Textbook: Principles of Information Systems, Sixth Edition

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Principles of Information Systems

textbook: Principles of Information Systems, Sixth Edition
Dr.Amer Alzaidi
Department of Information Systems 1
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Communication
n E-mail : aalzaidi@uj.edu.sa
n Office Hours: Sunday, Tuesday and
Thursday from 9am until 12non.
Note – Please send an e-mail if you want to
book an appointment.
Dr.Amer Alzaidi Department of Information Systems

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House Rules
n Formal Dress
n No Phone No Laptop on the table
n Once I start talking and you are not in the
room you are late, welcome to attend but
you will be marked as late.

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Exam and Marks
Type Mark
Attendance and Participation 15
Mid-term 1 10
Mid-term 2 10
Lab 1 5
Lab 2 5
Assignment 15
Final 40
Total 100

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Source of Studying
1.  Textbook
Author: Ralph Stair & George Reynolds
Title: “Principles of Information Systems”, Sixth Edition
2.  Course Presentation
3.  Your own lecture notes

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Course Outline
n  PART 1 Information Systems in Perspective
n  Chapter 1 An Introduction to Information Systems in Organizations
n  PART 2 Technology

n  Chapter 2 Hardware and Software
n  Chapter 3 Database Systems, Data Centers, and Business Intelligence
n  Chapter 4 Telecommunications, the Internet, Intranets, and Extranets
n  PART 3 Business Information Systems

n  Chapter 5 Electronic and Mobile Commerce and Enterprise Systems
n  Chapter 6 Information and Decision Support Systems
n  Chapter 7 Knowledge Management and Specialized Information Systems
n  PART 4 Systems Development and Social Issues

n  Chapter 8 Systems Development
n  PART 5 Information Systems in Business and Society

n  Chapter 9 The Personal and Social Impact of Computers

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Chapter 1
An Introduction to
Information Systems in
Organizations
Dr.Amer Alzaidi Department of 7
Information Systems
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Why Learn About Information Systems in

Organizations?
n  Information systems used by:

n  Sales representatives
n  Managers
n  Financial advisors
n  Information systems:

n  Indispensable tools to help you achieve your career goals

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Introduction
n  Information system (IS):
n  A set of interrelated components that collect, manipulate, and forecast
data and information and provide feedback to meet an objective
n  Businesses:
n  Can use information systems to increase revenues and reduce costs

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Information Concepts
n  Information:
n  One of an organization’s most valuable resources
n  Often confused with the term data

+ Data, Information, and Knowledge 11
n  Data:
n  Raw facts
n  Information:
n  Collection of facts organized in such a way that they have value beyond
the facts themselves
n  Process:
n  Set of logically related tasks
n  Knowledge:
n  Awareness and understanding of a set of information

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Data, Information, and Knowledge

(continued)

+ Data, Information, and Knowledge
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(continued)

+ Data, Information, and Knowledge
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(continued)

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The Characteristics of Valuable

Information
n  If an organization’s information is not accurate or complete:

n  People can make poor decisions, costing thousands, or even
millions, of dollars
n  Depending on the type of data you need:

n  Some characteristics become more important than others

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The Value of Information
n  Directly linked to how it helps decision makers achieve their

organization’s goals
n  Valuable information:

n  Can help people and their organizations perform tasks more
efficiently and effectively

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What is an Information System?
n  Information system (IS) is a set of interrelated elements that:

n  Collect (input)
n  Manipulate (process)
n  Store
n  Disseminate (output) data and information
n  Provide a corrective reaction (feedback mechanism) to meet an
objective

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What is an Information System?

(continued)

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Input, Processing, Output, Feedback
n  Input:
n  Activity of gathering and capturing raw data
n  Processing:
n  Converting data into useful outputs
n  Output:
n  Production of useful information, usually in the form of documents
and reports
n  Feedback:
n  Information from the system that is used to make changes to input
or processing activities

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Manual and Computerized Information

Systems
n  An information system can be:

n  Manual or computerized
n  Example:
n  Investment analysts manually draw charts and trend lines to assist
them in making investment decisions
n  Computerized information systems:

n  Follow stock indexes and markets and suggest when large blocks of
stocks should be purchased or sold

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Computer-Based Information Systems
n  Single set of hardware, software, databases,

telecommunications, people, and procedures:
n  That are configured to collect, manipulate, store, and process data
into information
n  Technology infrastructure:

n  Includes all hardware, software, databases, telecommunications,
people, and procedures
n  Configured to collect, manipulate, store, and process data into
information

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Computer-Based Information
Systems (continued)

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(continued)
n  Hardware:
n  Consists of computer equipment used to perform input, processing,
and output activities
n  Software:
n  Consists of the computer programs that govern the operation of the
computer
n  Database:
n  Organized collection of facts and information, typically consisting of
two or more related data files

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(continued)
n  Telecommunications, networks, and the Internet:

n  The electronic transmission of signals for communications
n  Networks:
n  Connect computers and equipment to enable electronic
communication
n  Internet:
n  World’s largest computer network, consisting of thousands of
interconnected networks, all freely exchanging information

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(continued)
n  Intranet:
n  Internal network that allows people within an organization to
exchange information and work on projects
n  Extranet:
n  Network that allows selected outsiders, such as business partners
and customers, to access authorized resources of a company’s
intranet

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(continued)
n  People:
n  The most important element in most computer-based information
systems
n  Procedures:
n  Include strategies, policies, methods, and rules for using the CBIS

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Business Information Systems
n  Most common types of information systems:

n  Those designed for electronic and mobile commerce, transaction
processing, management information, and decision support
n  Some organizations employ:

n  Special-purpose systems, such as virtual reality, that not every
organization uses

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(continued)

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(continued)

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Electronic and Mobile Commerce

n  E-commerce:
n  Any business transaction executed electronically between:
n  Companies (business-to-business, B2B)
n  Companies and consumers (business-to-consumer, B2C)

n  Consumers and other consumers (consumer-to-consumer, C2C)
n  Business and the public sector
n  Consumers and the public sector

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(continued)
n  Mobile commerce (m-commerce):

n  The use of mobile, wireless devices to place orders and conduct
business
n  E-commerce:
n  Can enhance a company’s stock prices and market value
n  Electronic business (e-business):

n  Uses information systems and the Internet to perform all business-
related tasks and functions

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(continued)

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Enterprise Systems: Transaction

Processing Systems and Enterprise
Resource Planning
n  Transaction:
n  Any business-related exchange, such as payments to employees and
sales to customers
n  Transaction processing system (TPS):

n  Organized collection of people, procedures, software, databases, and
devices used to record completed business transactions

Enterprise Systems: Transaction 35

Resource Planning (continued)

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Enterprise Systems: Transaction

Resource Planning (continued)
n  Enterprise resource planning:
n  Set of integrated programs that manages the vital business operations for
an entire multisite, global organization

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Information and Decision Support

Systems
n  Management information system (MIS):

n  Organized collection of people, procedures, software, databases,
and devices that provides routine information to managers and
decision makers

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Systems (continued)

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Systems (continued)
n  Decision support system (DSS):

n  Organized collection of people, procedures, software, databases,
and devices that support problem-specific decision making
n  Can include:
n  A collection of models used to support a decision maker or user
(model base)
n  A collection of facts and information to assist in decision making
(database)
n  Systems and procedures (user interface or dialogue manager)
that help decision makers and other users interact with the DSS

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Systems (continued)

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Specialized Business Information Systems:

Knowledge Management, Artificial
Intelligence, Expert Systems, and Virtual
Reality
n  Knowledge management systems (KMSs):
n  Organized collection of people, procedures, software, databases, and
devices to:
n  Create, store, share, and use the organization’s knowledge and
experience
n  Artificial intelligence (AI):

n  Computer system takes on characteristics of human intelligence

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Specialized Business Information

Systems (continued)

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Specialized Business Information

Systems (continued)
n  Expert systems:

n  Give computer ability to make suggestions and function like an
expert in a particular field
n  Virtual reality and multimedia:

n  Virtual reality:
n  Simulation of a real or imagined environment that can be
experienced visually in three dimensions
n  Multimedia:
n  Can include photos and images, the manipulation of sound, and
special 3D effects

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Systems Development
n  Systems development:

n  The activity of creating or modifying existing business systems
n  Outsourcing:
n  Allows a company to focus on what it does best and delegate other
functions to companies with expertise in systems development

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Systems Development (continued)

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Systems Investigation and Analysis
n  Goal of systems investigation:

n  To gain clear understanding of the problem to be solved or
opportunity to be addressed
n  Systems analysis:

n  Defines the problems and opportunities of the existing system

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Systems Design, Implementation, and

Maintenance and Review
n  Systems design:

n  Determines how new system will work to meet business needs
defined during systems analysis
n  Systems implementation:

n  Acquiring various system components defined in design step,
assembling them, and putting the new system into operation
n  Systems maintenance and review:

n  Checks and modifies the system so that it continues to meet
changing business needs

+ Organizations and Information
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Systems
n  Organization:
n  Formal collection of people and other resources established to
accomplish a set of goals
n  A system
n  Constantly uses money, people, materials, machines and other
equipment, data, information, and decisions

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Organizations and Information

Systems (continued)

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Systems (continued)
n  Value chain:
n  Series (chain) of activities that includes inbound logistics and warehouse
and storage
n  Supply chain management (SCM):

n  Determines:
n  What supplies are required for value chain
n  What quantities are needed to meet customer demand

n  How supplies should be processed into finished goods and services
n  How shipment of supplies and products to customers should be
scheduled, monitored, and controlled

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Organizations and Information

Systems (continued)

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Systems (continued)
n  Customer relationship management (CRM) programs:
n  Help companies manage all aspects of customer encounters
n  Can get customer feedback to help design new products and
services

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Organizational Culture and Change
n  Culture:
n  Set of major understandings and assumptions shared by a group
n  Organizational culture:

n  Major understandings and assumptions
n  Influences information systems
n  Organizational change:

n  How organizations plan for, implement, and handle change

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User Satisfaction and Technology

Acceptance
n  Technology acceptance model (TAM):
n  Specifies the factors that can lead to better attitudes about the
information system
n  Technology diffusion:

n  Measure of how widely technology is spread throughout an organization
n  Technology infusion:

n  Extent to which technology permeates a department

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User Satisfaction and Technology

Acceptance (continued)

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Competitive Advantage
n  Significant and (ideally) long-term benefit to a company over its

competition
n  Can result in higher-quality products, better customer service, and

lower costs

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Factors That Lead Firms to Seek

Competitive Advantage
n  The five-forces model:

n  Rivalry among existing competitors
n  Threat of new entrants
n  Threat of substitute products and services
n  Bargaining power of buyers
n  Bargaining power of suppliers

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Strategic Planning for Competitive

Advantage
n  Strategies:
n  Cost leadership
n  Differentiation
n  Niche strategy
n  Altering the industry structure
n  Creating new products and services
n  Improving existing product lines and service

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Strategic Planning for Competitive

Advantage (continued)
n  Other strategies:

n  Growth in sales
n  First to market
n  Customizing products and services
n  Hiring the best people
n  Innovation

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Performance-Based Information
Systems
n  Major stages in the use of information systems:

n  Cost reduction and productivity
n  Competitive advantage
n  Performance-based management

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Productivity
n  A measure of output achieved divided by input required
n  Higher level of output for a given level of input means greater
productivity
n  Lower level of output for a given level of input means lower
productivity
n  Productivity = (Output / Input) × 100%

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Return on Investment and the Value of

Information Systems
n  Return on investment (ROI):

n  One measure of IS value
n  Investigates the additional profits or benefits that are generated as a
percentage of the investment in IS technology
n  Earnings growth:

n  The increase in profit that the system brings

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Return on Investment and the Value of

Information Systems (continued)
n  Market share and speed to market:

n  The percentage of sales that a product or service has in relation to
the total market
n  Customer awareness and satisfaction:

n  Performance measurement is based on feedback from internal and
external users
n  Total cost of ownership:

n  The sum of all costs over the life of the information system

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Risk
n  Managers must consider the risks of designing, developing,

and implementing systems
n  Information systems can sometimes be costly failures

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Careers in Information Systems
n  Degree programs:

n  Information systems
n  Computer information systems
n  Management information systems

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Roles, Functions, and Careers in IS
n  Primary responsibilities in information systems:

n  Operations:
n  System operators primarily run and maintain IS equipment

n  Focuses on specific development projects and ongoing
maintenance and review

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Roles, Functions, and Careers in IS
n  Primary responsibilities in information systems (continued):

n  Support:
n  Provides user assistance in hardware and software acquisition
and use, data administration, user training and assistance, and
Web administration
n  Information service units:
n  A miniature IS department attached and directly reporting to a
functional area in a large organization

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Typical IS Titles and Functions
n  Chief information officer (CIO):

n  Employs the IS department’s equipment and personnel to help the
organization attain its goals
n  LAN administrators:

n  Set up and manage the network hardware, software, and security
processes

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Typical IS Titles and Functions

(continued)
n  Internet careers:

n  Internet strategists and administrators
n  Internet systems developers
n  Internet programmers
n  Internet or Web site operators
n  Certification:
n  Process for testing skills and knowledge resulting in an
endorsement by the certifying authority

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Other IS Careers
n  New and exciting careers have developed in security and fraud
detection and prevention
n  Other IS career opportunities include being employed by

technology companies, such as:
n  Microsoft (www.microsoft.com), Google (www.google.com), Dell
(www.dell.com), and many others

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Working in Teams
n  It is always good for IS professionals to:

n  Have good communications skills and the ability to work with other
people
n  Getting the best team of IS personnel to work on important

projects is:
n  Critical in successfully developing new information systems or
modifying existing ones

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Finding a Job in IS
n  Developing an online résumé can be critical to finding a good job
n  Job search approaches:

n  On campus visits
n  Referrals from professors, friends, and family members
n  The Internet:
n  Online job sites
n  Company Web sites

n  Social networking sites
n  Blogs

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Global Challenges in Information

Systems
n  Cultural challenges
n  Language challenges
n  Time and distance challenges
n  Infrastructure challenges
n  Currency challenges

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Global Challenges in Information

Systems (continued)
n  Product and service challenges
n  Technology transfer issues
n  State, regional, and national laws
n  Trade agreements

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Summary
n  Data:
n  Raw facts
n  To be valuable, information must be:

n  Accurate, complete, economical to produce, flexible, reliable, relevant,
simple to understand, timely, verifiable, accessible, and secure
n  Types of systems used within organizations:

n  E-commerce and m-commerce, TPS and ERP, MIS and DSS, and
specialized business information systems

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Summary (continued)

n  The activity of creating or modifying existing business systems
n  Organization:
n  Formal collection of people and various other resources established
to accomplish a set of goals
n  Information systems personnel typically work in an IS

department that employs:
n  A chief information officer, systems analysts, computer
programmers, and computer operators

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Principles of Information Systems

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

Exam and Marks

Dr.Amer Alzaidi Department of Information Systems

2. Course Presentation

3. Your own lecture notes

Dr.Amer Alzaidi Department of Information Systems

n PART 2 Technology

n PART 3 Business Information Systems

n PART 4 Systems Development and Social Issues

n PART 5 Information Systems in Business and Society

Dr.Amer Alzaidi Department of Information Systems

Why Learn About Information Systems in

n Information systems used by:

n Information systems:

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

Data, Information, and Knowledge

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

The Characteristics of Valuable

n If an organization’s information is not accurate or complete:

n Depending on the type of data you need:

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

The Value of Information

n Directly linked to how it helps decision makers achieve their

n Valuable information:

Dr.Amer Alzaidi Department of Information Systems

What is an Information System?

n Information system (IS) is a set of interrelated elements that:

Dr.Amer Alzaidi Department of Information Systems

What is an Information System?

Dr.Amer Alzaidi Department of Information Systems

Input, Processing, Output, Feedback

Dr.Amer Alzaidi Department of Information Systems

Manual and Computerized Information

n An information system can be:

n Computerized information systems:

Dr.Amer Alzaidi Department of Information Systems

Computer-Based Information Systems

n Single set of hardware, software, databases,

n Technology infrastructure:

Dr.Amer Alzaidi Department of Information Systems

Dr.Amer Alzaidi Department of Information Systems

Computer-Based Information Systems

Dr.Amer Alzaidi Department of Information Systems

Computer-Based Information Systems

n Telecommunications, networks, and the Internet:

Dr.Amer Alzaidi Department of Information Systems

Computer-Based Information Systems

Dr.Amer Alzaidi Department of Information Systems

Computer-Based Information Systems

Dr.Amer Alzaidi Department of Information Systems

Business Information Systems

n Most common types of information systems:

n Some organizations employ:

Dr.Amer Alzaidi Department of Information Systems

2.  Course Presentation

3.  Your own lecture notes

n  PART 2 Technology

n  PART 3 Business Information Systems

n  PART 4 Systems Development and Social Issues

n  PART 5 Information Systems in Business and Society

n  Information systems used by:

n  Information systems:

n  If an organization’s information is not accurate or complete:

n  Depending on the type of data you need:

n  Directly linked to how it helps decision makers achieve their

n  Valuable information:

n  Information system (IS) is a set of interrelated elements that:

n  An information system can be:

n  Computerized information systems:

n  Single set of hardware, software, databases,

n  Technology infrastructure:

n  Telecommunications, networks, and the Internet:

n  Most common types of information systems:

n  Some organizations employ:

n  Companies and consumers (business-to-consumer, B2C)

n  Mobile commerce (m-commerce):

n  Electronic business (e-business):

n  Transaction processing system (TPS):

n  Management information system (MIS):

n  Decision support system (DSS):

n  Artificial intelligence (AI):

n  Expert systems:

n  Virtual reality and multimedia:

n  Systems development:

n  Goal of systems investigation:

n  Systems analysis:

n  Systems design:

n  Systems implementation:

n  Systems maintenance and review:

n  Supply chain management (SCM):

n  What quantities are needed to meet customer demand

n  Organizational culture:

n  Organizational change:

n  Technology diffusion:

n  Technology infusion: