Chapter 1 Introduction to Information Systems Power Point

Chapter 1 Introduction to Information Systems Power. Point Presentation by Charlie Cook Copyright © 2004 South-Western. All rights reserved.

Learning Objectives • To describe an information system’s integration with business processes and the organization • To describe the business professional’s role in the current information technology-driven environment • To illustrate the attributes of information and the importance of data quality Copyright © 2004 South-Western. All rights reserved. 2

Three Themes of the Text • Enterprise systems • Electronic business (E-Business) • Information technology Copyright © 2004 South-Western. All rights reserved. 3

Enterprise Systems • Integrated software packages designed to provide complete integration of an organization’s information processing systems and all related data • Modules: Ø Logistics Ø Accounting Ø Manufacturing Ø Human resources Copyright © 2004 South-Western. All rights reserved. 4

E-Business • Application of electronic networks (including the Internet) to undertake business processes between individuals and organizations • Interaction between front-office and back-office processes • Electronic networks include: Ø The Internet Ø Electronic data interchange (EDI) Copyright © 2004 South-Western. All rights reserved. 5

Information Technology • Any hardware, software or communications technology that might be adopted by an organization to: Ø Support or control a business process Ø Enable management decisions Ø Provide a competitive advantage. • IT may be used to support enterprise systems and e-business applications. Copyright © 2004 South-Western. All rights reserved. 6

Elements in the Study of Information Systems FIGURE 1. 1 Copyright © 2004 South-Western. All rights reserved. 7

What Is an Information System? • System Ø A set of interdependent elements that together accomplish specific objectives • Subsystem Ø A component part of a system that, together with other interrelated components, is integrated into a system structure. Copyright © 2004 South-Western. All rights reserved. 8

Systems and Subsystems FIGURE 1. 2 Copyright © 2004 South-Western. All rights reserved. 9

Functional Model of an Information System NOTE: System outputs result in user actions. Some actions (i. e. , feedback) in turn become subsequent system inputs. Copyright © 2004 South-Western. All rights reserved. FIGURE 1. 3 10

Data Activities • Business event data stores Ø Capturing and converting input data v Machine-readable form • Master stores updating of standing data Ø Information processing Ø Data maintenance Copyright © 2004 South-Western. All rights reserved. 11

Business Process Components • Information process Ø The use of IS in coordinating all of the business processes of an organization • Operations process Ø The system that accomplishes the work of the organization • Management process Ø The system that management uses to plan and control the organization Copyright © 2004 South-Western. All rights reserved. 12

A Logical Model of a Business Process for Ordering Books Online FIGURE 1. 4 Copyright © 2004 South-Western. All rights reserved. 13

Information System Output Flow and Users Because Figure 1. 5 depicts data from business events, the vertical information flows upward. Other data, such as budgets, would flow downward. FIGURE 1. 5 Copyright © 2004 South-Western. All rights reserved. 14

Data versus Information • Information Ø Data presented in a form that is useful in a decisionmaking activity Ø Reduces uncertainty and increases knowledge • Data Ø Facts and figures in raw form Ø Measurements or observations of objects or events The basic function of an information system is to transform data into useful information. Copyright © 2004 South-Western. All rights reserved. 15

Qualities of Information Effectiveness Efficiency Confidentiality Integrity Availability Compliance Reliability of information Source: Reprinted with permission from COBIT: Control Objectives for Information and Related Technology— Framework, 3 rd ed. (Rolling Meadows, IL: The Information Systems Audit and Control Foundation, 2000): 14. Copyright © 2004 South-Western. All rights reserved. EXHIBIT 1. 1 16

A Hierarchy of Information Qualities FIGURE 1. 6 Source: Adapted from Statement of Financial Accounting Concepts No. 2: Qualitative Characteristics of Accounting Information, Financial Accounting Standards Board (FASB), May 1980, p. 15. Copyright by Financial Accounting Standards Board, 401 Merritt 7, P. O. Box 5116, Norwalk, CT 06856 -5116. Reprinted with permission. Copies of complete document are available from the FASB. Copyright © 2004 South-Western. All rights reserved. 17

Questions to Ask About an IS • What will be recorded as a business event? • What data stores will be used to record the event? • When will the event be recorded: before or after occurrence? • What controls will be necessary to provide valid, accurate, and complete records; to protect assets; and to ensure that the IS can be audited? • What reports will be produced, and when will they be produced? • How much detail will the reports include? Copyright © 2004 South-Western. All rights reserved. 18