Principles Of Information Systems, 10th Edition Lecture Notes

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Principlesof Information Systems, TenthEdition1-1Chapter 1An Introduction to Information SystemsAt a GlanceInstructor’s Manual Table of Contents•Overview•Principles and Objectives•Teaching Tips•Quick Quizzes•Class Discussion Topics•Additional Projects•Additional Resources•Key Terms

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Principlesof Information Systems, TenthEdition1-2OverviewThis chapter presents an overview of information systems, with each section gettingfulltreatment in subsequent chapters. We start by exploring the basics ofinformation systems.Principles and ObjectivesPrinciplesLearning ObjectivesThe value of information is directly linkedtohow it helps decision makers achieve theorganization’s goals.•Discuss why it is important to studyand understand information systems.•Distinguish data from information anddescribe the characteristics used toevaluate the quality of data.Computers and information systems helpmakeit possible for organizations toimprove theway they conduct business.•Name the components of aninformation system and describeseveral systemcharacteristics.Knowing the potential impact of informationsystems and having the ability to putthisknowledge to work can result in a successfulpersonal career and organizationsthat reachtheir goals.•List the components of a computer-based information system.•Identify the basic types of businessinformation systems and discuss whouses them, how they are used, and whatkinds of benefits they deliver.System users, business managers, andinformationsystems professionals mustworktogether to build a successful informationsystem.•Identify the major steps of the systemsdevelopmentprocess and state the goalof each.Information systems must be appliedthoughtfully and carefully so that society,businesses, and industries can reap theirenormous benefits.•Describe some of the threats thatinformation systems and the Internetcan pose to security and privacy.•Discuss the expanding role andbenefits of information systems inbusiness and industry.

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Principlesof Information Systems, TenthEdition1-3Teaching TipsWhy Learn About Information Systems?1.Introduce the terminformation system. Note that itis the feedbackmechanism thathelps organizationstoachieve their goals.Information Concepts1.This section introduces a central concept of thiscourse:information.Data, Information, and Knowledge1.Introduce the termsdata,information,process,knowledge,knowledge worker,andknowledge management system.Use Figures1.1to1.2and Table 1.1to aid thediscussion.The Characteristics of Valuable Information1.Students should understand that in order to be valuable to managers and decisionmakers, information should have the characteristicsdescribed in Table 1.2. Thesecharacteristics make the information more valuable to an organization.The Value of Information1.Explain that the value of information is directly linked to how it helps decision makersachieve theirorganization’s goals.System Concepts1.The elements themselves and the relationships among them determine how the systemworks. Systems have inputs, processing mechanisms, outputs, and feedback.Use Figure1.3 to aid the discussion.TeachingTipDevelop a class Web site. Maintain a copy of your syllabus, a lecture schedule,and assignment information.TeachingTipAs class begins, reassure students that you are here to help them understandtechnology. Many less technically oriented students will feel intimidated by thiscourse. Get off to a good start!

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Principlesof Information Systems, TenthEdition1-4System Performance and Standards1.Introduce the termsefficiency,effectiveness, andsystem performance.Use Figure 1.4to aidthe discussion.WhatIs an Information System?1.An information system (IS) is a set of interrelated elements or components that collect(input), manipulate (process), store, and disseminate (output) data and information andprovide a corrective reaction (feedback mechanism) to meet an objective. UseFigure 1.5to aid the discussion.Input, Processing, Output, Feedback1.The following topics should bedefined anddiscussed:▪Input:The activity of gathering and capturing raw data.▪Processing:The conversion or transformation ofdata into useful outputs.▪Output:The production ofuseful information, usually in the form of documentsand reports.▪Feedback:Used to make changes to input or processing activities. Itmayinvolveforecasting.Manual and Computerized Information Systems1.Remind students thatan information system can be manual or computerized.Computer-Based Information Systems1.Introduce the termscomputer-based information systemandtechnologyinfrastructure.Use Figure 1.6to aid the discussion.TeachingTipDiscuss thesystem performanceevaluation and tracking techniques of any well-known organization (e.g., Microsoft, Dell). Also, discuss the system performancestandards that are used by the organization to evaluate system performance.TeachingTipPass a list around class and ask students to list their experience in informationsystems. Does anyone have familiarity with the field? If so, speak with themabout sharing their knowledge with the class. This list will also help youorganize your lectures with a focus specific to your class’s needs.

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Principlesof Information Systems, TenthEdition1-52.The following topics should also be discussed:▪Hardware:Consists of computer equipment used to perform input, processing,and outputactivities.▪Software:Programsthatallow a computer to process payroll, send bills tocustomers, and provide managers with information to increase profits, reducecosts, and provide better customer service.▪Databases:An organization’s database can contain facts and information oncustomers, employees, inventory, competitors’ sales, online purchases, and muchmore.▪Telecommunications, Networks, and the Internet:Introduce the termstelecommunications,networks,Internet,intranets,andextranets.▪People:Note that information systems personnel include all the people whomanage, run, program, and maintain the system.▪Procedures:The strategies, policies, methods, and rules for using the CBIS,includingthe operation, maintenance, and security of the computer.Quick Quiz 11.A(n)____is a set of interrelated components that collect, manipulate, store, anddisseminate dataand information and provide a feedback mechanism to meet anobjective.Answer:information system2.____consists of raw facts, such as an employee number, number of hours worked in aweek,inventory part numbers, or sales orders.Answer:Data3.____is a collection of facts organized so that they have additional valuebeyond thevalue of the facts themselves.Answer:Information4.____is the awareness and understanding of aset of information and the ways thatinformation can be made useful to support a specifictask or reach a decision.Answer:Knowledge5.In information systems, ____involves producing useful information, usually in the formof documents and reports.Answer:outputTeachingTipWhen introducing the material in this chapter, rely heavily on the case studiesand examples. Much of this material will be a review for the students since it isoften covered in general management and business strategy courses. Theeducational value for most students will center on the focus on informationsystem-related issues.

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Principlesof Information Systems, TenthEdition1-6Business Information Systems1.The most common types of information systems used in business organizations are thosedesigned for electronic and mobile commerce, transaction processing, managementinformation,and decision support.Use Figures1.7and 1.8to aid the discussion.Electronic and Mobile Commerce1.Explain that e-commerce involves any business transaction executed electronicallybetween companies (business-to-business, or B2B), companies and consumers(business-to-consumer, or B2C), consumers and other consumers (consumer-to-consumer, or C2C), business and the public sector, and consumers and the public sector.2.Note thate-commerce offers many advantages for streamlining work activities.UseFigure 1.9 to aid the discussion.3.Introduce the termelectronic business.Use Figure 1.10to aid the discussion.Enterprise Systems:Transaction Processing Systems and Enterprise Resource Planning1.The following topics should be addressed:▪Transaction Processing Systems:An interesting point to make is that one of thefirst business systems to be computerized was the payroll system (seeFigure1.11).▪Enterprise Resource Planning:Note that an ERP system can replace manyapplications with one unified set of programs, making the system easier to use andmore effective.Information and Decision Support Systems1.Explain that thebenefits providedby an effective TPS are substantialand justify theirassociated costs in computing equipment, computer programs, and specialized personneland supplies.2.The following topics should be addressed:▪ManagementInformation Systems:MISstypically provide standard reportsgenerated with data and information from the TPS. UseFigure 1.12to aid thediscussion.▪DecisionSupportSystems:Decision support systems are used when the problemis complex and the information needed to make the best decision is difficult toobtain and use.Use Figure 1.13to discuss essential DSS elements.Specialized Business Information Systems:Knowledge Management, ArtificialIntelligence, Expert Systems, and Virtual Reality1.Use Figure 1.14to discuss the major elements of artificial intelligence.

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Principlesof Information Systems, TenthEdition1-72.The following topics should also be discussed:▪ArtificialIntelligence:Learning systems allowcomputers to learn from pastmistakes or experiences, such as playing games or makingbusiness decisions.Neural networks is a branch of artificial intelligence that allowscomputers torecognize and act on patterns or trends.▪ExpertSystems:Introduce the termknowledge base.▪Virtual Reality:Explain that thisis the simulation of a real or imaginedenvironment that can beexperiencedvisually in three dimensions.Quick Quiz 21.____is the use of mobile, wireless devices to place orders and conduct business.Answer:Mobile commerce (m-commerce)2.____goes beyond e-commerce and e-procurement by using informationsystems andthe Internet to perform all business-related tasks and functions, suchas accounting,finance, marketing, manufacturing, and human resource activities.Answer:Electronic business (e-business)3.A(n) ____is an organized collection of people, procedures, software,databases, anddevices used to recordbusiness transactions.Answer:transactionprocessing system (TPS)4.A(n) ____is an organized collection of people, procedures, software, databases, anddevices thatsupport problem-specific decision making.Answer:decision support system(DSS)5.A(n) ____isan organized collection of people, procedures,software, databases, anddevices to create, store, share, and use the organization’sknowledge and experience.Answer:knowledge management system(KMS)Systems Development1.One strategy for improving the results of a systems developmentproject is to divide itinto several steps, each with a well-defined goal and set of tasks toaccomplish. UseFigure 1.16to aid the discussion.2.Point outthatpeople inside a company can develop systems, or companies can useoutsourcing, hiring an outside company to perform some or all of a systems developmentproject.TeachingTipConduct a Web-based scavenger hunt in which students locate companies thatspecialize in providing outsourcing services.

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Principlesof Information Systems, TenthEdition1-8Systems Investigation and Analysis1.Note that thegoalofsystems investigation is to gain a clear understanding of theproblem to be solved oropportunity to be addressed. Systems analysis,however,definesthe problems and opportunities ofthe existing system.Systems Design, Implementation, Maintenance, and Review1.Point out thatcompaniesoften hireoutside companies to do their design,implementation,maintenance, and review functions.Information Systems in Society, Business,and Industry1.Explain that computer-related attacks can come from individuals, groups, companies,and even countries.Security, Privacy, and Ethical Issues in InformationSystems and the Internet1.Explain that although information systems can provide enormous benefits, they do havedrawbacks. Some drawbacks are minor, suchas receiving unwanted e-mail.Otherproblems can be more severe, where people’s personal data, including Social Securityand credit card numbers, can be lost or stolen, resulting in credit card fraud and ruinedcredit.Computer and Information Systems Literacy1.Introduce the termscomputer literacyandinformation systemsliteracy.TeachingTipAsk students to discuss the steps they take to protect their home computers fromthreats such as viruses, spyware, and worms. Is it possible to provide 100%protection for a computer? Why or why not?TeachingTipEncourage the students to use the Web for allof theresearch topicsinthe text.Provide some simple search engine guidelines.

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Principlesof Information Systems, TenthEdition1-9Information Systems in the Functional Areas of Business1.Point out thatinformation systems are used in all functional areas and operatingdivisions of business. In finance and accounting, information systems forecast revenuesand business activity, determine the best sources and uses of funds, manage cash andother financial resources, analyze investments, and perform audits to make sure that theorganization is financially sound and that all financial reports and documents areaccurate.Information Systems in Industry1.Note thatin addition to being used in every department in a company, informationsystems are used in almost every industry or field in business.Quick Quiz 31.____allows a company to focus on what it does best and delegate other functions tocompanieswith expertise in systems development.Answer:Outsourcing2.____determines how the new system will work to meet the business needs definedduring systems analysis.Answer: Systems design3.(True or False)Ethical issues concern what is generally considered right or wrong.Answer:True4.____is the knowledge of computer systems and equipment and the ways they function.Answer:Computer literacy5.____is the knowledge of how data and information are used by individuals, groups, andorganizations.Answer:Information systems literacyGlobal Challenges in Information Systems1.Explain tostudentswhyglobal markets have expanded. People and companies can getproducts and services from around the world, instead of around the corner or acrosstown.These opportunities, however, introduce numerous obstacles and issues:▪Cultural challenges▪Language challenges▪Time and distance challenges▪Infrastructure challenges▪Currency challenges▪Product and service challenges▪Technology transfer issues

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Principlesof Information Systems, TenthEdition1-10▪State, regional, and national laws▪Trade agreementsClass Discussion Topics1.Discuss a specific computerized information system. If possible, get a representativefrom the university’s computing services to come in as a guest speaker.2.What are some of the systems development methodologies used by specificcorporations?3.What steps would you take to align the IS functions of an organization with itsorganization’s goals?4.Should technology drive an organization's strategic planning or should strategic planningdrive an organization's technology adoption plans?5.Give an example of a real or fictional corporation and describe the goals of thecorporation. Then, ask students to discuss how a computerized information system canhelp the corporation achieve its goals.6.Why is it important for everyone to be computer literate? Give some examples of howbeing computer literate can help an individual in hisor herjob and personal life.Additional Projects1.Pick a company that operates globally and use the Internet and any other availablesource to gather information on the company. Based on your research, write aone-totwo-page paper describing some of the possible benefits that the company might havegained by operating globally. Also, describe challenges that the company has faced or iscurrently facing as a result of operating in a global society.2.Choose a company that has a Web site. By exploring the Web site, determine the goalsof the company. How does the company use the Internet to accomplish these goals?Report your findings in one to two paragraphs.3.Use the Internet to research the risks that companies face because of their use ofinformation systems. What kind of damage can each of these risks cause to a company’soperations?Summarize your findings in two to three paragraphs.4.Choose a subfield of artificial intelligence. Research the present and potential future usesof the technologies in this subfield. Report your findings in one or two paragraphs.

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Principlesof Information Systems, TenthEdition1-11Additional Resources1.Business Research in Information and Technology:www.brint.com/2.MISQ Central:www.misq.org/3.E-Commerce Times:www.ecommercetimes.com/4.Computer Certification:http://certification.about.com/index.htm5.Artificial intelligence:http://www-formal.stanford.edu/jmc/whatisai/node1.htmlKey Terms➢Artificial intelligence (AI)—a field in which the computer system takes on thecharacteristics of human intelligence.➢Computer-based information system (CBIS)—consists of hardware, software,databases, telecommunications, people, and procedures that are configured to collect,manipulate, store, and process data into information.➢Computer literacy—knowledge of computer systems and equipment and the waysthey function; it stresses equipment and devices (hardware), programs and instructions(software), databases, and telecommunications.➢Data—raw facts, such as an employee number, number of hours worked in a week,inventory partnumbers, or sales orders.➢Database—an organized collection of facts and information.➢Decision support system (DSS)—an organized collection of people, procedures,software, databases, and devices used to support problem-specific decision-making.➢E-commerce—any business transaction executed electronically between companies(business-to-business), companies and consumers (business-to-consumer), consumersand other consumers (consumer-to-consumer), business and the public sector, andconsumers and the public sector.➢Effectiveness—ameasure of the extent to which a system achieves its goals; it can becomputed by dividing the goals actually achieved by the total of the stated goals.➢Efficiency—a measure of what is produced divided by what is consumed.➢Electronic business (e-business)—using information systems and the Internet toperform all business-related tasks and functions.➢Enterprise resource planning (ERP) system—a set of integrated programs capable ofmanaging a company’s vital business operations for an entire multisite, globalorganization.➢Expert system—a system that gives a computer the ability to make suggestions and actlike an expert in a particular field.

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Principlesof Information Systems, TenthEdition1-12➢Extranet—a network based on Web technologies that allows selected outsiders, suchas business partners and customers, to access authorized resources of a company’sintranet.➢Feedback—output that is used to make changes to input or processing activities.➢Forecasting—predicting future events to avoid problems.➢Hardware—computer equipment used to perform input, processing, and outputactivities.➢Information—a collection of facts organized in such a way that they have additionalvalue beyond the value of the facts themselves.➢Information system (IS)—a set of interrelated components that collect, manipulate,store, and disseminate data and information and provide a feedback mechanism to meetan objective.➢Input—the activity of gathering and capturing raw data.➢Internet—the world’s largest computer network, actually consisting of thousands ofinterconnected networks, all freely exchanging information.➢Intranet—an internal network based on Web technologies that allows people within anorganization to exchange information and work on projects.➢Knowledge—an awareness and understanding of a set of information and ways thatinformation can be made useful to support a specific task or reach a decision.➢Knowledge base—the collection of data, rules, procedures, and relationships that mustbe followed to achieve value or the proper outcome.➢Management information system (MIS)—an organized collection of people,procedures, software, databases, and devices used to provide routine information tomanagers and decision makers.➢Mobile commerce (m-commerce)—transactions conducted anywhere, anytime usingwireless communications.➢Networks—computers and equipment that are connected in a building, around thecountry, or around the world to enable electronic communications.➢Output—production of useful information, usually in the form of documents andreports.➢Procedures—the strategies, policies, methods, and rules for using a CBIS.➢Process—a set of logically related tasks performed to achieve a defined outcome.➢Processing—converting or transforming data into useful outputs.➢Software—the computer programs that govern the operation of the computer.➢System—a set of elements or components that interact to accomplish goals.➢System performance standard—a specific objective of the system.➢Systems development—the activity of creating or modifying existing businesssystems.➢Technology infrastructure—all the hardware, software, databases,telecommunications, people, and procedures that are configured to collect, manipulate,store, and process data into information.➢Telecommunications—the electronic transmission of signals for communications;enables organizations to carry out their processes and tasks through effective computernetworks.➢Transaction—any business-related exchange, such as payments to employees, sales tocustomers, and payments to suppliers.

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Principlesof Information Systems, TenthEdition1-13➢Transaction processing system (TPS)—an organized collection of people,procedures, software, databases, and devices used to record completed businesstransactions.➢Virtual reality—the simulation of a real or imagined environment that can beexperienced visually in three dimensions.

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Principles of Information Systems, Tenth Edition2-1Chapter 2Information Systems in OrganizationsAt a GlanceInstructor’s Manual Table of Contents•Overview•Principles and Objectives•Teaching Tips•Quick Quizzes•Class Discussion Topics•Additional Projects•Additional Resources•Key Terms

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Principles of Information Systems, Tenth Edition2-2OverviewTechnology has changed the waythatorganizations work in recent years. While technologyoncewas used primarily to automate manual processes, information systems havetransformed thenature of work and the shape of organizations themselves. In this chapterand throughoutthe book, you will explore the benefits and drawbacks of informationsystems in today’sorganizations around the globe.Principles and ObjectivesPrinciplesLearning ObjectivesThe use of information systems to addvalue to the organization is stronglyinfluenced by organizational structure,culture, and change.•Identify the value-added processes inthe supply chain and describe the roleof information systems within them.•Provide a clear definition of the terms“organizational structure,” “culture,”and “change” and discuss how theyaffect the type of information systemsthat the organizationimplements.Because information systems are soimportant, businesses need to be sure thatimprovements or completely new systemshelp lower costs, increase profits, improveservice, or achieve a competitiveadvantage.•Define the term “competitiveadvantage” and identify the factors thatlead firms to seek competitiveadvantage.•Discuss strategic planning forcompetitive advantage.•Describe how the performance of aninformation system can be measured.IS personnel is a key to unlocking thepotentialof any new or modified system.•Define the types of roles, functions, andcareers available in the field ofinformation systems.

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