2. Distinguish between data and
information and explain the role of
management information systems
in business.
List the components and different
types of information systems.
Outline how computer hardware
and software are used to manage
information.
Describe the networking and
telecommunications technology
and types of computer networks.
Discuss the security and ethical
issues involving computer
information systems.
Explain the steps that companies go
through in planning for, and
recovering from information system
disasters.
Review current trends in information
systems.
1
2
3
Learning Goals
4
5
6
7
3. Introduction
Data – raw facts
and figures
Information –
knowledge gained
from processing data
Information
System –
organized method for
collecting, storing,
and communicating
information on operations
5. Components of
Information Systems
Computer Hardware
Computer Software
Telecommunications and
Computer Networks
Data Resource Management
Computer Hardware
Computer Software
Telecommunications and
Computer Networks
Data Resource Management
6. Types of Information
Systems
• Operational Support Systems
– Transaction Processing System
– Process Control System
• Management Support Systems
– Management Information System (MIS)
– Decision Support System (DSS)
7. Computer Hardware
• The tangible elements of a computer system
• The components that store and process data,
perform calculations
• Input devices like the keyboard and mouse allow
users to enter data and commands.
• Storage and processing components consist of
the hard drive and other storage components
like flash drives.
9. Computer Software
• Programs and computer
languages that control a
computer
• Operating System
– Windows Operating System
– Mac Operating System
– Linux Operating System
• Application Software
– Microsoft PowerPoint
10. Computer Networks
THE INTERNET
Local Area Networks (LAN)
Wide Area Networks (WAN)
Wireless Local Networks
Virtual Private Networks (VPN)
Voice over Internet Protocol (VoIP)
12. Ethical Issues Affecting
Information Systems
• Use of information systems by employees
and vendors:
– Personal Use
– Privacy
• Organizational use of information:
– Employment records
– Employee monitoring
13. Disaster Recovery
& Backup
• Natural Disasters
• Power Failures
• Equipment
• Human Error
• Terrorist Attacks
• The most basic precaution – Backup.
14. Information Systems
Trends
• The Distributed Workforce
– Employees who work in virtual
offices
• Application Service Providers
– A firm that provides computers
and application support
• On Demand, Cloud computing
– Renting software time
16. Introduction
Economy:
All the activities involved in the production and distribution
of goods and services.
Information:
Any Essentially, anything that can be digitized—encoded as a
stream of bits—is information. E.g. baseball scores, books, databases,
magazines, movies, music and Web pages are all information goods.
18. • Complements
– Different manufacturers
– Strategy for complementors as well as
competitors
– Compatibility as strategic choice
– Standards and interconnection
The Information
Economy
19. • Infrastructure to store, retrieve, filter,
manipulate, view, transmit, and receive
information
• Adds value to information
– Web = 1 terabyte of text = 1 million books
– Value of Web is in ease of access
• Front end to databases, etc.
Technology
20. Characteristics of 21st
Century Economies
• Driven by the services sectors
• Founded on information/communication
networks – next generation Internet
• Dependent on effective reforms in the
telecom sector – information infrastructure
• Strengthening links among local, national,
regional, internatonal networks and
markets
21. • Expanding Network Capacity (Broadband)
• Developing New Services - “killer applications!”
• Applying Services Productively in Different Sectors
Stages of
Telecom/Information
Sector reforms
There is a distinct difference between data and information. It is important for firms to understand the competitive possibilities of a good information system. Information technology is managed by the Chief Information Officer. Technology has advanced so quickly that al business, regardless of size or location, now have access to data and information that can make them competitive in a global arena. The CIO traditionally reports directly to the CEO.
An effective information system can help answer questions for business
Can we communicate more effectively and efficiently?
How will rising energy prices affect product and distribution costs?
How well is our product selling in Atlanta?
Have sales among consumers age 25 to 45 increased or decreased?
These systems rely on computer and related technologies to store information electronically. In the past, an information system may have included 3-by-5 inch index cards to organize customer addresses. Computer-based information systems consist of four components and technologies: Computer Hardware, Computer Software, Telecommunications and Computer Networks and Data Resource Management. Databases are a centralized collection of data, at the heart of any information system. Databases are electronic filing systems and they are specific to a business’s operations.
Information systems fall into two broad categories: operational support systems and management support systems. Operational support systems are designed to produce a variety of information on an organization’s activities for both internal and external users. Transaction processing systems record and process data. Process control systems monitor and control physical processes. Management support systems aid in making effective decisions. Management information systems produce reports for managers. A decision support system provides support to businesspeople during the decision-making process. An executive support systems lets senior executives access the firm’s databases and combines relevant data and details to support decisions and operations.
Hardware is the tangible element of your computer system – the hard drive, keyboard, mouse, and storage components. Unlike the desktop computers that sit on your desk at home or school, there are varying types of computers.
Desktop computers are everywhere – in homes, schools, government agencies and businesses. Most desktop computers are connected to networks which are managed by servers. Servers are the heart of computer networks. Mainframes and supercomputers are large computer systems with powerful processing and storage capacities. The number of notebook computers (laptops) has increased as the prices have decreased. There are even smaller notebooks available now with less power called netbooks. Hand-held devices are even smaller than netbooks. Hand-held devices have become more popular with the decreasing cost of processing power. Many hand-helds have evolved into smart phones – combination cell phone and personal assistant device.
Computer software includes all programs, routines, and computer languages that control a computer and tell it how to operate. The software that tells a computer how to operate is an operating system. Most users are familiar with application software like Microsoft Word, PowerPoint, and Quicken. The future of application software is uncertain with more use of the web and web applications.
Local area networks and wide area networks allow businesses to communicate, transmit and print documents, and share data. One of the largest networks is the Internet. Intranets, Virtual Private Networks (VPN), and Voice Over Internet Protocol (VOIP) are all byproducts of the Internet (network).
Most organizations connect their offices and buildings through a local area network while wide area networks tie larger geographical regions together. Wireless networks allow devices to be connected without the hassle of cables. The current standard is WiFi. Many people access WiFi connections at place like Panera Bread. They are becoming more popular as a free service in public places.
Intranets are private company networks that are patterned after the Internet. It is an internal Internet and can be used to share information within the company. Virtual Private Networks are secure points on the Internet that help organizations with increased security. VoIP is an alternative to traditional telephone service. VOIP is telephone service that uses the Internet to relay phone calls. The phone line is connected to the computer instead of a phone jack.
E-crime and malware are two issues that are major security threats. E-crime may or may not be malicious. Some of the stunts online are simply to see if a user can hack a system. Common e-crimes include changing data to create misleading information, modifying computer programs to create false or illegal transactions, or to access computer systems for their own benefit or knowledge. Individuals, businesses, and organizations are vulnerable to computer crime. Another threat for organizations is the potential theft of computer hardware.
Malware are malicious software programs designed to infect computer systems. Viruses are programs that secretly attach themselves to other programs and change or destroy them. A worm is a small piece of software that exploits a security hole and replicates itself. A trojan horse is a program that claims to do one thing but does something different. It might claim to be a game and then erases your hard drive. Spyware is software that secretly gathers user information for advertising purposes. Once spyware is installed, it monitors the user’s activity.
Ethical issues in information technology raise a number of ethical issues and concerns. Many organizations have specific ethical standards and policies regarding the use of information systems by employees and vendors. There are also policies to protect security and privacy confidentiality. Monitoring employees and access to employment records are also ethical issues affecting information systems.
Disaster can cause organizations billions of dollars. Many companies run their entire business using technology. Disaster recovery plans are imperative – they outline how to prevent system failures and continue operations if computer systems fail. Many organizations conduct off-site data storage.
Virtual offices include working from home. Application service providers offer cost savings and can simplify software management for organizations. On-demand computing (utility computing) is the rental of software time from application service providers. Cloud computing uses servers to store software applications to be accessed via the web, PC, or smart phone. Grid computing creates a virtual mainframe for businesses to rent and use.