Chapter 1

Introduction to
Information Systems
 Information System(IS)

 Information systems are the software and hardware

systems that support data-intensive applications.

 the collection of technical and human resources that

provide the storage, computing, distribution, and
communication for the information required by all or
some part of an enterprise. A special form of IS is a
Management Information System (MIS), which
provides information for managing an enterprise.
 Information Concepts (1)
 Data vs. Information
 Data
• Raw facts
• Distinct pieces of information, usually formatted in
a special way
 Information
• A collection of facts organized in such a way that
they have additional value beyond the value of the
facts themselves
 Data ‘Discussion’ (1)
(1) Distinct pieces of information, usually formatted in a special
way. All software is divided into two general categories: data and
programs. Programs are collections of instructions for
manipulating data.

Data can exist in a variety of forms -- as numbers or text on pieces

of paper, as bits and bytes stored in electronic memory, or as facts
stored in a person's mind.
 Strictly speaking, data is the plural of datum, a single piece of
information. In practice, however, people use data as both the
singular and plural form of the word.

(2) The term data is often used to distinguish binary

machine-readable information from textual human-readable
information. For example, some applications make a distinction
between data files (files that contain binary data) and text files
(files that contain ASCII data).

(3) In database management systems (DBMS), data files are the files
that store the database information, whereas other files, such as
index files and data dictionaries, store administrative information,
known as metadata.
 Terminology
 Process
• A set of logically related tasks performed to achieve
a defined outcome
 Process
• (n) An executing program. The term is used loosely
as a synonym of task.
• (v) To perform some useful operations on data.
 Terminology
 Knowledge
• An awareness and understanding of a set of
information and how that information can be made
useful to support a specific task
 Knowledge base
• The collection of data, rules, procedures, and
relationships that must be followed to achieve value
or the proper outcome
 Types of Data
Data Represented by
Alphanumeric data Numbers, letters, and other characters

Image data Graphic images or pictures

Audio data Sound, noise, tones

Video data Moving images or pictures
 Data  Information

Data Transformation Information

 Characteristics of
Valuable Information
 Characteristics
 Accurate, complete, economical, flexible,
reliable, relevant, simple, timely, verifiable,
accessible, secure
 System
 System
 A set of elements or components that interact
to accomplish goals
 A combination of components working
together
 System ‘Discussion’
(1) Refers to a combination of components working together. For
example, a computer system includes both hardware and software.
A Windows system is a personal computer running the Windows
operating system. A desktop publishing system is a computer
running desktop publishing software.
(2) Short for computer system.
(3) Short for operating system.
(4) An organization or methodology. The binary numbering system,
for instance, is a way to count using only two digits.
 System Elements
 Inputs
 Processing mechanisms
 Outputs
 System Example
Elements
System Processing Goal
Inputs Outputs
elements
Actors, director, Filming, Finished Entertaining
staff, sets, editing, film movie, film
Movie equipment special delivered to awards,
effects, movie profits
distribution studio
System Performance and Standards
 Efficiency
 A measure of what is produced divided by what is
consumed
 The ability to do something or produce something
without wasting materials, time, or energy: the quality
or degree of being efficient
 Effectiveness
 A measure of the extent to which a system achieves its
goals
 System performance standard
 A specific objective of the system.
System Variables and Parameters
 System variable
 A quantity or item that can be controlled by the
decision maker
 E.g. the price a company charges for a product
 System parameter
 A value or quantity that cannot be controlled
by the decision maker
 E.g., cost of a raw material
 Modeling a System
 Model
 An abstraction or an approximation that is used
to represent reality
 Types of models
 Narrative (aka descriptive)
 Physical
 Schematic
 Mathematical Next slide
 Information System (IS)
 Definition
 A set of interrelated elements or components that
collect (input), manipulate (process), and disseminate
(output) data and information and provide a feedback
mechanism to meet an objective
 (IS) Pronounced as separate letters, and short for
Information Systems or Information Services. For
many companies, IS is the name of the department
responsible for computers, networking and data
management. Other companies refer to the department
as IT (Information Technology) and MIS
(Management Information Services).
 What is an Information System?
 Schematic model of an information system

Feedback

Input Processing Output

 Input, Processing, Output,

 Input
 The activity of gathering and capturing data
 Whatever goes into the computer
 Processing
 Converting or transforming data into useful outputs
 Output
 Useful information, usually in the form of documents
and/or reports
 Anything that comes out of a computer
 Manual vs. Computerized
Systems
 Manual systems still widely used
 E.g., some investment analysts manual draw charts and
trend lines to assist them in making investment
decisions
 Computerized systems
 E.g., the above trends lines can be drawn by computer
 Evolution
 Many computerized system began as manual systems
 E.g., directory assistance
 Computer-based Information
Systems
 A CBIS is composed of…
 Hardware
 Software
 Databases
 Telecommunications
 People
 Procedures
 Together they are…
 Configured to collect, manipulate, store, and process
data into information
 Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks
 Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks
 Hardware
 Hardware
 Computer equipment used to perform input,
processing, and output activities
 The objects that you can actually touch, like
disks, disk drives, display screens, keyboards,
printers, boards, and chips.
 Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks
 Software
 Software
 Computer programs that
govern/determine/control the operation of the
computer
 Computer instructions or data
 Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks
 Database
 Database
 An organized collection of facts and
information
 A collection of information organized in such a
way that a computer program can quickly
select desired pieces of data
 Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks
 Telecommunications
 Telecommunications
 The electronic transmission of signals for
communications; enables organizations to link
computer systems into effective networks
 Refers to all types of data transmission, from
voice to video
 Parts of a CBIS
 Five parts
 Hardware
 Software
 Database
 Telecommunications
 Networks
 Networks
 Network
 Used to connect computers and computer
equipment in a building, around the country,
across the world, to enable electronic
communications
 A group of two or more computer systems
linked together
 Network ‘Discussion’ (1)
There are many types of computer networks, including:
local-area networks (LANs) : is a group of computers and network
devices connected together, usually within the same building. By
definition, the connections must be high speed and relatively
inexpensive
Metropolitan area network (MAN) is a larger network that usually
spans several buildings in the same city or town. The IUB network is
an example of a MAN.
wide-area networks (WANs) : in comparison to a MAN, is not restricted
to a geographical location, although it might be confined within the
bounds of a state or country. A WAN connects several LANs, and
may be limited to an enterprise (a corporation or an organization) or
accessible to the public. The technology is high speed and relatively
expensive. The Internet is an example of a worldwide public WAN..
 Network ‘Discussion’ (2)
In addition to these types, the following characteristics are
also used to categorize different types of networks:
topology : The geometric arrangement of a computer system.
Common topologies include a bus, star, and ring.
protocol : The protocol defines a common set of rules and
signals that computers on the network use to
communicate. One of the most popular protocols for
LANs is called Ethernet. Another popular LAN protocol
for PCs is the IBM token-ring network .
architecture : Networks can be broadly classified as using
either a peer-to-peer or client/server architecture.
 Network ‘Discussion’ (3)
Computers on a network are sometimes called nodes.
Computers and devices that allocate resources for a network
are called servers.
Network ‘Discussion’ (4)
 Internet and Intranet
 Internet
 The world’s largest telecommunications network
 A network of networks
 Free exchange of information
 A global network connecting millions of computers
 Intranet
 A network that uses Internet technology within an
organization
 A network belonging to an organization
 People and Procedures
 People
 The most important element in most computer-
based information systems
 Includes people who manage, run, program,
and maintain the system
 E.g., IT professionals (you!)
 Procedures
 Includes the strategies, policies, methods, and
rules for using the CBIS
 Business Information Systems
 Types
 Transaction processing systems
 E-commerce systems
 Management information systems
 Decision support systems
 Expert systems
Transactions Processing Systems
 Transaction
 Any business-related exchange
 E.g., generating a weekly payroll
 Transaction processing system (TPS)
 An organized collection of people, procedures,
software, databases, and devices used to record
completed for for business related exchanges
 Payroll Example

Hours
worked
Payroll
Payroll
transaction
checks
processing
Pay
rate
 Business Information Systems
 Types
 Transaction processing systems
 E-commerce systems
 Management information systems
 Decision support systems
 Expert systems
 E-Commerce System
 E-commerce
 Involves any business transaction executed
electronically
 Conducting business on-line
 For example, between…
• Companies
• Companies and consumers
• Business and the public sector
• Consumers and the public sector
 Example for placing a purchase order
Purchase Order - Traditional
Purchase Order – E-commerce
 Business Information Systems
 Types
 Transaction processing systems
 E-commerce systems
 Management information systems
 Decision support systems
 Expert systems
Management Information Systems
 An MIS is…
 An organized collection of people, procedures,
software, databases, and devices used to
provide routine information to managers and
decision makers
 Business Information Systems
 Types
 Transaction processing systems
 E-commerce systems
 Management information systems
 Decision support systems
 Expert systems
 Decision Support Systems
 A DSS is…
 An organized collection of people, procedures,
software, databases, and devices used to
support problem-specific decision making
 A DSS helps a manger “do the right thing”
 Business Information Systems
 Types
 Transaction processing systems
 E-commerce systems
 Management information systems
 Decision support systems
 Expert systems
 Expert Systems
 An expert system is…
 A computer application that performs a task that would
otherwise be performed by a human expert
 gives the computer the ability to make suggestions and
to act like an expert in a particular field
 Examples: diagnose human illnesses, make financial
forecasts, schedule routes for delivery vehicles
 Expert systems typically include “artificial
intelligence”.
 Working with Systems (1)
 Systems development
 The activity of creating or modifying an existing
business system
 Systems investigation and analysis
 Defines the problems and opportunities of an existing
system
 Systems design
 Determine how a new system will work to meet
business needs
 Working with Systems (2)
 Systems implementation
 Creating and acquiring system components
defined in the design
 Systems maintenance and review
 Checks and modifies the system so that it
continues to meet changing business needs
End of Chapter 1

Chapter 2