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Principles Of Information Systems, 10th Edition Lecture Notes

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    Principles of Information Systems, Tenth Edition 1 - 1 Chapter 1 An Intr oduction to Information Systems At a Glance Instructor’s Manual Table of Contents • Overview • Principles and Objectives • Teaching Tips • Quick Quizzes • Class Discussion Topics • Additional Projects • Additional Resources • Key Terms

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    Principles of Information Systems, Tenth Edition 1 - 2 Overview This chapter presents an overview of information systems, with each section getting full treatment in subsequent chapters. We start by exploring the basics of information systems. Principles and Objectives Principles Learning Objectives The value of information is directly linked to how it helps decision makers achieve the organization’s goals. • Discuss why it is important to study and understand information systems. • Distinguish data from information and describe the characteristics used to evaluate the quality of data. Computers and information systems help make it possible for organizations to improve the way they conduct business. • Name the components of an information system and describe several system characteristics. Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career and organizations that reach their goals. • List the components of a computer - based information system. • Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver. System users, business managers, and information systems professionals must work together to build a successful information system. • Identify the major steps of the systems development process and state the goal of each. Information systems must be applied thoughtfully and carefully so that society, businesses, and industries can reap their enormous benefits. • Describe some of the threats that information systems and the Internet can pose to security and privacy. • Discuss the expanding role and benefits of information systems in business and industry.

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    Principles of Information Systems, Tenth Edition 1 - 3 Teaching Tips Why Learn About Information System s? 1. Introduce the term information system . Note that it is the feedback mechanism that helps org anizations to ach ie ve their goals. Information Concepts 1. This section intr oduces a central concept of this course: information . Data, Information, and Knowledge 1. Introduce the terms data , information , process , knowledge , knowledge worker , and knowledge management system . Use Figure s 1. 1 to 1.2 and Table 1.1 to aid the discussion. The Characteristics of Valuable Information 1. Students should understand that in order t o be valuable to managers and decision makers, information should have the characteristics described in Table 1.2. These characteristics make the information more valuable to an organization. The Value of Information 1. Explain that t he value of information is directly linked to how it helps decision makers achieve their organization’s goals. System Concepts 1. The elements themselves and the relationships among them determine how the system works. Systems have inputs, processing mechanisms, outputs, and feedback . Use Figure 1.3 to aid the discussion. Teaching Tip Develop a class Web site. Maintain a copy of your syllabus, a lecture schedule, and assignment information. Teaching Tip As class begins, reassure students that you are here to help them understand technology. Many less technically oriented students will feel intimidated by this course. Get off to a good start!

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    Principles of Information Systems, Tenth Edition 1 - 4 System Performance and Standards 1. Introduce the terms efficiency , effectiveness , and system performance . Use Figure 1.4 to aid the discussion. What I s an Information System? 1. An information system (IS) is a set of interrelated elements or components that collect (input), manipulate (process), store, and disseminate (output) data and information and provide a corrective reaction (feedback mechanism) to meet an objective . Use Figure 1.5 to aid the discussion. Input, Processing, Output, Feedback 1. The following topics should be defined and discussed: ▪ Input : T he a ctivity of gathering and capturing raw data . ▪ Processing : T he conversion or transformation of data into useful outputs . ▪ Output : T he production of useful information, usually in the form of documents and reports . ▪ Feedback : U sed to make changes to input or processing activities . It may i n volve forecasting . Manual and Computerized Information Systems 1. Remind students that an information system can be manual or computerized. Computer - Based Information Systems 1. Introduce the term s computer - based information system and technology infrastructure . Use Figure 1.6 to aid the discussion. Teaching Tip Discuss the system performance evaluation and tracking techniques of any well - known organization (e.g., Microsoft, Dell). Also, discuss the system performance standards that are used by the organization to evaluate system performance. Teaching Tip Pass a list around class and ask students to list their experience in information systems. Does anyone have familiarity with the field? If so, speak with them about sharing their knowledge with the class. This list will also help you organize your lectures with a focus specific to your class’s needs.

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    Principles of Information Systems, Tenth Edition 1 - 5 2. The following topics should also be discussed: ▪ Hardware : C onsists of computer equipment used to perform input, processing, and output activities . ▪ Software : P rograms that allow a computer to process payroll, send bills to customers, and provide managers with information to increase profits, reduce costs, and provide better customer service. ▪ Databases : An organization’s database can contain facts and information on customers, employees, inventory, competitors’ sales, online purchases, and much more. ▪ Telecommunications, N etworks, and the Internet : Introduce the terms telecommunications , networks , Internet , intranets , and extranets . ▪ People : Note that information systems personnel include all the people who manage, run, program, and maintain the system. ▪ Procedures : T he strategies, policies, methods, and rules for using the CBIS, including the operation, maintenance, and security of the computer. Quick Quiz 1 1. A(n) ____ is a set of interrelated components that collect, manipulate, store, and disseminate data and information and provide a feedback mechanism to meet an objective. Answer: information system 2. ____ consists of raw facts, such as an employee number, number of hours worked in a week, inventory part numbers, or sales orders . Answer: Data 3. ____ is a collection of facts organized so that they have additional value beyond the value of the facts themselves . Answer: Information 4. ____ is the awareness and understanding of a set of information and the ways that information can be made useful to support a specific task or reach a decision. Answer: Knowledge 5. In information systems, ____ involves producing useful information, usually in the form of documents and reports. Answer: output Teaching Tip When introducing the material in this chapter, rely heavily on the case studies and examples. Much of this material will be a review for the students since it is often covered in general management and business strategy courses. The educational value for most students will center on the focus on information system - related issues.

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    Principles of Information Systems, Tenth Edition 1 - 6 Business Information Systems 1. The most common types of information systems used in business organizations are those designed for electronic and mobile commerce, transaction processing, management information, and decision support. Use Figure s 1.7 and 1.8 to aid the discussion. Electronic and Mobile Commerce 1. Explain that e - commerce involves any business transaction executed electronically between companies (business - to - business, or B2B), companies and consumers (business - to - consumer, or B2C), consumers and other consumers (consumer - to - consumer, or C2C), business and the public sector, and consumers and the public sector. 2. Note that e - commerce offers many advantages for streamlining work activities. Use Figure 1.9 to aid the discussion. 3. Introduce the term electronic business . Use Figure 1.10 to aid the discussion. Enterprise Systems : Transaction Processing Systems and Enterprise Resource Planning 1. The following topics should be addressed: ▪ Transaction Processing Systems : An interesting point to make is that o ne of the first business systems to be computerized was the payroll system (see Figure 1.11 ). ▪ E nterprise Resource Planning : Note that a n ERP system can replace many applications with one unified set of programs, making the system easier to use and more effective. Information and Decision Support Systems 1. Explain that the benefits provided by an effective TPS are substantial and justify their associated costs in computing equipment, computer programs, and specialized personnel and supplies. 2. The following topics should be addressed: ▪ Management Information S ystems : MISs typically provide standard reports generated with da ta and information from the TPS. Use Figure 1.12 to aid the discussion. ▪ Decision S upport S ystems : Decision support systems are used when the problem is complex and the information needed to make the best decision is difficult to obtain and use . Use Figure 1.1 3 to discuss essential DSS elements. Specialized Business Information Systems : Knowledge Management, Artificial Intelligence, Expert Systems, and Virtual Reality 1. Use Figure 1.14 to discuss the major elements of artificial intelligence.

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    Principles of Information Systems, Tenth Edition 1 - 7 2. The following topics should also be discussed: ▪ Artificial I ntelligence : Learning systems allow computers to learn from past mistakes or experiences, such as playing games or making business decisions . N eural networks is a branch of artificial intelligence that allows computers to recognize and act on patterns or trends. ▪ Expert S ystems : Introduce the term knowledge base . ▪ Virtual R eality : Explain that this is the simulation of a real or imagined environment that can be experienced visually in three dimensions. Quick Quiz 2 1. ____ is the use of mobile, wireless devices to place orders and conduct business. Answer: Mobile commerce (m - commerce) 2. ____ goes beyond e - commerce and e - procurement by using information systems and the Internet to perform all business - related tasks and functions, such as accounting, finance, marketing, manufacturing, and human resource activities. Answer: Electronic business (e - business) 3. A(n) ____ is an organized collection of people, procedures, software, databa ses, and devices used to record business transactions. Answer: transaction processing system (TPS) 4. A(n) ____ is an organized collection of people, procedures, software, databases, and devices that support problem - specific decision making. Answer: decision support system (DSS) 5. A(n) ____ is an organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience . Answer: knowledge management system (KMS ) Systems Development 1. One strategy for improving the results of a systems development project is to divide it into several steps, each with a well - defined goal and set of tasks to accomplish . Use Figure 1.16 to aid the discussion. 2. Point out that p eople inside a company can develop systems, or companies can use outsourcing, hiring an outside company to perform some or all of a systems development project. Teaching Tip Conduct a Web - based scavenger hunt in which students locate companies that specialize in providing outsourcing services.

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    Principles of Information Systems, Tenth Edition 1 - 8 Systems Investigation and Analysis 1. Note that the goal of systems investigation is to gain a clear understanding of the problem to be solved or opportunity to be addressed . S ystems analysis , however, defines the problems and opportunities of the existing system . Systems Design, Implementation, Maintenance, and Review 1. Point out that companies often hire outside companies to do their design, implementation, maintenance, and review functions . Information Systems i n Society, Business, a nd Industry 1. Explain that computer - related attacks can come from individuals, groups, companies, and even countries. Security, Privacy, and Ethical Issues in Information Systems and the Internet 1. Explain that although information systems can provide enormous benefits, they do have drawbacks. Some drawbacks are minor, such as receiving unwanted e - mail. Other problems can be more severe, where people’s personal data, including Social Security and credit card numbers, can be lost or stolen, resulting in credit card fraud and ruined credit. Computer and Information Systems Literacy 1. Introduce the terms computer literacy and information system s literacy . Teaching Tip Ask students to discuss the steps they take to protect their home computers from threats such as viruses, spyware, and worms. Is it possible to provide 100% protection for a computer? Why or why not? Teaching Tip Encourage the students to use the Web for all of the research topics in the text. Provide some simple search engine guidelines .

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    Principles of Information Systems, Tenth Edition 1 - 9 Information Systems in the Functional Areas of Business 1. Point out that i nformation systems are used in all functional areas and operating divisions of business. In finance and accounting, information systems forecast revenues and business activity, determine the best sources and uses of funds, manage cash and other financial resources, analyze investments, and perform audits to make sure that the organization is financially sound and that all financial reports and documents are accurate. Information Systems in Industry 1. Note that i n addition to being used in every department in a company, information systems are used in almost every industry or field in business. Quick Quiz 3 1. ____ allows a company to focus on what it does best and delegate other functions to companies with expertise in systems development. Answer: Outsourcing 2. ____ determines how the new system will work to meet the business needs defined during systems analysis. Answer: Systems design 3. (True or False) Ethical issues concern what is generally considered right or wrong. Answer: True 4. ____ is the knowledge of computer systems and equipment and the ways they function. Answer: Computer literacy 5. ____ is the knowledge of how data and information are used by individuals, groups, and organizations. Answer: Information systems literacy G lobal Challenges in Information Systems 1. Explain to students why g lobal markets have expanded. People and companies can get products and services from around the world, instead of around the corner or across town. T hese opportunities, however, introduc e numerous obstacles and issues: ▪ Cultural challenges ▪ Language challenges ▪ Time and distance challenges ▪ Infrastructure challenges ▪ Currency challenges ▪ Product and service challenges ▪ Technology transfer issues

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    Principles of Information Systems, Tenth Edition 1 - 10 ▪ State, regional, and national laws ▪ Trade agreements Class Discussion Topics 1. Discuss a specific computerized information system. If possible, get a representative from the university’s computing services to come in as a guest speaker. 2. What are some of the systems development methodologies used by specific corporations? 3. What steps would you take to align the IS functions of an organization with its organization’s goals? 4. Should technology drive an organization's strategic planning or should strategic planning drive an organization's technology adoption plans? 5. Give an example of a real or fictional corporation and describe the goals of the corporation. Then, ask students to discuss how a computerized information system can help the corporation achieve its goals. 6. Why is it important for everyone to be computer literate? Give some examples of how being computer literate can help an individual in his or her job and personal life. Additional Projects 1. Pick a company that operates globally and use the Internet and any other available source to gather information on the company. Based on your research, write a one - to two - page paper describing some of the possible benefits that the company might have gained by operating globally. Also, describe challenges that the company has faced or is currently facing as a result of operating in a global society. 2. Choose a company that has a Web site. By exploring the Web site, determine the goals of the company. How does the company use the Internet to accomplish these goals? Report your findings in one to two paragraphs. 3. Use the Internet to research the risks that companies face because of their use of information systems. What kind of damage can each of these risks cause to a company’s operations? Summarize your findings in two to three paragraphs. 4. Choose a subfield of artificial intelligence. Research the present and potential future uses of the technologies in this subfield. Report your findings in one or two paragraphs.

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    Principles of Information Systems, Tenth Edition 1 - 11 Additional Resources 1. Business Research in Information and Technology: www.brint.com/ 2. MISQ Central: www.misq.org/ 3. E - Commerce Times: www.ecommercetimes.com/ 4. Computer Certification: http://certification.about.com/index.htm 5. Artificial intelligence: http://www - formal.stanford.edu/jmc/whatisai/node1.html Key Terms ➢ Artificial intelligence (AI) — a field in which the computer system takes on the characteristics of human intelligence. ➢ Computer - based information system (CBIS) — consists of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information. ➢ Computer literacy — knowledge of computer systems and equipment and the ways they function; it stresses equipment and devices (hardware), programs and instructions (software), databases, and telecommunications. ➢ Data — raw facts, such as an employee number, number of hours worked in a week, inventory part numbers, or sales orders. ➢ Database — an organized collection of facts and information. ➢ Decision support system (DSS) — an organized collection of people, procedures, software, databases, and devices used to support problem - specific decision - making. ➢ E - commerce — any business transaction executed electronically between companies (business - to - business), companies and consumers (business - to - consumer), consumers and other consumers (consumer - to - consumer), business and the public sector, and consumers and the public sector. ➢ Effectiveness — a measure of the extent to which a system achieves its goals; it can be computed by dividing the goals actually achieved by the total of the stated goals. ➢ Efficiency — a measure of what is produced divided by what is consumed. ➢ Electronic business (e - business) — using information systems and the Internet to perform all business - related tasks and functions. ➢ 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. ➢ Expert system — a system that gives a computer the abil i ty to make suggestions and act l ike an expert in a particular field.

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    Principles of Information Systems, Tenth Edition 1 - 12 ➢ Extranet — a network based on Web technologies that allows selected outsiders, such as business partners and customers, to access authorized resources of a company’s intranet. ➢ Feedback — output that is used to make changes to input or processing activities. ➢ Forecasting — predicting future events to avoid problems. ➢ Hardware — computer equipment used to perform input, processing, and output activities. ➢ Information — a collection of facts organized in such a way that they have additional value beyond the value of the facts themselves. ➢ Information system (IS) — a set of interrelated components that collect, manipulate, store, and disseminate data and information and provide a feedback mechanism to meet an objective. ➢ Input — the activity of gathering and capturing raw data. ➢ Internet — the world’s largest computer network, actually consisting of thousands of interconnected networks, all freely exchanging information. ➢ Intranet — an internal network based on Web technologies that allows people within an organization to exchange information and work on projects. ➢ Knowledge — an awareness and understanding of a set of information and ways that information can be made useful to support a specific task or reach a decision. ➢ Knowledge base — the collection of data, rules, procedures, and relationships that must be followed to achieve value or the proper outcome. ➢ Management information system (MIS) — an organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers. ➢ Mobile commerce (m - commerce) — transactions conducted anywhere, anytime using wireless communications. ➢ Networks — computers and equipment that are connected in a building, around the country, or around the world to enable electronic communications. ➢ Output — production of useful information, usually in the form of documents and reports. ➢ Procedures — the strategies, policies, methods, and rules for using a CBIS. ➢ Process — a set of logically related tasks performed to achieve a defined outcome. ➢ Processing — converting or transforming data into useful outputs. ➢ Software — the computer programs that govern the operation of the computer. ➢ System — a set of elements or components that interact to accomplish goals. ➢ System performance standard — a specific objective of the system. ➢ Systems development — the activity of creating or modifying existing business systems. ➢ Technology infrastructure — all the hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information. ➢ Telecommunications — the electronic transmission of signals for communications; enables organizations to carry out their processes and tasks through effective computer networks. ➢ Transaction — any business - related exchange, such as payments to employees, sales to customers, and payments to suppliers.

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    Principles of Information Systems, Tenth Edition 1 - 13 ➢ Transaction processing system (TPS) — an organized collection of people, procedures, software, databases, and devices used to record completed business transactions. ➢ Virtual reality — the simulation of a real or imagined environment that can be experienced visually in three dimensions.

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    Princi ples of Information Systems, Te n th Edition 2 - 1 Chapter 2 Information Systems in Organizations At a Glance Instructor’s Manual Table of Contents • Overview • Principles and Objectives • Teaching Tips • Quick Quizzes • Class Discussion Topics • Additional Projects • Additional Resources • Key Terms

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    Princi ples of Information Systems, Te n th Edition 2 - 2 Overview Technology has changed the way that organizations work in recent years. While technology once was used primarily to automate manual processes, information systems have transformed the nature of work and the shape of organizations themselves. In this chapter and throughout the book, you will explore the benefits and drawbacks of information systems in today’s organizations around the globe . Principles and Objectives Principles Learning Objectives The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change. • Identify the value - added processes in the supply chain and describe the role of information systems within them. • Provide a clear definition of the terms “organizational structure,” “culture,” and “change” and discuss how they affect the type of information systems that the organization implements. Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage. • Define the term “competitive advantage” and identify the factors that lead firms to seek competitive advantage. • Discuss strategic planning for competitive advantage. • Describe how the performance of an information system can be measured. IS personnel is a key to unlocking the potential of any new or modified system. • Define the types of roles, functions, and careers available in the field of information systems.

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