT)
IS all the components and resources necessary to deliver information is
and functions to the organization
IT is hardware, software, networking and data management
In theory, IS could be paper based
But we will focus on Computer-Based Information Systems (CBIS)
12/7/2022 INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 8
IS Knowledge Framework for Business
Professionals
A framework that outlines the major areas of information
systems knowledge needed by business professionals.
12/7/2022 INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 9
What should a Business Professional know
about IS?
Foundation Concepts: Fundamental behavioral, technical,
business, and managerial concepts about the components and
roles of information systems. Examples include basic information
system concepts derived from general systems theory or
competitive strategy concepts used to develop business
applications of information technology for competitive
advantage
Information Technology: Major concepts, developments, and
management issues in information technology that is,
hardware, software, networks, data management, and many
Internet-based technologies.
12/7/2022 10INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
What should a Business Professional know
about IS?
Business Applications: The major uses of information systems for
the operations, management, and competitive advantage of a
business
Development Processes: How business professionals and
information specialists plan, develop, and implement
information systems to meet business opportunities
Management Challenges: The challenges of effectively and
ethically managing information technology at the end-user,
enterprise, and global levels of a business.
12/7/2022 11INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
What does IS do for a business?
12/7/2022 12INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Interaction among fundamental roles in a typical organization
Fundamental Roles of IS in Business
Support of business processes and operations.
o As a consumer, you regularly encounter information systems that
support the business processes and operations at the many retail stores
where you shop.
Support of decision making by employees and managers.
o Information systems also help store managers and other business
professionals make better decisions.
Support of strategies for competitive advantage.
o Gaining a strategic advantage over competitors requires the innovative
application of information technologies.
12/7/2022 13INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Trends in Information Systems
12/7/2022 14INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
The expanding roles of the business
applications of information systems.
What is E-business?
The use of Internet technologies
to work and empower business processes, electronic commerce,
and enterprise collaboration
within a company and with its customers, suppliers, and other
business stakeholders.
An online exchange of value.
Any online exchange of information, money, resources, services,
or any combination there of falls under the e-business umbrella.
The Internet and Internet-like networks those inside the
enterprise (intranet) and between an enterprise and its trading
partners (extranet) are the primary IT infrastructure that
supports the e-business applications of many companies.
12/7/2022 15INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
How e-business is being used
12/7/2022 16INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Businesses today depend on the Internet, intranets, and extranets
to implement and manage innovative e-business applications.
E-business roles
Companies rely on e-business applications to
(1) reengineer internal business processes
(2) implement e-commerce systems with their customers and
suppliers
(3) promote enterprise collaboration among business teams and
workgroups.
12/7/2022 17INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
E-business use
Enterprise collaboration systems:
involve the use of software tools to support communication, coordination,
and collaboration among the members of networked teams and workgroups.
A business may use intranets, the Internet, extranets, and other networks to
implement such systems, e.g virtual team
Electronic commerce (e-commerce):
buying, selling, marketing and servicing of products and services over
computer networks
Many businesses use the Internet, intranets, extranets, and other networks
to support every step of the commercial process, including everything from
advertising, sales, and customer support on the WWW to Internet security
and payment mechanisms ensuring completion of delivery and payment
processes.
12/7/2022 18INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Types of IS
12/7/2022 19INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Operations and management classifications of information systems.
Operations support systems
Efficiently process business transactions
Control industrial processes
Support communications and collaboration
Update corporate databases
12/7/2022 20INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
A summary of operations support systems with examples.
Types of Operations Support Systems
Transaction Processing Systems
Record and process data from business transactions
Examples: sales processing, inventory systems, accounting
systems
Process Control Systems
Monitor and control physical processes
Example: in a petroleum refinery use sensors to monitor
chemical processes
Enterprise Collaboration Systems
Enhance team and work group communications
Examples: e-mail, videoconferencing
12/7/2022 21INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Two ways to handle transactions
Batch Processing:
Accumulate transactions over time and process periodically
Example: a bank processes all checks received in a batch at
night
Online Processing (real-time processing):
Process transactions immediately
Example: a bank processes an ATM withdrawal immediately
12/7/2022 22INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Management Support Systems
What are they?
Provide information and support for effective decision making by managers
12/7/2022 23INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
A summary of management support systems with examples.
Types of Management Support Systems
Management Information Systems (MIS)
Provide reports and displays to managers
Example: daily sales analysis reports
Decision Support Systems (DSS)
Provide interactive ad hoc support for decision making
Example: A what- -analysis to determine where to spend if
advertising dollars
Executive Information Systems (EIS)
Provide critical information for executives and managers
Example: easy access to actions of competitors
12/7/2022 24INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Operational or Management Systems
Expert Systems
Provide expert advice
Example: credit application advisor
Knowledge Management Systems
Support creation, organization and dissemination of business
knowledge throughout company
Example: Intranet access to best business practices
12/7/2022 25INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Classifications of IS by scope
Functional business systems
Focus on operational and managerial applications of basic
business functions
Examples: support accounting, finance or marketing
Strategic information systems
Help get a strategic advantage over its customers by applying IT
Examples: shipment tracking, e-commerce web systems
Cross-functional information systems
Systems that are combinations of several types of information
systems
Provide support for many functions
12/7/2022 26INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Challenges and Opportunities of IT
12/7/2022 27INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Measuring success of an IS
Efficiency
Minimize cost, time and use of information resources
Effectiveness
Support business strategies
Enable business processes
Enhance organizational structure and culture
Increase the customer and business value
What’s the difference between Efficiency and Effectiveness?
12/7/2022 28INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Developing IS Solutions
12/7/2022 29INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Developing IS Solutions
12/7/2022 30INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Developing IS Solutions an Information Systems is a
Solution to a Business Problem
Investigate (Plan) recognize the problem exists
Analyze investigate the current system
Design designing the new system
Implement put the new system into effect
Maintain (Use) use, monitor, and maintain the new system
Ethical challenges of IT applications
12/7/2022 31INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
What uses of IT might be considered improper or harmful to other
individuals or society?
What is the proper business use of the Internet or a companys IT
resources?
How can you protect yourself from computer crime?
Challenges of IT Careers
Outsourcing of basic programming
Strong employment opportunities in other areas in IS
Shortage of qualified IS personnel
Long-term job outlook positive and exciting
12/7/2022 32INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Among the fastest growing occupations
Systems Analyst
Database administrators
Network specialists
Information security
IS Function represents
Major functional area of business
Important contributor to operational efficiency, employee productivity,
morale, customer service and satisfaction
Major source of information and support for effective decision making
Vital ingredient in developing competitive products and services in the
global marketplace
Dynamic and challenging career opportunity
Key component of todays networked business
12/7/2022 33INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Section 2
Foundation Concepts:
The Components of Information
Systems
What is a system?
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
12/7/2022 35INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Systems have three basic functions:
Input involves capturing and assembling elements that enter the
system to be processed
Processing involves transformation process that convert input into
output
Output involves transferring elements that have been produced by the
transformation process to their ultimate destination
12/7/2022 36INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Cybernetic system
All systems have input, processing and output
A cybernetic system, a self-monitoring, self-regulating
system, adds feedback and control:
Feedback is data about the performance of a system
Control involves monitoring and evaluating feedback to
determine whether a system is moving towards the
achievement of its goal
12/7/2022 37INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
A Cybernetic system
12/7/2022 38INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
A common cybernetic system is a home temperature control system. The thermostat
accepts the desired Room temperature as input and sends voltage to open the gas
valve, which fires the furnace.
The resulting hot air goes into the room, And the thermometer in the thermostat
provides feedback to shut the system down when the desired temperature is
reached.
A business as a system
12/7/2022 39INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Information systems model
12/7/2022 40INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Basic IS model shows that an information
system consists of five major resources:
people
hardware
software
data
networks
Components of an IS
People Resources
End users: the people who use the IS or the information
from the IS
IS specialists: the people who develop and operate IS
Hardware Resources
All physical devices used in information processing
Machines, data media, peripherals
Software Resources
All information processing instructions including programs
and procedures
System software, application software and procedures
12/7/2022 41INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Components of an IS (cont.)
Data Resources
Facts about the business transactions
Processed and organized information
Databases of organized data
Network Resources
Communications media
Network infrastructure: hardware and software
The Internet, intranets and extranets
12/7/2022 42INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Data versus Information
Data are raw facts about physical phenomena or business
transactions
Information is data that has been converted into meaningful and
useful context for end users
Example:
Sales data is names, quantities and dollar amounts
Sales information is amount of sales by product type, sales territory
or salesperson
12/7/2022 43INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
IS Activities
Inputof data resources
Data entry activities
Processingof data into information
E.g., calculate, compare, sort, classify, summarize
Outputof information products
Messages, reports, forms and graphic images
Storageof data resources
Data elements and databases
Controlof system performance
Monitoring and evaluating feedback
12/7/2022 44INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
Recognizing IS
As a business professional, you should be able to look
at an IS and identify
The people, hardware, software, data and network resources
The type of information products they produce
The way they perform input, processing, output, storage and
control activities
12/7/2022 45INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN
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Preview text:

Chapter One Foundations of Information Systems in Business Learning Objectives 1.
Understand the concept of a system and how it relates to information systems. 2.
Explain why knowledge of information systems is important for
business professionals and identify five areas of information systems knowledge they need. 3.
Give examples to illustrate how the business applications of
information systems can support a firm’s business processes,
managerial decision making, and strategies for competitive advantage. 4.
Provide examples of several major types of information systems from
your experiences with business organizations in the real world. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 2 Learning Objectives 5.
Identify several challenges that a business manager might face in
managing the successful and ethical development and use of
information technology in a business. 6.
Provide examples of the components of real-world information
systems. Illustrate that in an information system, people use
hardware, software, data and networks as resources to perform input,
processing, output, storage, and control activities that transform data
resources into information products. 7.
Demonstrate familiarity with the myriad of career opportunities in information systems. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 3 Section 1 Foundation Concepts: Information Systems in Business
Why study Information Systems and Information Technology?
Vital component of successful businesses
Helps businesses expand and compete Businesses use IS and IT
◦ To improve efficiency and effectiveness of business processes
◦ For managerial decision making
◦ For workgroup collaboration 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 5 What is a system? A system
◦ Is a set of interrelated components
◦ With a clearly defined boundary
◦ Working together to achieve a common set of objectives
One system can be made up of other systems or can be part of a bigger system 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 6 What is an Information System? An organized combination of ◦ People ◦ Hardware ◦ Software ◦ Communications networks ◦ Data resources ◦ Policies and procedures
That stores, retrieves, transforms, and disseminates information in an organization 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 7
Information System (IS) versus Information Technology (IT)
IS is all the components and resources necessary to deliver information
and functions to the organization
IT is hardware, software, networking and data management
In theory, IS could be paper based
But we will focus on Computer-Based Information Systems (CBIS) 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 8
IS Knowledge Framework for Business Professionals
A framework that outlines the major areas of information
systems knowledge needed by business professionals. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 9
What should a Business Professional know about IS?
Foundation Concepts: Fundamental behavioral, technical,
business, and managerial concepts about the components and
roles of information systems. Examples include basic information
system concepts derived from general systems theory or
competitive strategy concepts used to develop business
applications of information technology for competitive advantage
Information Technology: Major concepts, developments, and
management issues in information technology—that is,
hardware, software, networks, data management, and many Internet-based technologies. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 10
What should a Business Professional know about IS?
Business Applications: The major uses of information systems for
the operations, management, and competitive advantage of a business
Development Processes: How business professionals and
information specialists plan, develop, and implement
information systems to meet business opportunities
Management Challenges: The challenges of effectively and
ethically managing information technology at the end-user,
enterprise, and global levels of a business. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 11
What does IS do for a business?
Interaction among fundamental roles in a typical organization 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 12
Fundamental Roles of IS in Business
▪Support of business processes and operations.
o As a consumer, you regularly encounter information systems that
support the business processes and operations at the many retail stores where you shop.
▪Support of decision making by employees and managers.
o Information systems also help store managers and other business
professionals make better decisions.
▪Support of strategies for competitive advantage.
o Gaining a strategic advantage over competitors requires the innovative
application of information technologies. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 13 Trends in Information Systems
The expanding roles of the business
applications of information systems. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 14 What is E-business?
The use of Internet technologies
◦ to work and empower business processes, electronic commerce, and enterprise collaboration
◦ within a company and with its customers, suppliers, and other business stakeholders. An online exchange of value.
• Any online exchange of information, money, resources, services,
or any combination there of falls under the e-business umbrella.
• The Internet and Internet-like networks—those inside the
enterprise (intranet) and between an enterprise and its trading
partners (extranet)—are the primary IT infrastructure that
supports the e-business applications of many companies. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 15 How e-business is being used
Businesses today depend on the Internet, intranets, and extranets
to implement and manage innovative e-business applications. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 16 E-business roles
Companies rely on e-business applications to
(1) reengineer internal business processes
(2) implement e-commerce systems with their customers and suppliers
(3) promote enterprise collaboration among business teams and workgroups. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 17 E-business use
Enterprise collaboration systems:
◦ involve the use of software tools to support communication, coordination,
and collaboration among the members of networked teams and workgroups.
◦ A business may use intranets, the Internet, extranets, and other networks to
implement such systems, e.g virtual team
Electronic commerce (e-commerce):
◦ buying, selling, marketing and servicing of products and services over computer networks
◦ Many businesses use the Internet, intranets, extranets, and other networks
to support every step of the commercial process, including everything from
advertising, sales, and customer support on the WWW to Internet security
and payment mechanisms ensuring completion of delivery and payment processes. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 18 Types of IS
Operations and management classifications of information systems. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 19 Operations support systems
◦ Efficiently process business transactions
◦ Control industrial processes
◦ Support communications and collaboration ◦ Update corporate databases
A summary of operations support systems with examples. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 20
Types of Operations Support Systems Transaction Processing Systems
◦ Record and process data from business transactions
◦ Examples: sales processing, inventory systems, accounting systems Process Control Systems
◦ Monitor and control physical processes
◦ Example: in a petroleum refinery use sensors to monitor chemical processes
Enterprise Collaboration Systems
◦ Enhance team and work group communications
◦ Examples: e-mail, videoconferencing 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 21
Two ways to handle transactions Batch Processing:
◦ Accumulate transactions over time and process periodically
◦ Example: a bank processes all checks received in a batch at night
Online Processing (real-time processing):
◦ Process transactions immediately
◦ Example: a bank processes an ATM withdrawal immediately 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 22 Management Support Systems What are they?
◦ Provide information and support for effective decision making by managers
A summary of management support systems with examples. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 23
Types of Management Support Systems
Management Information Systems (MIS)
◦ Provide reports and displays to managers
◦ Example: daily sales analysis reports Decision Support Systems (DSS)
◦ Provide interactive ad hoc support for decision making ◦ Example: A what-i -a
f nalysis to determine where to spend advertising dollars
Executive Information Systems (EIS)
◦ Provide critical information for executives and managers
◦ Example: easy access to actions of competitors 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 24
Operational or Management Systems Expert Systems ◦ Provide expert advice
◦ Example: credit application advisor Knowledge Management Systems
◦ Support creation, organization and dissemination of business knowledge throughout company
◦ Example: Intranet access to best business practices 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 25 Classifications of IS by scope Functional business systems
◦ Focus on operational and managerial applications of basic business functions
◦ Examples: support accounting, finance or marketing Strategic information systems
◦ Help get a strategic advantage over its customers by applying IT
◦ Examples: shipment tracking, e-commerce web systems
Cross-functional information systems
◦ Systems that are combinations of several types of information systems
◦ Provide support for many functions 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 26
Challenges and Opportunities of IT 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 27 Measuring success of an IS Efficiency
◦ Minimize cost, time and use of information resources Effectiveness
◦ Support business strategies ◦ Enable business processes
◦ Enhance organizational structure and culture
◦ Increase the customer and business value
What’s the difference between Efficiency and Effectiveness? 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 28 Developing IS Solutions 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 29 Developing IS Solutions
▪Developing IS Solutions – an Information Systems is a Solution to a Business Problem
▪ Investigate (Plan) – recognize the problem exists
▪ Analyze – investigate the current system
▪ Design – designing the new system
▪ Implement – put the new system into effect
▪ Maintain (Use) – use, monitor, and maintain the new system 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 30
Ethical challenges of IT applications
What uses of IT might be considered improper or harmful to other individuals or society?
What is the proper business use of the Internet or a company’s IT resources?
How can you protect yourself from computer crime? 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 31 Challenges of IT Careers
Outsourcing of basic programming
Strong employment opportunities in other areas in IS
Shortage of qualified IS personnel
Long-term job outlook positive and exciting
Among the fastest growing occupations Systems Analyst Database administrators Network specialists Information security 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 32 IS Function represents
Major functional area of business
Important contributor to operational efficiency, employee productivity,
morale, customer service and satisfaction
Major source of information and support for effective decision making
Vital ingredient in developing competitive products and services in the global marketplace
Dynamic and challenging career opportunity
Key component of today’s networked business 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 33 Section 2 Foundation Concepts: The Components of Information Systems What is a system? 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 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 35
Systems have three basic functions:
Input involves capturing and assembling elements that enter the system to be processed
Processing involves transformation process that convert input into output
Output involves transferring elements that have been produced by the
transformation process to their ultimate destination 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 36 Cybernetic system
All systems have input, processing and output
A cybernetic system, a self-monitoring, self-regulating
system, adds feedback and control:
◦ Feedback is data about the performance of a system
◦ Control involves monitoring and evaluating feedback to
determine whether a system is moving towards the achievement of its goal 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 37 A Cybernetic system
A common cybernetic system is a home temperature control system. The thermostat
accepts the desired Room temperature as input and sends voltage to open the gas
valve, which fires the furnace.
The resulting hot air goes into the room, And the thermometer in the thermostat
provides feedback to shut the system down when the desired temperature is reached. 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 38 A business as a system 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 39 Information systems model
Basic IS model shows that an information
system consists of five major resources: ▪ people ▪ hardware ▪ software ▪ data ▪ networks 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 40 Components of an IS People Resources
◦ End users: the people who use the IS or the information from the IS
◦ IS specialists: the people who develop and operate IS Hardware Resources
◦ All physical devices used in information processing
◦ Machines, data media, peripherals Software Resources
◦ All information processing instructions including programs and procedures
◦ System software, application software and procedures 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 41 Components of an IS (cont.) Data Resources
◦ Facts about the business transactions
◦ Processed and organized information
◦ Databases of organized data Network Resources ◦ Communications media
◦ Network infrastructure: hardware and software
◦ The Internet, intranets and extranets 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 42 Data versus Information
Data are raw facts about physical phenomena or business transactions
Information is data that has been converted into meaningful and useful context for end users Example:
◦ Sales data is names, quantities and dollar amounts
◦ Sales information is amount of sales by product type, sales territory or salesperson 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 43 IS Activities Inputof data resources ◦ Data entry activities
Processingof data into information
◦ E.g., calculate, compare, sort, classify, summarize Outputof information products
◦ Messages, reports, forms and graphic images Storageof data resources
◦ Data elements and databases Controlof system performance
◦ Monitoring and evaluating feedback 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 44 Recognizing IS
As a business professional, you should be able to look at an IS and identify
◦ The people, hardware, software, data and network resources
◦ The type of information products they produce
◦ The way they perform input, processing, output, storage and control activities 12/7/2022
INTRODUCTION TO IS IN BUSINESS - PHAM TRUNG KIEN 45