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An Introduction & Concepts of Information Systems
CHAPTER 1 & 2
Information System
• A set of interrelated components that collect, manipulate & disseminate data & information &
provide feedback to meet an objective.
• Examples: ATMs; airline reservation systems;
course reservation systems
Role of Information in Business
• Information is an increment in knowledge: it contributes to the general framework of
concepts and facts that we know
• Data are only the raw facts, the material for obtaining information. Information systems use data stored in computer databases to provide needed information
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• Data vs. Information
– Data (unprocessed - bahan mentah yang belum diproses)
• A “given,” or fact; a number, a statement, or a picture
• Represents something in the real world
• The raw materials in the production of information
– Information (processed - bahan mentah yang telah diproses)
• Data that have meaning within a context
• Data in relationships
Data vs. Information
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The Process of Transforming Data into
Information
Characteristics of Valuable Information
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The Components of an Information
System
Components of a CBIS
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Components of a CBIS
• Hardware - computer equipment used to perform input, processing, and output activities.
• Software - computer programs that govern the operation of the computer.
• Database - an organized collection of facts and information, typically consisting of two or more related data files.
• People - the most important element in most computer-based information systems.
• Procedures - include the strategies, policies, methods, and rules for using the CBIS.
Telecommunications, Network, and the Internet
• Telecommunications - the electronic
transmission of signals for communications.
• Networks - used to connect computers and computer equipment in a building, around the
country, or around the world to enable electronic communications.
• Internet - the world’s largest computer network, actually consisting of thousands of
interconnected networks
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Business Information Systems
• Electronic Commerce
• Transaction Processing Systems and ERP
• Information and Decision Support Systems
• Special-Purpose Business Information Systems: Artificial Intelligence, Expert Systems, and Virtual Reality
E-Commerce
• Business-to-business
• Business-to-consumer
• Consumer-to-consumer
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E-Commerce Greatly Simplifies the Purchasing Process
Transaction Processing Systems and ERP
• Transaction processing system (TPS) - an organized collection of people, procedures, software, databases, and devices used to record completed business
transactions.
• Enterprise Resource Planning (ERP) System - a set of integrated programs capable of managing a
company’s vital business operations for an entire multisite, global organization.
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A Payroll Transaction Processing
System
Functional Management Information Systems Draw Data from the Organization’s TPS
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Decision Support Systems (DSS)
An organized collection of people, procedures, software, databases, and devices used to
support problem-specific decision making.
– The focus of a DSS is on decision-making effectiveness.
Essential DSS Elements
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Special-Purpose Business Information Systems
• Artificial intelligence (AI) systems
• Virtual reality systems
• Expert systems
The Major Elements of Artificial
Intelligence
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A Head-Mounted Display
Data Glove
Management Reporting Systems
The objective of management reporting systems is to provide routine information to managers. Managers receive performance reports within their specific areas of responsibility. Generally, these reports provide internal information rather than spanning corporate boundaries. They report on the past and the present, rather than projecting the future.
Characteristics of Management Reporting Systems
• MRSs are oriented toward reporting on the past and the present, rather than projecting the future.
• MRSs generally have limited analytical capabilities. They are not built around elaborate models, but rather rely on extraction of data from databases according to given criteria, and on summarization of the data.
• MRSs largely report on internal company operations rather than spanning the company=s boundaries by reporting external information.
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Executive Information Systems
• EIS are becoming an important tool of top-level control in many
organizations. They help an executive spot a problem, an opportunity, or a
trend (development).
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Executive Information Systems
• Executive information systems support top managers with conveniently displayed summarized information, customized for them.
They make a variety of internal and external information readily available in a highly summarized and convenient form. EIS are used to:
1. Monitor the performance of the organization 2. Assess the business environment
3. Develop strategic directions for the company's
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Objectives and Functions of Office Information Systems
• Office information systems (OIS) support office tasks with information technology. The primary goal of these systems is to increase the productivity of office work
• The primary purpose of OIS is to
facilitate communication between
members of an organization and
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Functions of Office Information Systems
• Document management
• Message handling
• Teleconferencing
• Electronic meeting systems
• Support of group work and groupware.
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Systems Development
The activity of creating or modifying existing business systems.
– Systems Investigation – Systems Analysis
– Systems Design
– Systems Implementation
– Systems Maintenance and Review
Organizations and
Information Systems
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A General Model of an Organization
The Value Chain of a Manufacturing
Company
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Technology Diffusion, Infusion, and Acceptance
• Technology Diffusion - a measure of how widely technology is spread throughout an organization.
• Technology Infusion - is the extent to which technology permeates an area or department.
• Technology Acceptance Model (TAM) - specifies the factors that can lead to higher acceptance and usage of technology in an organization
Competitive Advantage
A significant and (ideally) long-term benefit to a company over its competition.
• Factors That Lead Firms to Seek Competitive Advantage
– Rivalry among Existing Competitors – Threat of New Entrants
– Threat of Substitute Products and Services
– Bargaining Power of Customers and Suppliers
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Strategic Planning for Competitive Advantage
• Altering the Industry Structure
• Creating New Products and Services
• Improving Existing Product Lines and Services
• Using Information Systems for Strategic Purposes
Competitive Advantage Factors and Strategies
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Performance-Based Information Systems
• Productivity
• Quality
• Return on Investment and the Value of Information Systems
– Earnings Growth – Market Share
– Customer Awareness and Satisfaction – Total Cost of Ownership
Three Stages in the Business Use of IS
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Roles, Functions, and Careers in the Information Systems Department
• Operations
• Systems Development
• Support
The Three Primary Responsibilities of Information Systems
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Typical IS Titles and Functions
• The Chief Information Officer
• LAN Administrators
• Internet Careers
Why Learn About Information Systems?
• Advance in your career
• Solve problems
• Realize opportunities
• Meet your career goals