Information Systems is a set of interrelated components that collect (input), manipulate (process), store, and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

2. Learning Objectives
• Identify the basic types of business information systems.
• Identify key issues and challenges that must be overcome to be
successful in the global marketplace.
• Identify significant benefits as well as problems and issues associated
with information systems.
• Define the term value chain
• Identify and briefly describe two change models that can be used to
increase the likelihood of successfully.
• Define the term “competitive advantage” and identify the factors that
lead firms to seek competitive advantage.
• Describe three methods for assessing the financial attractiveness of an
information system project.
Define the types of roles, functions, and careers available in the field
of information systems.

3. Principles
Know the impact of IS and its ability to put this knowledge to work.
IS right implementation so that society, business, and industry around the globe
can reap their enormous benefits.
Information systems must be implemented in such a manner that they are accepted
and work well within the context of an organization and support its fundamental
business goals and strategies.
Businesses need to be sure that improvements or completely new systems help
lower costs, increase profits, improve service, or achieve a competitive advantage.
Functions at the intersection of business and technology and designs, builds, and
implements solutions that allow organizations to effectively leverage information
systems.

4. A set of interrelated
components that collect (input),
manipulate (process), store, and
disseminate (output) data and
information and provide a feedback
mechanism to meet an objective.

5. Entrepreneur Reaching out the Customers.
Sales Representative To advertise products, communicate with customers
and analyze trends.
Managers Multi-million dollar decision (Manufacturing plant or
research for a cancer drug).
Financial Advisors To advise clients and helps children’s educational and
retirement.

6. Information Concepts
• Data - Raw facts, such as an employee number, total hours
worked in a week, inventory part numbers, or sales orders.
Data Represented by
Alphanumeric data Numbers, letters and etc
Image data Graphic images and pictures
Audio data Sounds, noises, or tones
Video data Moving images or pictures

7. A collection of facts
organized and processed so
that it has additional value
beyond the value of the
individual facts.
The awareness and
understanding of a set of
information.

8. • A set of logically related
tasks performed to achieve a
defined outcome.
• Turning data into information
is a process, or a set of
logically related tasks
performed to achieve a
defined outcome (Requires
Knowledge).

9. • People who create, use, and disseminate knowledge and
are usually professionals in science, engineering,
business, and other areas.
• A strategy by which an organization determinedly and
systematically gathers, organizes, stores, analyzes, and
shares its collective knowledge and experience.

10. Process of transforming data
to information
Select Organize Manipulate

11. Characteristics of Valuable Information
Characteristics Definitions
Accessible Easily access by the authority to obtain right
format and time to meet the needs.
Accurate Error Free.
Complete Must contain all facts.
Economical Balance the value of information with its cost.
Flexible Can be used in variety of purposes.
Relevant Correlated.
Reliable Can be trusted by the users.
Secure Secure from unauthorized users access.
Simple Not complex.
Timely When it is really needed.
Verifiable Can be checked to make sure is it correct.

12. INPUT PROCESS
FEEDBACK
OUTPUT
Components of an Information System

13. • redicting future events to
avoid problems.

14. A single set of
hardware, software,
databases,
telecommunications,
people, and procedures
that are configured to
collect, manipulate, store,
and process data into
information.

15. Hardware
Computer equipment
used to perform input
(keyboard, mouse etc)
processing, storage, and
output (printers, monitor,
speaker etc) activities.

16. Software:
The computer programs that govern the operation of
the computer.
i. System software - Microsoft Windows, start-up and
manages computer memory.
ii. Application software - Microsoft Excel, editing text
documents, creating graphs, and playing games.

17. Database
An organized collection
of facts and information,
typically consisting of two
or more related data files.
Facts and information
on customers, employees,
inventory, competitors’
sales, online purchases,
and much more.

18. TELECOMMUNICATIONS
The electronic
transmission of signals for
communications that
enables organizations to
carry out their processes
and tasks through effective
computer networks.

19. Telecommuting
People can work at home or while traveling.
Network
Computers and equipment that are connected in a
building, around the country, or around the world to enable
electronic communications.
Internet
The world’s largest computer network, consisting of
thousands of interconnected networks, all freely exchanging
information.

20. A computing environment in which software and data
storage are provided by the Internet (“the cloud”); the
services are run on another organization’s computer
hardware and both software and data are easily accessed.

21. Intranet
An internal network based on Web technologies that
allows people within an organization to exchange
information and work on projects.
Extranet
A network based on Web technologies that allows
selected outsiders, such as business partners and
customers, to access authorized resources of a company’s
intranet.

22. Chief information officer (CIO)
The CIO manages the Information Systems
department, which includes all the people who manage,
run, program, and maintain a computer-based information
system.

23. “Those who build great companies understand that the
ultimate throttle on growth for any great company is not
markets, or technology, or competition, or products. It is one
thing above all others: the ability to get and keep enough of the
right people.”
Jim Collins(Good to Great)

24. Procedure
Defines the steps to
follow in order to achieve a
specific end result such as
enter a customer order, pay
a supplier invoice, or request
a current inventory report.

25. • Often integrated into one
product and can be
delivered by the same
software package.
• Introduced in the 1950s
and changed significantly
in most decades after that.

26. Electronic Commerce(e-commerce)
- Any business transaction executed electronically between
companies.
Mobile Commerce (m-commerce)
The use of mobile, wireless devices to place orders and
conduct business.
Electronic business (e-business)
E-business goes beyond e-commerce to include using
information systems and the Internet to perform all business-related
tasks and functions, such as accounting, finance, marketing,
manufacturing, and human resources activities.

27. Transaction Processing Systems
1950’s computer was first used to reduce cost
Transaction: Any business-related exchange such as
payments to employees, sales to customers, and payments
to suppliers.
Transaction processing system (TPS): An organized
collection of people, procedures, software, databases, and
devices used to perform and record business transactions.

28. Enterprise Resource Planning
-A set of integrated programs that manages the vital
business operations for an entire multi-site, global
organization.
-To support manufacturing and finance.
-easing adoption of improved work processes and
increasing access to timely data for decision making.

29. Management Information Systems
An organized collection of people, procedures,
software, databases, and devices that provides routine
information to managers and decision makers.
Functional management information systems draw
data from the organization’s transaction processing system.

30. - An organized collection
of people, procedures,
software, databases, and
devices used to support
problem specific decision
making.
- Focus on effective
decisions, do things right.
-An executive support
system- also called an executive
information system.

31. Specialized Business Information Systems
-A knowledge management system is an organized collection of
people, procedures, software, databases, and devices that stores
and retrieves knowledge, improves collaboration, locates
knowledge sources, captures and uses knowledge, or in some
other way enhances the knowledge management process.
Knowledge management process
Managing knowledge means an organization can capture and
retain specialized knowledge for future use.

32. Artificial intelligence (AI):
A field in which the computer system takes on the
characteristics of human intelligence.
a. Robotics - artificial intelligence machine.
b. Learning Systems - allows computer to learn from past
mistakes ex. game.

33. Robotics
a.Vision systems allow robots
and other devices to “see,”
store, and process visual
images.
b. Natural language
processing involves the
computer understanding,
analyzing, manipulating and/or
generating natural languages.

34. Learning System
• Neural networks allow computers to recognize
and act on patterns or trends.
• Expert system: A system that gives a computer
the ability to make suggestions and function like
an expert in a particular field.
• Knowledge base: The collection of data, rules
& procedures to achieve value.
• Virtual Reality: An artificial threedimensional
environment created by hardware and software
and experienced through sensory stimuli
Artificial Intelligence

35. • the activity of creating or
modifying information
system.

36. Reasons:
• To reduce the cost
• To provide a new or
improved customer service
• To take advance of new
technology

37. Steps:

38. ORGANIZATION AND INFORMATION SYSTEM
Organization
 A formal collection of people and
other resources established to
accomplish a set of goals.

39. Value Chain
• A series (chain) of activities that an organization performs to transform
inputs into outputs in such a way that the value of the inputs is increased.
example: Inbound logistics and Sales
Supply Chain
• Concern with creating or delivering a product or service.
example: Packaging and transportation

40. INNOVATION
• is a catalyst for the growth
and success of any
organization.

41. Sustaining Innovation
• enhancements to existing products,services and ways of
operating.
Disruptive Innovation
• is one that initially provides a lower level of performance
than the marketplace has grown to accept.

42. developed by E.M Rogers to explain
how a new idea or product gains
acceptance and diffuses (or
spreads) through a specific population
or subset of an organization.

43. Innovators Risk taker
Simply provide them with access to
the new system and get out of their
way.
Early adopter
Opinion leaders whom others
listen to and follow, aware of
the need for change.
Provide them assistance getting
started.
Early majority
Listen to and follow the
opinion leaders
Provide them with evidence of the
system's effectiveness and
success stories.
Late majority
Skeptical of change and new
ideas
Provide them data on how many
others have tried this and have
used it successfully.
Laggards
Very conservative and highly
skeptiocal of change
Demonstartion.

44. Organizational Change
• deals with how organizations successfully plan for and
implement change.
Competitive advantage
• is a significant and ideally long-term benefit to a company
over its competition.

45. Five Forces Model
Threat
of
new entrants

46. Cost leadership
deliver the lowest possible cost for products and services.
example: McDonald's
Differentiation
producing a variety of products,giving customers more choices or delivering higher-quality
products and services.
example: Unilever
Niche strategy
deliver to only a small
example:Porsche
Altering the industry structure
change the industry to become more favorable to the company or organization.

47. Creating new products and services
introduce new products and services periodically or frequently.
example: mobile cellphones
Improving existing product line or services
minor changes
Innovation
indicate whether a product improvement, or a disruptive or breakthrough innovation
approach is best.
Other strategies
Combining all the strategies