CHAPTER 1 Introduction to Information Systems Information Concepts

CHAPTER 1 Introduction to Information Systems

Information Concepts RFID (Radio Frequency Management) RFID propaganda 1 Min RFID inventory management (2 Min) RFID Freezer contents control (6 Min)

Information Concepts The body of guidelines and procedures used to select, organize, and manipulate data to make it suitable for a specific task. Knowledge Information Data A collection of facts organized in such a way that they have additional value beyond the value of facts themselves. Raw facts

Information Concepts KNOWLEDGE • Knowing the value of tracking sales for future ordering. As the business accumulates more and more INFORMATION, KNOWLEDGE increases. INFORMATION • Total sales of every item for the day, week, month, and year, and season. DATA • Recorded sale of every item.

Data vs. Information Ap ply ing kn ow l ed g e The collection of information adds to all the more knowledge.

Data vs. Information KNOWLEDGE: Not a lot of people like to eat hamburgers early in the morning. Should we open our hamburger stand at 10: 30 am or wait until 11: 00 am? DATA: A record of each hamburger sold during the week. INFORMATION: The number of hamburgers sold from 10: 30 am to 11: 00 am on the average. 2 Hamburgers were sold during this half hour period, on the average. 6

Data vs. Information QUESTION: Would you open your hamburger stand at 10: 30 am to sell 2 hamburgers? ANSWER: Probably, no. 7

Data vs. Information Knowledge --Air conditioner compressors get “tight” when not used for long periods of time. This could blow a fuse when the air-conditioners are first turned on. Information (organized data) --Track air-conditioner fuse sales daily, weekly, monthly, yearly, seasonally. --Track daily temperatures relative air-conditioner fuse sales. Data --Record each air-conditioner fuse sold. RESULT: On days when the outside temperature jumps and air-conditioners are first turned on, the demand for air-conditioner fuses jumps 32 times normal. Question: What actions will management take? 8

Types of Data Represented by: Alphanumeric Data Image Data Audio Data Video Data Numbers, letters, etc. Graphics images or pictures Sound Moving images or pictures

Characteristics of Valuable Information Characteristics Definitions: Accurate Error free. Errors: GIGO & bad programs. GIGO: Garbage In Garbage Out Complete Economical Flexible Reliable 3: 00 Has all important facts. Are the costs worth it? Can the information be used in a variety of situations? Is the source reliable?

Characteristics of Valuable Information Characteristics Definitions: Relevant Passenger hair color is not relevant to a captain of a ship. Simple The information should be presented in a simple way. Timely Last month’s weather forecast is of no interest to a pilot today. Verifiable Can you check the correctness of the information.

Characteristics of Valuable Information Characteristics Definitions: Accessible Secure Information should be easily accessible by authorized persons and in the right format. Information should be access by authorized persons only. Dr. Scanlan says, “There is no such thing as a secure information system. ”

Characteristics of Valuable Information Characteristics Definitions: Secure Information should be access by authorized persons only. Dr. Scanlan says, “There is no such thing as a secure information system. ” Discussion: Are these information system secure? Why or why not? Checking accounts, CD’s, email, safe deposit boxes, tax sheltered annuities, birth certificates, credit cards (especially RFID enabled), loyalty cards, etc. Stealing credit card information (RFID) cc (3 min)

System and Modeling Concepts What are some examples using Mc. Donald’s as an example? 1. Goals -Profits -Fast service -Tasty food -Inexpensive food 2. Inputs ? ? ? 3. Outputs ? ? ? 4. Elements ? ? ? 5. Process ? ? ? Goals S Y S T E M Elements Outputs Inputs Process Components of a System

Components of a System 1: 30

System Classifications and Primary Characteristics Simple Complex Open Closed Stable Dynamic Adaptive Permanent Non-adaptive Temporary Name systems which have these characteristics?

System Performance Standards • Efficiency § A measure of the amount of activity or effort to produce a desired goal. • Effectiveness § A measure of the extent to which a system achieves its goals. • Performance Standard § A specific objective of the system. § What are the performance standards for this course?

System Performance Standards

System Variables and Parameters • System Variable § A quantity or item that can be controlled by the decision maker. u What are some system variables for a shoe store? • System Parameter § A value or quantity that cannot be controlled by the decision maker. u What are some system parameters for a grocery store?

Modeling a System • Model § An abstraction or an approximation that is used to represent reality • Model Types § § Narratives - words Physical - tangible Schematic - graphical Mathematical - arithmetic

Four Types of Models

Four Types of Models The deep connection Einstein discovered between energy and mass is expressed in the equation E=mc². Here E represents energy, m represents mass, and c² is a very large number, the square of the speed of light. Full confirmation was slow in coming. In Paris in 1933, Irène and Frédéric Joliot-Curie took a photograph showing the conversion of energy into mass. A quantum of light, invisible here, carries energy up from beneath. In the middle it changes into mass -- two freshly created particles which curve away from each other. C = 186, 282. 397 miles per second,

Information System (IS) • Information System § A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective. § What is the feedback for this course for the instructor and the class?

Input, Processing, Output, Feedback INPUTS Gathering and capturing raw data PROCESSING Converting or transforming data into useful outputs OUTPUTS Producing useful information, usually in the form of documents. Feedback Output that is used to make changes to input or processing activities

Computer-Based Information Systems (CBIS) • Computer-Based Information Systems § Composed of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information.

Computer-Based Information Systems (CBIS) Elements 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 § Organized collection of facts and information.

Computer-Based Information Systems (CBIS) Elements of a CBIS (continued): • Telecommunications § Electronic transmission of signals for communications that enables organizations to link computer systems into effective networks. • Networks § Used to connect computers and computer equipment.

Computer-Based Information Systems (CBIS) Elements of CBIS (continued): • Internet § The world’s largest telecommunications network. • Intranet § A network that uses Internet technology within an organization.

Computer-Based Information Systems (CBIS) Element of a CBIS (continued): • People § The most important elements in most CBIS. § Question: Are people really the most important element? • Procedures § Strategies, policies, methods, and rules for using CBIS.

Computer-Based Information Systems (CBIS)

Business Information Systems • Transaction § Any business related exchange. • Transaction processing system (TPS) § An organized collection of people, procedures, software, databases, and devices used to record completed business transactions. Question: Give some examples class?

Transaction Processing System

E-Commerce Ebay E-Commerce § Any business transaction executed electronically between parties.

Management Information System Too much overtime. Management Information System § Organized set of people, procedures, databases, and devices used to provide ROUTINE information to managers and decision makers for day-to-day decisions. u Question: Give some examples class?

Decision Support Systems The DSS supports locating the new assembly plant in Ireland. • Decision Support Systems (DSS) § A set of people, procedures, databases, and devices used to support problemspecific decision making. § Used for tactical decisions.

Information Systems Decision Support Systems Management Information System Transaction Processing System

Artificial Intelligence (AI)

Artificial Intelligence (AI) • A field that involves computer systems taking on the characteristics of human intelligence.

Robotics Robots: • Work 7 days a week, 24 hours/day. • No benefit package. • Never complains. • Seldom makes mistakes. • Always shows up for work. • Has no hangover on Mondays. • Works for about $10. 00 day. • Does not take coffee breaks. • Always does what it is told.

Expert Systems I said you DON’T get the loan. Expert Systems (ES) § Gives the computer the ability to make suggestions and act like an expert in a particular field

Systems Development at Whirlpool Corporation

Systems Development § The activity of creating or modifying existing business systems.

Systems Development Five Steps in Systems Development Investigation Analysis Design Implementation Review

Systems Development • Systems Investigation § The purpose is to gain a clear understanding of the problem to be solved or opportunity to be addressed. George, Whirlpool wants you to investigate exactly what the problem is and determine if it is worth solving.

Systems Development • Systems Investigation § Whirlpool had a PROBLEM responding QUICKLY to competitors’ or their own price changes. It took weeks to adjust prices. u When a competitor dropped its price, Whirlpool had to send out thousands of faxes and overnight packages. u When Whirlpool increased its prices, retail distributors got very upset when they were billed higher than expected. u $395. 00 $375. 00 $325. 00 $395 $425 $474

Systems Development • Systems Analysis § Defines what the information system must do to solve the problem. u Put a team together to carefully examine the existing system’s problems and opportunities and suggest solutions. Analysis Team Members $395. 00 $375. 00 $325. 00

Systems Development • Systems Design § Determines how the new system will work to meet the business needs defined during systems analysis. § In this stage the system is designed, much like an architect would design a building. u The system is not built at this time, it is designed.

Systems Development • Systems Implementation § Creating or acquiring the various system components defined in the design step, assembling them, and putting the new system into operation. u Hardware, software, people, procedures, database, communications.

Systems Development System Maintenance and Review § Check and modify the system so that it continues to meet changing business needs.

I know a lot about computer hardware and software but I don’t know how to apply it to my business needs. Literacy • Computer Literacy § A knowledge of computer systems and equipment and the ways they function.

I need to know how to apply this computer technology to my business needs. Literacy . Information Systems Literacy § A knowledge of how data and information are used by individuals, groups, and organizations.

Information Systems in the Functional Areas of Business l Functional Areas and Information Systems § § § Financial information systems Accounting information systems Marketing information systems Manufacturing information systems Human resources management information systems § Legal information systems

Information Systems in Industry n Airline industry n Publishing companies n Investment firms n Health care organizations n Banks and savings and loan companies n Retail companies n Power management & utility companies n Transportation industry

SAMPLE TEST QUESTIONS 1. Which computer-based system would be responsible for capturing raw inventory data at a grocery store cash register? a. Decision support system b. Transaction processing system. c. Management information system d. Expert system e. None of the above.

SAMPLE TEST QUESTIONS 2. Which computer based system would be responsible for producing routine business reports? a. Decision support system b. Transaction processing system. c. Management information system d. Expert system e. None of the above.

SAMPLE TEST QUESTIONS 3. Which computer based system would be responsible helping managers make “what-if” type decisions? a. Decision support system b. Transaction processing system. c. Management information system d. Robot system e. None of the above.

SAMPLE TEST QUESTIONS 5. Which computer based system would be responsible helping managers make strategic decisions? a. Decision support system b. Transaction processing system. c. Management information system d. Robot system e. None of the above.

SAMPLE TEST QUESTIONS 6. This acronym refers to data with errors entering a computer system and producing erroneous output. a. GIGO b. GOGI c. GGIO

SAMPLE TEST QUESTIONS 7. For what does GIGO stand? a. Garbage In, Garbage Out b. General information In, General information Out c. None of the above

SAMPLE TEST QUESTIONS 8. In which stage of systems development is computer programming done? a. Systems investigation b. Systems analysis c. Systems design d. Systems implementation e. None of the above

SAMPLE TEST QUESTIONS 9. Which stage of systems development involves an initial review of the system to see if there is an actual problem, to see if it is worth solving, and to see if it can be solved. This stage also looks for opportunities. a. Systems investigation b. Systems analysis c. Systems design d. Systems implementation e. None of the above

SAMPLE TEST QUESTIONS 10. The activity of creating or modifying existing business systems is called: a. Systems Development b. Systems Analysis c. Systems Investigation d. Systems Design e. Systems Implimentation

SAMPLE TEST QUESTIONS 11. Summarizing and categorizing data is involved in collecting Information. a. True b. False

SAMPLE TEST QUESTIONS 12. Knowing how to summarize and categorize data involves Knowledge? a. True b. False

SAMPLE TEST QUESTIONS 13. GIGO is most closely associated with a. Completeness of information b. Flexibility of information c. Economy of information d. Accuracy of information e. Verifiability of information

SAMPLE TEST QUESTIONS 14. Dr. Scanlan believes that there are secure information systems. a. True b. False

SAMPLE TEST QUESTIONS 15. A measure of the amount of activity or effort to produce a desired goal is a definition of a. Effectiveness b. Efficiency

SAMPLE TEST QUESTIONS 16. A measure of the extent to which a system achieves its goals is called: a. Effectiveness b. Efficiency

SAMPLE TEST QUESTIONS 17. The cost of electricity for a shoe store would be an example of a. A system variable b. A system paramter c. A system constant

SAMPLE TEST QUESTIONS 18. Which of the model types below would best describe blueprint of a bridge? a. Narrative b. Physical c. Schematic b. Mathematical

SAMPLE TEST QUESTIONS 19. Which of the model types below would best describe a verbal description of a building? a. Narrative b. Physical c. Schematic b. Mathematical

SAMPLE TEST QUESTIONS 20. An information system is a set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a _____ mechanism to meet an objective. a. Feedback b. Storage c. Objective d. Knowledge-based e. Subjective

SAMPLE TEST QUESTIONS 21. A computer-based information system consists of hardware, software, databases, people and telecommunications. This list is complete. a. True b. False

SAMPLE TEST QUESTIONS 22. In what processing system would raw data most likely be stored? a. Executive information system b. Transaction processing system c. Management information system d. Expert system e. Decision support system

SAMPLE TEST QUESTIONS 23. Which item below best illustrates E-Commerce? a. A purchase at a local grocery store b. A purchase at a garage sale c. A purchase on Ebay d. A transaction executed by a purchasing department e. A purchase at Mc. Donalds

SAMPLE TEST QUESTIONS 24. This information system provides routine information for day-to-day decision making. a. Executive information system b. Decision support system c. AI systems d. Management information systems e. Transaction processing system.

SAMPLE TEST QUESTIONS 25. Artificial intelligence systems are limited to taking on the characteristics of human intelligence. a. True b. False

SAMPLE TEST QUESTIONS 26. Which order of steps is correct for systems development? a. Investigation, analysis, design, implementation, and review. b. Analysis, investigation, design, review, implementation c. Review, investigation, analysis, design and implementation. d. Analysis, investigation, review, design, and implementation

SAMPLE TEST QUESTIONS 27. This stage of systems development determines how the system will work to meet the business needs defined during the systems analysis: a. Systems implementation b. Systems investigation c. Systems design d. Systems review

SAMPLE TEST QUESTIONS 28. A knowledge of computer systems and equipment and the ways they function is called: a. Computer Literacy b. Information system literacy

SAMPLE TEST QUESTIONS 29. A knowledge of how data and information are used by individuals, groups, and organizations is called: a. Computer Literacy b. Information system literacy