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Chapter 1

Introduction to
Information Systems
MIS Information and Organizations
Information Concepts (1)
 Data vs. Information
 Data
• Raw facts
• Distinct pieces of information, usually formatted in
a special way
 Information
• A collection of facts organized in such a way that
they have additional value beyond the value of the
facts themselves

MIS Information and Organizations


Terminology
 Process
• A set of logically related tasks performed to
achieve a defined outcome
 Process
• (n) An executing program. The term is used
loosely as a synonym of task.
• (v) To perform some useful operations on data.

MIS Information and Organizations


Terminology
 Knowledge
• An awareness and understanding of a set of
information and how that information can be made
useful to support a specific task
 Knowledge base
• The collection of data, rules, procedures, and
relationships that must be followed to achieve value
or the proper outcome
MIS Information and Organizations
Types of Data
Data Represented by
Alphanumeric data Numbers, letters, and other characters

Image data Graphic images or pictures

Audio data Sound, noise, tones


Video data Moving images or pictures

MIS Information and Organizations


Data  Information

Data Transformation Information

MIS Information and Organizations


Characteristics of
Valuable Information
 Characteristics
 Accurate, complete, economical, flexible,
reliable, relevant, simple, timely, verifiable,
accessible, secure

MIS Information and Organizations


System
System
 A set of elements or components that
interact to accomplish goals
 A combination of components working
together

MIS Information and Organizations


System Elements
 Inputs
 Processing mechanisms
 Outputs

MIS Information and Organizations


System Example
Elements
System Processing Goal
Inputs Outputs
elements
Actors, director, Filming, Finished Entertaining
staff, sets, editing, film movie, film
Movie equipment special delivered to awards,
effects, movie profits
distribution studio

MIS Information and Organizations


Information System (IS)
Definition
 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

MIS Information and Organizations


What is an Information System?
 Schematic model of an information system

Feedback

Input Processing Output

MIS Information and Organizations


Input, Processing, Output,
 Input
 The activity of gathering and capturing data
 Whatever goes into the computer
 Processing
 Converting or transforming data into useful outputs
 Output
 Useful information, usually in the form of documents
and/or reports
 Anything that comes out of a computer

MIS Information and Organizations


Input ‘Discussion’
(n) Whatever goes into the computer. Input
can take a variety of forms, from
commands you enter on a keyboard to data
from another computer or device. A device
that feeds data into a computer, such as a
keyboard or mouse, is called an input
device.
(v) The act of entering data into a computer
MIS Information and Organizations
Output ‘Discussion’
(n) Anything that comes out of a computer. Output
can be meaningful information or gibberish, and
it can appear in a variety of forms -- as binary
numbers, as characters, as pictures, and as printed
pages. Output devices include display screens,
loudspeakers, and printers.
(v) To give out. For example, display screens output
images, printers output print, and loudspeakers
output sounds.
MIS Information and Organizations
Manual vs. Computerized
Systems
 Manual systems still widely used
 E.g., some investment analysts manual draw charts and
trend lines to assist them in making investment
decisions
 Computerized systems
 E.g., the above trends lines can be drawn by computer
 Evolution
 Many computerized system began as manual systems
 E.g., directory assistance (“411”)
MIS Information and Organizations
Computer Based Information
System (CBIS)
 A CBIS is an organised integration of
hardware and software technologies and
human elements designed to produce
timely, integrated, accurate and useful
information for decision making
purposes.

MIS Information and Organizations


Technology Infrastructure
 Another term for CBIS
 Consists of the shared information system
(IS) resources that form the foundation of
the information system

MIS Information and Organizations


Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks

MIS Information and Organizations


Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks

MIS Information and Organizations


Hardware
 Hardware
 Computer equipment used to perform
input, processing, and output activities
 The objects that you can actually touch,
like disks, disk drives, display screens,
keyboards, printers, boards, and chips.

MIS Information and Organizations


Hardware ‘Discussion’
Hardware refers to objects that you can
actually touch, like disks, disk drives, display
screens, keyboards, printers, boards, and
chips. In contrast, software is untouchable.
Software exists as ideas, concepts, and
symbols, but it has no substance.

MIS Information and Organizations


Parts of a Computer Based
Information System (CBIS)
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks

MIS Information and Organizations


Software
 Software
 Computer programs that
govern/determine/control the operation
of the computer
 Computer instructions or data

MIS Information and Organizations


Software ‘Discussion’
Software is computer instructions or data.
Anything that can be stored electronically is
software. The storage devices and display
devices are hardware.

MIS Information and Organizations


Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks

MIS Information and Organizations


Database
 Database
 An organized collection of facts and
information
 A collection of information organized in
such a way that a computer program can
quickly select desired pieces of data

MIS Information and Organizations


Database ‘Discussion’
A database is a collection of information organized in
such a way that a computer program can quickly select
desired pieces of data.
You can think of a database as an electronic filing
system. Traditional databases are organized by fields,
records, and files. A field is a single piece of information; a
record is one complete set of fields; and a file is a
collection of records. For example, a telephone book is
analogous to a file. It contains a list of records, each of
which consists of three fields: name, address, and telephone
number.
MIS Information and Organizations
Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks

MIS Information and Organizations


Telecommunications
Telecommunications
 The electronic transmission of signals
for communications; enables
organizations to link computer systems
into effective networks
 Refers to all types of data transmission,
from voice to video

MIS Information and Organizations


Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks

MIS Information and Organizations


Networks
 Network
 Used to connect computers and computer
equipment in a building, around the country,
across the world, to enable electronic
communications
 A group of two or more computer systems
linked together

MIS Information and Organizations


Network ‘Discussion’
There are many types of computer networks,
including:
local-area networks (LANs) : The computers are
geographically close together (that is, in the same
building).
wide-area networks (WANs) : The computers are
farther apart and are connected by telephone lines
or radio waves.

MIS Information and Organizations


Internet and Intranet
 Internet
 The world’s largest telecommunications network
 A network of networks
 Free exchange of information
 A global network connecting millions of computers
 Intranet
 A network that uses Internet technology within an
organization
 A network belonging to an organization
MIS Information and Organizations
People and Procedures
 People
 The most important element in most computer-
based information systems
 Includes people who manage, run, program,
and maintain the system
 E.g., IT professionals (you!)
 Procedures
 Includes the strategies, policies, methods, and
rules for using the CBIS
MIS Information and Organizations
Business Information Systems
 Types
 Management information systems
 Transaction processing systems
 E-commerce systems
 Decision support systems
 Expert systems

MIS Information and Organizations


Management Information Systems
 An MIS is…
 An organized collection of people, procedures,
software, databases, and devices used to
provide routine information to managers and
decision makers

MIS Information and Organizations


Schematic of MIS
Marketing Manufacturing
management management
information Information
system system

Common
databases
Financial Order
management management
Information information
system system
TPS

MIS Information and Organizations


MIS ‘Discussion’
Short for management information system or management
information services, and pronounced as separate letters, MIS
refers to a class of software that provides managers with tools for
organizing and evaluating their department. Typically, MIS systems
are written in COBOL and run on mainframes or minicomputers.

Within companies and large organizations, the department


responsible for computer systems is sometimes called the MIS
department. Other names for MIS include IS (Information Services)
and IT (Information Technology).
MIS Information and Organizations
HOW INFORMATION
SYSTEMS ARE
TRANSFORMING
BUSINESS?

MIS Information and Organizations


WHAT’S NEW IN MANAGEMENT
INFORMATIONSYSTEMS?

MIS Information and Organizations


WHAT’S NEW IN MANAGEMENT
INFORMATIONSYSTEMS?

MIS Information and Organizations


WHAT’S NEW IN MANAGEMENT
INFORMATIONSYSTEMS?

MIS Information and Organizations


CASE STUDY

MIS Information and Organizations


Business Information Systems
 Types
 Management information systems
 Transaction processing systems
 E-commerce systems
 Decision support systems
 Expert systems

MIS Information and Organizations


Transactions Processing Systems
 Transaction
 Any business-related exchange
 E.g., generating a weekly payroll
 Transaction processing system (TPS)
 An organized collection of people, procedures,
software, databases, and devices used to record
completed for for business related exchanges

MIS Information and Organizations


Payroll Example

Hours
worked
Payroll
Payroll
transaction
checks
processing
Pay
rate

MIS Information and Organizations


Business Information Systems
 Types
 Management information systems
 Transaction processing systems
 E-commerce systems
 Decision support systems
 Expert systems

MIS Information and Organizations


E-Commerce System
 E-commerce
 Involves any business transaction executed
electronically
 Conducting business on-line
 For example, between…
• Companies
• Companies and consumers
• Business and the public sector
• Consumers and the public sector
 Example for placing a purchase order
MIS Information and Organizations
Purchase Order - Traditional

MIS Information and Organizations


Purchase Order – E-commerce

MIS Information and Organizations


Business Information Systems
 Types
 Management information systems
 Transaction processing systems
 E-commerce systems
 Decision support systems
 Expert systems

MIS Information and Organizations


Decision Support Systems
 A DSS is…
 An organized collection of people, procedures,
software, databases, and devices used to
support problem-specific decision making
 A DSS helps a manger “do the right thing”

MIS Information and Organizations


Business Information Systems
 Types
 Management information systems
 Transaction processing systems
 E-commerce systems
 Decision support systems
 Expert systems

MIS Information and Organizations


Expert Systems
 An expert system is…
 A computer application that performs a task that would
otherwise be performed by a human expert
 gives the computer the ability to make suggestions and
to act like an expert in a particular field
 Examples: diagnose human illnesses, make financial
forecasts, schedule routes for delivery vehicles
 Expert systems typically include “artificial
intelligence” (next slide)

MIS Information and Organizations


Artificial Intelligence
The branch of computer science concerned with making computers
behave like humans. The term was coined in 1956 by John McCarthy
at the Massachusetts Institute of Technology. Artificial intelligence
includes
 games playing: programming computers to play games such as
chess and checkers
 expert systems : programming computers to make decisions in real-life
situations (for example, some expert systems help doctors diagnose
diseases based on symptoms)

MIS Information and Organizations


Artificial Intelligence
 natural language : programming computers to understand natural
human languages
 neural networks : Systems that simulate intelligence by
attempting to reproduce the types of physical connections that
occur in animal brains
 robotics : programming computers to see and hear and react to
other sensory stimuli

MIS Information and Organizations


Working with Systems
 Systems development
 The activity of creating or modifying an existing
business system
 Systems investigation and analysis
 Defines the problems and opportunities of an existing
system
 Systems design
 Determine how a new system will work to meet
business needs

MIS Information and Organizations


Working with Systems
 Systems implementation
 Creating and acquiring system components
defined in the design
 Systems maintenance and review
 Checks and modifies the system so that it
continues to meet changing business needs

MIS Information and Organizations