Chapter 1

Information Systems in
Business

2001 Business & Information Systems

2/e

Our Agenda

Basic Information Systems

Concepts
Types of Information Systems
Information Systems Users
Connecting Users to Information
Technology
Benefits of Information Systems
An Approach to the Study of
Information Systems

2001 Business & Information Systems

2/e

Learning Objectives

Explain what an information

system is and describe the
functions of an information system.
Identify the components of an
information system.
Explain the difference between
data and information.

2001 Business & Information Systems

2/e

Learning Objectives
(contd.)

List several types of information

systems and give an example of
each type.
Explain who information systems
users are and describe how users
use information systems.

2001 Business & Information Systems

2/e

Learning Objectives
(contd.)

Explain what ethics are and why it

is important to use information
systems ethically.
Describe how users are connected
to information technology locally,
nationally, and internationally.
Describe several benefits of
information systems.

2001 Business & Information Systems

2/e

Basic Information System

Concepts
What is an Information System?

An Information System is a collection of

components that work together to
provide information to help in the
operations and management of an
organization.
Information Technology is the
integration of computers,
communications equipment, and other
technology used in information systems.

2001 Business & Information Systems

2/e

Components of an
Information System?

Components

Hardware - Equipment such as

computers
Software - Instructions for the
equipment
Stored Data - Facts stored in the
system
Personnel - People who operate the
system
Procedures for the people to follow

2001 Business & Information Systems

2/e

Examples of Information
Systems

An inventory control system

An order entry system
A production scheduling system

2001 Business & Information Systems

2/e

Information Systems
Functions

Input Function accepts the input data

from outside the system.
Storage Function retains input data
and retrieves stored data.
Processing Function calculates and in
other ways manipulates the input and
stored data.
Output Function produces results of
processing for use outside the
system.
(Fill in the blanks)

2001 Business
& Information Systems
2/e

Data versus Information

Data is a representation of a fact, a

number, a word, an image, a
picture or a sound.
Information is data that is
meaningful or useful to someone.

2001 Business & Information Systems

2/e

10

Types of Information
Systems

Personal information systems

Word Processing
Spreadsheet or financial analysis
Database
Graphics or presentation software

Workgroup information systems

Electronic mail (e-mail)

Local area network (LAN)

2001 Business & Information Systems

2/e

11

Types of Information
Systems (contd.)

Organizational information
systems

Interorganizational information
systems

Mainframe computers
Wide area network (WAN)

Electronic Data Interchange (EDI)

Electronic Funds Transfer (EFT)

Global information systems

Production scheduling system

2001 Business & Information Systems

2/e

12

How Users Use

Information Systems

Users may use an information system

directly by pressing keys on a computer
keyboard or by operating a piece of
equipment that sends input data to a
computer.
A user may use an information system
indirectly by having someone else enter
the data and receive the output which is
then given to the user.

2001 Business & Information Systems

2/e

13

Ethical Use of Information

Systems

Ethics has to do with the standards

of behavior that people follow:
what is right and what is wrong.

2001 Business & Information Systems

2/e

14

Ethical Use of Information

Systems (contd.)

Ethical use of information systems

involves:

Confidentiality of information
Copying of software
Use of someone elses computer
Ownership of information

2001 Business & Information Systems

2/e

15

Networks

A network is a collection of computers

and related equipment connected using
communications equipment so that they
can communicate with each other.
Local Area Networks (LAN) cover a small
area such as a building.
Wide Area Networks (WAN) cover a
large area such as a city, region,
country or several countries.
(Define the term)

2001 Business & Information Systems

2/e

16

The Internet and the

World Wide Web (WWW)

The Internet is a worldwide

collection of interconnected
networks.
The World Wide Web (WWW) is a
service on the Internet that links
information stored on different
computers.

2001 Business & Information Systems

2/e

17

Electronic Commerce
(E-Commerce)

E-Commerce allows businesses

and individuals to use networks,
including the Internet, to promote
and sell products and services.

2001 Business & Information Systems

2/e

18

Benefits of Information
Systems

Better information
Improved service
Increased productivity
Competitive advantage

2001 Business & Information Systems

2/e

19

Key Terms
Computer
Application
Computer
Information System
(CIS)
Data
Electronic Commerce
Electronic Data
Interchange (EDI)
Electronic Funds
Transfer (EFT)
2001 Business & Information Systems

2/e

Electronic Mail (email)

Ethics
Global (International)
Information System
Hardware
Individual (Personal)
Information System
Information
Information System
(IS)
20

Key Terms (contd.)

Information
Technology (IT)
Input Data
Input Function
Internet
Interorganizational
Information System
Network

2001 Business & Information Systems

2/e

Organizational
(Enterprise)
Information System
Output Data
Output Function
Personnel
Procedures
Processing Function

21

Key Terms (contd.)

Software
Storage Function
Stored Data
User (End User)
Workgroup (Group)
Information System
World Wide Web
(WWW)

2001 Business & Information Systems

2/e

22

Summary

Basic Information Systems

Concepts
Types of Information Systems
Information Systems Users
Connecting Users to Information
Technology
Benefits of Information Systems
An Approach to the Study of
Information Systems

2001 Business & Information Systems

2/e

23