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WHY INFORMATION SYSTEMS?

What Is an Information System?

A set of interrelated components that collect


(or retrieve), process, store, and distribute
information to support decision making and
control in an organization

cc  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

What Is an Information System?

º Data: Streams of raw facts representing


events such as business transactions

º Information: Clusters of facts that are


meaningful and useful to human beings in
the processes such as making decisions

c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

What Is an Information System?

Data and Information

Figure c
c  2004 by Prentice Hall
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WHY INFORMATION SYSTEMS?

Activities in an Information System

INPUT PROCESS OUTPUT

FEEDBACK

c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

Functions of an Information System

c Figure c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

ComputerBased Information System (CBIS)

º Rely on computer hardware and


software

º Processing and disseminating


information

c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

Formal Systems

º Fixed definitions of data, procedures

º Collecting, storing, processing,


disseminating, using data

c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

A Business Perspective on Information Systems

º An organizational and management


solution based on information
technology to a challenge posed by the
environment
º An important instrument for creating
value for the organization
º Stages in the business information
value chain add value to information

c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?


m ine Procee

d ly Enterrie C tomer Knowledge


Chain Management Management Management
Management Firm
Profitability
and
Strategic
Position
Data Tranormation Diemination
Collection Into
and m ine
dtorage dytem

Planning Coordinating Controlling Modeling and


Deciion Making

Information Processing Activities Management Activities

Business Value

c
Figure c  2004 by Prentice Hall
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WHY INFORMATION SYSTEMS?

Information Systems

ORGANIZATIONS TECHNOLOGY

INFORMATION
SYSTEMS

MANAGEMENT

Figure c
c c  2004 by Prentice Hall
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WHY INFORMATION SYSTEMS?

A Business Perspective on Information Systems

º Information systems literacy: Broad


Broad
based understanding of information systems
that includes behavioral knowledge about
organizations and individuals using
information systems and technical
knowledge about computers
º Computer literacy: Knowledge about
information technology, focusing on
computerbased
understanding how computer
technologies work

c cc  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

Major Business Functions

º Sales and marketing

º Manufacturing

º Finance

º Accounting

º Human resources

c c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

Organizations

Key Elements:
º People: Managers, knowledge workers,
data workers, production or service
workers

º Structure: Organization chart , groups of


specialists, products, geography

c c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

Organizations

º Operating procedures: Standard operating


procedures (SOP, rules for action)

º Politics: Power to persuade, get things done

º Culture: Customs of behavior

c c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

Management

Levels:
º Senior managers: make long
longrange
strategic decisions about products and
services

º Middle managers: Carry out the programs


and plans of senior management

º Operational managers: monitor the firm¶s


daily activities
c c  2004 by Prentice Hall
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WHY INFORMATION SYSTEMS?

Computer Technology

Tools managers use to cope with change

º Hardware: Physical equipment

º Software: Detailed preprogrammed


instructions

º Storage: Physical media for


storing data and the software

c c  2004 by Prentice Hall


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WHY INFORMATION SYSTEMS?

Computer Technology

º Communications Technology:
transfers data from one physical location
to another

º Networks: link computers to share data


or resources

c c  2004 by Prentice Hall