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Chapter 1 Foundation Concepts MIS
Chapter 1 Foundation Concepts MIS
N
CONCEPTS
Compiler: 1
- DeGu A.
(Msc)
FUNDAMENTALS OF
INFORMATION
SYSTEMS
Compiler: 2
- DeGu A.
(Msc)
Information Systems
Framework
Compiler: 3
- DeGu A.
(Msc)
IS Framework (cont’d)
• Foundation Concepts
– Fundamental concepts about the
components and roles of information
systems
• Information Technologies
– Major concepts, developments, and
management issues in information
technology
Compiler: 4
- DeGu A.
(Msc)
IS Framework (cont’d)
• Business Applications
– The major uses of information systems for
operations, management, and competitive
advantage
• Development Processes
– How business professionals and information
specialists plan, develop, and implement
information systems
• Management Challenges
– The challenge of managing effectively and
ethically
Compiler: 5
- DeGu A.
(Msc)
System Concepts
What is a system?
A System can be simply defined as a group
of interrelated or interacting elements forming
a unified whole.
e.g.:
- Physical system of the sun and its planets
- Biological system of the human body
- Technological system of an oil refinery
- Socioeconomic system of a
business organization
Compiler: 6
- DeGu A.
(Msc)
More appropriate
framework for describing IS:
A system is a group of interrelated
components working together
toward a common goal by accepting
inputs and producing outputs in an
organized transformation process.
Compiler: 7
- DeGu A.
(Msc)
Some System Characteristics
• A system exists and functions in an
environment containing other systems.
• Subsystem – a component of a larger
system.
• Systems that share the same
environment may be connected to one
another through a shared boundary,
or interface.
• Open versus closed system
• Adaptive system
Compiler: 8
- DeGu A.
(Msc)
Information Systems Defined
• IS can be defined as an organized combination of
resources and activities that collect, process,
store and disseminate information.
Compiler: 9
- DeGu A.
(Msc)
Components of an
Information
System
Compiler: 10
- DeGu A.
(Msc)
IS Resources
People
Hardware
Software
Communications Networks
Data
Compiler: 11
- DeGu A.
(Msc)
People
Compiler: 12
- DeGu A.
(Msc)
Hardware
- Machines Computers, Monitors,
Printers, Scanners
- Media CD, Flash, Hard disc,
Paper forms
Compiler: 13
- DeGu A.
(Msc)
Software
- Programs Operating systems,
Spreadsheet, Word processing
- Procedures Data entry
procedures,
Error correction
procedures
Compiler: 14
- DeGu A.
(Msc)
Communications Networks
- Comm. Media Twisted-pair wire,
Coaxial cable, Fiber optics
- Comm. Processor Modems,
Multiplexers, Internetwork processors
- Network SW Novell, Windows
NT
Compiler: 15
- DeGu A.
(Msc)
Data Resources
- Product descriptions
- Customer records
- Inventory databases
Compiler: 16
- DeGu A.
(Msc)
IS Activities
Input
Process
Output
Storage
Control
Compiler: 17
- DeGu A.
(Msc)
Input
Recording
Editing
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- DeGu A.
(Msc)
Processing
Data Manipulation
- Calculating
- Comparing
- Sorting
- Classifying
- Summarizing
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- DeGu A.
(Msc)
Output
Goal of IS is the production of
appropriate information products for end
users
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- DeGu A.
(Msc)
Storage
Data and information are retained in an
organized manner for later use
Control
An IS should produce feedback about its
input, processing and storage activities
Monitor and evaluate the feedback
• Structure
• Business processes
• Culture
• Politics
Compiler: 25
- DeGu A.
(Msc)
Dimensions of Information
Systems (Cont’d)
The Management Dimension of IS
Managers are:
• Sense makers
• Decision makers
• Planners
• Innovators of new processes
• Leaders: set agendas
Compiler: 26
- DeGu A.
(Msc)
Dimensions of Information
Systems (Cont’d)
The Management Dimension of IS (Cont’d)
Compiler: 27
- DeGu A.
(Msc)
Dimensions of Information
Systems (Cont’d)
The Technology Dimension of IS
Compiler: 29
- DeGu A.
(Msc)
Data versus Information
(Cont’d)
• Data: Streams of raw facts
representing events such as
business transactions
Compiler: 30
- DeGu A.
(Msc)
Data
• Raw facts
• Simply exists and has no significance
beyond its existence
• A mere collection of data for which there
is no relation between the pieces of
data is not information.
Compiler: 31
- DeGu A.
(Msc)
Information
• Data that has been given meaning by way
of relational connection
• Understanding of the relationships
between pieces of data, or
between pieces of data and other
information
• Reduces uncertainty, reveals additional
alternatives or helps eliminate irrelevant or
poor ones
Compiler:- DeGu A.(Msc)
32
Attributes of Information Quality
(Information Dimensions)
• Content -- information should be
accurate, meaningful, flexible, reliable,
verifiable, complete, accessible,
and secure
• Time -- information should be timely and
current
• Form -- information should be provided
at the appropriate level of detail and in
the most appropriate form
Compiler: 33
- DeGu A.
(Msc)
Information Dimensions (Content)
• Accurate information is correct information.
Inaccurate information often is worse than no
information.
• Meaningful information is relevant to the
person who receives it.
• Reliable information is dependable
information.
• Verifiable information means that the
information can be confirmed by the user.
Compiler:- DeGu A.(Msc)
34
Information Dimensions
(Content)
• Complete information presents the overall
picture and the required details.
• Flexible information presents different
views of data to different people.
• Accessible and Secure: Information should
be easily accessible to authorized persons.
At the same time, it should be secure from
unauthorized users.
Compiler: 35
- DeGu A.
(Msc)
THE ROLE OF
INFORMATIO
N SYSTEMS
Compiler: 36
- DeGu A.
(Msc)
The Fundamental Roles of IS
Support of
Competitive
Advantage
Support of
Business
Decision Making
Support of
Business Operations
Compiler: 39
- DeGu A.
(Msc)
Support of Competitive
Advantages
e.g. Retail store competitive advantage:
- Home computer shopping network might
lure customers away from other stores
Compiler: 40
- DeGu A.
(Msc)
INFORMATION
SYSTEMS IN
ORGANIZATION
S
Compiler: 41
- DeGu A.
(Msc)
How Information Systems Impact
Organizations
Economic Impacts
• Information systems technology is a factor of
production, like capital and labor.
• Agency theory
• Firms experience agency costs (the cost of
managing and supervising).
Compiler: 43
- DeGu A.
(Msc)
How Information Systems Impact
Organizations (Cont’d)
Organizational and Behavioral Impacts
IT Flattens Organizations:
• Facilitates flattening of hierarchies
• Broadens the distribution of timely information
• Increases the speed of decision making
• Empowers lower-level employees to make decisions
without supervision and increase management
efficiency
• Management span of control (the number of employees
supervised by each manager) will also grow
Compiler: 44
- DeGu A.
(Msc)
How Information Systems Impact
Organizations (Cont’d)
Flattening Organizations