11

C H A P T E R

Introduction to Introduction to InformationInformation

SystemsSystems

Information Concepts

RFID propaganda 1 MinRFID inventory management (2 Min)

RFID (Radio Frequency Management)

RFID Freezer contents control (6 Min)

Information Concepts

Knowledge

Information

DataRaw factsRaw facts

A collection of facts organized in such a way that they have additional value beyond the value of facts themselves.

A collection of facts organized in such a way that they have additional value beyond the value of facts themselves.

The body of guidelines and procedures used to select, organize, and manipulate data to make it suitable for a specific task.

The body of guidelines and procedures used to select, organize, and manipulate data to make it suitable for a specific task.

Information ConceptsKNOWLEDGE• Knowing the value of tracking sales for future ordering. As the business accumulates more and more INFORMATION, KNOWLEDGE increases.

INFORMATION• Total sales of every item for the day, week, month, and year, and season.

DATA• Recorded sale of every item.

Data vs. InformationApplying knowledge

The collection of informationadds to all the more knowledge.

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Data vs. Information

INFORMATION: The number of hamburgers sold from 10:30 am to 11:00 am on the average.

2 Hamburgers were sold during this half hour period, on the average.

KNOWLEDGE: Not a lot of people like to eat hamburgers early in the morning. Should we open our hamburger stand at 10:30 am or wait until 11:00 am?

DATA: A record of each hamburger sold during the week.

7

Data vs. Information

QUESTION: Would you open your hamburger stand at 10:30 am to sell 2 hamburgers?

ANSWER: Probably, no.

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Data vs. InformationKnowledge--Air conditioner compressors get “tight” when not used for long periods of time. This could blow a fuse when the air-conditioners are first turned on.Information (organized data)--Track air-conditioner fuse sales daily, weekly, monthly, yearly, seasonally.--Track daily temperatures relative air-conditioner fuse sales.Data--Record each air-conditioner fuse sold.

RESULT: On days when the outside temperature jumps and air-conditioners are first turned on, the demand for air-conditioner fuses jumps

32 times normal. Question: What actions will management take?

Types of Data

Data Represented by:

Alphanumeric Data Numbers, letters, etc.Image Data Graphics images or picturesAudio Data SoundVideo Data Moving images or pictures

Characteristics of Valuable Information

Characteristics Definitions:

Accurate Error free.Errors: GIGO & bad programs.GIGO: Garbage In Garbage Out

Complete Has all important facts.Economical Are the costs worth it?Flexible Can the information be used in

a variety of situations?Reliable Is the source reliable?3:00

Characteristics of Valuable Information

Characteristics Definitions:

Relevant Passenger hair color is not relevant to a captain of a ship.

Simple The information should be presented in a simple way.

Timely Last month’s weather forecast is of no interest to a pilot today.

Verifiable Can you check the correctness of the information.

Characteristics of Valuable Information

Characteristics Definitions:

Accessible Information should be easily accessible by authorized persons and in the right format.

Secure Information should be access by authorized persons only.Dr. Scanlan says, “There is nosuch thing as a secure informationsystem.”

Characteristics of Valuable Information

Characteristics Definitions:

Secure Information should be access by authorized persons only.Dr. Scanlan says, “There is no such thing as a secureinformation system.”

Discussion: Are these information system secure?Why or why not?Checking accounts, CD’s, email, safe deposit boxes, tax sheltered annuities, birth certificates, credit cards (especially RFID enabled), loyalty cards, etc.Stealing credit card information (RFID) cc (3min)

System and Modeling Concepts

SYSTEM Elements

Inputs Outputs

Process

GoalsWhat are some examples using McDonald’s as an example?1. Goals

-Profits-Fast service-Tasty food-Inexpensive food

2. Inputs ???3. Outputs ???4. Elements ???5. Process ??? Components of a System

Components of a System

1:30

System Classifications and Primary Characteristics

Simple Complex

Open Closed

Stable Dynamic

Adaptive Non-adaptive

Permanent Temporary

Name systems which have thesecharacteristics?

System Performance Standards• Efficiency

A measure of the amount of activity or effort to produce a desired goal.

• Effectiveness A measure of the extent to which a

system achieves its goals.

• Performance Standard A specific objective of the system. What are the performance standards

for this course?

System Performance Standards

System Variables and Parameters

• System Variable A quantity or item that can be controlled by

the decision maker. What are some system variables for a shoe

store?

• System Parameter A value or quantity that cannot be controlled

by the decision maker. What are some system parameters for a

grocery store?

Modeling a System

• Model An abstraction or an approximation

that is used to represent reality

• Model Types Narratives - words Physical - tangible Schematic - graphical Mathematical - arithmetic

Four Types of Models

Four Types of Models

The deep connection Einstein discovered between energy and mass is expressed in the equation E=mc² . Here E represents energy, m represents mass, and c² is a very large number, the square of the speed of light. Full confirmation was slow in coming. In Paris in 1933, Irène and Frédéric Joliot-Curie took a photograph showing the conversion of energy into mass. A quantum of light, invisible here, carries energy up from beneath. In the middle it changes into mass -- two freshly created particles which curve away from each other.

C = 186,282.397 miles per second,

Information System (IS)

• Information System A set of interrelated elements or

components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

What is the feedback for this coursefor the instructor and the class?

Input, Processing, Output, Feedback

INPUTSGathering and capturing raw data

INPUTSGathering and capturing raw data

PROCESSINGConverting or transforming data into useful outputs

PROCESSINGConverting or transforming data into useful outputs

OUTPUTSProducing useful information, usually in the form of documents.

OUTPUTSProducing useful information, usually in the form of documents.

Feedback

Output that is used to make changes to input or processing activities

Output that is used to make changes to input or processing activities

Computer-Based Information Systems

(CBIS)

• Computer-Based Information Systems Composed of hardware, software,

databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information.

Computer-Based Information Systems

(CBIS)Elements of a CBIS:• Hardware

Computer equipment used to perform input, processing, and output activities.

• Software Computer programs that govern the

operation of the computer.

• Database Organized collection of facts and

information.

Computer-Based Information Systems

(CBIS)Elements of a CBIS (continued):

• Telecommunications Electronic transmission of signals for

communications that enables organizations to link computer systems into effective networks.

• Networks Used to connect computers and

computer equipment.

Computer-Based Information Systems (CBIS)

Elements of CBIS (continued):

• Internet The world’s largest

telecommunications network.

• Intranet A network that uses Internet

technology within an organization.

Computer-Based Information Systems (CBIS)

Element of a CBIS (continued):

• People The most important elements in most

CBIS. Question: Are people really the most

important element?

• Procedures Strategies, policies, methods, and

rules for using CBIS.

Computer-Based Information Systems (CBIS)

Business Information Systems

• Transaction Any business related exchange.

• Transaction processing system (TPS) An organized collection of people,

procedures, software, databases, and devices used to record completed business transactions.Question: Give some examples class?

Transaction Processing System

E-Commerce Any business transaction executed

electronically between parties.

E-Commerce

Ebay

Management Information System

Management Information System Organized set of people, procedures, databases, and

devices used to provide ROUTINE information to managers and decision makers for day-to-day decisions.

Question: Give some examples class?

Too much overtime.

Decision Support Systems

• Decision Support Systems (DSS) A set of people, procedures, databases,

and devices used to support problem-specific decision making.

Used for tactical decisions. Question: Give some examples, class?

The DSS supportslocating the new assembly plant inIreland.

Information Systems

Transaction Processing System

Management Information System

DecisionSupportSystems

Artificial Intelligence (AI)

Artificial Intelligence (AI)

Artificial Intelligence (AI)

• A field that involves computer systems taking on the characteristics of human intelligence.

Robotics

Robots:• Work 7 days a week, 24 hours/day.• No benefit package.• Never complains.• Seldom makes mistakes.• Always shows up for work.• Has no hangover on Mondays.• Works for about $10.00 day.• Does not take coffee breaks.• Always does what it is told.

Expert Systems

Expert Systems (ES) Gives the computer the ability to make

suggestions and act like an expert in a particular field

I said you DON’Tget the loan.

Systems Development

Systems Development at

Whirlpool Corporation

Systems Development

Systems Development The activity of creating or modifying

existing business systems.

Systems Development

Investigation

Analysis

Design

Implementation

Review

Five Steps in Systems Development

Systems Development• Systems Investigation

The purpose is to gain a clear understanding of the problem to be solved or opportunity to be addressed.

George, Whirlpool wants youto investigate exactly whatthe problem is and determineif it is worth solving.

Systems Development• Systems Investigation

Whirlpool had a PROBLEM responding QUICKLY to competitors’ or their own price changes.

It took weeks to adjust prices. When a competitor dropped its price, Whirlpool had to send out

thousands of faxes and overnight packages. When Whirlpool increased its prices, retail distributors got very

upset when they were billed higher than expected.

$395.00$375.00$325.00

$395$425$474

• Systems Analysis Defines what the information system must do to solve the

problem.Put a team together to carefully examine the existing

system’s problems and opportunities and suggest solutions.

Systems Development

$395.00$375.00$325.00

Analysis Team Members

Systems Development

• Systems Design Determines how the new system will

work to meet the business needs defined during systems analysis.

In this stage the system is designed, much like an architect would design a building.

The system is not built at this time, it is designed.

Systems Development

• Systems Implementation Creating or acquiring the various

system components defined in the design step, assembling them, and putting the new system into operation.

Hardware, software, people, procedures, database, communications.

Systems Development

System Maintenance and Review Check and modify the system so

that it continues to meet changing business needs.

Literacy

• Computer Literacy A knowledge of computer systems and

equipment and the ways they function.

I know a lotabout computer

hardware and softwarebut I don’t know how toapply it to my business

needs.

LiteracyI need to know how toapply this computer

technology to mybusiness needs.

. Information Systems Literacy A knowledge of how data and

information are used by individuals, groups, and organizations.

Information Systems in the Functional Areas of Business

Functional Areas and Information Systems Financial information systems Accounting information systems Marketing information systems Manufacturing information systems Human resources management information

systems Legal information systems

Information Systems in Industry

Airline industry

Investment firms

Banks and savings and loan companies

Transportation industry

Publishing companies

Health care organizations

Retail companies

Power management & utility companies

SAMPLE TEST QUESTIONS

1. Which computer-based system would be responsible for capturing raw inventory data at a grocery store cash register?

a. Decision support systemb. Transaction processing system.c. Management information systemd. Expert systeme. None of the above.

SAMPLE TEST QUESTIONS

2. Which computer based system would be responsible for producing routine business reports?

a. Decision support systemb. Transaction processing system.c. Management information systemd. Expert systeme. None of the above.

SAMPLE TEST QUESTIONS

3. Which computer based system would be responsible helping managers make “what-if” type decisions?

a. Decision support systemb. Transaction processing system.c. Management information systemd. Robot systeme. None of the above.

SAMPLE TEST QUESTIONS

5. Which computer based system would be responsible helping managers make strategic decisions?

a. Decision support systemb. Transaction processing system.c. Management information systemd. Robot systeme. None of the above.

SAMPLE TEST QUESTIONS

6. This acronym refers to data with errors entering a computer system and producing erroneous output.

a. GIGOb. GOGIc. GGIO

SAMPLE TEST QUESTIONS

7. For what does GIGO stand?a. Garbage In, Garbage Outb. General information In, General

information Outc. None of the above

SAMPLE TEST QUESTIONS

8. In which stage of systems development is computer programming done?

a. Systems investigationb. Systems analysisc. Systems designd. Systems implementatione. None of the above

SAMPLE TEST QUESTIONS

9. Which stage of systems development involves an initial review of the system to see if there

is an actual problem, to see if it is worthsolving, and to see if it can be solved. This stagealso looks for opportunities.a. Systems investigationb. Systems analysisc. Systems designd. Systems implementatione. None of the above

SAMPLE TEST QUESTIONS

10. The activity of creating or modifying existing business systems is called:

a. Systems Developmentb. Systems Analysisc. Systems Investigationd. Systems Designe. Systems Implimentation

SAMPLE TEST QUESTIONS

11. Summarizing and categorizing data is involvedin collecting Information.a. Trueb. False

SAMPLE TEST QUESTIONS

12. Knowing how to summarize and categorizedata involves Knowledge?a. Trueb. False

SAMPLE TEST QUESTIONS

13. GIGO is most closely associated witha. Completeness of informationb. Flexibility of informationc. Economy of informationd. Accuracy of informatione. Verifiability of information

SAMPLE TEST QUESTIONS

14. Dr. Scanlan believes that there are secureinformation systems.a. Trueb. False

SAMPLE TEST QUESTIONS

15. A measure of the amount of activity or effortto produce a desired goal is a definition ofa. Effectivenessb. Efficiency

SAMPLE TEST QUESTIONS

16. A measure of the extent to which a systemachieves its goals is called:a. Effectivenessb. Efficiency

SAMPLE TEST QUESTIONS

17. The cost of electricity for a shoe store wouldbe an example ofa. A system variableb. A system paramterc. A system constant

SAMPLE TEST QUESTIONS

18. Which of the model types below wouldbest describe blueprint of a bridge?a. Narrativeb. Physicalc. Schematicb. Mathematical

SAMPLE TEST QUESTIONS

19. Which of the model types below wouldbest describe a verbal description of abuilding?a. Narrativeb. Physicalc. Schematicb. Mathematical

SAMPLE TEST QUESTIONS

20. An information system is a set of interrelatedelements or components that collect (input),manipulate (process), and disseminate (output)data and information and provide a __________mechanism to meet an objective.a. Feedbackb. Storagec. Objectived. Knowledge-basede. Subjective

SAMPLE TEST QUESTIONS

21. A computer-based information system consistsof hardware, software, databases, people and telecommunications. This list is complete.a. Trueb. False

SAMPLE TEST QUESTIONS

22. In what processing system would raw data mostlikely be stored?a. Executive information systemb. Transaction processing systemc. Management information systemd. Expert systeme. Decision support system

SAMPLE TEST QUESTIONS

23. Which item below best illustrates E-Commerce?a. A purchase at a local grocery storeb. A purchase at a garage salec. A purchase on Ebayd. A transaction executed by a purchasing

departmente. A purchase at McDonalds

SAMPLE TEST QUESTIONS

24. This information system provides routineinformation for day-to-day decision making.a. Executive information systemb. Decision support systemc. AI systemsd. Management information systemse. Transaction processing system.

SAMPLE TEST QUESTIONS

25. Artificial intelligence systems are limitedto taking on the characteristics of human intelligence.a. Trueb. False

SAMPLE TEST QUESTIONS

26. Which order of steps is correct for systemsdevelopment?a. Investigation, analysis, design, implementation,

and review.b. Analysis, investigation, design, review,

implementationc. Review, investigation, analysis, design and

implementation.d. Analysis, investigation, review, design, and

implementation

SAMPLE TEST QUESTIONS

27. This stage of systems development determineshow the system will work to meet the businessneeds defined during the systems analysis:a. Systems implementationb. Systems investigationc. Systems designd. Systems review

SAMPLE TEST QUESTIONS

28. A knowledge of computer systems andequipment and the ways they function iscalled:a. Computer Literacyb. Information system literacy

SAMPLE TEST QUESTIONS

29. A knowledge of how data and informationare used by individuals, groups, and organizationsis called:a. Computer Literacyb. Information system literacy