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    BUSINESS INFORMATIONBUSINESS INFORMATION

    SYSTEMS:SYSTEMS:An OverviewAn Overview

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    Digital B!"ine""Digital B!"ine""

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    Ol# v"$ Newv"$ ewEconomyEconomy

    !" Bu#ing and selling textboo$

    %" &egistering for classes

    '" Photograph#

    (" Pa#ing for )asoline

    *" Pa#ing for Transportation

    +" Pa#ing for goods

    " uppl#ing commercial photos

    " Entertainment

    ." /ecturing 0 Teaching students

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    %nowle#ge%nowle#ge&or'er"&or'er"

    people 1ho are often called2professionals"3

    4n#one 1hose 1or$ in5ol5es

    the production and use ofinformation is a $no1ledge1or$er"

    These people are increasingl#dependent on IT for their 1or$"

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    6h# 7o People 8eedInformation9

    Indi5iduals - Enlightenment andentertainment

    Businesses - 7ecision ma$ing and

    problem sol5ing)athering

    toring

    anipulating

    INFORMATIONINFORMATION

    SYSTEMSSYSTEMS

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    Data( In)ormation(Data( In)ormation(

    an# Sy"tem"an# Sy"tem"7ata 5s" Information7ata

    4 2gi5en,3 or fact: a number, astatement, or a picture

    The ra1 materials in the production ofinformation

    Information7ata that ha5e meaning 1ithin a context

    &a1 data or data that ha5e beenmanipulated

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    7ata anipulationExample: customer sur5e#&eading through data collected from

    a customer sur5e# 1ith ;uestions in5arious categories 1ould be time-consuming and not 5er# helpful"

    6hen manipulated, the sur5e#sma# pro5ide useful information"

    Data( In)ormation(Data( In)ormation(

    an# Sy"tem"an# Sy"tem"

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    Data( In)ormation(Data( In)ormation(an# Sy"tem"an# Sy"tem"

    )enerating Information

    Computer-based Is ta$e data as ra1 material, process it,and produce information as output"

    Figure 1.1Input-process-output

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    Data( In)ormation( an# Sy"temData( In)ormation( an# Sy"tem

    Figure 1.2Characteristics of useful information

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    &*at I" a Sy"tem+&*at I" a Sy"tem+

    #stem: 4 set of components that 1or$together to achie5e a common goal

    ubs#stem: One part of a s#stem 1herethe products of more than one s#stem

    are combined to reach an ultimate goalClosed s#stem: tand-alone s#stem that

    has no contact 1ith other s#stems

    Open s#stem: #stem that interfaces

    1ith other s#stems

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    a a( n orma on(Sy"tem"

    Several subsystems make up this corporate accounting system.

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    In)ormation an#In)ormation an#Manager"Manager"

    #stems thin$ing

    Creates a frame1or$ for

    problem sol5ing and decisionma$ing"

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    e ene " oe ene " o.!man/0om1!ter.!man/0om1!ter

    SynergySynergy #nerg# 6hen combined resources produce

    output that exceeds the sum of theoutputs of the same resourcesemplo#ed separatel#

    4llo1s human thought to be

    translated into e=cientprocessing of large amounts ofdata

    2 liti ) . # 0 t t* t2 liti ) . # 0 t t* t

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    2!alitie" o) .!man" an# 0om1!ter" t*at2!alitie" o) .!man" an# 0om1!ter" t*at0ontri3!te0ontri3!teto Synergyto Synergy

    0 tt

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    0om1onent" oom1onent" oIn)ormation Sy"temIn)ormation Sy"tem

    I 4 O

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    In1!t/4roce""/O!t1!t/In1!t/4roce""/O!t1!t/Storage Device"Storage Device"

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    ManagementManagement0*allenge"0*allenge"

    6h# information s#stems9Contemporar#

    approaches to information

    s#stems8e1 role of info s#stems

    in organizations

    /earning to use info

    s#stems: ne1opportunities 1ithtechnolog#

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    In)ormationIn)ormationSy"tem"Sy"tem"

    de>ned as a set of interrelatedcomponents that collect ?orretrie5e@, process, store, anddistribute information to supportdecision ma$ing and control in anorganization"

    contain information about

    signi>cant people, places, andthings 1ithin the organization or inthe en5ironment surrounding it"

    0 t t )0 t t )

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    0onte5t o)0onte5t o)In)ormation Sy"temIn)ormation Sy"tem

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    0om1!ter/3a"e#0om1!ter/3a"e#In)ormation Sy"tem"In)ormation Sy"tem"

    60BIS760BIS7Aormal s#stems that rel#

    on computer technolog#

    Aixed de>nitions of data,procedures

    Collecting, storing,

    processing,disseminating, usingdata

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    !.*s:Technical Changes

    +s-s:

    anagerialControl

    s-.s:

    Institutional Core4cti5ities

    Sco1e o) In)oSco1e o) In)oSy"tem"Sy"tem"

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    0ategorie" o)0ategorie" o)

    In)ormation Sy"tem"In)ormation Sy"tem"

    Transaction processing s#stems?TP@"

    O=ce automation s#stems ?O4@"

    cialIntelligence ?4I@"

    T tiT ti

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    an information s#stem that captures andprocesses data generated during anorganizations da#-to-da# transactionsD

    TP computerizes an existing manuals#stem to allo1 for faster processing,reduced clerical costs and impro5edcustomer ser5ice"&ecording a business acti5it# such as a

    students registration, a customers order,an emplo#ees timecard or a clientspa#ment"

    O/TP ?Online TP@- the computerprocesses transactions as the# are entered"

    Tran"actionTran"action4roce""ing4roce""ing

    Sy"tem 6T4S7Sy"tem 6T4S7

    O cece

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    an information s#stem thatuses hard1are, soft1are and

    net1or$s to enhance 1or$ o1and facilitate communicationsamong emplo#ees"O=ce Producti5it# Tools ?i"e"

    O=ce, 6ord, Excel, Po1erpoint@

    O ceceA!tomationA!tomation

    Sy"tem 6OAS7Sy"tem 6OAS7

    M tManagement

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    an information s#stem thatgenerates accurate, timel# and

    organized information somanagers and other users canma$e decisions, sol5eproblems, super5ise acti5ities,

    and trac$ progressD oftenintegrated 1ith TP"

    ManagementManagementIn)ormationIn)ormation

    Sy"tem 6MIS7Sy"tem 6MIS7

    MM t

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    ManagementManagementIn)ormationIn)ormation

    Sy"tem"Sy"tem"T#pes of Is7ecision upport #stems ?7@

    Often ans1er 21hat if93 ;uestionsProduction of reports that recap

    dail# sales acti5itiesD list customers1ith past due account balancesD

    graph slo1 or fast selling productsDand highlight in5entor# items thatneed reordering

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    ManagementManagementIn)ormationIn)ormation

    Sy"tem"Sy"tem"Executi5e Information #stems

    ?EI@

    4 special t#pe of 7Can gather information from 5ast

    amounts of data for high-le5elexecuti5es

    Gighl# useful in control andplanning

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    E51ert Sy"temE51ert Sy"teman information s#stem that

    captures and stores the $no1ledgeof human experts and then imitates

    human reasoning and decision-ma$ing processes for those 1hoha5e less expertiseD one part of anexciting branch of computer

    science called arti>cial intelligence

    NN

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    NewNew

    Tec*nologie"Tec*nologie" 8e1 technologies are beingintegrated into traditionals#stems:

    Ecommerce uses the 6eb toperform business acti5ities"

    Enterprise &esource Planning ?E&P@has the goal of integrating man#diHerent information s#stems 1ithinthe corporation"6ireless and handheld de5ices,

    including mobile commerce?mcommerce@"

    In ormat onn ormat on

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    In ormat onn ormat onSy"tem"Sy"tem"

    in B!"ine""in B!"ine""Is in Aunctional Business4reas4ccounting&ecord business transactions,

    produce periodic >nancialstatements, and create reportsre;uired b# la1

    AinanceOrganize budgets, manage the o1

    of cash, anal#ze in5estments, andma$e decisions that could reduceinterest pa#ments and increase

    re5enues

    In ormat onn ormat on

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    In ormat onn ormat onSy"tem"Sy"tem"

    in B!"ine""in B!"ine""ar$eting4nal#ze demand for 5arious

    products in diHerent regionsand population groups

    Guman &esourcesGelp 1ith record $eeping and

    emplo#ee e5aluation

    In ormat onn ormat on

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    In ormat onn ormat onSy"tem"Sy"tem"

    in B!"ine""in B!"ine""Is in 7iHerent Business

    ectors

    anufacturing4llocate resources such as

    personnel, ra1 material, and time

    Control in5entor#, process customerorders, prepare production

    schedules, perform ;ualit#assurance, and prepare shippingdocuments

    In)ormationIn)ormation

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    In)ormationIn)ormationSy"tem"Sy"tem"

    in B!"ine""in B!"ine"")o5ernmentTax authorities, national

    insurance and 1elfare agencies,defense departments, economicorganizations, immigrationauthorities

    er5iceIs are often the bac$bone of

    ser5ice organizations

    In ormat onn ormat on

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    In ormat onn ormat onSy"tem"Sy"tem"

    in B!"ine""in B!"ine""&etailome retail stores ?e"g", 6al-art,

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    Ty1e" o) IS vi"/9/vi"Ty1e" o) IS vi"/9/vi"F!nctional Area"F!nctional Area"

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    &*y St!#y IS+&*y St!#y IS+

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    Managerial I""!e"Managerial I""!e" &ecognizing opportunities for

    using IT and 6eb-based s#stems" 6ho 1ill build, operate, and

    maintain the information s#stems"

    Go1 much IT9 Go1 much and GO6 important is

    IT9

    Is the situation going to change9 )lobalization"

    Ethics and social issues"

    T f i h i i