Introduction to Information Technology
2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
Introduction: Business and Information Technology
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Prepared by:
Roberta M. Roth, Ph.D.
University of Northern Iowa
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-1
What is an Information System?
 A system that collects, processes, stores,
analyzes, and disseminates information.
Calculations
Data
Instructions
Collect
Inputs
Process
And
Transform
Produce
Outputs
Reports
Store
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-2
What Makes Information Useful?
 It is accurate
 Free of errors
 It is complete
 Includes everything needed
 It is flexible
 Can be viewed in various
ways
 It is reliable
 Results are always
consistent
 It is relevant
 Applies to the issue under
study
 It is timely
 Available when needed
 It is verifiable
 Basis for results can be
traced
 It is accessible
 All those who need the
information can get to it
 It is secure
 Free from contamination
(accidental or deliberate)
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-3
What is Meant by a
“Computer-Based Information System”?
 An information system using computer and
telecommunications technology to perform
its intended tasks.
Employs some combination of hardware,
software, database, network, procedures, and
people.
 An information system developed to
provide a solution to a business problem.
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-4
Organizations Have High Expectations of
Their Information Systems
 Fast, accurate processing of business transactions.
 Storage, retrieval, analysis, and data sharing to
 Increase communication
 Reduce overload
 Span organizational boundaries
 Support and improve decision making.
 Distinctive capabilities providing competitive
advantage.
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-5
Key Technical Trends to Monitor
 Constantly improving

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cost-performance ratio
Increasing storage and
memory
User friendly interfaces
Client/server architecture
Network computers
Enterprisewide computers
Intranets and extranets
Data warehousing
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
 Data mining
 Object-oriented

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environment
Electronic document
management
Multimedia
Intelligent systems
Portable computing
Internet expansion
Electronic commerce
Integrated home
computing
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Using IT Strategically
 Businesses today must understand how IT can
shape and refine business strategy
 Porter’s Strategic Analysis Model
• Helps in understanding strategic forces affecting
organizations in particular industries
• IT can be applied to strengthen and support a specific
business strategy
 Value Chain
• Helps in identifying ways IT can improve the quality and
efficiency of organizational processes
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-7
Chapter Summary
 Today’s businesses face myriad pressures.
 Information technology provides tools and
capabilities to respond to those pressures.
 Knowledge of IT and its applications helps
businesspeople develop business strategies
that effectively employ IT.
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-8
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use of the information herein.
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
1-9