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Chapter 1

Comp Sci. Ch. 1, 3, 4


Department
Computer Science
Course Code
COMPSCI 1032A/B
Professor
Diane Goldstein
Chapter
1

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Chapter 1
Information system – group of components that interact to
produce information
Five component framework – computer hardware, software, data,
procedures, people
Software – refer only to programs
Computer based information system – information systems
including computers
MIS (Management information systems) – development and use
of information systems that help businesses achieve their goals
and objectives
Development and use, information system, business goals and
objectives
Goals and objectives – people within business who manage, not
the business
Information technology – raw technology (hardware, software)
Information system – includes people
IT must be combined with IS to be helpful
Moore’s Law – number of transistor’s per square inch on an
integrated chip doubles every 18 months
Moore’s Law – the speed of a computer chip doubles every
month
Chapter 2
Business process (business system) – network of activities,
resources, facilities, information that interact to achieve some
business function
Activities – transform resources and information of one type into
resources and information of another type
Payment activity transforms (quantity received and shipping
invoice) (supplier payment)
Resources – items of value (milk, check, cash, supplier,
customer)
Facilities – structures within business (inventory, database,
factories, trucks)
Information – knowledge derived from data (data presented in a
meaningful context)
Information = data processed by summing, ordering, averaging,
grouping, comparing, or other similar operations
Accurate information – correct/complete data
Timely information – produced in time for its intended use
Relevant information – context and to subject
Just barely sufficient information – sufficient for the purpose for
which it is generated, but just barely so
Worth it’s cost information – make sure there is a benefit
Hardware + people = action

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Software + procedures = instructions
Data = bridge between computer and human
Automated system – work not done by computers who follow
instructions from software (right side to left side)
Cash Register (automated)
Hardware (cash register computer, database host
computer)
Software (sales-recording program on cash register)
Data (sales data, inventory database)
Procedures (operate cash register)
People (cashier)
Manual system –little work is done by computers and software,
most done by accounts payable clerk
Payment System (Manual)
Hardware (personal computer)
Software (adobe acrobat reader, email)
Data (Quantity Received, Shipping Invoice)
Procedures (reconcile receipt document with invoice, issue
payment, process exceptions)
People (Accounts Payable Clerks
Purchasing Information System (Balanced)
Hardware (personal computer, database host computer)
Software (inventory application program, purchasing
program
Data (inventory database)
Procedures (issues Purchase Order according to inventory
management practices and guidelines)
People – Purchasing Clerk
Decisions (three levels) – operational, managerial, strategic
Operational decision – day to day activities
Transaction processing systems – support operational
systems
Managerial – allocation and utilization of resources
Management information systems – support managerial
decisions
Strategic decisions – broader-scope organizational issues
Executive information systems – support strategic decision
Decision time frame increase: operational managerial
strategic
Structured decision – understood and accepted method for
making decision (formulas for recording quantity of an item
of inventory)
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Unstructured decision – no agreed on decision-making
method (predicting future direction of economy)
Decision type and decision process loosely related
Decision making steps
Intelligence gathering – decision makers determine what is
to be decided (what the criteria for the decision will be)
Alternative formula – decision makers lay out various
alternatives
Choice – analyze alternatives and select one
Implementation – implement the decision
Review – review results – may lead to another decision
Chapter 3
Productivity paradox – “we see computers everywhere except in
the productivity of statistics”
Measurement error – critical reason for observed lack of
productivity
3 ways value of IT could be realized
Through productivity – make either more output from same
inputs?
Structure of competition – alter the way corporations
compete
End customer – processes more efficient and changes the
nature of competition – customers see changes in final
products (cheaper, better)
Productivity for organizations – increase through increased
efficiency or effectiveness
Increase efficiency – business processes – accomplish more
quickly or with fewer resources and facilities “doing things
right”
Increase effectiveness – company offers either new or
improved goods or services “doing the right thing”
Value chain – network of activities improve effectiveness of
a good or service (1 or more business processes) (each process
adds more value)
Margin – difference between price the customer is willing
to pay and cost the company incurs in moving good through value
change
Primary activities – value added directly to product
(shipping raw materials, designing the tires, manufacturing tires,
shipping final good)
In Bound Logistics – receiving, storing, and disseminating
inputs to the product
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