1 Information System

Topics: Knowledge management, Information systems, Information Pages: 34 (925 words) Published: March 19, 2015
Information System

What is a system?
 A system - is a set of related components
that produces specific results.

 Mission-critical System - is one that is vital
to a company’s operations.

Information System
 An information system (IS) - is any
combination of information technology
and people's activities that support
operations, management and decision
 It is frequently used to refer to the
interaction between people, processes,
data and technology.

Why study information system?
 Information technology can help all kinds
of businesses improve the efficiency and
effectiveness of their business
processes, managerial decision making,
and workgroup collaboration, thus
strengthening their competitive positions
in a rapidly changing market place.

Why study information system?
 Internet-based systems have become a
necessary ingredient for business
success for today’s dynamic global
 Information technologies are playing an
expanding role in business.

Components of an Information System


Components of an Information System
 Hardware
 Moore’s Law - describes a long-term
trend in the history of computing
hardware. The number of transistors that
can be placed inexpensively on an
integrated circuit doubles approximately
every two years. This trend has
continued for more than half a century
and is expected to continue until 2015 or
2020 or later.

Components of an Information System
 Software
 System Software
 Application Software
 Enterprise Applications
 Horizontal System - adapted for use in
many different types of companies. Ex:
inventory, payroll

Components of an Information System
 Software
 Vertical System - designed to meet the
unique requirements of a specific
business or industry. Ex: web-based
 Legacy System – older system used by
the company

Components of an Information System
 Data
 Raw material that an information system
transforms into useful information
 Linking of tables from a database

Components of an Information System
 Processes
 Define the tasks and business functions
that users, managers, and IT staff
members perform to achieve specific

Components of an Information System
 People
 Users, or end users, are the people who
interact with an information system, both
inside and outside the company

Categories of Companies
 Production-oriented - primarily
manufacture and sell products

 Service-oriented - primarily offer
information or services, or sell goods
produced by others

Categories of Companies
 Internet-dependent or Dot-com (.com) bases its primary business in a commercial web site rather than using
traditional business channels
 Brick-and-mortar – conduct business from
a physical location instead of from a web

Impact of the Internet
 E-Commerce or I-Commerce
 B2C
 B2B

Characteristics of Information Systems
 Does this system interact with other
 A company’s information system also can
interface with a system operated by
another firm, such as when a payment is
made by one company’s accounts payable
system to another company’s accounts
receivable system.
 This process, known as Electronic Data
Interchange (EDI), involves the computerto-computer transfer of data between companies.

Characteristics of Information Systems
 What are the system’s boundaries?
 A system boundary indicates where one
system ends and another system begins.

 Will the system handle specialized business
 Many firms require specialized systems for
information management that is unique to their
company or industry.

Characteristics of Information Systems
 What size is the company, and what growth is
 Large and small companies in the same
industry have different information systems

Major Types...
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