Is What an Information System?
The Components of an Information System
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Computer-Based Information Systems
(continued)
CBIS components
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
Telecommunications: electronic transmission of
signals for communications
Networks: connect computers and equipment in a
building, around the country, and around the world
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Computer-Based Information Systems
(continued)
CBIS components (continued)
Internet: worlds largest computer network
People: manage, run, program, and maintain the
system
Procedures: strategies, policies, methods, and rules
for using a CBIS
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Business Information Systems
Most common types of information systems used in
business organizations
Electronic and mobile commerce systems
Transaction processing systems
Management information systems
Decision support systems
Specialized business information systems
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Business Information Systems
(continued)
Business Information Systems
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Information and Decision Support
Systems
An effective TPS provides a number of benefits to
a company
A TPS can speed business activities and reduce
clerical costs
Data stored in TPSs is used to help managers
make better decisions
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Management Information Systems
Management information system (MIS)
Organized collection of people, procedures,
software, databases, and devices
Provides routine information to managers/decision
makers
Primary focus is operational efficiency
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Management Information Systems
(continued)
Management Information System
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Decision Support Systems
Decision support system (DSS)
Organized collection of people, procedures,
software, databases, and devices
Supports problem-specific decision making
Focus is on decision-making effectiveness
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Decision Support Systems (continued)
Essential DSS Elements
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Specialized Business Information
Systems: Knowledge Management,
Artificial Intelligence, Expert Systems,
and Virtual Knowledge Reality
management systems (KMSs): an
organized collection of people, procedures,
software, databases, and devices to create, store,
share, and use the organizations knowledge and
experience
Artificial intelligence (AI): field in which the
computer system takes on the characteristics of
human intelligence
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Artificial Intelligence
The Major Elements of Artificial Intelligence
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Expert Systems
Give the computer the ability to make suggestions
and act like an expert in a particular field
Allow organizations to capture and use the wisdom
of experts and specialists
The knowledge base contains the collection of
data, rules, procedures, and relationships that must
be followed to achieve value or the proper outcome
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Systems Development
Systems development: creating or modifying
existing business systems
Systems development can be:
Performed in-house
Outsourced
To improve results of a systems development
project, it is divided into several steps
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Systems Development (continued)
An Overview of Systems Development
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Organizations and Information
Systems
Organization: collection of people and other
resources established to accomplish a set of goals
An organization is a system
Inputs: resources (materials, people, money)
Outputs: goods or services
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User Satisfaction and Technology
Acceptance
Technology Acceptance Model (TAM): specifies
factors that can lead to higher acceptance and
usage of technology
Technology diffusion: measure of widespread
use of technology
Technology infusion: extent to which technology
permeates a department
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User Satisfaction and Technology
Acceptance (continued)
Competitive advantage: significant, long-term
benefit to a company over its competition
Ability to establish and maintain a competitive
advantage is vital to the companys success
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Risk
Managers must consider the risks of designing,
developing, and implementing new or modified
information systems
Information system may be a failure
Costs of development and implementation can be
greater than the returns from the new system
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