An Introduction to Information
Systems
Chapter 1
Principles of Information Systems,
Sixth Edition
Information Concepts
Principles of Information Systems,
Sixth Edition
Information System
A set of interrelated components that collect,
manipulate, and disseminate data and
information, and provide feedback to meet an
objective
• Examples: ATMs, airline reservation systems,
course reservation systems
Principles of Information Systems,
Sixth Edition
Data vs. Information
• Data: raw facts
• Information: collection of facts organized in
such a way that they have value beyond the
facts themselves
Principles of Information Systems,
Sixth Edition
Types of Data
Principles of Information Systems,
Sixth Edition
The Characteristics of Valuable
Information
Principles of Information Systems,
Sixth Edition
The Characteristics of Valuable
Information
Principles of Information Systems,
Sixth Edition
The Characteristics of Valuable
Information
Principles of Information Systems,
Sixth Edition
System and Modeling
Concepts
Principles of Information Systems,
Sixth Edition
System
A set of elements or components that interact to
accomplish goals
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Input
Processing mechanism
Feedback
Output
System boundary
Principles of Information Systems,
Sixth Edition
Components of a System
Principles of Information Systems,
Sixth Edition
System and Modeling Concepts
Principles of Information Systems,
Sixth Edition
System Performance and Standards
• Efficiency: output/input
• Effectiveness: extent to which system attains its
goals
• Performance standard: specific objective of a
system
Principles of Information Systems,
Sixth Edition
System Variables and Parameters
• System variable - item controlled by decisionmaker
• System parameter - value that cannot be
controlled
Principles of Information Systems,
Sixth Edition
Systems Classification
Principles of Information Systems,
Sixth Edition
System Performance and Standards
Principles of Information Systems,
Sixth Edition
Modeling a System
Principles of Information Systems,
Sixth Edition
Modeling a System
• A model is an abstraction that is used to
represent reality
– 4 major types of models
• A narrative model is based on words
– Logical, not physical
• A physical model is tangible
• A schematic model is a graphic representation
– Graphs and charts
• A mathematical model is an arithmetic
representation
Principles of Information Systems,
Sixth Edition
What Is An Information
System?
Principles of Information Systems,
Sixth Edition
Components of an Information
System
Principles of Information Systems,
Sixth Edition
Computer-Based
Information Systems (CBIS)
Principles of Information Systems,
Sixth Edition
Components of a CBIS
Principles of Information Systems,
Sixth Edition
Telecommunications, Networks, and
the Internet
Principles of Information Systems,
Sixth Edition
Telecommunications, Networks, and
the Internet
Principles of Information Systems,
Sixth Edition
Business Information
Systems
Principles of Information Systems,
Sixth Edition
Business Information Systems
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Electronic Commerce
Transaction Processing Systems
Management Information Systems
Decision Support Systems
Principles of Information Systems,
Sixth Edition
E-Commerce
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Business-to-business
Business-to-consumer
Business-to-government
Government-to-consumer
Principles of Information Systems,
Sixth Edition
Electronic Commerce
Principles of Information Systems,
Sixth Edition
Transaction Processing Systems
A transaction processing system (TPS) is an organized
collection of people, procedures, software, databases,
and devices used to record completed business
transactions.
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Process business exchanges
Maintain records about the exchanges
Handle routine, yet critical, tasks
Perform simple calculations
Principles of Information Systems,
Sixth Edition
Payroll Transaction Processing
System
Principles of Information Systems,
Sixth Edition
Enterprise Resource Planning (ERP)
• Integrated programs that can manage a
company’s entire set of business operations
• Often coordinate planning, inventory control,
production, and ordering
Principles of Information Systems,
Sixth Edition
Management Information Systems (MIS)
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Routine information for routine decisions
Operational efficiency
Use transaction data as main input
Databases integrate MIS in different functional
areas
Principles of Information Systems,
Sixth Edition
Management Information Systems (MIS)
Principles of Information Systems,
Sixth Edition
MIS Outputs
• Scheduled reports
• Demand reports
• Exception reports
Principles of Information Systems,
Sixth Edition
Decision Support Systems (DSS)
• DSS- A decision support system is an organized
collection of people, procedures, software,
databases, and devices used to support
problem-specific decision making.
– Interactive support for non-routine decisions or
problems
– End-users are more involved in creating a DSS than
an MIS
Principles of Information Systems,
Sixth Edition
Essential DSS Elements
Principles of Information Systems,
Sixth Edition
Special-Purpose Business Information
Systems
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Artificial Intelligence (AI) Systems
Virtual Reality Systems
Expert Systems
Other Special-Purpose Business Information
Systems
Principles of Information Systems,
Sixth Edition
The Major Elements of Artificial
Intelligence
Principles of Information Systems,
Sixth Edition
Virtual Reality
Principles of Information Systems,
Sixth Edition
Data Glove
Principles of Information Systems,
Sixth Edition
Systems Development
Principles of Information Systems,
Sixth Edition
Why Learn About Information
Systems?
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Advance in your career
Solve problems
Realize opportunities
Meet your career goals
Principles of Information Systems,
Sixth Edition
Computer and Information System
Literacy
• Computer literacy - knowledge of computer
systems and equipment
• Information system literacy - knowledge of
how data and information are used
Principles of Information Systems,
Sixth Edition
Information Systems in Functional
Areas of Business
• Finance and Accounting
• Sales and Marketing
• Manufacturing
Principles of Information Systems,
Sixth Edition
Information Systems in Industry
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Investment firms
Banks
Publishing companies
Healthcare organizations
Management consulting firms
Principles of Information Systems,
Sixth Edition
Summary
• Data - raw facts
• Information - data transformed into a
meaningful form
• System - set of elements that interact to
accomplish a goal
• Systems development - creating or modifying
existing business systems
Principles of Information Systems,
Sixth Edition