System= A group of interrelated components, with a clear defined boundary,
working together toward a common goal by accepting input and producing
output in an organized transformation process.
Components of a system= There are three components of a system
Input= capturing and assembling elements which enter in a system to be
processed.
Process= transformation process that convert input to output.
Output= transferring elements that have been produce by a transformation
process
Cybernetic system=A system that consists upon feedback and control function is
some time called cybernetic system mean a self-monitoring and self-regulating
system.
Feedback means data about performance of a system
Control means monitoring and evaluating feedback whether they moving toward
the achievement of its goal.
Data= row facts and observations about a physical phenomena or a business
transactions.
Information= data that have been converted in meaningful and useful context.
Fundamental components of IS= people, hardware, software, data, network
resources.
Types of info product produced= input, processing, output, storage and control.
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Importance of IS= an info system is any combination of info tech and people
activities using that tech to support operation and management. Example
includes: A paper based ledger, day planner notebooks etc…
Importance of IS= an info system is any combination of info tech and people
activities using that tech to support operation and management. Computers and
info system have become main part in every function of an organization so the
understanding of an effective and responsible use if Info System is important for
managers, business professional and other workers
IS framework for business professional= the knowledge that managers and
business professionals need to know is an IS frame work for business professional.
It includes: Foundation concepts (fundamental behavior, technical, business and
managerial concepts), Info Tech (concepts, development or management issues
regarding hardware, software, data management etc…), Business applications
(major uses of IT such as in business operations, decision making, and strategy
making etc…), development process (solutions and implements of IT and endusers problem and opportunities of businesses) and management challenges
(how to effectively and ethically manage IS function and IT resources to achieve
top performance).
Role of IS= IS play three vital roles in organization: 1- support to business process
and operations. 2- Decision-making by employees and managers. 3- Developing
strategies for competitive advantages.
Role of E-Business= businesses are now becoming e-business enterprise. Internet
and internet like networks (inside the enterprise, between the enterprise and
trade partners are becoming primary information technology infrastructure that
support the operation in many companies. e-business enterprise rely on such tech
to: -reengineer and revitalize the internal business process. -implement ecommerce among businesses and their customers and suppliers. -promote
enterprise collaboration among business team and workgroups.
E-business= Use of internet and other tech for work, empower business
processes, e-commerce, enterprise collaboration, within the company with its
customers and suppliers and other partners.
Enterprise collaboration system=a system that involves to use of groupware tools
to support the communication, coordination and collaboration among the
members of networked team and work groups.
E-commerce= selling, buying, marketing, servicing of products, services and
information over a variety of computer networks.
Types of IS= conceptually IS are either: -Operation support systems. Management support systems.
Operation support systems= IS needed to process data generated by and used in
business operation. There are two types of Operation support systems:
1-Transaction processing system: In Transaction processing system we process
data resulting from day to day business transactions. TPS also provide information
for internal and external use. 2-Process control system: in Process control system,
we use computers for control physical processes. These computers automatically
make decisions and adjust the physical production process.
Management support systems= Management support systems focus on and
support for effective decision making by managers. There are three types
Management support systems: 1- Management info systems (MIS): MIS is a very
common type of Management support systems. They provide managerial end
users with information products that support much of their day to day decisionsmaking needs. 2-Decision support system (DSS): Decision support systems
provide managerial end users with information in a interactive session on an ad
hoc basis. 3- Executive info systems (EIS): EIS provides top and middle level
management with easy and immediate access to selective information about key
factors that are critically accomplishing a firm’s strategic objectives.
Expert systems= Expert systems are systems that provides expert opinion about
operational and managerial decisions.
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Organization (Technically) = an organization is a stable, formal, social structure
that takes resources from the environments and process them to produced
outputs.
Organization (Behaviorally) =a collections of rights, privileges and obligations that
is delicately balanced over a period of time through conflict and conflict of
resolution.
Routines of Businesses= standard operating procedures are called Routines of
Businesses.
Business Processes= a collection of Routines of Businesses are called Business
Processes.
Business Firms= a collection of Business Processes are called Business Firms.
Organizational environment= organizations and environments have reciprocals
relationship. Organizations are open to, and dependent on social and physical
environment. And can influence their environment.
Transection cost theory= firms traditionally grew in size to reduce transection
costs. IT potentially reduces the costs for given size and opening up the
opportunity of revenue growth without increasing size. Or even revenue growth
accompanied by shrinking size.
Agency Theory= as firm grew in size and complexity, they experience the raise in
agency costs. IT can reduce agency cost making it possible for firms to grow
without adding the costs of supervising and without adding employees.
Michael Porter’s competitive forces model= this model provide the general view
about firm, its competitors, and its environment. Five competitive forces are
these: 1-Traditional Competitors: 2-New entrants: 3-Subtitute products and
services. 4-Customers: 5-Suppliers:
Four generic strategies for dealing with competitive forces= 1-Low cost
leadership: use of IT to produce products and services at a lower cost than
competitors while enhancing quality and level of servicing. 2-Product
differentiation: use of IT to enable new products or services OR greatly change
customer convenience and experience in using your exist products and services.
3-Focus on market niche: use of IT to enable focused strategy on a single market
niche. 4- Strengthen customer and supplier intimacy: use of IT to develop strong
ties and loyalties with customer and suppliers.
Business Value Chain Model= this model views firms as series of activities that
add values to products or services. And highlights activities where competitive
strategies can best be applied.
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File organization concepts= computer systems uses a hierarchy that start from a
bit that is 0, 1. Group of bits is character. Group of character is field. Group of
related field is record. Group of related record is file. Group of related files is
database.
Entity= a person, place or thing on which we store information.
Attribute= each characteristic or quality that describe the entity.
Problems facing with Traditional file Processing= 1-Duplication of data: 2-poor
data security, programmer errors etc…
Database=collection of data organized to serve many applications by centralizing
and controlling duplication data.
Database management system= interfaces between application programs and
physical data file is called Database management system.
Single human resources database= a Single human resources database provides
different view of data, depending upon the information requirement of user.
Relational Database management system= represent data in two dimensional
tables called Relational Database management system. Example is the table of
suppliers and parts.
Table= Grid of columns and rows is called Table.
Rows= Records for different entities are called rows.
Fields= Represents attribute for entity is called fields.
Key field= Field used to uniquely identify each record is called key field.
Primary key= Field in table used for key fields is called primary key.
Foreign key= Primary key used in second table as look-up field to identify records
from original table is called foreign key.
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Entity Relationship Modelling (ERM) = a methodology of documentation
databases illustrating the relationship between various entities in the database is
called ERM.
Entity= A collection of number of data elements is called Entity.
ERM Development Process= 1-Identify entities: 2-determine attributes for each
entity: 3-select the primary key for each entity: 4-establish the relationship
between the entities: 5-Draw a model.
Composite Primary Key= a primary key which consist upon more than one
attributes within an entity.
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Data flow diagram= graphically represent the processes that capture, manipulate,
store and distribute data between a system and its environment model.
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Operation of a Database management system= three operations used to develop
useful set of data: 1-Select: creates the subset of data of all records meet stated
criteria. 2-Join: combine two rational tables to provide users with more
information than individual in table. 3-Project: creates subsets of column in table,
creating table with only the information specified.
Distributing databases= store date in more than one place is called distributing
database. There are two types of distributing database. 1-Patitioned: separate
locations stored different parts of data. 2-replicated: central database duplicated
in entirely at different locations.
Data ware house= in data ware house, we store current and historical data from
many core operational transection system. There are two components of data
ware house. 1-Internal source: data about manufacturing, operational and
customer etc… are stored in internal sources. 2-External sources: data about
other companies’ financial statement are stored in external sources.
Data mart= a subset of data ware house containing a portion of organization’s
data for a specified function.
Business intelligence= identification of trends and phenomena form data for
making better decision is called business intelligence.
Data mining= a large pool of data to find rules and patterns that can be used in
guide decision making.
Online analytical processing= through OLAP, we can ask specific question about
our products and services.
Predictive analysis= use of data mining, historic data and assumptions about
future conditions to predict outcomes of events.
Data administration= a special organizations function that manages data
resources such as data planning, info policy, data quality slandered etc…
Data quality audit= structured survey of the accuracy and completeness of the
data in an information system.
Data cleansing= activities of detecting and correctness data in database that are
incorrect, improperly formatted etc…
Information policy= formal rules about using, distributing and maintenance of
information in an organization.
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Cross functional information system= information system that cross the
boundary of traditional business functions in order to reengineer and improve
vital business process all across the enterprise.
Transaction Processing System= Transaction Processing System is a cross
functional system that process data resulting from occurrence of business
transactions. The Transaction Processing cycles involves: 1-Data entry: capture
the business data. 2-Transaction processing: data are processed immediately or
periodically.3-database maintenance: updating database to reflect changes from
day to day transactions. 4-documents and reports generation: including
transaction documents, transaction listings and error reports etc… 5-inquiry
processing activities: making inquiries and receiving responses concerning the
results of transaction processing activities.
Enterprise application Integration (EAI) = EIA software connects cross-functional
system that serves as middleware to provide data conversion, communication
between systems etc…
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Functional Business system= Functional Business system support the function of
business like HR, Accounting, Marketing, Production and finance through many
operational OR management support systems.
Role of marketing function= it helps in planning, advertising promotion, sales
exit, new product development, making new markets, new customer etc…
Interactive Marketing= customer focused marketing process (that it based on
using internet, intranet, extranet, other tech etc…) to establish two way
transactions between a business and its customers.
Targeted marketing= = dividing a market into segments and then concentrating
your marketing efforts on one or a few key segments.