Information Systems:
Concepts, Trends, Issues
Ch 1-3
Turban, McLean, Wetherbe
Why Study Information
Technology?
Moore’s Law:
Chip capacity doubles
every 18 Months.
The Value of Technology

Electric Power Growth Trends
The Value of Technology

IT Growth Trends
Next Generation
Information
DATA: facts that are needed to operate a
business.
INFORMATION: data organized into a form
needed by an application.
INFORMATION SYSTEM: hardware,
software and procedures that maintain data
and convert it into usable information.
Information System

An information system (IS) collects, processes, stores,
analyzes, and disseminates information for a specific purpose.
Like any other system, an information system includes inputs
(data, instructions) and outputs (reports, calculations). It
processes the inputs by using technology such as PCs and
produces outputs that are sent to users or to other systems via
electronic networks and a feedback mechanism that controls
the operation.
Properties of Data
Accuracy
 Completeness
 Cost
 Flexibility
 Relevance

Granularity
 Timeliness
 Verifiability
 Value

Basics of the MIS Discipline
Technology
Computing
Telecommunications
Development
Data
Process
Network
Management
Operations
Strategy
Technology
Development
Management
Computer Based Information
System
Hardware
 Software
 Data
 Network
 Procedures
 People

More than hardware
and software
Hardware
Software
Application
Data
People
Information System – Primary
Purpose
Collects data, processes it into information then converts
information into knowledge for a specific purpose.

Data
» Elementary description of things, events, activities, and
transactions that are recorded, classified, and stored, but not
organized to convey any specific meeting

Information
» Data that has been organized so that they have meaning
and value to the recipient

Knowledge
» Information that has been organized and processed to
convey understanding, experience and expertise as they
apply to a current problem or activity
Information System -
Classification By Support Function
Senior Mgr
Executive Support System
•5-year sales trend
•Profit Planning
•5-year budget forecasting
•Product development
Management Information System
Decision Support System
Middle Managers
Intelligent Support Systems
Knowledge Management System
Office Automation System
Transaction Processing System
Data Workers
Operational Managers
•Sales Management
•Inventory Control
•Annual budget
•Production Scheduling
•Cost Analysis
•Pricing Analysis
•Simulation
•Pgm coding
•System support
•Word Processing
•Desktop Publishing
•Order Processing
•Fulfillment
•Material Movement
•A/R, A/P, GL
•Payroll
•POS
Functions of an Information
System
Collect
Process
Store
Type II =
= Type I
Retrieve
Analyze
Disseminate
Information Architectures
Type I Systems
Transaction based systems with many low
value operations
Type II Systems
Decision enhancing system with few high value
operations
Development Approaches
Systems Development Life Cycle
(SDLC)
 Prototyping
 Purchasing
 Outsourcing

Competitive Environment
Global Economy
New Economics
Complex Environment
The Internet
Technology Environment