INTRODUCTION BUSSINESS INFORMATION SYSTEM

What Is an Information System (IS)?

• An information system (IS) is an organized collection of people, information, business processes, and information technology (IT), designed to transform inputs into outputs, in order to achieve a goal

• Information systems enhance knowledge, work, decision making, problem solving, communication, and coordination

 Information System Components
Definition
Input
Items entered into a system to transform them into outputs
Process
A series of one or more steps used by a business to transform inputs into outputs
Output
The end result of a process. Information is the result of the transformation (processing) of data. From an organizational perspective, the output of a process is a product or a service
Data
Raw, unorganized facts
Information
Processed/organized/transformed data that is useful to a person
Knowledge
Information plus human experience and judgment
SystemA recognizable whole that consists of a collection of interrelated parts that interact with each other to transform inputs into outputs to achieve a goal
People
People or organizations that have both an interest in and an influence on the creation, implementation, or operation of an IS
Information TechnologyThe physical components, typically hardware, software, and connectivity, that make up an IS. Technology enables processes to perform the steps they were designed to accomplish
Decision
A choice made from one or more alternatives to follow or avoid some course of action
Business Value
A positive return on the investment of resources that is created through the effective and efficient integration of an organization’s people, information, information technology, and business processes

 What is Information Technology (IT)?
Information technology (IT) is a collection of tools –

• hardware
• software

Connectivity
–that enable individuals or businesses to achieve their goals

 The Productivity Zone

• Created at the intersection of people, process and technology
• Incorporates elements of human design to accommodate how people will use the system
• Combines all three of these elements allowing for superior productivity and a competitive advantage

 Types of IS Found in Business
ºThere are a number of types of IS that are widely used in creating business value:
●Transaction Processing Systems (TPS)
●Management Information Systems (MIS)
●Decision Support Systems (DSS)
●Enterprise Resource Planning (ERP) Systems
●Customer Relationship Management (CRM) Systems

 Transaction Processing Systems

• What do they do? Capture and process transactions to make them available to the organization
• How does this create business value? It enables a business to efficiently and accurately track the transactions that are at the heart of all business activities. Captured transaction data can then be used to support decision making

 Management Information Systems

• What do they do? Provide timely information to decision makers through processing and reporting features
• How does this create business value? Timely reporting can enable managers to monitor critical processes and avoid costly mistakes