Business Information Systems

BUSINESS INFORMATION
SYSTEMS:
An Overview
Digital Economy
New Economy
E-Business: The use of electronic

technologies to transact business
Collaboration: People and
Organizations interact, communicate,
collaborate, and search for information
Information Exchange: Storing,
processing and transmission of
information
Digital Business
1.
2.
3.
4.
5.
6.
7.
8.
9.
Old vs. New

Economy
Buying and selling textbook

Registering for classes
Photography
Paying for Gasoline
Paying for Transportation
Paying for goods
Supplying commercial photos
Entertainment
Lecturing / Teaching students
Knowledge
Workers
people who are often called

professionals.
Anyone whose work involves
the production and use of
information is a knowledge
worker.
These people are increasingly
dependent on IT for their work.
INFORMATION
SYSTEMS
Why Do People Need
Information?
Individuals - Enlightenment and
entertainment
Businesses - Decision making and
problem solving
Gathering
Storing
Manipulating
Data, Information,
and Systems
Data vs. Information
Data
A given, or fact: a number, a
statement, or a picture
The raw materials in the production of
information
Information
Data that have meaning within a context
Raw data or data that have been
manipulated
Data, Information,
and Systems
Data Manipulation
Example: customer survey
Reading through data collected from
a customer survey with questions in
various categories would be timeconsuming and not very helpful.
When manipulated, the surveys
may provide useful information.
Data, Information,
and Systems
Generating Information
Computer-based ISs take data as raw material, process it,

and produce information as output.
Figure 1.1 Input-process-output
Data, Information, and Systems
Figure 1.2 Characteristics of useful information
What Is a System?
System: A set of components that work
together to achieve a common goal
Subsystem: One part of a system where
the products of more than one system
are combined to reach an ultimate goal
Closed system: Stand-alone system that
has no contact with other systems
Open system: System that interfaces
with other systems
Data, Information, &

Systems
Several subsystems make up this corporate accounting system.
Information and
Managers
Systems thinking
Creates a framework for
problem solving and decision
making.
Keeps managers focused on
overall goals and operations
of business.
The Benefits of
Human-Computer
Synergy
Synergy
When combined resources produce
output that exceeds the sum of the
outputs of the same resources
employed separately
Allows human thought to be

translated into efficient
processing of large amounts of
data
Qualities of Humans and Computers that

Contribute
to Synergy
Components of
Information System
Input-Process-OutputStorage Devices
Management
Challenges
Why information systems?

Contemporary
approaches to information
systems
New role of info systems
in organizations
Learning to use info
systems: new
opportunities with
technology
Information
Systems
defined as a set of interrelated

components that collect (or
retrieve), process, store, and
distribute information to support
decision making and control in an
organization.
contain information about
significant people, places, and
things within the organization or in
the environment surrounding it.
Context of
Information System
Computer-based
Information Systems
(CBIS)
Formal systems that rely

on computer technology
Fixed definitions of data,
procedures
Collecting, storing,
processing,
disseminating, using
data
Scope of Info
Systems
1950s:
Technical Changes
60s-70s:
Managerial
Control
80s-90s:
Institutional Core
Activities
Categories of
Information Systems
Transaction processing systems
(TPS).
Office automation systems (OAS).
Knowledge work systems (KWS).
Management information systems
(MIS).
Expert systems (ES) and Artificial
Intelligence (AI).
Transaction
Processing
System (TPS)
an information system that captures and

processes data generated during an
organizations day-to-day transactions;
TPS computerizes an existing manual
system to allow for faster processing,
reduced clerical costs and improved
customer service.
Recording a business activity such as a
students registration, a customers order,
an employees timecard or a clients
payment.
OLTP (Online TPS) - the computer
processes transactions as they are entered.
Office
Automation
System (OAS)
an information system that
uses hardware, software and
networks to enhance work flow
and facilitate communications
among employees.
Office Productivity Tools (i.e. MS
Office, Word, Excel, Powerpoint)
Management
Information
System (MIS)

generates accurate, timely and
organized information so
managers and other users can
make decisions, solve
problems, supervise activities,
and track progress; often
integrated with TPS.
Management
Information
Systems
Types of MISs
Decision Support Systems (DSS)

Often answer what if? questions
Production of reports that recap
daily sales activities; list customers
with past due account balances;
graph slow or fast selling products;
and highlight inventory items that
need reordering
Management
Information
Systems
Executive Information Systems
(EIS)
A special type of DSS
Can gather information from vast
amounts of data for high-level
executives
Highly useful in control and
planning
Expert System
captures and stores the knowledge
of human experts and then imitates
human reasoning and decisionmaking processes for those who
have less expertise; one part of an
exciting branch of computer
science called artificial intelligence
New
Technologies
New technologies are being

integrated into traditional
systems:
Ecommerce uses the Web to

perform business activities.
Enterprise Resource Planning (ERP)
has the goal of integrating many
different information systems within
the corporation.
Wireless and handheld devices,
including mobile commerce
(mcommerce).
Information
Systems
in Business
ISs in Functional Business
Areas
Accounting
Record business transactions,
produce periodic financial
statements, and create reports
required by law
Finance
Organize budgets, manage the flow
of cash, analyze investments, and
make decisions that could reduce
interest payments and increase
revenues
Information
Systems
in Business
Marketing
Analyze demand for various
products in different regions
and population groups
Human Resources
Help with record keeping and
employee evaluation
Information
Systems
in Business
ISs in Different Business
Sectors
Manufacturing
Allocate resources such as
personnel, raw material, and time
Control inventory, process customer
orders, prepare production
schedules, perform quality
assurance, and prepare shipping
documents
Information
Systems
in Business
Government
Tax authorities, national
insurance and welfare agencies,
defense departments, economic
organizations, immigration
authorities
Service
ISs are often the backbone of
service organizations
Information
Systems
in Business
Retail
Some retail stores (e.g., Wal-Mart,

Kmart) are now linked to
communication networks by satellite.
Management can determine which
items move quickly and which do
not.
New Businesses
ISs have made new products and
services possible, such as credit
reports and shipment tracking.
Types of IS vis--vis
Functional Areas
Why Study IS?

Knowledge Workers
Employers seek computer-literate professionals
who know how to use information technology.
Degrees in IS
Computer Science and Management Information
Systems
Information Systems Careers

Systems analyst, specialist in enterprise resource
planning (ERP), database administrator,
telecommunications specialist, consulting, etc.
Managerial Issues
Recognizing opportunities for
using IT and Web-based systems.
Who will build, operate, and
maintain the information systems.
How much IT?
How much and HOW important is
IT?
Is the situation going to change?
Globalization.
Ethics and social issues.
Transforming the organization to

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BUSINESS INFORMATION

E-Business: The use of electronic

Old vs. New

Buying and selling textbook

people who are often called

Computer-based ISs take data as raw material, process it,

Figure 1.1 Input-process-output

Data, Information, and Systems

Figure 1.2 Characteristics of useful information

Data, Information, &

Several subsystems make up this corporate accounting system.

Allows human thought to be

Qualities of Humans and Computers that

Why information systems?

defined as a set of interrelated

Formal systems that rely

an information system that captures and

an information system that

Decision Support Systems (DSS)

New technologies are being

Ecommerce uses the Web to

Some retail stores (e.g., Wal-Mart,

Why Study IS?

Information Systems Careers

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