Chapter 1: Information System: Concepts and Management
•Information Technology (IT): An organization’s collection of information resources, the users of
these resources, and the management that oversees these resources.
•Data Item. Elementary description of things, events, activities and transactions that are recorded,
classified and stored but are not organized to convey any specific meaning. E.g., Student ID, GPA
•Information. Data organized so that they have meaning and value to the recipient. E.g. Lists of
students name and their overall GPA.
•Knowledge. Data and/or information organized and processed to convey understanding,
experience, accumulated learning and expertise as they apply to a current problem or activity.
E.g., experience tells student with GPA over 3.0 work well, so interview only whose GPA over 3.
•Information Technology Architecture. A high-level map or plan of the information assets in an
organization, which guides current operations and is a blueprint for future directions.
•Information Technology Infrastructure. The physical facilities, IT components, IT services,
and IT personnel (management) that support an entire organization.
oIT components are computer hardware, software, communication technology that
provides fundamental IS. IT personnel use IT component to produce IT service (data
management, system development, security concerns)
•Information System (IS). Collects, processes, stores, analyzes and disseminates information for
a specific purpose. Since most IS are CBIS, IS often refers to CBIS.
•Computer-based Information System (CBIS). An information system that uses computer
technology to perform some or all of its intended tasks.
•Hardware is a device such as a processor, monitor, keyboard or printer
•Software is a program or collection of programs that enable hardware to process data.
•Network is a connecting system (wireline or wireless) that permits different computers to share
•Database is a collection of related files or tables containing data.
•Procedures are the set of instructions about how to combine the above components in order to
process information and generate the desired output.
•People are those individuals who use the hardware and software, interface with it, or uses its
•Application program or Applications is a computer program designed to support a specific task
, a business process or another application program.
Types of Organizational Information Systems
Type of System Function Example
Support of Information System
Functional Area IS
Support the activities within specific
- System for processing payroll
- Accounting IS, Marketing IS
Planning System (ERP)
Tightly integrate all functional areas
of the organization. It’s enable
seamless information flows across the
Oracle, SAP provides common
product database that is used for
pricing sales, tracking inventory
and recording production costs
Support the monitoring, collection,
storage, and processing of transaction
data from business events
Wal-Mart Checkout point-of-
- Collect information about
customer’s shopping habits
International Information Systems (IOSs) – connect two or more organizations
Manage flows of products, services,
and information among organizations.
SCM plan, organize and optimize the
supply chain’s activities.
- Wal-Mart Retail Link system
connect suppliers to Wal-Mart
- Automatic send orders to
suppliers when stock is low
The process of buying and selling
goods or service over computer
network. It’s enable (B2B) and (B2C)
- Pay suppliers using electronic
data interchange (EDI)
- pay staffs directly to the bank
Support for Organizational Employee
Support daily work activities of
individuals and groups
Microsoft Office, E-calendars,
scheduling meeting, emails etc.
Produce reports summarized from
transaction data, usually in one
- report on sales for each
salesperson – who need help.
- list product not sell well – why
Provide computer-based support for
complex, non-routine decisions,
primarily for managers and knowledge
- Use profitability data by store
to decide which stores requires
more shelf space
Expert System (ES) Mimic human expert in a particular
area and make a decision
- Credit card approval analysis
- Look sales trend, predicts
amount we should produce
Designed to address unstructured
decision making through advanced
graphics and communications (at the
organization’s strategic level)
- A graphic shows sales by
- A report show sales
profitability by regions.
Provide a competitive advantage by
helping an organization to implement
its strategic goals and to increase its
performance and productivity.
- Any IS that helps organization
gain a competitive advantages is
SIS. E.g. E-Commerce System
- TPS are typically a major source of data for ERP, OAS (for example names and addresses can be
pulled from transaction files), MIS, DSS, ES and EIS
- ERP, MIS, DSS and ES can all be sources of data for EIS
- ERP, MIS, and ES are usually a major source of data for DSS
- MIS, DSS and OAS can all be sources of data for each other