Management information system ralp 7e ch01

• 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
Principles of Information Systems, Seventh Edition

2


• Models, computers, and information systems are
constantly making it possible for organizations to
improve the way they conduct business

• Name the components of an information system and
describe several system characteristics
• Identify the basic types of models and explain how they are
used
Principles of Information Systems, Seventh Edition

3


• Knowing the potential impact of information systems and
having the ability to put this knowledge to work can result in
a successful personal career, organizations that reach their
goals, and a society with a higher quality of life

• 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
Principles of Information Systems, Seventh Edition

4


• 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

Principles of Information Systems, Seventh Edition

5


• Information systems must be applied thoughtfully and
carefully so that society, business, and industry can reap
their enormous benefits

• Describe some of the threats to security and privacy that
information systems and the Internet can pose
• Discuss the expanding role and benefits of information
systems in business and industry
Principles of Information Systems, Seventh Edition

6


Introduction
• Information system (IS)
• A set of interrelated components that collect, manipulate,
and disseminate data and information and provide feedback
to meet an objective
• Examples: ATMs, airline reservation systems, course
reservation systems

Principles of Information Systems, Seventh Edition

7


Information Concepts:
Data Versus Information
• Data: raw facts
• Information: collection of facts organized in such a
way that they have additional value beyond the facts
themselves

Principles of Information Systems, Seventh Edition

8


Table 1.1: Types of Data

Principles of Information Systems, Seventh Edition

9


Figure 1.1: Defining and Organizing
Relationships Among Data Creates Information

Principles of Information Systems, Seventh Edition

10


Figure 1.2: The Process of
Transforming Data into Information

Principles of Information Systems, Seventh Edition

11


Table 1.2: Characteristics of Valuable Data

Principles of Information Systems, Seventh Edition

12


Table 1.2: Characteristics of Valuable

Data (continued)

Principles of Information Systems, Seventh Edition

13


System and Modeling Concepts
• System: a set of elements or components that interact to
accomplish goals
• Components of a system
• Input
• Processing
• Output
• Feedback

Principles of Information Systems, Seventh Edition

14


Figure 1.3: Components of a System

Principles of Information Systems, Seventh Edition

15


System Components and Concepts
• System boundary: defines the system and distinguishes

it from everything else (i.e., the environment)
• Configuration: the way system elements are organized
or arranged
• Systems can be classified as simple or complex, open or
closed, stable or dynamic, adaptive or nonadaptive, and
permanent or temporary

Principles of Information Systems, Seventh Edition

16


Table 1.3: Systems Classifications and
Their Primary Characteristics

Principles of Information Systems, Seventh Edition

17


System Performance and Standards
• Efficiency: a measure of what is produced divided by
what is consumed
• Effectiveness: extent to which system attains its goals
• System performance standard: a specific objective of a
system

Principles of Information Systems, Seventh Edition

18

System Variables and Parameters
• System variable: quantity or item controlled by the
decision maker
• System parameter: value or quantity that cannot be
controlled (e.g., the cost of a raw material)

Principles of Information Systems, Seventh Edition

19


Modeling a System
• Model: an abstraction that is used to represent reality
• Four major types of models: narrative (based on words);
physical (tangible); schematic (graphic representation);
mathematical (arithmetic representation)

Principles of Information Systems, Seventh Edition

20


Figure 1.6: Four Types of Models

Principles of Information Systems, Seventh Edition

21

Figure 1.7: The Components of an
Information System

Principles of Information Systems, Seventh Edition

22


Input, Processing, Output, Feedback
• Input: activity of gathering and capturing raw data
• Processing: converting or transforming data into useful
outputs
• Output: production of useful information, usually in
form of documents and reports
• Feedback: output used to make changes to input or
processing activities

Principles of Information Systems, Seventh Edition

23


Computer-Based Information Systems
• Computer-based information system (CBIS)
• A single set of hardware, software, databases,
telecommunications, people, and procedures that are
configured to collect, manipulate, store, and process data
into information
• Examples: a company’s payroll systems, order entry

system, and inventory control systems

Principles of Information Systems, Seventh Edition

24


Figure 1.8: The Components of a
Computer-Based Information System

Principles of Information Systems, Seventh Edition

25