Chapter 1 Business Information Systems: An Overview Flashcards
(50 cards)
analog systems
(systems based on a continuous signal that varies in strength or
quantity)
For
example, an analog copy machine reproduces images by reflection or a similar technique. The
copy may be good, but it is never as good as the original. And as you make a copy from the
copy, the quality deteriorates
digital systems
capable of delivering data and information—quantities, text,
sound, pictures, video, and any other type of information—so that the original information can
be re-created with complete accuracy. That is, a digital copy is an exact copy of the original
Because computers and related devices
use the binary system—a system that uses two digits—they are referred to as digital systems
Digital information
Digital information consists of zeroes and ones representing two states. When you have a
mechanism that can represent two states, such as electrically charged and uncharged elements,
magnetized and non-magnetized areas, light and no light, you have a way to represent the
zeroes and ones. Based on such signals, information can be represented, stored, communicated,
and processed digitally
binary counting system
We are accustomed to using 10 digits to represent quantities. We call it the decimal counting
system. However, we could also use a system consisting of only two digits, zero and one, to
represent quantities. This is the binary counting system. Because computers and related devices
use the binary system—a system that uses two digits—they are referred to as digital systems.
information technology
(IT)
Thus, systems thinking is served well by
information technology (IT), a term that refers to all technologies that collectively facilitate
construction and maintenance of information systems.
All knowledge workers—professionals, scientists, managers, and others who create new
information and knowledge in their work—must be familiar
with IT. Moreover, they must know which IT is relevant for
their work and what information they can obtain with a certain
technology or networked resource
Information technology provides excellent tools
for collecting, storing, and presenting facts
Information Systems
information system (IS) consists of all the
components that work together to process data and produce information. Almost all business
information systems consist of many subsystems with subgoals, all contributing to the
organization’s main goal.
facts must be manipulated into useful information that indicates the best allocation of various resources,
including personnel, time, money, equipment, and other assets.
Regardless of the operations being managed, information systems (ISs) are important tools. Successful professionals must
know which ISs are available to their organizations and what
systems might be developed in the future
data
The word data is derived from
the Latin datum, literally a given or fact, which might take the form of a number, a statement, or
a picture. Data is the raw material in the production of information
while data is
essentially raw materials, information is output. Just as raw materials are processed in
manufacturing to create useful end products, so raw data is processed in information systems to
create useful information
information
Information, on the other
hand, is facts or conclusions that have meaning within a context. Raw data is rarely meaningful
or useful as information. To become information, data is manipulated through tabulation,
statistical analysis, or any other operation that leads to greater understanding of a situation.
while data is
essentially raw materials, information is output. Just as raw materials are processed in
manufacturing to create useful end products, so raw data is processed in information systems to
create useful information
5 characteristics of useful information
process
A process is any
manipulation of data, usually with the goal of producing information
Some processes, however, produce yet another set
of data.
5 characteristics of useful information
relevant
complete
accurate
current
economical
system (2 Types)
system is an array of components that work together to achieve a common goal,
or multiple goals, by accepting input, processing it, and producing output in an organized
manner. Consider the following examples:
● A sound system consists of many electronic and mechanical parts, such as a laser head, an
amplifier, an equalizer, and so on. This system uses input in the form of electrical power and
sound recorded on a medium such as a CD or DVD, and processes the input to reproduce
music and other sounds. The components work together to achieve this goal.
● Consider the times you have heard the phrase “to beat the system.” Here, the term “system”
refers to an organization of human beings—a government agency, a commercial company, or
any other bureaucracy. Organizations, too, are systems; they consist of components—people
organized into departments and divisions—that work together to achieve common goals.
Subsystem
a system consists of several subsystems—
components of a larger system—with subgoals, all contributing to meeting the main goal.
Subsystems can receive input from, and transfer output to, other systems or subsystems
Subsystems, by definition, are always open, because as components of a bigger
system, they must receive information from, and give information to, other subsystems.
Closed system
closed system stands alone, with no connection to another system: nothing flows in from
another system; nothing flows out to another system. For example, a small check-producing
system that prints and cuts checks when an employee enters data through a keyboard is a closed
system. The system might be isolated for security purposes
open system
open system interfaces and
interacts with other systems. For example, an accounting system that records accounts
receivable, accounts payable, and cash flow is open if it receives its payroll figures from the
payroll system. Subsystems, by definition, are always open, because as components of a bigger
system, they must receive information from, and give information to, other subsystems.
database
a large collection of electronic records
information map
the description of data and
information flow within an organization—shows a network of information subsystems that
exchange information with each other and with the world outside the system. In an ideal
organization, no human would need to retrieve information from one IS and transfer it to
another. The organization would capture only new raw data, usually from its operations or from
outside the organization. Then, data captured at any point in the system would automatically
become available to any other subsystem that needs it. Thus, systems thinking is served well by
information technology (IT)
Systems thinking
Systems thinking is the basic reasoning
behind equipping organizations with enterprise software applications
Thinking of an organization in terms of its suborganizations or subsystems—called systems
thinking—is a powerful management approach because it creates a framework for excellent
problem solving and decision making. To solve problems, managers need to identify them,
which they do by recognizing the subsystems in which the problems occur and solving the
problems within those subsystems’ constraints and strengths.
Systems thinking can also help keep managers focused on the overall goals and operations of
a business. It encourages them to consider the entire system, not only their specific subsystem,
when solving problems and making decisions. A satisfactory solution for one subsystem might
be inadequate for the business as a whole. For example, when the sales department creates a web
site to take online customer orders, it automates a formerly labor-intensive activity of the sales
subsystem. This saves cost. However, increased orders may cause understocking of finished
goods. With systems thinking, improving the sales process could also improve other company
processes. Without systems thinking, managers from other departments aren’t involved in the
decision, so they don’t benefit. In the case of the sales department, if other managers are
involved in planning for automated online ordering, they could suggest that sales data recorded
on a shared database—a large collection of electronic records—connected to the web also be
accessible to other departments such as shipping and manufacturing. The shipping department
could use the records to expedite packaging and shipping, thanks to the information that
appears on a computer monitor rather than a sheet of paper. The manufacturing units could use
the order records for planning resources such as laborers and inventory. Figuratively, by applying
systems thinking, effective managers view their areas of responsibility as puzzle pieces. Each
piece is important and should fit well with adjacent pieces, but the entire picture should always
be kept in view
enterprise software applications
or enterprise applications
Enterprise software
applications are systems that serve many parts of the organization by minimizing the need for
human data entry and ensuring timely, useful information for the organization’s entire supply
chain, including taking customer orders, receiving raw materials, manufacturing and shipping,
and billing and collection. In the service sector, companies often use document management
systems, enabling workers from many departments to add information and signatures to a
document from request to approval, or from draft to a final document
An
SCM (supply chain management system) is an enterprise application because the systems that support each business process are
connected to each other to form one large IS. Technically, anyone with access to the system can
know the status of every part of an order received by the business
Components of an
information system
Data Input that the system takes to produce information
Hardware A computer and its peripheral equipment: input, output, and storage
devices; hardware also includes data communication equipment
Software Sets of instructions that tell the computer how to take data in, how to
process it, how to display information, and how to store data and
information
Telecommunications Hardware and software that facilitate fast transmission and reception of
text, pictures, sound, and animation in the form of electronic data
People Information systems professionals and users who analyze organizational
information needs, design and construct information systems, write
computer programs, operate the hardware, and maintain software
Procedures Rules for achieving optimal and secure operations in data processing;
procedures include priorities in dispensing software applications and
security measures
cloud computing
Several trends have made the use of information systems (ISs) very important in business:
A “bring your technology with you” environment has become mainstream with the adoption
of mobile computing, tablets, and cloud computing.
Software as a Service (SaaS)
Several trends have made the use of information systems (ISs) very important in business:
Quick and reliable communication lines and access to the Internet and the web have created
affordable software applications using Software as a Service (SaaS) implementation
methodologies
input
Entering data into the IS (input)
data processing
Changing and manipulating the data in the IS (data processing)
output
Getting information out of the IS (output
