Chapter 1

• Value of information


  Directly linked to how it helps decision makers achieve the organization's goals
• Information systems used by

  • Sales representatives
  • Managers
  • Financial advisors
• Information systems

  Indispensable tools to help you achieve your career goals
• Information system (IS)


  A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective
• Businesses can use information systems

  To increase revenues and reduce costs
• Information


  One of an organization's most valuable resources
• Data


  Raw facts
• Information


  Collection of facts organized in such a way that they have value beyond the facts themselves
• Process


  Set of logically related tasks
• Knowledge


  Awareness and understanding of a set of information
• System


  Set of elements or components that interact to accomplish goals
• Components of a system

  • Inputs
  • Processing mechanisms
  • Outputs
  • Feedback
• Efficiency


  Measure of what is produced divided by what is consumed
• Effectiveness


  Measure of the extent to which a system attains its goals
• System performance standard


  Specific objective of the system
• Information system (IS)


  A set of interrelated elements that collect (input), manipulate (process), store, disseminate (output) data and information, and provide a corrective reaction (feedback mechanism) to meet an objective
• Components of an information system

  • Input
  • Processing
  • Output
  • Feedback
• Input


  Activity of gathering and capturing raw data
• Processing


  Converting data into useful outputs
• Output


  Production of useful information, usually in the form of documents and reports
• Feedback


  Information from the system that is used to make changes to input or processing activities
• Computer-based information system (CBIS)

  Single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information
• Components of a computer-based information system

  • Hardware
  • Software
  • Database
  • Telecommunications, networks, and the Internet
  • People
  • Procedures
• Hardware


  Computer equipment used to perform input, processing, and output activities
• Software


  Computer programs that govern the operation of the computer
• Database


  Organized collection of facts and information, typically consisting of two or more related data files
• Telecommunications, networks, and the Internet


  The electronic transmission of signals for communications
• Networks


  Connect computers and equipment to enable electronic communication
• Internet


  World's largest computer network, consisting of thousands of interconnected networks, all freely exchanging information
• Intranet


  Internal network that allows people within an organization to exchange information and work on projects
• Extranet


  Network that allows selected outsiders, such as business partners and customers, to access authorized resources of a company's intranet
• People


  The most important element in most computer-based information systems
• Procedures


  Include strategies, policies, methods, and rules for using the CBIS
• Most common types of information systems

  • Electronic and mobile commerce
  • Transaction processing
  • Management information
  • Decision support
• commerce


  Any business transaction executed electronically between companies (B2B), companies and consumers (B2C), consumers and other consumers (C2C), business and the public sector, and consumers and the public sector
• Mobile commerce (m-commerce)


  The use of mobile, wireless devices to place orders and conduct business
• Electronic business (e-business)


  Uses information systems and the Internet to perform all business-related tasks and functions
• Transaction


  Any business-related exchange, such as payments to employees and sales to customers
• Transaction processing system (TPS)


  Organized collection of people, procedures, software, databases, and devices used to record completed business transactions
• Enterprise resource planning (ERP)


  Set of integrated programs that manages the day to day and vital business operations for an entire multisite, global organization