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CSE 441 Information Technology
Saturday 12:00 PM Monday 9:00 AM
Md. Shahrear IqbalLecturerDepartment of CSEBUET
Foundations of Information Systems in Business
Information system vs Information Technology Information Systems
is a large umbrella referring to systems designed to create, store, manipulate, or disseminate information.
Information technology technology dealing with information processing,
storage, and transmission. This includes in particular computer technology
and the different communication technologies (electronic, radiowave, optical etc.).
Information system vs Information Technology Information technology can be considered as a subset
of information systems. It deals with the technology part of any information system, and as such deals with hardware, servers, operating systems and software etc.
A system is always a combination of people, machines, processes and technology. And IT is just a part of the system. Since a part can never be identical to whole, information systems is never going to be identical to information technology. Designing of a system takes much more than technology as people and processes are also involved.
Information system vs Information Technology ‘Information systems’
is in essence bridging the gap between business and the ever growing field of computers.
On the other hand, information technology is all about managing technology and making use of it for the betterment of business.
Foundation Concepts Fundamental behavioral, technical,
business, and managerial concepts about the components and roles of information systems.
Example: Basic information systems concepts derived from general systems theory
Business Applications The major uses of information systems
for the operations, management, and competitive advantage of the E-Business enterprise
Includes electronic business, commerce, collaboration, and decision making using the Internet, intranets, and extranets
Development Processes How business professionals and
information specialists plan, develop, and implement information systems to meet E-Business opportunities using several strategic planning and application development approaches
Management Challenges The challenges of effectively and
ethically managing E-business technologies, strategies, and security at the end user, enterprise, and global levels of a business
Information Technologies Major concepts, developments, and
management issues in information techology
Hardware, software, networks, data resource management, and Internet based technologies
Our main focus
What is an Information System?
Simple Definition:It can be any organized combination of people, hardware, software, communications networks and data resources that collects, transforms, and communicates information in an organization.
What is a System? Generic Def’n:
A group of interrelated or interacting elements forming an unified whole
IS Def’nA group of interrelated components working together toward a common goal by accepting inputs and accepting outputs in an organized transformation process
Basic System Components Input
Capturing and assembling elements that enter the system to be processed. Ex: raw materials, energy, data
ProcessingInvolves transformation processes that convert input into output. Ex. Manufacturing processes, mathematical calculations
OutputInvolves transferring elements that have been produced by a transformation process to their ultimate destination. Ex: finished products to their human users
Additional Components Feedback
Data about the performance of a system. Ex: Data about sales performance is feedback to a sales manager
ControlMonitoring and evaluating feedback and control components to determine whether a system is moving toward the achievement of its goal. Ex. Reassigning salespeople after evaluating their performance
Other Characteristics Environment
Other systems that the system interacts with Subsystem
A system that is a component in a larger system Interface
Means in which a system is connected to another Open system
A system that interacts with other systems in its environment
Adaptive SystemA system that has the ability to change itself or its environment in order to survive
Diagram of a System
ManufacturingProcess
Input ofRaw Materials
Output ofFinished Products
Environment
Other Systems
Control byManagement
ControlSignals
ControlSignals
FeedbackSignals
FeedbackSignals
System Boundary
Components of an IS Four major concepts
People, hardware, software, data and networks are the five basic resources of information systems
People resources include end users, IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and networks include communications media and networks
Components of an IS Four major concepts continued…
Data resources are transformed by information processing activities into a variety of information products for end users
Information processing consists of input, processing, output, storage, and control activities
Information System Resources
Information System Resources People Resources
End Users – the people who use an information system or the information it produces. Ex: Accountants, salespeople, customers
IS Specialists – the people who develop and operate information systems based on the requirements of end users. Ex: programmers, analysts, system operators
Information System Resources Hardware Resources
Machines, such as computers and other devices, and media, such as paper, disks
Computer Systems such as the personal computer (desktop), mainframe, or laptop
Computer peripherals such as keyboard, mouse, monitor, scanner, printer, disks
Information System Resources Software Resources
Programs – sets of operating instructions that direct and control computer hardware
Procedures – sets of information processing instructions that people need
Information System Resources Software Resources continued
System Software – such as operating system that supports the operations of a computer system. Ex. Windows 98
Application Software – programs that direct processing for a particular use of computers by end users. Ex. Excel
Procedures – operating instructions for people who will use an IS. Ex. Instructions for filling out a form.
Information System Resources Data Resources
Types of data Text data Image data Audio data
Data Storage Databases – hold processed and organized data Knowledge bases – hold knowledge in a variety of
forms such as facts, rules, and case examples of successful business practices
Information System Resources Data Resources continued…
Data Vs. Information Data – raw facts or observations,
objective measurements of the characteristics of entities such as people, places, things and events
Information – data that has been converted to a meaningful and useful context for specific end users.
Information System Resources Data Resources continued…
Data is subjected to a value-added process
1. Its form is aggregated, manipulated and organized
2. Its content is analyzed and evaluated3. It is placed in a proper context for a
human user Called data processing or
information processing
Information System Resources Data Resources continued…
1200100
WestCharles Mann
79154 TM Shoes
Monthly Sales Report for West Region
Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100
Information System Resources Network Resources
Communication media – Twisted pair wire, coaxial cable, fiber-optic cable and microwave, cellular, and satellite technologies
Network support – people and all of the hardware, software, and data technologies that directly support the operation and use of a communication network.
Information System Activities Input of Data Resources
Data about business transactions and other events must be captured and prepared for processing
Input typically takes the form of data entry activities such as recording and editing
End users typically enter data directly into a computer system or record it on some physical media such as a paper form
Information System Activities Processing of Data into Information
Data is subjected to processing activities such as calculating, comparing, sorting, classifying and summarizing
This organizes, analyzes, and manipulated data, turning it into information
The quality of data stored in an information system must be maintained by a continual process of correcting and updating activities
Information System Activities Output of Information Products
The goal of information systems is the production of appropriate information products for end users
Examples are messages, reports, forms and graphic images which may be provided by video displays, audio responses, paper products, and multimedia
Information System Activities Information Quality
Information that is outdated, inaccurate, or hard to understand is not meaningful, useful, or valuable to end users
Information products should have characteristics, attributes, and qualities that make the information more valuable to the end users
Information has three dimensions of time, form, and content
Information System Activities Information Quality continued..
Storage of Data Resources Data and information
are retained in an organized manner for later use
Stored data is commonly organized into fields, records, files, and databases
Information System Activities
NameFieldNameField
PayrollRecordPayrollRecord
PayrollFile
PayrollFile
PersonnelDatabase
Information System Activities Control of System Performance
An IS should produce feedback about its input, processing, output, and usage activities
This feedback must be monitored and evaluated to determine if the system is meeting performance standards
Activities must be adjusted so that proper information products are produced for end users
Roles of IS in Business
Support of Strategic
Advantage
Support of Business
Decision Making
Support of Business Processes and Operations
History of Information Systems
Data Processing
ManagementReporting
DecisionSupport
Strategic &End User
Electronic Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
ElectronicData Processing- TPS
ManagementInformationSystems
DecisionSupportSystems- Ad hoc Reports
End UserComputingExec Info SysExpert SystemsSIS
ElectronicBusiness & Commerce-InternetworkedE-Business &Commerce
The E-Business Enterprise E-Business
The use of Internet technologies to inter-network and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.
The E-Business Enterprise E-Business enterprises rely on
information technologies such as the Internet to: Reengineer and revitalize internal business
processes Implement electronic commerce systems
among businesses and their customers and suppliers
Promote enterprise collaboration among business teams and workgroup
The E-Business Enterprise Enterprise collaboration systems
Involve the use of groupware tools to support communication, coordination, and collaboration among members of networked teams and workgroups
Electronic Commerce The buying and selling, marketing and
servicing of products, services and information over a variety of computer networks
The E-Business Enterprise Types of networks
The Internet Intranets – the network existing inside
an enterprise Extranets – networks existing
between enterprises
The Internetworked Business
Manufacturingand
Production
Engineering &Research
Accounting,Finance, andManagement
Suppliers and Other Business Partners
Procurement, Distribution, and Logistics
Advertising Sales Customer Service
Consumer and Business Customers
Company
Boundary
Intranets
The Internet
Extranets
Ext
ran
ets
Types of Information Systems
Transaction
Processing
Systems
Process
Control
Systems
Enterprise
Collaboration
Systems
Operations
Support
Systems
Management
Information
Systems
Decision
Support
Systems
Executive
Information
Systems
Management
Support
Systems
Information Systems
Operations Support Systems Role is to efficiently process business
transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases
Examples Transaction Processing Systems – record and process
data from business transactions in one of two ways – batch process and real-time process
Process Control Systems – monitor and control physical processes such petroleum refining
Enterprise Collaboration Systems – enhance team and workgroup communications and productivity
Management Support Systems Focus on providing information and support
for effective decision making by management Examples
Management Information Systems – provide information in forms of reports and displays to managers and other professionals
Decision Support Systems – giver direct computer support during the decision making process
Executive Information Systems – provide critical information from a wide variety of internal and external sources in an easy to use displays
Other Classifications Expert Systems – provide expert advice for
operational chores like equipment diagnostics Knowledge Management Systems – support the
creation, organization, and distribution of business knowledge to employees and managers
Functional Information Systems – focus on operational and managerial applications in support of basic business functions such as accounting
Strategic Information Systems – apply information technology to a firm’s products, services, or business practices to gain a competitive advantage
Developing Information Systems
Development Cycle
Managerial Challenges of IT Information systems and their
technologies must be managed to support the business strategies, business processes, and organizational structures and culture of an enterprise to increase its customer and business value
Managerial Challenges of IT
•Business Strategies•Business Processes•Business Needs
•Customer Relationships•Business Partners•Suppliers•Business Customers
Ethical ConsiderationsPotential Risks?Potential Laws? Possible Responses?
•IS Human Resources•IS Development
•IT Infrastructure•IS Performance
•Organization Structure•and Culture•User Acceptance
Ethics and IT Ethical Responsibilies
What use of IT may be considered improper, irresponsible, or harmful to other individuals or society?
How to protect yourself from computer crime?
Use of Internet in the business environment?
The IS Function A major functional area of business that is as
important to business success as the functions of accounting, finance, operations management, marketing, and human resource management
An important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction
A major source of information and support needed to promote effective decision making by managers and business professionals
The IS Function A vital ingredient in developing competitive
products and services that give an organization a strategic advantage in the global marketplace
A dynamic, rewarding, and challenging career opportunity for millions of men and women
A key component of the resources, infrastructure, and capabilities of today’s e-business enterprises
Questions
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