FIS - midterm Flashcards
Why Learn About Information Systems?
- used in almost every profession
-
Entrepreneurs & small business
— reach customers -
Sales Rep.
— advertise products -
Managers
— make multimillion-dollar decision -
Financial Managers
— advise clients to help them save -
Business
— perform accounting & financial operations - first job, earn promotion, & advance your career
- A set of interrelated components that collect, manipulate, store, and disseminate data and information and provide a feedback mechanism to meet an objective.
- It is the
feedback mechanism
that helps organizations achieve their goals, such as increasing profits or improving customer service.
Information System (IS)
4 Everyday IS interaction
- Using Automated Teller Machine (ATM).
- Accessing information over the Internet.
- Selecting information from kiosks with touch screens.
- Scanning bar codes on purchases at self-lane check outs.
consists of raw facts
, such as an employee number, total hours worked in a week, inventory part numbers, or sales orders.
DATA
4 Representation of Data
- Alphanumeric data - Numbers, letters and other characters.
- Image data - Graphic images and pictures.
- Audio data - Sound, noise or tones.
- Video data - Moving images or pictures.
- Defining and organizing relationships among data creates information.
- A collection of
facts organized
in such a way that they have additional value beyond the value of the individual facts. - The process of
defining relationships among data
to create useful information requires knowledge. - Turning data into information is a process – a
set of logically related tasks
performed to achieve a defined outcome.
INFORMATION
- Having it means
understanding relationships in information
. - A set of information and ways that information can be made
useful
to support a specific task or reach a decision.
KNOWLEDGE
a data
made more useful through the application of knowledge
.
Information
These are the people who create, use, and disseminate knowledge
, and are usually professionals in science, engineering, business, and other areas.
Knowledge Workers (KWs)
An organized collection of people, procedures, software, databases, and devices
used to create, store, and use the organization’s knowledge and experience.
Knowledge Management System (KMS)
What are the Characteristics of a VALUABLE Information?
- Accessible (but use available instead)
- Accurate
- Complete
- Economical
- Flexible
- Relevant
- Reliable
- Secure
- Simple
- Timely
- Verifiable
obtain info in the right format
at the right time
Accessible/Available
error free
info (GIGO
- unaccurate data)
Accurate
contains all
important facts
Complete
balance
the value of the info with the cost producing it
Economical
can be used for a variety of purposes
flexible
important to the decision maker
Relevant
can be trusted
by users (w/ trusted source)
Reliable
free from unauthorized users
Secure
not
overly complex
simple
delivered when its needed
timely
can check
it to make sure its correct
verifiable
- The value of information is directly linked to how it helps decision makers
achieve
their organization’sgoals
. -
Valuable information can help people and their organizations perform tasks more
efficiently
andeffectively
.
value of information
Efficiency vs Effectiveness
Efficiency
* compare systems
* doing things right
* save resources
Effectiveness
* measure of the extent
* computed by dividing goals
* doing the right thing
* DON'T save resources
- the activity of
gathering and capturing raw data
. - In
producing paychecks
, for example, the number of hours every employee works must be collected before paychecks can be calculated or printed. - In a
university grading system
, instructors must submit student grades before a summary of grades for the semester or quarter can be compiled and sent to students.
INPUT
- In information systems, it means
converting or transforming data into useful outputs
. - can involve making
calculations
, comparing data and taking alternative actions, and storing data making data into useful information - s
critical in business settings
.
PROCESSING
- Iproducing useful information, usually in the form of
documents and reports
. - include
paychecks
for employees,report
s for managers, and information supplied to stockholders, banks, government agencies, and other groups. - In some cases, output from one system can become input for another. For example, output from a system that processes sales orders can be used as input to a customer billing system.
OUTPUT
- information from the system that is used to
make changes to input or processing activities
. - For example, errors or problems might make it necessary
to correct
input data orchange a process
. - Feedback is also important for
managers and decision
FEEDBACK
A single set of hardware, software, databases, telecommunications, people, and procedures
that are configured to collect, manipulate, store, and process data into information.
Computer-Based Information Systems (CBIS)
CBIS COMPONENTS
- Hardware
- Software
- Databases
- Telecommunications
- People
- Procedures
- Consists of
computer equipment
used to perform input, processing, and output activities. - The trend in the computer industry is to produce smaller, faster, and more mobile hardware.
- Input devices include keyboards, mice and other pointing devices, automatic scanning devices, and equipment that can read magnetic ink characters.
Hardware
- Consists of the computer programs that
govern the operation of the computer
. - With software, people can work anytime at any place.
- These programs 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.
Software
Two (2) Types of Software
-
System Software: controls the
basic computer operations
including start-up and printing.
e.g. Microsoft Windows Vista -
Application Software: allows you to
accomplish specific tasks
including word processing or creating spreadsheets.
e.g. Microsoft Office 2007
- A is an organized
collection of facts and information
, typically consisting of two or more related data files. - Most managers and executives consider a database to be
one of the most valuable
parts of a computer-based information system. - An organization’s database can contain
facts and information
on customers, employees, inventory, competitors’ sales and online purchases.
Databases
is the electronic transmission of signals
for communications, which enables organizations to carry out their processes and tasks through effective computer networks.
Telecommunications
- People can be the
most important element
in most computer-based information systems. - They make the difference between
success
andfailure
for most organizations. - Information systems
personnel
include all the people who manage, run, program, and maintain the system.
People
- include the
strategies, policies, methods, and rules
for using the CBIS, including the operation, maintenance, and security of the computer. - Good procedures can help companies take advantage of new opportunities and avoid potential disasters.
- Poorly developed and inadequately implemented procedures, however, can cause people to waste their time on useless rules or result in inadequate responses to disasters.
Procedures
- are used in all functional areas and operating divisions of business.
Information systems
Information Systems in Business
- Finance and accounting — forecase revenues and business activity, perform audits
- Sales and marketing — develop new goods and services
Information Systems in Industry
- Airline industry — develps internet auction sites to offer discount fares and increase revenue
- Investment firms — analyze stocks, bonds, options, the future market, and other financial instruments
- Banks — make sound loans and good investments as well as to provide online check payment for account holders
formal collection of people and other resources to accomplish a set of goals
a system that has input, processing, output and feedback
it constantly use money, people, materials, machines and other equipment
Organization
For-profit
vs. Non-profit
Org
For-profit - maximize shareholder value, price of the company stock (has income
)
Nonprofit - social groups, religous groups, universities (no income
)
support and work within all parts of an org’al process
org use this to cut cost and increase profits
Information Systems
focuses on outperforming others, often aiming to be the best.
Competitive
focuses on efficiency and effectiveness, aiming to accomplish goals successfully.
Productive
a series (chain) of act
* inbound logistics
* warehouse & storage
* production
* finished product storage
* outbound logistic
* marketing and sales
* customer service
value chain
helps determine the ff:
* supplies
* quantities
* how should it be processed
* shipment
Supply Chain Management
Help a company manage all aspects of customer encounters, including:
1. Marketing and advertising, 2. Sales, 3. Customer service after the sale, and 4. Programs to retain loyal customers.
- help get customer data/feedback
Customer Relationship Management
- Refers to organizational
sub-units
and the way they relate to the overall organization. - An organization’s structure depends on its
goals
andapproach
to management, and can affect how it views and uses information systems. - The types of organizational structures typically include
traditional, project, team,
andvirtual
.
Organizational Structure
- Also called as a “
hierarchica
l” structure. - It is like a
managerial pyramid
where the hierarchy of decision making and authority flows from the strategic management at thetop down
to operational management and non-management employees.
Traditional Organizational Structure
- Includes the
president
of the company andvice presidents
. - They have the
highest degree of decision
authority and has the most impact on corporate goals.
Strategic Level
- Includes the
major department heads
. - Usually
divided according to function
and can include marketing, production, information systems, finance and accounting, research and development, and so on.
Tactical Level
- Known as the “
Line positions
”. - These positions or
departments
are directly associated with making, packing, or shipping goods.
Operational Level
- Known as the “
Staff positions
”. - These are positions that might
not be directly involved
with the formal chain of command but instead assist a department or area.
NOn-Management Level
Empowers
employees at lower levels to make decisions and solve problems without needing permission from midlevel managers.
Flat Organizational
Structure
- Centered on
major products
or services. - Project teams are
temporary
— when the project is complete, the members go on to new teams formed for another project.
Project Organizational
Structure
- Centered on
work teams
orgroups
. In some cases, these teams are small; in others, they are very large. - Typically, each team has a
leader
who reports to an upper-level manager. - Depending on its tasks, the team can be
temporary or permanent
.
Team Organizational
Structure
- Employs individuals, groups, or complete business units in
geographically dispersed areas
that can last for a few weeks or years, often requiringtelecommunications
or theInternet
- .Allows work to be separated from location and time.
- Work can be done
anywhere
,anytime
.
Virtual Organizational
Structure
- People might never meet physically, which explains the use of the word
virtual
, and highlights the difference between virtual organizations and traditional ones that have operations in more than one location. - A Virtual organization is geographically distributed, and uses information technology to communicate and coordinate the work.
- It can last for a
few weeks, months, years or decades
.
Virtual Organizational
Structure
A ____________ is geographically distributed, and uses information technology to communicate and coordinate the work.
Virtual organization
A set of major understandings
and assumptions
shared by a group, such as within an ethnic group or a country
.
Culture
Consists of the major understandings (common beliefs, values, and approaches to decision making) and assumptions for a business
, corporation
, or other organization
.
Organizational Culture
Deals with how for-profit and nonprofit organizations plan for, implement, and handle change.
Organizational Change
INTERNAL vs EXTERNAL CHANGE
Internal change – factors initiated by employees at all levels
.
External change- activities created by competitors, stockholders, federal and state laws
, community regulations, natural occurrences (such as hurricanes), and general economic conditions.
Can help an organization improve the supply of raw materials, the production process, and the products and services it offers.
Sustaining Change
Often harms
an organization’s performance or even puts it out of business.
Disruptive Change
CHANGE MODEL
by
Kurt Lewin and Edgar Schein
- Unfreezing - stopping old habits and creating a climate that is receptive to change.
- Moving - learning new work methods, behaviors, and systems.
- Refreezing - reinforcing changes to make the new process second nature, accepted, and part of the job.
Involves the radical redesign
of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough
(advancement) in business results.
Business Process
Reengineering
- Constantly seek ways to
improve
business processes andadd value
to products and services. - This continual change will
increase
customer satisfaction and loyalty and ensureong-term
profitability.
Continuous Improvement
A model that describes the factors leading to higher levels of acceptance and usage of technology.
Technology Acceptance Model (TAM)
TECHNOLOGY DIFFUSION
vs INFUSION
-
T. Diffusion - A measure of how widely technology is
spread throughout the organization
. -
T. Infusion - The extent to which technology is
deeply integrated
into anarea or department
.
The ability of a product (including services) to meet or exceed customer expectations.
Quality
- Involves contracting with
outside
professional services to meet specific business needs. - Organizations often outsource a process to focus more closely on their
core business
—and target limited resources to meet strategic goals.
Outsourcing
- Involves
rapidly responding
to the organization’s flow of work as the need for computer resources varies. - Organization pays for
computing resources
from a computer or consulting company.
On-demand Computing
- Instead of purchasing hardware, software, and database systems, the organization only pays a
fee
for the systems it needs atpeak times
. - It also allows the organization’s IS staff to concentrate on
more-strategic
issues.
On-demand Computing
- Involves reducing the number of employees to
cut costs
. - Rather than pick a specific business process to downsize, companies usually look to downsize across the entire company.
- Reduces total payroll costs, though employee morale can suffer.
Downsizing
- Employers need to be open to alternatives for reducing the number of employees but use
layoffs
as the last resort. - It’s simpler to encourage people to leave
voluntarily
through early retirement or other incentives.
Downsizing
- A significant and (ideally)
long-term benefit
to a company over its competition, and can result in higher-quality products, better customer service, and lower costs. - Establishing and maintaining a competitive advantage is complex, but a company’s survival and prosperity depend on its success in doing so.
Competitive Advantage
- To gain an advantage over competitors, companies constantly analyze how they use their resources and assets.
- For example, a transportation company might decide to invest in radio-frequency technology to tag and trace products as they move from one location to another.
Rivalry Among Existing Competitors
When the threat of new market
entrants is high, the desire to seek and maintain competitive advantage to dissuade / discourage new entrants is also usually high.
Threat of New Entrants
- Companies that offer one type of goods or services are threatened by other companies that offer similar goods or services.
- The more consumers can obtain
similar products
and services that satisfy their needs, the more likely firms are to try to establish competitive advantage.
Threat of Substitute Products and Services
- Large customers tend to influence a firm, and this influence can increase significantly if the customers can threaten to switch to rival companies.
- When the bargaining power of suppliers is strong, companies need to improve their competitive advantage to maintain their bargaining position.
Bargaining Power of Customers and Suppliers
- Deliver the
lowest possible cost
for products and services. - Achieved by
reducing the costs of raw materials
through aggressive negotiations with suppliers, becoming more efficient with production and manufacturing processes, and reducing warehousing and shipping costs.
Cost Leadership
- Deliver
different products and services
. - This strategy can involve
producing a variety of products
, giving customersmore choices
, or delivering higher quality products and services.
Differentiation
- Deliver to
only a small, niche market
. - Porsche, for example, doesn’t produce inexpensive station wagons or large sedans. It makes high-performance sports cars and SUVs. \
- Rolex only makes high-quality, expensive watches. It doesn’t make inexpensive, plastic watches.
Niche strategy
- Introduce
new products
and servicesperiodically or frequently
. - If an organization does not introduce new products and services every few months, the company can quickly stagnate, lose market share, and decline.
Creating New Products and Services
Make real or perceived improvements to existing product lines and services.
Improving Existing Product Lines and Services
- A measure of the
output
achieveddivided by
theinput
required. - A higher level of output for a given level of input means greater productivity; a lower level of output for a given level of input means lower productivity.
Productivity
Productivity = (Output / Input) × 100%
This measure investigates the additional profits or benefits
that are generated as a percentage of the investment in IS technology.
Return on Investment (ROI)
The percentage of sales that a product or service has in relation to the total market.
Market Share
Bringing new products and services to customers in less time.
Speed to Market
The measurement of the total cost of owning computer equipment
, including desktop computers, networks, and large computers.
Total Cost of Ownership (TCO)
It consists of any machinery
(most of which uses digital circuits) that assists in the input, processing, storage, and output activities of an information system.
Hardware
These components include the input devices, output devices, primary and secondary storage devices, and the central processing unit (CPU)
. The control unit, the arithmetic/logic unit (ALU), and the register storage areas constitute the CPU.
Hardware Components
Part of the computer that consists of three associated elements: the arithmetic/logic unit, the control unit, and the register areas
.
Central Processing Unit (CPU)
Part of the CPU that performs mathematical calculations
and makes logical comparisons.
Arithmetic/logic unit (ALU)
Part of the CPU that sequentially accesses program instructions, decodes them, and coordinates the flow of data
in and out of the ALU, the registers, primary storage, and even secondary storage and various output devices.
Control unit
The set of programs that coordinates the activities and functions of the hardware
and other programs throughout the computer system.
Systems Software
The combination of a hardware configuration
and systems software
is known as a .
computer system platform
It has the greatest
potential to affect processes that add value to a business because it is designed for specific
organizational activities and functions.
Application Software
is an application that enables a workgroup
to schedule meeting
s and coordinate activities
.
Lotus Notes
The sphere of influence that serves the needs of an individual user
.
Personal Sphere of Influence
The software that enables users to improve their personal effectiveness
, increasing the amount of work they can perform and enhancing its quality.
Personal Productivity Software
Personal computer and workstation operating systems
Systems Software
Word processing, spreadsheet, database, graphics
Application Software
Two or more
people who work together to achieve a common goal
.
Workgroup
The sphere of influence that serves the needs of a workgroup
.
Workgroup Sphere of Influence
Network operating systems
Systems Software
Electronic mail, group scheduling, shared work, collaboration.
Application Software
The sphere of influence that serves the needs of the firm
in its interaction with its environment.
Enterprise Sphere of Influence
Midrange computer and mainframe operating systems.
Systems Software
General ledger, order entry, payroll, human resources.
Application Software
- A set of programs that
controls the computer hardware
and acts as an interface with applications. - It can control one or more computers, or they can allow
multiple users
to interact with one computer.
Operating System (OS)
This system is commonly used in a personal
computer or a handheld
computer that allows one user at a time
.
Single computer with a single user
This system is typical of larger, mainframe
computers that can accommodate hundreds or thousands of people
, all using the computer at the same time.
Single computer with multiple users
This system is typical of a network
of computers, such as a home network with several computers attached or a large computer network with hundreds of computers attached around the world
.
Multiple computers
This system is typical of a number of computers with specialized functions
, such as those that control sophisticated military aircraft, the space shuttle, and some home appliances.
Special-purpose computers
- The
heart
of the operating system, which controls themost critical
processes. - It ties all of the OS components together and regulates other programs.
KERNEL
PERSONAL OS
- Microsoft PC Operating Systems
- Apple Computer Operating Systems
- Linux
WORKGROUP OS
- Windows Server
- Red Hat Linux
- UNIX
- Mac OS X Server
- NetWare
ENTERPRISE OS
z/OS
HP-UX and Linux
Help to perform maintenance
or correct problems with a computer system. It also help computer systems run better and longer
without problems.
* merge and sort sets of data,
* keep track of computer jobs being run, and
* compress files of data before they are stored or transmitted over a network .
Utility Programs
TYPES OF UTILITY PROGRAMS
- Hardware Utilities
- File-Compression Utilities
- Spam and Pop-Up Blocker Utilities
- Security Utilities
- Network and Internet Utilities
- Server and Mainframe Utilities
- A software that allows different systems to
communicate and exchange data
. - It can also be used as an
interface between the Internet and older legacy systems
(a previous, major version that continues to be used).
Middleware
-
not
in the public domain. - cannot be used by the public.
Proprietary Software
can be purchased or acquired in a store
.
Off-the-Shelf Software
A defect
in a computer program that keeps it from performing as it is designed to perform.
Some software bugs are obvious and cause the program to terminate
unexpectedly.
Other bugs are subtler and allow errors to creep into your work.
Software Bugs
Most software products are protected by law
using copyright or licensing provisions.
* In some cases, you are given unlimited
use of software on one or two
computers.
* In other cases, you pay for your usag
e—if you use the software more, you pay more.
Copyrights and Licenses
Permits you to install the software on one computer, or sometimes two computers, used by one person
.
Single-user license
-
Specifies the number of users
allowed to use the software, and can be installed on each user’s computer. - For example, a 20-user license can be installed on 20 computers for 20 users.
Multiuser license
Designed for network-distributed software, this license allows any number of users
to use the software, but only a specific number of users to use it at the same time
.
Concurrent-user license
Permits the software to be used anywhere on a particular site
, such as a college campus, by everyone on the site.
Site license
- Is
freely available to anyone
in a form that can be easily modified. - Users can
download
the source code andbuild
the software themselves, or the software developers can make executable versions available along with the source.
Open-Source Software
Software that is very inexpensive or free
, but whose source code cannot be modified
.
Shareware and Freeware
A software that is not protected by copyright laws
and can be freely copied and used.
Public Domain Software