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Chapter_1_Business_Information_Systems.ppt
1.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Management Information Systems By Effy Oz & Andy Jones www.cengage.co.uk/oz Chapter 1: Business Information Systems: An Overview
2.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Objectives • Explain why information systems are essential to business • Describe how computers process data into useful information for problem solving and decision making • Identify the functions of different types of information systems in business
3.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Objectives (continued) • Describe careers in information technology • Identify major ethical and societal concerns created by widespread use of information technology
4.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning The Purpose of Information Systems • Businesses use information systems – To make sound decisions – To solve problems • Problem is any undesirable situation • Decision arises when more than one solution to problem exists
5.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning The Purpose of Information Systems (continued) • Problem solving and decision making require information • Keys to success in business are – Gathering correct information – Storing information – Using information
6.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Data, Information, and Information Systems • “Data”, “information” and “system” are commonly used terms • Important to understand their similarities and differences
7.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Data vs. Information • Data: a given or fact – Can be number, statement, or picture • Information: facts or conclusions that have meaning within context – Composed of data that is manipulated
8.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Data Manipulation • Data is manipulated to make useful information • Survey is common method of collecting data • Raw data is hard to read • Information is more useful to business than data
9.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Generating Information • A process is manipulation of data • Process usually produces information • Process may produce more data • A piece of information in one context may be considered data in another context
10.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Generating Information (continued)
11.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Information in Context • Not all information is useful • Useful information is – Relevant – Complete – Accurate
12.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Information in Context (continued) • Useful information is – Current – Obtained economically (in business)
13.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Information in Context (continued)
14.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning What Is a System? • System: array of components that work together to achieve goal or goals • System – Accepts input – Processes input – Produces output
15.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning What is a system? (continued) • System may have multiple goals • System may contain subsystems • Subsystems have sub-goals that meet main goal • Subsystems transfer output to other subsystems
16.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning What is a system? (continued) • Closed system: has no connections with other systems • Open system: interfaces and interacts with other systems – Often a subsystem of a bigger system • Information system: processes data and produces information
17.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Information and Managers • Systems thinking: thinking of an organization in terms of subsystems • Database: collection of electronic records • Information systems automate exchange among subsystems • Information map: network of information systems • Information technology: technologies that facilitate construction and maintenance of information systems
18.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning The Benefits of Human- Computer Synergy • Humans are relatively slow and make mistakes • Computers cannot make decisions • Synergy: combining resources to produce greater output
19.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning The Benefits of Human- Computer Synergy (Continued)
20.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Information Systems in Organisations • Computer-based Information system: system with computer at centre • Certain trends have made information systems important in business • Organisations lag behind if they do not use information systems
21.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Components of information systems
22.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning The Four Stages of Processing • Input: collect and introduce data to system – Transaction: a business event, usually entered as input • Data processing: perform calculations on input • Output: what is produced by the information system • Storage: vast amounts of data stored on (for example) optical discs
23.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Computer Equipment for Information Systems • Input devices: receive input • Computer: process data • Output: displays information • Storage devices: store data • Network devices: transfer data
24.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Computer Equipment for Information Systems (continued)
25.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning From Recording Transactions to Providing Expertise: Types of Information Systems • Many types of information systems • Capabilities of applications have been combined and merged • Management Information System: supports planning, control, and making decisions
26.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Transaction Processing Systems • Most widely used type of system • Records data collected at point where organisation interacts with other parties • Encompasses cash registers, ATMs and purchase order systems
27.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Supply Chain Management Systems • Supply chain: sequence of activities involved in producing and delivering products – Activities include marketing, purchasing raw materials, manufacturing, shipping, billing, collection, and after-sale services • Also known as enterprise resource planning (ERP) systems
28.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Customer Relationship Management Systems • Customer relationship management: managing relations with customers – Used in combination with telephones to provide customer service – Often linked to Web applications that track online transactions
29.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Business Intelligence Systems • Business Intelligence: gather data to help organisation compete – Often contains statistical models – Access large pools of data • Data warehouse: large database that usually store transactional records
30.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Decision Support and Expert Systems • Decision support system: supports decision-making – Relies on models to produce tables – Extrapolates data to predict outcomes • Expert system: supports knowledge- intensive decision-making – Uses artificial intelligence
31.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Geographic Information Systems • Geographic information system: ties data to physical locations • Represents data on a map in different formats • May reflect demographic information in addition to geographic • May use information from GPS satellites
32.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Geographic Information Systems (continued)
33.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Information Systems in Business Functions • Functional business area: services within a company that support main business – Includes accounting, finance, marketing, and human resources – Part of a larger enterprise system
34.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Accounting • Information systems help record transactions • Produce periodic statements • Create required reports for legal compliance • Create supplemental reports for managers
35.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Finance • Finance systems facilitate financial planning and business transactions • Tasks include organising budgets, managing cash flow, analysing investments, and making decisions
36.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Marketing • Pinpoint likely customers and promote products • Marketing information systems analyse demand for products in regions and demographic groups – Identify trends in demand for products/services • Web provides opportunity to collect marketing data
37.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Human Resources • Human resource management systems aid record-keeping – Must keep accurate records – Aids recruiting, selection, placement, and reward analysis • Performance evaluation systems provide grading utilities
38.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Web Empowered Enterprises • E-commerce: Buying and selling goods and services through Internet • Internet is a vast network of computers connected globally • Web has a profound impact on information systems
39.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Careers in Information Systems • Information technology professionals are increasingly in demand • Networking, system analyst, software engineering, and database administrator jobs are increasing in demand
40.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Systems Analyst • System analyst: designs and updates information systems • Involves analysing system requirements, documenting development efforts, and providing specifications for programmers • Requires communication and presentation skills
41.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Database Administrator • Database administrator: responsible for databases – Develops and acquires database applications – Must protect privacy of customers and employees – Responsible for securing the database
42.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Data Administrator • Data administrator: responsible for strategic use of databases – Ensuring senior management are able to make full use of internal data – Ensuring appropriate external data is collected and filtered – Enabling the use of this internal and external data to gain competitive advantage
43.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Network Administrator • Network administrator: acquires, implements, manages, maintains, troubleshoots networks • Implements security – Firewalls – Access codes
44.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Webmaster • Webmaster: creates and maintains Web site • Designs and codes the page • Demand for Webmasters grows as more businesses use Web
45.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Chief Security Officer • Chief security officer: supervises security of information system • Position exists due to growing threat to information security • Reports to chief information officer
46.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Chief Information Officer and Chief Technology Officer • Chief information officer: responsible for all aspects of information system – Highest ranking IS officer – Responsible for IS as a strategic resource • Chief technology officer: has similar duties as CIO – High level corporate officer – In charge of all IT needs of the organisation • Sometimes the two positions are incorporated into one
47.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Chief Information Officer and Chief Technology Officer (continued)
48.
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Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Summary • Computer-based information systems pervade almost every aspect of our lives • A system is a set of components that work together to achieve a common goal • Subsystem: a system performs a limited task that produces an end result, which must be combined with other products from other systems to reach an ultimate goal • Data processing has four stages
49.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Summary (continued) • Any IS that helps in management is a management information system (MIS) • Many different types of MIS • Enterprise application systems (SCM or ERP) tie together different functional areas of a business • ISs are used in accounting, finance, marketing, and human resources
50.
Use with Management
Information Systems 1e By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning Summary (continued) • The job prospects for IT professionals are bright • IT has created societal concerns
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