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Principles of Business Information Systems 4th Edition US authors: Ralph M. Stair and George W. Reynolds
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INF1505 Exam Pack and 250 MQS with answers
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Chapter 11.1 What is an Information System
System – a set of elements or components that interact to accomplish goals.
Efficiency – A measure of what is produced divided by what is consumed.
Effectiveness – a measure of the extent to which a system achieves its goals, it can be
computed by dividing the goals actually achieved by the total of the stated goals.
System performance standard – A specific objective of the system.
(Evaluating system performance also calls for using performance standards)
(After standards are established, system performance is measured and compared with the
standard)
(Variances from the standard are determinants of system performance)
Information – stated by Shannon is ‘that what reduces uncertainty’ and stated by systems,
information is a collection of facts, these facts have many forms like: Numbers, Audio, Visual,
Text, Images and Video clips.
Information system – A set of interrelated components that collect, manipulate, store, and
disseminate information and provide feedback mechanism to meet an objective.
(It is the feedback mechanism that helps organizations achieve their goals such as increasing
profits or improving customer service)
Four components of a system – input, processing, output, feedback
Input – is the activity of gathering and capturing data.
Processing – Converting or transforming input into useful outputs.
Output – Production of useful information, often in the form of documents and reports.
Feedback – Output that is used to make changes to input or processing activities.
Forecasting – Predicting future events.
Characteristics of valuable information – Page 8
(Accessible, Accurate, Complete, Economical, Flexible, Relevant, Reliable, Secure, Simple,
Timely, Verifiable)
,Computer-based information system (CBIS) – A single set of hardware, software, databases,
telecommunications, people, and procedures that is configured to collect, manipulate, store
and process data into information.
Technology infrastructure – All the hardware, software, databases, telecommunications,
people, and procedures that are configured to collect, manipulate, store and process data
into information.
Hardware – Any machinery (Most of which uses digital circuits) that assists in the input,
processing, storage, and output activities of an information system.
(EDR’s are computerized event data recorders, the technology is used to monitor vehicle
operation, determine the cause of accidents, and investigate whether truck drivers are
taking required breaks)
Software – The computer programs that govern the operation of the computer.
(These programs allow a computer to process payroll, send bills to customers and provide
managers with information to increase profits, reduce costs and provide better customer
service)
- System software (like Microsoft windows which controls basic computer operations)
- Applications software (like Microsoft office which allows you to accomplish specific
tasks, including word processing and drawing charts)
- Sophisticated application software (such as Adobe Creative Suite, can be used to
design, develop, print and place professional-quality advertising, brochures, posters,
etc)
Databases – An organized collection of electronic information.
Telecommunications – The electronic transmission of signals for communications, enables
organizations to carry out their processes and tasks through effective computer networks.
- Networks – Computers and equipment that are connected in a building, around the
country or around the world to enable electronic communications.
- Internet – The world’s largest computer network, actually consisting of thousands of
interconnected networks, all freely exchanging information.
- Cloud computing – A computing environment where software and storage are
provided as an internet service and are accessed via a web browser.
- Intranets – An internal company network built using internet and world wide web
standards and products that allows people within an organization to exchange
information and work on projects.
- Extranet – A network based on web technologies that allows selected outsiders, such
as business partners, suppliers or customers, to access authorized resources of a
company’s intranet.
People – People are the most important element in most computer-based information
systems. The people involved include users of the system and information systems
personnel, including all the people who manage, run, program and maintain the system.
,Procedures – The strategies, policies, methods, and rules for using CBIS, including the
operation, maintenance, and security of the computer.
Chapter 1.2 Business Information Systems
Often in large organizations, one information system is used to accomplish all the tasks. In
others, separate systems are used. When one system is used it is called an Enterprise
Resource Planning System.
The main types of information systems used in businesses.
- Strategic level, Executive support system, support long-term strategic decisions
made by senior managers.
- Tactical level, Management information systems and Decision support systems,
support mid-term decisions made by middle managers.
- Operational level, Transaction processing systems, Customer relationship
management systems and Supply chain management systems, support the day-to-
day running of the firm.
Enterprise systems: Transaction Processing Systems and Enterprise Resource Planning
Transaction Processing System (TPS) – An organized collection of people, procedures,
software, databases, and devices used to record completed business transactions.
Transaction – Any business-related exchange, such as payments to employees, sales to
customers and payments to suppliers.
Enterprise Resource Planning system (ERP) – A set of integrated programs capable of
managing a company’s vital business operations for an entire multisite, global organization.
E-commerce – Any business transaction executed electronically between companies,
companies and customers, consumers and other consumers, business and the public sector,
and consumers and the public sector (E-commerce simplifies purchasing).
Mobile commerce – Conducting business transactions electronically using mobile devices
such as smartphones.
Electronic business – Using information systems and the Internet to perform all business-
related tasks and functions. E-business also includes working with customers, suppliers,
strategic partners, and stakeholders. Compared with traditional business strategy, e-business
strategy is flexible and adaptable.
, Management information systems (MIS) – An organized collection of people, procedures,
software, databases, and devices that provides routine information to managers and
decision makers. (The output of TPS is the input of MIS)
Decision support system (DSS) – An organized collection of people, procedures, software,
databases, and devices used to support problem-specific decision making.
Knowledge management (KMS) – An organized collection of people, procedures, software,
databases, and devices to create, store, share and use the organization’s knowledge and
experience. (According to a survey of CEO’s, firms that use KMS are more likely to innovate
and perform better)
Artificial intelligence – The ability of computer systems to mimic or duplicate the functions
or characteristics of the human brain or intelligence.
The elements of artificial intelligence
- Robotics is an area of AI in which machines take over complex, dangerous, routine,
or boring tasks, such as welding car frames or assembling computer systems and
components.
- Vision systems, allow robots and other devices to ‘see’, store and process visual
images.
- Natural language processing involves computers understanding and acting on verbal
or written commands in English, Spanish or other human languages.
- Learning systems (Neural networks, Deep learning), allow computers to learn from
past mistakes or experiences, such as playing games or making business decisions.
Neural networks is a branch of AI that allows computers to recognize and act on
patterns or trends.
- Expert systems, A system that gives a computer the ability to make suggestions and
act like an expert in a particular field or hardware and software that stores
knowledge and makes inferences, similar to a human expert.
Knowledge base – A component of an expert system that stores all relevant information,
data, rules, cases, and relationships used by the expert system.
Virtual reality – The simulation of a real or imagined environment that can be experienced
visually in three dimensions.
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