INFORMATION

SYSTEMS IN
BUSINESS TODAY
CHAPTER 1
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CHAPTER 1: INFORMATIO N IN BUSINESS SYSTEMS TODAY

Learning Objectives

Understanding the effects of information

systems on business and their relationship to
globalization.

Explain why information systems are so essential

in business today.

Define an information system and describe its

management, organization, and technology
components.

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Learning Objectives (cont.)

Describe the different academic disciplines used

to study information systems and explain how
each contributes to our understanding of them.

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The Role of Information Systems in Business Today

Wireless communications, including computers and mobile

hand-held computing devices, are keeping managers,
employees, customers, suppliers, and business partners
connected in every way possible.

Email, online conferencing, the Web, and the Internet, are

providing new and diverse lines of communication for all
businesses, large and small.

Information systems are the foundation of fast-paced supply

chains. The Internet allows many businesses to buy, sell,
advertise, and solicit customer feedback online.

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Six reasons why information systems are so important

for business today include:

New products, Customer and

Operational
services, and supplier
excellence
business models intimacy

Improved Competitive
Survival
decision making advantage

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What is Information System and how does it works?

Information System (IS) is a group of components that

interact to produce information.
Components of Computer System
1. Hardware
2. Software
3. Data
4. Procedures
5. People

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• Information technology drives development

of new information systems.
• Information technology (IT)
1. Products
2. Methods
3. Inventions
4. Standards
 IT components = Hardware + Software +
Data
 IS = IT + Procedures + People

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FUNCTION OF INFORMATION SYSTEM

A major functional area of business equally as important to

business success as the functions of accounting, finance
operation management, marketing, and human resource
management.

An Important contributor to operational efficiency, employee

productivity and morale, and customer service and satisfaction.

Recognized source to value to the firm.

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FUNCTION OF INFORMATION SYSTEM

A major source of information and support needed to promote

effective decision making by managers and business
professionals.

Vital ingredients in developing competitive products and

services that give an organization a strategic advantage in the
global marketplace.

A key component of the resources, infrastructure, and

capabilities of today’s networked business enterprises.

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PERSPECTIVES ON INFORMATION SYSTEMS

An information system contains information

about an organization and its surrounding
environment. Three basic activities—input,
processing, and output—produce the information
organizations need.

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• PERSPECTIVES ON INFORMATION SYSTEMS

Input: Captures raw data from organization or

external environment

Processing: Converts raw data into meaningful form

Output: Transfers processed information to people or

activities that use it

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Three Components of IS

12 © Prentice Hall 2011

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Three Components of IS

1. Organizations (Organizational Dimension

of Information System)

- This refers to hierarchy of authority

and responsibility.

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Three Components of IS

2. Management Dimension of Information

Systems
- This dimension tests the capability of
Managers on how they will respond to business
challenges and assist them in the development of
new product and services.
- Involves such issues as leadership,
strategy, and management behaviour

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Three Components of IS

3. Technology Dimension of Information

System
- Information Technology is the heart of
information System. It’s the technology that
enables system and the organizations and
managers who use technology.
- This refers to computer hardware and software.

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CONTEMPORARY APPROACHES TO INFORMATION

SYSTEMS

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• WHAT IS MANAGEMENT INFORMATION SYSTEM?

Combines computer science, management

science, operations research and practical
orientation with behavioral issues.

MIS is the development and use of Information

Systems that helps business achieve their goals
and objectives

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What Is Your Role in IS Security?

• Security system ultimately depends on

behavior of users.
• If security procedures are not followed,
then hardware, software, and data
components of security system are a wasted
expense.

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STRONG PASSWORDS

• Ten or more characters

• Does not contain your user name, real
name, or company name
• Does not contain a complete dictionary
word in any language

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STRONG PASSWORDS

• Different from previous passwords used

• Contains both upper- and lowercase
letters, numbers, and special characters
(˜ ! @; # $ % ^; &; * ( ) _ +; – =; { } | [ ] \ :
“ ; ’ <; >;? , . /)

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Password Etiquette

• Never write down your password, do

not share it with others
• Never ask someone for their
password
• Never give your password to
someone

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THANK YOU

22 © Prentice Hall 2011