Fundamentals of Business Information Systems (with CourseMate & eBook Access Card)
Study: International Business and Languages (HvA, Year 1)
Course: IT
Book: Fundamentals of Business Information Systems; Stair, R.
Summary Chapter 1-6,8,9
Chapter 1: An Introduction to Information Systems in Organizations
1.1 What is an Information System?
A system is a set of elements or components that interact to accomplish goals.
The elements themselves and the relationships among them determine how the
system works.
Systems have:
1. Input
2. Processing mechanisms
3. Output
4. Feedback.
A system processes the input to create the output.
System performance can be measured in various ways. Efficiency is a measure
of what is produced divided by what is consumed. =Production / consumption.
Effectiveness is a measure of the extent to which a system achieves its goals.
=achieved goals / total stated goals.
A system performance standard is a specific objective of the system.
An information system (IS) is a set of interrelated components that collect,
manipulate, store, and disseminate information and provide a feedback
mechanism to meet an objective.
In information systems, input is the activity of gathering and capturing data.
Processing means converting or transforming this input into useful outputs.
Processing can involve making calculations, comparing data and taking
alternative actions, and storing data for future use.
Output involves producing useful information, usually in the form of documents
and reports.
Feedback is information from the system that is used to make changes to input
or processing activities.
In addition to a reactive approach, a computer system can also be proactive –
predicting future events to avoid problems, which is called forecasting.
A computer-based information system (CBIS) is a single set of hardware,
software, databases, telecommunications, people, and procedures that are
configured to collect, manipulate, store, and process data into information. A
business’s technology infrastructure includes all the hardware, software,
databases, telecommunication, people, and procedures that are configured to
collect manipulate, store, and process data into information.
Hardware consists of the physical components of a computer that perform the
input, processing, storage and output activities of the computer. Input devices
include keyboards, mice, and other pointing devices. Processing devices include
computer chips that contain the central processing unit and main memory. The
many types of output devices include printers and computer screens.
Software consists of the computer programs that govern the operation of the
computer. The two types of software are system software, such as Mac OS X or
Windows 7, which includes basic computer operations, and application
software, such as Microsoft Office, which allows you to accomplish specific
tasks.
, A database is an organized collection of facts and information, typically
consisting of 2 or more related data files.
Telecommunications is the electronic transmission of signals for
communications: enables organizations to carry out their processes and tasks
through effective computer networks.
Networks connect computers and equipment in a building, around the country,
or around the world to enable electronic communication.
The internet is the world’s largest computer network, actually consisting of
thousands of interconnected networks, all freely exchanging information.
The technology used to create the internet is also being applied within companies
and organizations to create intranets, which allow people within an organization
to exchange information and work on projects.
An extranet is an network based on web technologies that allows selected
outsiders, such as business partners and customers, to access authorized
resources of a company’s intranet.
Procedures include the strategies, policies, methods, and rules for using the
CBIS, including the operation, maintenance, and security of the computer.
1.2 Business Information Systems
An enterprise resource planning (ERP) system is a set of integrated
programs that manages the vital business operations for an entire multi-site,
global organization. An ERP system can replace many applications with one
unified set of programs, making the system easier to use and more effective. The
big advantage of using one ERP is that the information will be stored in a
consistent and controlled manner, whereas with separate systems, there is the
possibility of inconsistencies creeping in.
E-commerce involves any business transaction executed electronically between
companies (business-to-business, B2B), consumers and other consumers
(consumers-to-consumers C2C), business and the public sector, and consumers
and the public sector.
Mobile-commerce (m-commerce) refers to conducting business transactions
electronically using mobile devices such as smartphones.
Electronic business (e-business) goes beyond e-commerce and e-
procurement by using information systems and the internet to perform all
business-related tasks and functions, such as accounting, finance, marketing,
manufacturing, and human resource activities.
A transaction is any business-related exchange, such as payments to
employees, sales to customers, and payments to suppliers.
A transaction processing system (TPS) is an organized collection of people,
procedures, software, databases, and devices used to record completed business
transactions.
A management information system (MIS) is an organized collection of people
procedures, software, databases, and devices that provides routine information to
managers and decision makers. An MIS focusses on operational efficiency.
A decision support system (DSS) is an organized collection of people,
procedures, software, databases, and devices used to support problem-specific
decision making.
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