Unit 1

Chapter 1 Stair

1. Information system (IS)

is a set of interrelated components that collect, manipulate, store, and disseminate data and
information and provide a feedback mechanism to meet an objective.

2. Data, Information, and Knowledge

-Data: raw facts

-Information: collection of facts organized and processed to have additional value

beyond the value of individual facts

-Process: turning data into information

:set of logically related tasks performed to achieve a defined ourcome

-Knowledge: awareness and understanding of a set of information and the ways

that information can be made useful to support a specific task or reach a
decision

3. Characteristics of Valuable Information (11 items)

a. Accessible : can be easilty obtained in the right format and at the right time

b. Accurate: error free

c. Complete: contains all important facts

d. Economical: balance value of information with the cost producing it

e. Flexible: can be used for a variety of purposes

f. Relevant: important to the decision maker

g. Reliable: can be trusted by users

h. Secure: secure from access by unauthorized users

i. Simple: not overly complex

j. Timely: delivered when needed

k. Verifiable: can check to make sure it is correct

4. Components of IS
 a. Input: gathering and capturing raw data

b. Process: transforming data in useful outputs

c. Output: producing useful information, in the form of documents and reports

d. Feedback: information from the system that is used to make changes to input or
prcessing acivities

* Forecasting- predicting future events to avoid problems

5. IS can be computerized or manual

a. Computer-Based Information System (CBIS)

- is a single set of hardware, software, databases, telecommunications,

people, and procedures that are configured to collect, manipulate, store, and
process data into information.

-Information technology (IT) - refers to hardware software, databases, and

telecommunications

-Technology Infrastructure- refers to all hardware, software, databases,

telecommunications, people, and procedures that
are configured to collect, manipulate, store, and
process data into information
i. Hardware: physical components of a computer that performs the input,
process, storage and output activities of the computer

a.) Input devices: keyboards, mouse

b.) Processing devices: computer chips

c.) Output devices: printers and computer screens

ii. Software: computer programs that govern the operation of the computer

a.) System Software: controls basic computer operations

b.) Applications Software: for accomplishing specific tasks

iii. Databases: organized collection of facts and information, typically

onsisting of two or more related data files

iv. Telecommunications, Networks, Internet

a.) Telecom: electronic transmission of signals for communications

: allows work at home or while travelling

: thru wired, wireless, satellite transmissions

 b.) Networks: connect computers and equipment that enables
elecotronic communication

c.) Internet: largest computer network

*Cloud Computing-allows people to get information they need from the

Internet (cloud) instead of from desktops

>Public: applications available for everyone

>Private: only to coirporate managers and employees

*World Wide Web- WWW or the Web

- network of links (on the Internet) to documents containing

text, graphics, video and sound

*Web server- controls information about the documents and access to

them

*Intranet- internal network that allows people within an organization to

exchange information

*Extranet- network that allows selected outsiders to access authorized

resources of a company's intranet

-e.g using sites to check on status of a package

v. People: those who manage, run, program, and maintain the system

Users: those who work with IS to get results

vi. Procedures: strategies, policies, methods, and rules for using the CBIS,
including the operation, maintenance, and security of the
computer

6. Business Information Systems

a. E-commerce: business transactions executed electronically

:B2B, B2C, C2C

b. Mobile Commerce: m-commerce

:use of mobile, wireless devices to place orders and conduct

business

c.E-procurement: using IS and the Innternet to acquire parts and supplies

 d. E-business: perform all business related tasks and functions

>accounting, finance, marketing, manufacturing, HR

7. Enterprise Systems

a. Transaction Processing Systems

-Trasactions: any business-related exchange

-transaction processing system (TPS): organized collection of people,

procedures, software, databases, and
devices used to perform and record
business transactions

b. Enterprise Resource Planning (ERP)

-set of integrated programs capable of managing a company’s vital business

operations for an entire multisite, global organization.

c. Management Information Systems (MIS)

-organized collection of people, procedures, software, databases, and

devices that provides routine information to managers and decision makers

-focuses on operational efficiency

-help org to do things right

d. Decision Support System (DSS)

-organized collection of people, procedures, software, databases, and

devices that support problem-specific decision making

-help org to do the right thing

8. Systems Development

-activity of creating or modifying information systems

-Steps:

Step 1: Systems Investigation: gain a clear understanding of problem to be solved or

opportunity to be addressed

Step 2: Systems Analysis: defines problem and opportunities of the existing systems

Step 3: Systems Design: det. how new system should be developed to meet
business needs
 Step 4: Systems Implementation: creating or acquiring the various system
components, assembly, and putting it into
operation

Step 5: Systems Maintenance and Review: check and modify system so it continues
to meet changing business needs

9. Organizations and Information Systems

-Organization: collection of people and other resources established to accomplish a

set of goals

-Value chain: how org can add value to their products and services

: inbound logistics, warehouse and storage, production and

manufacturing, finished product storage, outbound logistics,
marketing and sales, and customer service

-Elements

a. Supply Chain Management (SCM)

>what supplies are required

>quantity needed to meet customer demand

>how supploes should be processed to FG

>how shipment of products shoud be scheduled, monitored, and

controlled

b. Customer Relationship Management (RCM)

:manage all aspects of customer encounters

10. Organizational Culture and Change

-Culture: set of major understandings and assumptions shared by a group

-Organizational culture: major understandings and assumptions for a business, other

org

-Organizational change: how orgs plan for, implement, and handle change

>Sustaining change: improve current state of business

>Disruptive change: completely transform and industry or create a new one

11. User Satisfaction and Technology Acceptance

 -User satisfaction: depend on quality of the system, and value of info it delivers to
users

-Technology acceptance model (TAM): specifies factors that can lead to better
attitudes about IS, higher acceptance and
usage of system

-Factors:

> perceived usefulness of technology

>ease of use

>quality of the IS

> degree the org supports its use

-Det. actual usage of IS by

a. Technology diffusion

how widely tech is spread throughout an org

b. Technology infusion

how deeply embedded technology is in an area of the org

12. Competitive Advantage

- significant and long-term benefit to a company over its competition, and can result in
higher-quality products, better customer service, and lower costs.

13. Factors that lead firms to seek competitive advantage

-Five forces model

a. Rivalry among existing competitors

-competitive industries characteristics

> high fixed costs of entering or leaving

>low product differentiation

>many competitors

b. Threat of new entrants

-when low cost of entry and exit and technology to start and maintain
business is commonly available

c. Threat of substitute products and services

d. Bargaining power of buyers

e. Bargaining power of suppliers