IS

Lecture 1: Introduction to Information Systems

Learning Objectives
1. Understand the concept of a system and how it relates to information systems.
2. Explain why knowledge of information systems is important for business professionals
and identify areas of information systems knowledge they need.
3. Give examples to illustrate how the business applications of information systems can
support a firm’s business processes, managerial decision making, and strategies for
competitive advantage.
4. Provide examples of several major types of information systems from your experiences
with business organizations in the real world.
5. Identify several challenges that a business manager might face in managing the
successful and ethical development and use of information technology in a business.
6. Provide examples of the components of real world information systems. Illustrate that in
an information system, people use hardware, software, data and networks as resources
to perform input, processing, output, storage, and control activities that transform data
resources into information products.
7. Demonstrate familiarity with the myriad of career opportunities in information systems.

Why study Information Systems

Vital component of successful businesses
Helps businesses expand and compete
Businesses use IS and IT
To improve efficiency and effectiveness of business processes
For managerial decision making
For workgroup collaboration
Information system (IS):
A set of interrelated components that collect, manipulate, and disseminate data and
information and provide feedback to meet an objective
Businesses:
Can use information systems to increase revenues and reduce costs
Information systems used by:
 Sales representatives
Managers
Financial advisors
Information systems:
Indispensable tools to help you achieve your career goals

Information System:
An information system is a set of interrelated components that collect, manipulate, store data
and disseminate information and provide a feedback mechanism to monitor performance.

What is an Information System?

An organized combination of people, hardware, software, communications networks, and
data resources that collects data, transforms it, and disseminates information.

Data Vs. Information

Data:
Raw unorganized facts

Information:
A collection of facts organized in such a way that they have additional value beyond the
value of the facts themselves.

Defining and organizing relationships among data creates information.

Information Concepts
Process:
A set of logically related tasks performed to achieve a defined outcome.
Knowledge:
An awareness and understanding of a set of information and ways that information can be
made useful to support a specific task or reach a decision

Data, Information, and Knowledge

Data Represented by
Alphanumeric data Numbers, letters, and other characters
Image data Graphic images and pictures
Audio data Sound, noise, or tones
Video data Moving images or pictures

Data --> The transformation process (applying knowledge by selecting, organizing, and
manipulating data) --> Information
##The Value of Information

The value of information is directly linked to how it helps decision makers achieve their
organization’s goals.

The Characteristics of Valuable Information

If an organization’s information is not accurate or complete:
People can make poor decisions, costing thousands, or even millions, of dollars
Depending on the type of data you need:
Some characteristics become more important than others
The Characteristics of Valuable Information

Characteristics Definitions
Accessible Information should be easily accessible by authorized users so they
can obtain it in the right format and at the right time to meet their
needs.
Accurate Accurate information is error free. In some cases, inaccurate
information is generated because inaccurate data is fed into the
transformation process. (This is commonly called garbage in, garbage
out [GIGO].)
Complete Complete information contains all the important facts. For example, an
investment report that does not include all important costs is not
complete.
Economical Information should also be relatively economical to produce. Decision
makers must always balance the value of information with the cost of
producing it.
Flexible Flexible information can be used for a variety of purposes. For
example, information on how much inventory is on hand for a
particular part can be used by a sales representative in closing a sale,
by a production manager to determine whether more inventory is
needed, and by a financial executive to determine the total value the
company has invested in inventory.
Relevant Relevant information is important to the decision maker. Information
showing that lumber prices might drop might not be relevant to a
computer chip manufacturer.
Reliable Reliable information can be trusted by users. In many cases, the
reliability of the information depends on the reliability of the data-
collection method. In other instances, reliability depends on the source
of the information. A rumor from an unknown source that oil prices
might go up might not be reliable.
Secure Information should be secure from access by unauthorized users.
Simple Information should be simple, not overly complex. Sophisticated and
detailed information might not be needed. In fact, too much information
can cause information overload, whereby a decision maker has too
much information and is unable to determine what is really important.
Timely Timely information is delivered when it is needed. Knowing last week’s
weather conditions will not help when trying to decide what coat to
wear today.
Verifiable Information should be verifiable. This means that you can check it to
make sure it is correct, perhaps by checking many sources for the
same information.
System
A system is a set of elements or components that interact to accomplish goals.

Components of a system:

Processing mechanisms
Outputs
Feedback

What is an Information System?

Information system (IS) is a set of interrelated elements that:
Collect (input)
Manipulate (process)
Store
Disseminate (output) data and information
Provide a corrective reaction (feedback mechanism) to meet an objective

Input, Processing, Output, Feedback

Input:
Activity of gathering and capturing raw data
 Processing:
Converting data into useful outputs
Output:
Production of useful information, usually in the form of documents and reports
Feedback:
Information from the system that is used to make changes to input or processing
activities

Lecture 2: Computer-Based Information Systems

Remember
Why study Information Systems
Information system (IS):
A set of interrelated components that collect, manipulate, and disseminate data and
information and provide feedback to meet an objective.
Information
Data
System

Components of a system:
Inputs
Processing mechanisms
Outputs
Feedback

System Concepts:
Manual and Computerized Information Systems
An information system can be:
Manual or computerized
Example:
Investment analysts manually draw charts and trend lines to assist them in making
investment decisions
Computerized information systems:
Follow stock indexes and markets and suggest when large blocks of stocks should
be purchased or sold

Computer-Based Information Systems

Single set of hardware, software, databases, telecommunications, people, and
procedures:
That are configured to collect, manipulate, store, and process data into information
Technology infrastructure:
Includes all hardware, software, databases, telecommunications, people, and
procedures
Configured to collect, manipulate, store, and process data into information
Computer-Based Information Systems
Hardware:
Consists of computer equipment used to perform input, processing, and output
activities
Software:
Consists of the computer programs that govern the operation of the computer
Database:
Organized collection of facts and information, typically consisting of two or more
related data files.
Telecommunications
The electronic transmission of signals for communications
Networks
Connect computers and equipment to enable electronic communication
Internet
World’s largest computer network, consisting of thousands of interconnected
networks, all freely exchanging information

• Intranet:

Internal network that allows people within an organization to exchange information and
work on projects
• Extranet:
Network that allows selected outsiders, such as business partners and customers, to
access authorized resources of a company’s intranet
People:
The most important element in most computer-based information systems
Procedures:
Include strategies, policies, methods, and rules for using the CBIS

Lecture 3: Business Information Systems

Business Information Systems
Most common types of information systems:
Those designed for electronic and mobile commerce, transaction processing,
management information, and decision support
Some organizations employ:
Special-purpose systems, such as virtual reality, that not every organization uses
Electronic and Mobile Commerce
E-commerce:
Any business transaction executed electronically between:
Companies (business-to-business, B2B)
Companies and consumers (business-to-consumer, B2C)
Consumers and other consumers (consumer-to-consumer, C2C)
Business and the public sector
Consumers and the public sector
Electronic and Mobile Commerce
Mobile commerce (m-commerce):
The use of mobile, wireless devices to place orders and conduct business
E-commerce:
Can enhance a company’s stock prices and market value
Electronic business (e-business):
Uses information systems and the Internet to perform all business-related tasks and
functions

Enterprise Systems: Transaction Processing Systems

Transaction:
Any business-related exchange, such as payments to employees and sales to
customers
Transaction processing system (TPS):
Organized collection of people, procedures, software, databases, and devices used
to record completed business transactions
Enterprise Systems: Transaction Processing Systems

Enterprise Systems: Enterprise Resource Planning

Enterprise resource planning:
Set of integrated programs that:
Manages the vital business operations for an entire multisite, global
organization
Most systems provide integrated software to support manufacturing and finance

Information and Decision Support Systems

Management information system (MIS):
Organized collection of people, procedures, software, databases, and devices that:
Provides routine information to managers and decision makers
Information and Decision Support Systems

Information and Decision Support System

Decision support system (DSS):
Organized collection of people, procedures, software, databases, and devices
that support problem-specific decision making
Used when problem is complex and information needed to determine appropriate
action is difficult to obtain
Lecture 4 : Database Management System
REMEMBER
Without data and the ability to process it:
An organization could not successfully complete most business activities
Data consists of raw facts
To transform data into useful information:
It must first be organized in a meaningful way

Database
Database: A collection of data with the following properties:
It represents certain aspect of the real-world.
Its data are logically related.
It is created for a specific purpose.

Database Management System

Database Management System (DBMS): A software package/system to store and
manage databases.
DBMS is a set of software that are used to define, store, manipulate and control the data
in a database.
Database System = Database + DBMS
Database
Models a real-world enterprise:

1. Entities: Entities are specific things or objects in the mini-world that are represented in
the database
2. Attributes: Properties used to describe an entity
3. Relationships: Relates two or more distinct entities with a specific meaning

Example
Course management system:
Students, courses, sections, and professors
Entities
Professors teach sections
Students register in sections.
Courses have sections
Relationships
Students have names, students IDs, phone numbers...
Attributes
Relationship Types
A relationship is a link that relates two entities that share one or more attributes.
One-to-one
One-to-many
Many-to-many

Database Design
Decide on the structure of the database?

Three main steps:

1. Requirements collection and analysis
2. Conceptual design
3. Logical and physical design

1. Requirements collection and analysis

Decide on the requirements of the database system

Ask questions such as:

What is going to be stored? --> Input
How is it going to be used? --> Output
Who should access the data? --> Decision Marker
Result: Functional requirements of the application --> output

2. Conceptual design
A high-level description of the database
Detailed so that technical people can understand it
 But, not too complicated that non-technical people can’t understand it

2. Conceptual design
Many data models have been developed in the past:

The Entity-Relationship Model (ER Model)

The Hierarchical Data Model
The Network Data Model
The Relational Data Model
The Object-Oriented Data Model

Examples of Data Models

The Entity-Relationship Model

3.1. Logical design

Logical design or data-model mapping:
 Result is a database schema in implementation data model of DBMS

3.2. Physical design

Physical design phase:
Internal storage structures, file organizations, indexes, access paths, and physical
design parameters for the database files specified

ER-Model components
Three major components:
1. Entities
Basic objects in ER model
A “thing” in the real world with independent existence
Physical existence: person, car, house, employee, ...
Conceptual existence: company, job, course, ...
Each entity must have a set of attributes

1. Entities, entity type, and entity sets

Entities (records): The individual objects, which are members of entity sets
Ex: A specific person or product
Entity type: A collection of entities that have the same attributes. Should be a noun
Entity sets: Represent the sets of all possible entities

1. Entities
Entities example:

2. Attributes
Properties used to describe entities
Example #1:
Entity Name: EMPLOYEE
Attributes:
name, age, address, salary, job
Example #2:
Entity Name: CAR
Attributes:
name, maker, VIN number
Properties used to describe entities
 A particular entity will have a value for each of its attributes name: “John Smith” age: 55
address: 2311 Kirby, Houston, TX 77001 salary: $2000 job: Accountant
The values are the actual data stored in the database

Entities and Attributes

2. Attributes
Types of attributes:

1. Simple (Atomic) Vs. Composite Attributes

Composite attributes can be divided into smaller subparts

Subparts represent basic attributes with independent meanings

Ex. Address (Building no., street, district, city, country )
Ex. FullName (1st name, middle, last or family name)
Ex. Telephone (002055...)

Simple attributes cannot be divided

Ex. City, ZipCode, FirstName, LastName, ...

Types of attributes:

2. Single-valued Vs. Multi-valued Attributes

Single-valued attributes have a single value for a particular entity

Ex. Age, Color, Name, ...

Multi-valued attributes may have a number of values for a particular entity

Ex. Skill, CollegeDegrees,

 Types of attributes:

3. Complex Attributes
A combination of composite and multivalued attributes
Ex. Telephone Number (002055.....; 002011....)
4. Stored Vs. Derived Attributes
In some cases, one attribute (or more) is related to another
Ex. Age and BirthDate

A derived attribute can be determined from a stored attribute

Ex. BirthDate is a stored attribute, while Age is a derived attribute

5. Null Values
Used in cases where attributes may not have values for a specific entity
1. Because the value is not applicable
Ex. ApartmentNo, CollegeDegrees, ...
2. Or because the value is unknown
Ex. PhoneNumber (may not exist)
Ex. Height of a person (exists)

Key attribute:
Key attribute: An attribute that has to be unique and can be used to identify an
entity (Primary Key in the database)
Value sets (or domain of values):
Specifies set of values that may be assigned to that attribute for each individual
entity

Entities and Attributes

Is there a relationship between company and product?

3. Relationship

Is there a relationship between company and product?

Yes, a company makes products
 A relationship between two (or more) entities

1. A relationship can have attributes

2. Relationship: A relationship can have attributes

A person can watch a movie more than once

What if we want to save the date each time a person watches a movie?
ER Diagram Notations

Lecture 5 : Database tables, Queries, Forms, and

Reports
Introduction
Access database includes 4 objects: tables, queries, forms and reports.
Combining these 4 objects together can import, store, analyze and compile data the way
you want.
Database Tables
The relational database model is a simple but highly useful way to organize data into
collections of two-dimensional tables called relations.
Each row in the table represents an entity, and each column represents an attribute of
that entity.

Database Queries
Query is a way to search, compile data from one or more tables. Query execution is like
 asking a detailed question about a database.
When creating a query in Access, you are defining specific search conditions to find
exactly the data you want.
The query is much stronger than the simple searches you do on the table a lot.
Although searching can help find the name of a customer in the list, but if you do a query,
you can find the names and phone numbers of many customers who have purchased
goods in the past week.
Well-designed queries can provide information that you can't find just by looking at the
tables in the database.

Database Forms
Form is used to import, edit, view records. You may have to fill out the form multiple
times when logging in to the website, enrolling, etc.
The reason the form is used so often is because it is the easiest way to instruct the user
to enter the correct data.
When filling in information in Access form, the data will be entered in the format that the
database designer wants: In one or more related tables.
 Form makes data entry easier. Working with large tables can be confusing and especially
when the tables are connected, you may have to enter the data set more than once.
However, with the form, it is possible to enter data into multiple tables at the same time,
all in the same place.
Database designers can place additional restrictions on separate forms to ensure all
necessary data is entered in the correct format.
In general, forms make data consistent, organized, and that's essential for a robust,
accurate database.

Database Reports
The report gives you the ability to present data in a printout.
If you have ever received a computer printout of your schedule, purchase invoice, then it
is a database report.
The report is useful, as they allow the presentation of the components of the database in
an easy-to-read format.
It is even possible to customize the appearance of the report to make it more attractive
and intuitive. Access provides the ability to create reports from any table or query.
Generating Reports
A DBMS can produce a wide variety of documents, reports, and other output that can
help organizations make decisions and achieve their goals.
Often, organizations have standard reports that are run on a regular basis.
The most common reports select and organize data to present summary information
about some aspect of company operations.
For example, accounting reports often summarize financial data such as current and
past due accounts. Many companies base their routine operating decisions on regular
status reports that show the progress of specific orders toward completion and delivery.
FIGURE 5.17

Database output

A database application offers sophisticated formatting and organization options to produce

the right information in the right format.
used with permission from Microsoft Corporation

Generating Reports
After a DBMS has been installed, employees, managers, and other
authorized users can use it to review reports and obtain important
information.
Using a DBMS, a company can manage this requirement.

Combination of tables, forms, queries, reports

Although you can understand how objects are used, you will initially be somewhat vague
about how they work together.
All these objects work with the same data.
 Each piece of data that queries, forms, and reports use is stored in a database table.

Form allows adding data to the table and viewing existing data. The report presents data
from tables and queries, then searches and analyzes data in similar tables.
These relationships may sound complicated, but they work together very well and
naturally that we often don't pay attention to when used together.

Combination of tables, forms, queries, reports

An example of you looking for a book in the library, for example, would look like this:
When searching, you enter the search terms into the form, create and run the query as
required. When the query finishes searching for records in the database table that match
the request, you will receive a report.

This report collects information from queries you have made and related tables, in this
case a list of books that match your search terms. Can show the connection between
 these objects as follows:

Without these tools, you will have to search for yourself in a huge bookstore, related
records can be on multiple tables, if you find them manually or with your eyes, you will
never know.

Lecture 6 : Ethical, Legal, and Social Issues of

Information Systems
Did You Know?
A study conducted by researchers at the University of Nevada estimated that wasting
time online (or “cyber loafing,” as it is sometime called) costs U.S. businesses more than
$85 billion annually.

Personal and Social Impact of Information Systems?

Both opportunities and threats surround a wide range of nontechnical issues associated
with the use of information systems and the Internet.
If you become a member of the human resources, information systems, or legal
department within an organization, you will likely be challenged with leading your
organization in dealing with these and other issues covered.
Potential Problems
Computers have become such valuable tools that most business people today have
difficulty imagining how they would accomplish their work without them.
Yet, the information age has also brought the potential for cybercrime

as well as the following potential problems for workers, companies, and society in general:

1. Computer waste and mistakes

2. Trade-offs between privacy and security
3. Work environment problems
4. Ethical issues

Computer Waste and Mistakes

Computer-related waste and mistakes are major causes of computer problems,
contributing to unnecessarily high costs and lost profits.
Computer-related mistakes refer to errors, failures, and other computer problems that
make computer output incorrect or not useful; most of these are caused by human error.

Computer Waste
Examples of computer related waste include organizations operating
unintegrated information systems, acquiring redundant systems, and
wasting information system resources.
Some organizations continue to operate their businesses using
unintegrated information systems, which makes it difficult for decisions
makers to collaborate and share information.

Computer Waste: Example

Most local health departments use a combination of state-provided and locally
implemented information systems for patient data collection, management, and
reporting.
In a recent study of the use of such information systems, many public health workers
reported system inefficiencies, difficulties in generating reports, and limited data
accessibility, necessitating the need for system workarounds.
Common Computer-related Mistakes
Data-entry or data-capture errors
Programming errors
Errors in handling files, including formatting a disk by mistake, copying an old file over a
newer one, and deleting a file by mistake
Mishandling of computer output
Inadequate planning for and control of equipment malfunctions
Inadequate planning for and control of environmental difficulties (e.g., electrical and
humidity problems)
Inadequate planning for hardware and software upgrades
Installing computing capacity inadequate for the level of activity
Failure to provide access to the most current information either by not adding new Web
links or not deleting old links

Preventing Computer-Related Waste and Mistakes

To remain profitable in a competitive environment, organizations must use their
resources wisely.
To employ IS resources efficiently and effectively, employees and managers alike should
strive to minimize waste and mistakes.
This effort involves establishing, implementing, monitoring, and reviewing effective
policies and procedures.

Privacy Issues
Privacy is an important social issue related to the use of information systems.
In terms of information systems, issues of privacy relate to the collection and use or
misuse of data.
Data is constantly being collected and stored on each of us. This data is often distributed
over easily accessed networks and without our knowledge or consent.
Concerns of privacy regarding this data raise difficult questions, including “Who owns this
information and knowledge?” If a public or private organization spends time and
resources to obtain data on you, does the organization own the data, and should it be
allowed to use the data in any way it desires?
Today, many businesses rely on collected personal data to enhance their sales and
marketing efforts, and for some organizations, buying and selling personal data is their
business.
Privacy at Work
The right to privacy at work is also an important issue.
Employers are using technology and corporate policies to manage worker productivity
and protect the use of IS resources.
Employers are mostly concerned about inappropriate web surfing, with over half of
employers monitoring the Web activity of their employees.
Organizations also monitor employees’ email, with more than half retaining and
reviewing messages. Statistics such as these have raised employee privacy concerns.
In many cases, workers claim their right to privacy trumps their companies’ rights to
monitor employee use of IS resources.
However, most employers today have a policy that explicitly eliminates any expectation
of privacy when an employee uses any company-owned computer, server, or email
system.

Privacy and the Internet

Some people approach the Internet with the assumption that there is no privacy online
and that people who choose to use the Internet do so at their own risk.
Others believe that companies with Web sites should have strict privacy procedures and
be held accountable for privacy invasion.
Most people who buy products on the Web say it’s very important for a site to have a
policy explaining how personal information is used, and that the policy statement must
make people feel comfortable and be extremely clear about what information is collected
and what will and will not be done with it.
Ultimately, the issue of most concern to many Internet users is what do content providers
want to do with the personal information they gather online?
If a site requests that you provide your name and address, you have every right to know
why and what will be done with it.
If you buy something and provide a shipping address, will it be sold to other retailers?
Will your email address be sold on a list of active Internet shoppers? Consumers have
the right to be taken off any mailing list, whether it is for traditional mail or email.

Individual Efforts to Protect Privacy

Although numerous state and laws deal with privacy, the laws do not completely protect
individual privacy. In addition, not all companies have privacy policies. As a result, many
people are taking steps to increase their own privacy protection.
 Be careful when you share information about yourself. Don’t share information unless it
is absolutely necessary. Every time you give information about yourself through an 800,
888, or 900 call, your privacy is at risk. Be vigilant in insisting that your doctor, bank, or
financial institution not share information about you with others without your written
consent.
Be proactive in protecting your privacy. You can get an unlisted phone number and ask
the phone company to block caller ID systems from reading your phone number.
If you change your address, don’t fill out a change-of-address form with the Postal
Service; you can notify the people and companies that you want to have your new
address.
Take extra care when purchasing anything from a Web site.
Make sure that you safeguard your credit card numbers, passwords, and personal
information.
Do not do business with a site unless you know that it handles credit card information
securely.

Ethical Issues in Information Systems

Ethical issues deal with what is generally considered right or wrong.
People are continually faced with ethical issues in a wide range of settings, and the use
of information systems brings with it some new and challenging ethical considerations for
end users and for society as a whole.
Ethical Issues in Information Systems Ethical information system users define
acceptable practices more strictly than just refraining from committing crimes; they also
consider the effects of their IS activities, including Internet usage, on other people and
organizations.
IS professionals are often faced with their own unique set of ethical challenges in their
work developing, implementing, and maintaining information systems.
As a result, some IS professional organizations have developed codes of ethics to guide
people working in IS professions.

What Is Ethics?
As previously defined, ethics is a set of beliefs about right and wrong behavior.
For example, although nearly everyone would agree that lying and cheating are
unethical, some people might consider it acceptable to tell a lie to protect someone’s
feelings or to keep a friend from getting into trouble.
Ethical Issues in Information Systems
Law is a system of rules that tells us what we can and cannot do. Laws are enforced by
a set of institutions (the police, courts, law-making bodies).
Legal acts are acts that conform to the law. Moral acts conform to what an individual
believes to be the right thing to do. Laws can proclaim an act as legal, although some
people may consider the act immoral-for example, abortion.

Ethical Considerations in Decision Making

We are all faced with difficult decisions in our work and in our personal life, and most of us
have developed a decision-making process that we execute almost automatically, without
thinking about the steps we go through.

Including Ethical Considerations in Decision Making

For many of us, the process generally follows these steps:
(1) gather information,
(2) develop a problem statement,
(3) consult those involved as well as other appropriate resources,
(4) identify options,
(5) weigh options,
(6) choose an option,
(7) implement a solution, and
(8) review results

The End