Unit 2A Seminar Presentation

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    Unit 2 Business InformationSystems: An Overview

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    The Purpose of Information Systems

    Businesses use information systems

    To make sound decisions

    To solve problems

    Problem is any undesirable situation

    Decision arises when more than one solution toproblem exists

    Problem solving and decision making requireinformation

    Keys to success in business are Gathering correct information

    Storing information

    Using information

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    Data, Information, and Information

    Systems Data, information and system are commonlyused terms

    Important to understand their similarities and

    differences Data: a given or fact

    Can be number, statement, or picture

    Information: facts or conclusions that havemeaning within context

    Composed of data that is manipulated

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    Data Manipulation

    Data is manipulated to make useful information

    Survey is common method of collecting data

    Raw data is hard to read Information is more useful to business than data

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    Generating Information

    A process is manipulation of data

    Process usually produces information

    Process may produce more data A piece of information in one context may be

    considered data in another context

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    Information in Context

    Not all information is useful

    Useful information is

    Relevant Complete

    Accurate

    Useful information is

    Current

    Obtained economically (in business)

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    What Is a System?

    System: array of components that work togetherto achieve goal or goals

    System

    Accepts input

    Processes input

    Produces output

    System may have multiple goals

    System may contain subsystems Subsystems have sub-goals that meet main goal

    Subsystems transfer output to other subsystems

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    What is a system? (continued)

    Closed system: has no connections with

    other systems

    Open system: interfaces and interacts

    with other systems

    Often a subsystem of a bigger system

    Information system: processes data and

    produces information

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    Information and Managers

    Systems thinking: thinking of an organization interms of subsystems

    Database: collection of electronic records

    Information systems: automate exchange

    among subsystems

    Information map: network of information

    systems

    Information technology: technologies thatfacilitate construction and maintenance of

    information systems

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    The Four Stages of Processing

    Input: collect and introduce data to system

    Transaction: a business event, usually

    entered as input

    Data processing: perform calculations oninput

    Output: what is produced by the

    information system Storage: vast amounts of data stored on

    optical discs

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    Computer Equipment for Information

    Systems Input devices: receive input

    Computer: process data

    Output: displays information Storage devices: store data

    Network devices: transfer data

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    From Recording Transactions to Providing

    Expertise: Types of Information Systems

    Many types of information systems

    Capabilities of applications have been

    combined and merged

    Management Information System:

    supports planning, control, and making

    decisions

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    Transaction Processing Systems

    Most widely used type of system Records data collected at point where

    organization interacts with other

    parties Encompasses cash registers, ATMs

    and purchase order systems

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    Supply Chain Management Systems

    Supply chain: sequence of activitiesinvolved in producing products

    Activities include marketing, purchasing

    raw materials, manufacturing, shipping,billing, collection, and after-sale services

    Also known as enterprise resource

    planning systems

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    Customer Relationship Management

    Systems Customer relationship management:

    managing relations with customers

    Used in combination with telephones toprovide customer service

    Often linked to Web applications that

    track online transactions

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    Business Intelligence Systems

    Business Intelligence: gather data to

    help organization compete

    Often contains statistical modelsAccess large pools of data

    Data warehouse: large database that

    usually store transactional records

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    Decision Support and Expert Systems

    Decision support system: supportsdecision-making

    Relies on models to produce tables

    Extrapolates data to predict outcomes Expert system: supports knowledge-

    intensive decision-making

    Uses artificial intelligence

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    Geographic Information Systems

    Geographic information system: tiesdata to physical locations

    Represents data on a map in different

    formats May reflect demographic information in

    addition to geographic

    May use information from GPS satellites

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    Information Systems in Business

    Functions Functional business area: services

    within a company that support main

    business Includes accounting, finance, marketing,

    and human resources

    Part of a larger enterprise system

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    Accounting

    Information systems help record

    transactions

    Produce periodic statements Create required reports for law

    Create supplemental reports for managers

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    Finance

    Finance systems facilitate financial

    planning and business transactions

    Tasks include organizing budgets,managing cash flow, analyzing

    investments, and making decisions

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    Marketing

    Pinpoint likely customers and promoteproducts

    Marketing information systems analyze

    demand for products in regions anddemographic groups

    Identify trends in demand for

    products/services

    Web provides opportunity to collect

    marketing data

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    Human Resources

    Human resource management systemsaid record-keeping

    Must keep accurate records

    Aids recruiting, selection, placement,and reward analysis

    Performance evaluation systems provide

    grading utilities

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    Web Empowered Enterprises

    E-commerce: Buying and selling goods

    and services through Internet

    Internet is a vast network of computersconnected globally

    Web has a profound impact on information

    systems

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    Discussion

    Lets return to our discussion now.

    We will return for a review of the

    information systems job titles.

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    Careers in Information Systems

    Information technology professionals are

    increasingly in demand

    Networking, system analyst, softwareengineering, and database administrator

    jobs are increasing in demand

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    Systems Analyst

    System analyst: designs and updates

    information systems

    Involves analyzing system requirements,documenting development efforts, and

    providing specifications for programmers

    Requires communication and presentationskills

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    Database Administrator

    Database administrator: responsible for

    databases

    Develops and acquires databaseapplications

    Must protect privacy of customers and

    employeesResponsible for securing the database

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    Network Administrator

    Network administrator: acquires,

    implements, manages, maintains,

    troubleshoots networks Implements security

    Firewalls

    Access codes

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    Webmaster

    Webmaster: creates and maintains Web

    site

    Designs and codes the page Demand forWebmasters grows as more

    businesses use Web

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    Chief Security Officer

    Chief security officer: supervises

    security of information system

    Position exists due to growing threat toinformation security

    Reports to chief information officer

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    Chief Information Officer and Chief

    Technology Officer Chief information officer: responsible for

    all aspects of information system

    Often the vice president Chief technology officer: has similar

    duties as CIO