Chapter 1: Introduction Flashcards
Information systems =
- Information technologies: tech that supports systems - Ex: computer networks, internet -> public, (intranet ->private), databases
- Help organizations be more competitive and improve efficiency (resource utilization) and effectiveness (appropriateness)
Computer Literacy
- Using productivity software
- Having basic knowledge of hardware, software, the internet, tools, and technology
- Ex: Word, excel, database management systems, presentation software
- Is a skill in using productivity software, such as word processors spreadsheets, database management systems, and presentation software
Information Literacy
- Understanding information to generate business intelligence (BI)
- BI: More than just information. Provides historical, current, predictions, competitive edge
Transaction Processing System (TPS)
- Focuses on data collection and processing
- Cost reduction
- Involve operations that are repetitive
- Ex: Record keeping, inventory control, automated pay roll
Management Information Systems (MIS)
- Produces timely, integrated, relevant, accurate, useful information for making decisions.
- Uses data to make decisions
- Includes:
- > Hardware (computer)
- > Software (program)
- > Processes
- > Human elements
4 Major components of an information system
- Data
- Database
- Process
- Information
Data
- Raw facts
- Input of information system
- Ex: customer numbers and their names
- Eventually becomes information
- External (comes from customers, competitors, supplies, labor statistics, govt.) or Internal (sales records, personal records)
- Aggregated (totaled) or disaggregated (itemized lists)
Information
- Processed data that is useful in decision making
- Knowledge derived from data
- Facts in context
- Output/goal of information systems
- Used to make decisions
- Anything you can compare
- Must have timeliness, integration with other data and information, consistency and accuracy, relevance
Database
- A permanent collection of information
- Collection of all relevant data organized in a series of integrated files
- A central repository of information, stored more-or-less permanently on a computer system, that is of interest to some enterprise.
Database Management System (DBMS)
- The software used to filter database
- A generalized software tool for manipulating large databases; it provides minimally the capabilities of interrogation and maintenance of the stored data, via a set of languages or user interfaces.
Process
- Generate the most useful type of information for decision making
-Ex: Transaction-processing reports
Models for decision analysis
4 M’s of resources
- Man
- Money
- Machine
- Materials
Personnel information system (PIS) or human resource information system (HRIS)
Designed to provide information that helps decision makers in personnel carry out tasks effectively
Logistics information system (LIS)
Designed to reduce the cost of transporting materials while maintaining safe and reliable delivery, optimization
Manufacturing information system (MFIS)
Used to manage manufacturing resources so that companies can:
- > Reduce manufacturing costs - > Increase product quality - > Improve inventory decisions
Financial information system (FIS)
Used to provide information to financial executives in a timely manner
Marketing information system (MKIS)
- Used to improve marketing decisions
- Provides timely, accurate, and integrated information about the marketing mix (Price, promotion, place, and product)
Porter’s 5 Forces Model
- Buyer power: High when buyers have many choices, low when they have few choices, want to limit choices so buyers don’t switch
- Supplier power: High when customer options low, can charge more, demand
- Threat of substitute products or services: Up when up alternatives
- Threat of new entrants: Down when duplicating good is hard
- Rivalry among existing competitors: Up when up competitors
- Used to analyze a firm’s position in the marketplace and how it can use information systems to be more competitive
3 strategies to gain competitive advantage in marketplace
- Overall cost leadership
- Differentiation: Making products and services different from competitors
3: Focus strategies: Focusing on specific market segments to achieve a cost or differentiation advantage
System software
Pre-installed
Generic
System = Multiple
Ex: System software -> has operating system (Windows) -> has apps (Excel)
Operating System
- Set of programs for controlling and managing computer hard and software
- Provides interface between computer and user
- Example of a system software
- Ex: Windows, Mac
- Consists of Control programs (used to manage hardware) and supervisors programs (kernel) used to control all other programs in the operating system (software)
Application Software
- Performs specialized tasks
- Some apps are pre-installed others, the user installs
- Ex: Microsoft Office (Excel, word, powerpoint, access)
- Word processors, spreadsheets, database management systems, and productivity software
Knowledge worker
- A person whose job involves handling and using information
- Information processor that uses software (computer programs) and knowledge
Efficiency
Concerned with resource utilization
Output/Input
Effectiveness
Concerned with the appropriateness of the transformation process
System
- A set of interrelated parts that work together for some purpose.
- Transforms inputs into outputs
Input -> Process -> Output -> Feedback (Information about system performance) - All systems have a goal
Decision Support System (DSS)
Model that takes input and generates information, makes predictions used to make decisions
Garbage in Garbage out (GIGO)
Output quality depends on input quality.
Inaccurate data will lead to inaccurate information
Computer
- An electronic device which can perform computations including arithmetic and logical operations (example: User puts in username and password, does it match up/compares uses if then statement: if condition is true then allow access)
- Can store and execute its own instructions
- Accepts data (input) for processing and outputs a result
- Has internal storage, can execute a stored program (program = a set of instructions for a particular computer application)
The significance about a computer’s ability to store instructions is that it
- Allows you to use your computer for one task and then switch to a different one (stored program)
- Uses one computer for many programs, adds flexibility to change
- Provides reliability (dependable)
Program (source code)
= Instructions
- A set of instructions for a particular computer application
= source code -> translated into object code (consisting o binary 1s and 0s
Models
Variables go in (input, data) -> predict what will happen
Ex: Decision Support System (DSS)
Optimization
The best situation based on circumstances
Transaction
Event that you are capturing
Point of sale (POS)
- System that scans what is being sold and collects data in real time
- Moment that transaction is completed
- Ex: Cash register -> code -> product -> price -> cash/credit card -> approved
Radio frequency identification tags (RFID)
Ex: Name tag with id in badge, tracker, count amount of people
Yield Management
Adjusting price to match supply and demand and competition
What is software?
The set of instructions that the hardware executes to carry out specific tasks
External Data comes from:
Customers, competitors, suppliers, labor statistics, and the government
Internal Data comes from:
Sales records and personal records
