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Foundations of Information Systems in Business

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Why should you study information systems and information technology?
Information systems and information technology should be studied because they have become incorporated into the day-to-day aspects of business, ranging from accounting and finance to marketing and human resources management. They have become necessities in today's business world.
What things can information technology help all kinds of businesses improve?
The role of information technology has been growing in importance and reliability within the business world, more so than in other rapidly changing marketplaces. Information technology helps various types of business enhance their efficiency…
What do the acronyms IS and IT stand for?
IS stands for information systems. IT stands for information technology.
Give the definition of a system in its simplest form:
In its simplest form, a system is a set of interrelated components, with a clear, restricted boundary, working together to reach a common set of goals.
Define information system (IS):
An information system is any structured arrangement of hardware, communication networks, people, software, data resources, policies and procedures that stores, transforms, retrieves and disseminates information in an organization.
What modern information systems do people rely on to communicate with one another?
Modern information systems that people oftentimes rely on for communication are hardware, software, networks and data resources.
Give the three examples of regularly used information systems that have nothing to do with computers:
Three examples of regularly used information systems that are unrelated to computers are planners, notebooks and paper-based accounting ledgers.
What could information systems designed to support business processes and operations be doing at any time?
At any given instant, information systems that are designed to support business processes and operations may possibly be providing data to/accepting data from systems that are primarily focused on business decision-making or achieving the upper hand in business.
Support of Business Processes and Operations
In a retail store, information systems that are computer-based allow employees to record purchases, keep record of inventory, record payroll, purchasing new merchandise and assess sale trends.
Support of Business Decision Making
In a retail store, business analyses of merchandise sales (which merchandise needs to be discontinued, added, required investments) are composed by computer-based information systems. This particularly function of information systems can also provide way…
Support of Strategies for Competitive Advantage
In a retail store, innovative information technology can give the business a competitive advantage when properly and strategically applied. For example, providing touch-screen stands in stores with links to their Web page will generate e-comme…
What are many businesses today using to create innovative e-business applications?
Today, many businesses are utilizing the Internet and Internet technologies to web-enable their business processes, creating innovative e-business applications.
Give the definition of e-business
E-business is the utilization of Internet technologies to work and promote e-commerce, business processes and enterprise collaboration within a company and with its suppliers, customers and other business stakeholders - an "online exchange of value—money, resources, services, etc.
What are the Internet and Internet-like networks inside an enterprise called?
The Internet and Internet-like networks inside an enterprise are called intranet.
What are the Internet and Internet-like networks between an enterprise and its trading partners called?
Internet and Internet-like networks between an enterprise and its trading partners is called an extranet.
What do companies rely on e-business applications to do?
Companies rely on e-business applications to (1) reengineer internal business processes, (2) implement e-commerce systems with their customers and suppliers, and (3) promote enterprise collaboration among business teams and workgroups.
What does an enterprise collaboration system involve?
An enterprise collaboration system involves the utilization of software tools to support communication, coordination, and collaboration between the members of networked teams and workgroups by networks such as the Internet, intranet and extranet.
Define electronic (E-) commerce
E-commerce is the buying, selling, marketing and servicing of products, services, and information over an array of computer networks.
Give examples for how the Internet and Internet-like networks are used in electronic commerce systems
They are used to sustain each step of the commercial process (advertising, sales, customer support), Internet security, secure payment mechanisms, etc. The Internet websites are used for online sales, extranet to access inventory databases…
What are several types of information systems classified as? Why?
They can be classified as operations or management information systems in order to showcase the primary roles that each plays in the operations and management of a business.
What do Operations Support Systems do and not do?
Operations Support Systems produce an array of information products for both internal and external use but do not highlight the specific information products that can be best utilized by managers.
What are transaction processing systems an important example of?
Transaction processing systems are important examples of operations support systems in which keep track of and process the data that result form business transactions.
batch processing and real-time/online processing
What are the two basic ways in which transactions are processed?
What is batch processing?
transactions data are collected over a period of time and periodically processed.
What is real-time/online?
data are processed immediately after a transaction.
What do management support systems focus on?
Management support systems are applications in which focus on providing information and support for useful decision making by management.
In what form do MIS provide information?
Management Information Systems provide information in the form of reports and displays to management and other business professionals.
What do DSS provide for decision-making processes?
Decision Support Systems provide direct computer support to management in the midst of the decision making process.
Where do executive information systems draw critical information from?
Executive information systems provide critical information from MIS, DSS, and a wide array of both internal and external sources in very practical displays to executives and managers.
What are knowledge management systems? Give two examples.
Knowledge management systems are knowledge-based information systems that are designed to support the organization, creation and distribution of business knowledge to company management and employees. Examples of this include intranet (internal company Internet-like network) s…
What do functional business systems focus on?
Functional business systems focus on operational and managerial applications that support business functions such as accounting and marketing.
What do cross-functional business systems support?
Cross-functional business systems support a wide array of functions due to the fact that many information systems designed for business use are often integrated combinations of several different types of information systems that are m…
What does success in today's dynamic business environment depend on?
Success in today's dynamic business environment has a high dependence on maximizing the usage of Internet-based technologies and Web-enabled information systems to remain/become valid competitors in terms of customers and suppliers within the global marketplace.
Technology, Applications, Development and Management
What four things do system concepts help us understand?
What is a System?
A system is a set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives by accepting inputs and producing outputs in an organized transformation process.
What is a cybernetic system?
A cybernetic system is a self-regulating system in which includes the elements of feedback and control.
What is feedback?
Feedback is retrieved data about the system's performance.
What is control?
Control is the monitoring and assessing of feedback in order to determine which system is positively progressing towards achieving its goals.
What is a subsystem? What is its environment?
A subsystem is a system that is a part of a larger system. The larger system in which the subsystem exists is its environment.
What is an interface?
shared boundary of several systems within the same environment.
What is an adaptive system?
An adaptive system is a system in which has the capability of changing itself or changing its environment in order to survive.
How is an organization an example of an open system?
An organization is an example of an open system because it must intermingle and work with other systems within its environment.
How do organizations relate to adaptive systems?
Organizations relate to adaptive systems due to the fact that they have the ability to alter themselves to fit into the changing environment.
What are the interrelated components that make up information systems?
The interrelated components that make up information systems are people, hardware, software, peripherals and networks.
What are the clearly defined boundaries?
The clearly defined boundaries are functions, modules, specific type of application, department or end-user group.
What are the steps of the organized transformation process?
The steps of the organized transformation process are using raw materials, hiring new people, manufacturing products for sale and distributing information to others.
What forms of feedback and control do they use to improve their effectiveness?
Information systems use error messages, dialog boxes, passwords and other user rights management to improve the effectiveness of their functions.
What information systems are adaptive?
Information systems that are adaptive include intelligent software agents, expert systems and highly specialized decision support systems.
What does an information system model express?
An information system model expresses the basic conceptual framework for the major aspects and activities of information systems.
What does the information system model highlight?
The information system model highlights the relationships between the components and activities of information systems and provides a structure that highlights the four main applicable concepts.
What are the five basic resources of information systems?
The five basic resources of information systems are people, hardware, software, data and networks.
Who are the end users?
End users are the individuals who utilize information systems or their information.
Who are IS specialists?
IS specialists are individuals that develop and control information systems.
What does the concept of hardware resources include?
The concept of hardware resources includes all the physical devices and materials (machines and media) that are used while processing information.
What do computer-based systems consist of?
Computer-based systems consist of CPUs (central processing units) and a variety of connected peripheral devices.
What does the concept of software resources include?
The concept of software resources includes every set of information that processes instructions (both programs and procedures).
What are three examples of software resource?
Three examples of software resources are system software (i.e. Microsoft Windows), application software (i.e. word processing, payroll, accounting) and procedures (operating instructions).
How should you view data?
Data should be viewed the same way any managed organizational resource would be viewed.
What are data?
Data are unprocessed facts or observations about a physical occurrence or a business transaction.
What are data the objective measurements of?
Data are the objective measurements of attributes (characteristics) of entities (places, events, etc.).
What can information be defined as?
Information can be defined as data that has been changed into a useful context for end users.
What is data/information processing?
Data/information processing is when data is processed to add value, making it more applicable.
What do telecommunication networks consist of?
Telecommunication networks consist of computers, communications processors and other devices connected by communications media and controlled by communications software.
What do network resources emphasize?
Network resources emphasize the concept that communications technologies and networks are primary resource components of all information systems.
What does network infrastructure emphasize? Give examples.
Network infrastructure highlights that many hardware, software and data technologies are required to support the operation and utilization of a communications network.
Regardless of the type of information system, what same basic things occur?
The same basic information system activities—the input of data resources, processing of data into applicable information, output of information products, storage of data resources and control of system performance—occur regardless of the type of information system.
Computer-Based Information System
An information system that uses computer hardware and software to perform its information processing activities.
The systems component that evaluates feedback to determine whether the system is moving toward the achievement of its goal and then makes any necessary adjustments to the input and processing components of the sy…
Business __________ theft involves stealing proprietary business INFORMATION such as research for a new drug or a list of customers that competitors are eager to acquire.
Electronic Business (e-Business)
The use of Internet technologies to internetwork and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.
Electronic Commerce (e-Commerce)
The buying and selling, marketing and servicing, and delivery and payment of products, services, and information over the Internet, intranets, extranets, and other networks, between an internetworked enterprise and its prospects, customers, suppliers, and o…
Enterprise Collaboration Systems
The use of groupware tools and the Internet, intranets, extranets, and other computer networks to support and enhance communication, coordination, collaboration, and resource sharing among teams and workgroups in an internetworked enterprise.
A network configuration that allows selected outside organizations to access internal information systems
Data or information concerning the components and operations of a system. The use of part of the output of a system as input to the system.
Hardware resources
Media: All tangible objects on which data are recorded.
Data converted into a meaningful and useful context
Information System
A set of people, procedures, and resources that collects, transforms, and disseminates information in an organization. A system that accepts data resources as input and processes them into information products as output.
Input (Information system activities)
Pertaining to a device, process, or channel involved in the insertion of data into a data processing system. Opposite of Output.
Output (Information system activities)
Pertaining to a device, process, or channel involved with the transfer of data or information out of an information processing system. Opposite of Input.
Storage (Information system activities)
Pertaining to a device into which data can be entered, in which they can be held, and from which they can be retrieved at a later time. Same as Memory.
Control (Information system activities)
The systems component that evaluates feedback to determine whether the system is moving toward the achievement of its goal and then makes any necessary adjustments to the input and processing components of the sy…
Information System Model
A conceptual framework that views an information system as a system that uses the resources of hardware (machines and media), software (programs and procedures), people (users and specialists), and networks (communications media and network supp…
Information Technology (IT)
A field concerned with the use of technology in managing and processing information
a company's private data network that uses internet standards and technology
Knowledge Workers
People whose primary work activities include creating, using, and distributing information.
Management Information System (MIS)
A management support system that produces pre-specified reports, displays, and responses on a periodic, exception, demand, or push reporting basis.
IS specialists (People resources)
A person whose occupation is related to the providing of information system services. For example, a systems analyst, programmer, or computer operator.
End User (People resources)
Anyone who uses an information system or the information it produces.
Programs (Software resources)
A set of instructions that causes a computer to perform a particular task.
Procedures (Software resources)
Sets of instructions used by people to complete a task.
System (Software resources)
A group of interrelated or interacting elements forming a unified whole. A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation proc…