Chapter 1
What is an Information System?
Learning Objectives
Upon successful completion of this chapter, you will be
able to:
• Define what an information system is by identifying its
major components
• Describe the basic history of information systems; and
• Describe the basic argument behind
the article "Does IT Matter?" by
Nicholas Carr
Information Systems
People – to help support decision
making, coordination, control, analysis,
and visualization in an organization
Process – collects,
processes, stores, and
disseminates information
An
Information
System has all
3 dimensions
working
together
Technology – hardware,
software, and networks
that support the business
processes and people
Information Systems in Organizations
The table below shows a small list of information systems you can find in a
variety of businesses:
Organization
American Apparel
Purpose
Point-of-Sale (POS) System
Description
POS data (the data recorded when merchandise is sold) is
integrated with an inventory database, so more merchandise can
be ordered.
Web based system that posts job opportunities and lets people
apply online. Hiring systems often filter resumes using the digital
keywords from the online application. Hiring systems also manage
the application through the hiring process.
Orange County Department of Education
Employee Hiring System
Sales Dashboard
Sales Dashboard
The digital dashboard gives a quick view of revenue earned this
year compared to last, number of new leads generated, top 5
products, sales per rep and regional sales.
Sports Analytics
Any professional team
Consultants and specialists to look at various data to make a team
more successful and recruit players that add to the team’s success.
Coursera.com
Online education. “Take the world’s best courses, online, for free.”
Video lectures and online assignments are offered for free. It costs
a nominal fee for a certificate of completion.
Boeing Corporation
SAP System
Integrated enterprise-wide information system that handles
procurement, manufacturing, marketing, sales, employee benefits,
accounting, finance…and just about every business function you can
think of.
Obamacare
National healthcare system for the United States
Waze.com
Geographic information system.
WireShark
Network Analyzer
AS-Software.com
Sonograms (ex. Seeing a fetus inside the mother’s womb)
Individual exchanges for each state in which people are required to
register to insurance.
App that provides mapping, traffic reporting and routing to avoid
traffic.
Software that helps users to examine network traffic to identify
problems.
Specialized software for ultrasound reporting and image
management, reporting and consultation.
Anthony’s Triangle
Convenient way to categorize and understand the purpose of different
information systems in organizations:
Strategic
Tactical
Operational
Executive Information
Systems (EIS) for senior
management decision
making
Management Information
Systems (MIS) for decision
making by middle
management
Transaction Processing
Systems (TPS) for daily
transactions of the business
Information System Components
Several components work together to add value to
an organization:
1. Hardware
2. Software
Technology Related
3. Data
Roles
4. People
5. Process
Technology
• Hardware – physical components
• Software – instructions that tell the physical components what to do
– Operating systems – interacts with the hardware
– Application software – interacts with the user
• Data – collection of facts
• Networks – allows the transmission and sharing of data
People
• Also known as users
• Person who uses and operates the computer
or other machine
• All levels of the organization
• Can be your outside partners such
as suppliers
Process
• Series of steps to achieve a desired outcome
• Benefits:
– Increased productivity
– Better decision making ability
– Improved processes using available data
• Within the company
• Externally with suppliers and customers
– Continuous improvement using technology
– Competitive advantage
Information System History
1950 - 1960
1970 - 1980
• Mainframes
• Manufacturing
Resource
Planning
Systems
• First
microcomp
uter (PC)
• Windows
operating
system
Mid 1980s
to early
1990s
• Client
Server
• Networki
ng
• ERP
Mid
1990s to
early
2000s
• World
Wide
Web
Post early
2000s
• Web 3.0
now
• Mobile
Computing
• Cloud
Computing
Does IT Matter?
Question posed by Nicholas Carr in Harvard Business Review:
• Information technology has become a commodity
– Similar to a utility
– Cost of doing business, not an investment
• What IT needs:
– Managed to reduce costs
– Ensure that it is always running
– Risk-free as possible
Walmart’s Use of Information Systems
Source: YouTube
Summary
• Defined what an information system is by
identifying its major components
• Described the basic history of information
systems; and
• Described the basic argument behind the
article "Does IT Matter?" by
Nicholas Carr