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Principles of Information Systems
textbook: Principles of Information Systems, Sixth Edition
Dr.Amer Alzaidi
Department of Information Systems
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Communication
n E-mail
: aalzaidi@uj.edu.sa
n Office
Hours: Sunday, Tuesday and
Thursday from 9am until 12non.
Note – Please send an e-mail if you want to
book an appointment.
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House Rules
n Formal
n No
Dress
Phone No Laptop on the table
n Once
I start talking and you are not in the
room you are late, welcome to attend but
you will be marked as late.
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Exam and Marks
Type
Mark
Attendance and Participation
15
Mid-term 1
10
Mid-term 2
10
Lab 1
5
Lab 2
5
Assignment
15
Final
40
Total
100
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Source of Studying
1.
Textbook
Author: Ralph Stair & George Reynolds
Title: “Principles of Information Systems”, Sixth Edition
2.
Course Presentation
3.
Your own lecture notes
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Course Outline
n
PART 1 Information Systems in Perspective
n
n
PART 2 Technology
n
n
n
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n
n
Chapter 5 Electronic and Mobile Commerce and Enterprise Systems
Chapter 6 Information and Decision Support Systems
Chapter 7 Knowledge Management and Specialized Information Systems
PART 4 Systems Development and Social Issues
n
n
Chapter 2 Hardware and Software
Chapter 3 Database Systems, Data Centers, and Business Intelligence
Chapter 4 Telecommunications, the Internet, Intranets, and Extranets
PART 3 Business Information Systems
n
n
Chapter 1 An Introduction to Information Systems in Organizations
Chapter 8 Systems Development
PART 5 Information Systems in Business and Society
n
Chapter 9 The Personal and Social Impact of Computers
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Chapter 1
An Introduction to
Information Systems in
Organizations
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Information Systems
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Why Learn About Information Systems in
Organizations?
n
Information systems used by:
n
Sales representatives
Managers
n
Financial advisors
n
n
Information systems:
n
Indispensable tools to help you achieve your career goals
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Introduction
n
Information system (IS):
n
n
A set of interrelated components that collect, manipulate, and forecast
data and information and provide feedback to meet an objective
Businesses:
n
Can use information systems to increase revenues and reduce costs
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Information Concepts
n
Information:
n
n
One of an organization’s most valuable resources
Often confused with the term data
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n
Data:
n
n
Information:
n
n
Collection of facts organized in such a way that they have value beyond
the facts themselves
Process:
n
n
Raw facts
Set of logically related tasks
Knowledge:
n
Awareness and understanding of a set of information
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Data, Information, and Knowledge
(continued)
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Data, Information, and Knowledge
(continued)
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Data, Information, and Knowledge
(continued)
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The Characteristics of Valuable
Information
n
If an organization’s information is not accurate or complete:
n
n
People can make poor decisions, costing thousands, or even
millions, of dollars
Depending on the type of data you need:
n
Some characteristics become more important than others
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The Value of Information
n
Directly linked to how it helps decision makers achieve their
organization’s goals
n
Valuable information:
n
Can help people and their organizations perform tasks more
efficiently and effectively
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What is an Information System?
n
Information system (IS) is a set of interrelated elements that:
n
n
n
n
n
Collect (input)
Manipulate (process)
Store
Disseminate (output) data and information
Provide a corrective reaction (feedback mechanism) to meet an
objective
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What is an Information System?
(continued)
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Input, Processing, Output, Feedback
n
Input:
n
n
Processing:
n
n
Converting data into useful outputs
Output:
n
n
Activity of gathering and capturing raw data
Production of useful information, usually in the form of documents
and reports
Feedback:
n
Information from the system that is used to make changes to input
or processing activities
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Manual and Computerized Information
Systems
n
An information system can be:
n
n
Example:
n
n
Manual or computerized
Investment analysts manually draw charts and trend lines to assist
them in making investment decisions
Computerized information systems:
n
Follow stock indexes and markets and suggest when large blocks of
stocks should be purchased or sold
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Computer-Based Information Systems
n
Single set of hardware, software, databases,
telecommunications, people, and procedures:
n
n
That are configured to collect, manipulate, store, and process data
into information
Technology infrastructure:
n
Includes all hardware, software, databases, telecommunications,
people, and procedures
n
Configured to collect, manipulate, store, and process data into
information
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Computer-Based Information
Systems (continued)
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Computer-Based Information Systems
(continued)
n
Hardware:
n
n
Software:
n
n
Consists of computer equipment used to perform input, processing,
and output activities
Consists of the computer programs that govern the operation of the
computer
Database:
n
Organized collection of facts and information, typically consisting of
two or more related data files
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Computer-Based Information Systems
(continued)
n
Telecommunications, networks, and the Internet:
n
n
Networks:
n
n
The electronic transmission of signals for communications
Connect computers and equipment to enable electronic
communication
Internet:
n
World’s largest computer network, consisting of thousands of
interconnected networks, all freely exchanging information
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Computer-Based Information Systems
(continued)
n
Intranet:
n
n
Internal network that allows people within an organization to
exchange information and work on projects
Extranet:
n
Network that allows selected outsiders, such as business partners
and customers, to access authorized resources of a company’s
intranet
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Computer-Based Information Systems
(continued)
n
People:
n
n
The most important element in most computer-based information
systems
Procedures:
n
Include strategies, policies, methods, and rules for using the CBIS
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Business Information Systems
n
Most common types of information systems:
n
n
Those designed for electronic and mobile commerce, transaction
processing, management information, and decision support
Some organizations employ:
n
Special-purpose systems, such as virtual reality, that not every
organization uses
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Business Information Systems
(continued)
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Business Information Systems
(continued)
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Electronic and Mobile Commerce
n
E-commerce:
n
Any business transaction executed electronically between:
n  Companies (business-to-business, B2B)
n
Companies and consumers (business-to-consumer, B2C)
Consumers and other consumers (consumer-to-consumer, C2C)
n
Business and the public sector
n
Consumers and the public sector
n
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Electronic and Mobile Commerce
(continued)
n
Mobile commerce (m-commerce):
n
n
E-commerce:
n
n
The use of mobile, wireless devices to place orders and conduct
business
Can enhance a company’s stock prices and market value
Electronic business (e-business):
n
Uses information systems and the Internet to perform all businessrelated tasks and functions
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Electronic and Mobile Commerce
(continued)
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Enterprise Systems: Transaction
Processing Systems and Enterprise
Resource Planning
n
Transaction:
n
n
Any business-related exchange, such as payments to employees and
sales to customers
Transaction processing system (TPS):
n
Organized collection of people, procedures, software, databases, and
devices used to record completed business transactions
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Enterprise Systems: Transaction
Processing Systems and Enterprise
Resource Planning (continued)
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Enterprise Systems: Transaction
Processing Systems and Enterprise
Resource Planning (continued)
n
Enterprise resource planning:
n
Set of integrated programs that manages the vital business operations for
an entire multisite, global organization
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Information and Decision Support
Systems
n
Management information system (MIS):
n
Organized collection of people, procedures, software, databases,
and devices that provides routine information to managers and
decision makers
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Information and Decision Support
Systems (continued)
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Information and Decision Support
Systems (continued)
n
Decision support system (DSS):
n
Organized collection of people, procedures, software, databases,
and devices that support problem-specific decision making
n
Can include:
n  A collection of models used to support a decision maker or user
(model base)
n
A collection of facts and information to assist in decision making
(database)
n
Systems and procedures (user interface or dialogue manager)
that help decision makers and other users interact with the DSS
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Information and Decision Support
Systems (continued)
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Specialized Business Information Systems:
Knowledge Management, Artificial
Intelligence, Expert Systems, and Virtual
Reality
n  Knowledge management systems (KMSs):
n
Organized collection of people, procedures, software, databases, and
devices to:
n
n
Create, store, share, and use the organization’s knowledge and
experience
Artificial intelligence (AI):
n
Computer system takes on characteristics of human intelligence
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Specialized Business Information
Systems (continued)
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Specialized Business Information
Systems (continued)
n
Expert systems:
n
n
Give computer ability to make suggestions and function like an
expert in a particular field
Virtual reality and multimedia:
n
Virtual reality:
n  Simulation of a real or imagined environment that can be
experienced visually in three dimensions
n
Multimedia:
n  Can include photos and images, the manipulation of sound, and
special 3D effects
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Systems Development
n
Systems development:
n
n
The activity of creating or modifying existing business systems
Outsourcing:
n
Allows a company to focus on what it does best and delegate other
functions to companies with expertise in systems development
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Systems Development (continued)
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Systems Investigation and Analysis
n
Goal of systems investigation:
n
n
To gain clear understanding of the problem to be solved or
opportunity to be addressed
Systems analysis:
n
Defines the problems and opportunities of the existing system
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Systems Design, Implementation, and
Maintenance and Review
n
Systems design:
n
n
Systems implementation:
n
n
Determines how new system will work to meet business needs
defined during systems analysis
Acquiring various system components defined in design step,
assembling them, and putting the new system into operation
Systems maintenance and review:
n
Checks and modifies the system so that it continues to meet
changing business needs
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Organizations and Information
Systems
n
Organization:
n
Formal collection of people and other resources established to
accomplish a set of goals
n
A system
Constantly uses money, people, materials, machines and other
equipment, data, information, and decisions
n
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Organizations and Information
Systems (continued)
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Organizations and Information
Systems (continued)
n
Value chain:
n
n
Series (chain) of activities that includes inbound logistics and warehouse
and storage
Supply chain management (SCM):
n
Determines:
n  What supplies are required for value chain
n
What quantities are needed to meet customer demand
n
How supplies should be processed into finished goods and services
How shipment of supplies and products to customers should be
scheduled, monitored, and controlled
n
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Organizations and Information
Systems (continued)
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Organizations and Information
Systems (continued)
n
Customer relationship management (CRM) programs:
n
n
Help companies manage all aspects of customer encounters
Can get customer feedback to help design new products and
services
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Organizational Culture and Change
n
Culture:
n
n
n
Set of major understandings and assumptions shared by a group
Organizational culture:
n
Major understandings and assumptions
n
Influences information systems
Organizational change:
n
How organizations plan for, implement, and handle change
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User Satisfaction and Technology
Acceptance
n
Technology acceptance model (TAM):
n
n
Technology diffusion:
n
n
Specifies the factors that can lead to better attitudes about the
information system
Measure of how widely technology is spread throughout an organization
Technology infusion:
n
Extent to which technology permeates a department
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User Satisfaction and Technology
Acceptance (continued)
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Competitive Advantage
n
Significant and (ideally) long-term benefit to a company over its
competition
n
Can result in higher-quality products, better customer service, and
lower costs
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Factors That Lead Firms to Seek
Competitive Advantage
n
The five-forces model:
n
n
Rivalry among existing competitors
Threat of new entrants
n
Threat of substitute products and services
Bargaining power of buyers
n
Bargaining power of suppliers
n
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Strategic Planning for Competitive
Advantage
n
Strategies:
n
n
Cost leadership
Differentiation
n
Niche strategy
Altering the industry structure
n
Creating new products and services
n
Improving existing product lines and service
n
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Strategic Planning for Competitive
Advantage (continued)
n
Other strategies:
n
n
Growth in sales
First to market
n
Customizing products and services
Hiring the best people
n
Innovation
n
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Performance-Based Information
Systems
n
Major stages in the use of information systems:
n
Cost reduction and productivity
Competitive advantage
n
Performance-based management
n
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Productivity
n
A measure of output achieved divided by input required
n
Higher level of output for a given level of input means greater
productivity
n
Lower level of output for a given level of input means lower
productivity
n
Productivity = (Output / Input) × 100%
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Return on Investment and the Value of
Information Systems
n
Return on investment (ROI):
n
n
n
One measure of IS value
Investigates the additional profits or benefits that are generated as a
percentage of the investment in IS technology
Earnings growth:
n
The increase in profit that the system brings
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Return on Investment and the Value of
Information Systems (continued)
n
Market share and speed to market:
n
n
Customer awareness and satisfaction:
n
n
The percentage of sales that a product or service has in relation to
the total market
Performance measurement is based on feedback from internal and
external users
Total cost of ownership:
n
The sum of all costs over the life of the information system
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Risk
n
Managers must consider the risks of designing, developing,
and implementing systems
n
Information systems can sometimes be costly failures
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Careers in Information Systems
n
Degree programs:
n
Information systems
Computer information systems
n
Management information systems
n
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Roles, Functions, and Careers in IS
n
Primary responsibilities in information systems:
n
Operations:
n  System operators primarily run and maintain IS equipment
n
Systems development:
n  Focuses on specific development projects and ongoing
maintenance and review
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Roles, Functions, and Careers in IS
n
Primary responsibilities in information systems (continued):
n
Support:
n  Provides user assistance in hardware and software acquisition
and use, data administration, user training and assistance, and
Web administration
n
Information service units:
n
A miniature IS department attached and directly reporting to a
functional area in a large organization
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Typical IS Titles and Functions
n
Chief information officer (CIO):
n
n
Employs the IS department’s equipment and personnel to help the
organization attain its goals
LAN administrators:
n
Set up and manage the network hardware, software, and security
processes
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Typical IS Titles and Functions
(continued)
n
n
Internet careers:
n
Internet strategists and administrators
n
n
Internet systems developers
Internet programmers
n
Internet or Web site operators
Certification:
n
Process for testing skills and knowledge resulting in an
endorsement by the certifying authority
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Other IS Careers
n
New and exciting careers have developed in security and fraud
detection and prevention
n
Other IS career opportunities include being employed by
technology companies, such as:
n
Microsoft (www.microsoft.com), Google (www.google.com), Dell
(www.dell.com), and many others
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Working in Teams
n
It is always good for IS professionals to:
n
n
Have good communications skills and the ability to work with other
people
Getting the best team of IS personnel to work on important
projects is:
n
Critical in successfully developing new information systems or
modifying existing ones
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Finding a Job in IS
n
Developing an online résumé can be critical to finding a good job
n
Job search approaches:
n
n
n
On campus visits
Referrals from professors, friends, and family members
The Internet:
n  Online job sites
n
Company Web sites
n
Social networking sites
Blogs
n
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Global Challenges in Information
Systems
n
Cultural challenges
n
Language challenges
n
Time and distance challenges
n
Infrastructure challenges
n
Currency challenges
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Global Challenges in Information
Systems (continued)
n
Product and service challenges
n
Technology transfer issues
n
State, regional, and national laws
n
Trade agreements
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Summary
n
Data:
n
n
To be valuable, information must be:
n
n
Raw facts
Accurate, complete, economical to produce, flexible, reliable, relevant,
simple to understand, timely, verifiable, accessible, and secure
Types of systems used within organizations:
n
E-commerce and m-commerce, TPS and ERP, MIS and DSS, and
specialized business information systems
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Summary (continued)
n
Systems development:
n
n
Organization:
n
n
The activity of creating or modifying existing business systems
Formal collection of people and various other resources established
to accomplish a set of goals
Information systems personnel typically work in an IS
department that employs:
n
A chief information officer, systems analysts, computer
programmers, and computer operators
Dr.Amer Alzaidi Department of Information Systems