CHAPTER

1& 10
1. Introduction to Computer
Information Systems
2. Computer Information Systems
within the Organization
Chapter Outline
1. Overview of Computer-Based
Information Systems
2. Why Should I Study Computer
Information Systems?
Learning Objectives

1. Describe the various types of computer-based

information systems in an organization
2. Discuss ways in which information technology can
affect managers and non-managerial workers
3. Identify the reasons why being an informed user of
information systems is important in today’s world.
4. Identify positive and negative societal effects of the
increased use of information technology.
 1. Overview of Computer-Based
Information Systems
2
• Information technology (IT):
– Any computer-based tool that people use to work with information
and support the information and information-processing needs of
an organization
• Information System (IS):
– Collects, processes, stores, analyzes, and disseminates information
for a specific purpose
– The purpose of IS is getting the right information to the right people,
at the right time, in the right amount, and in the right format
• Computer-Based Information System (CIS):
– Information system that uses Information Technology to perform
some or all of the its intended tasks
– Today most of IS are computerized
 1.2 Overview of
Computer-Based IS’s
• CIS Department (CIS Functional Area):
– Deals with the planning for, development, management,
and use of IT tools to help people perform all tasks
related to information processing and management

• The CIS department manages three key

resources ‘assets):
1. Information
2. People
3. Information technology
CIS RESOURCE #1: INFORMATION
1.2 CIS Resource # 1:
Information
• Intellectual Asset Hierarchy:
– Data  Information  Knowledge
Data, Information, Knowledge

• Data – raw facts that describe a

particular phenomenon such as the
current temperature, the price of
movie rental, or your age
• Information – data that have a
particular meaning within a specific
context
 Data, Information, Knowledge

Information is
often
aggregated
data that has
meaning such
as average
age, youngest
and oldest
customer, and
a histogram of
customer ages
Data – raw
facts
 Data, Information,
Knowledge
• Knowledge – Consists of information that have
been organized and processed to convey
understanding, experience, accumulated
learning, and expertise as they apply to current
business problems
• Knowledge can be:
1. Contextual explanation for information
2. Actions to take to affect information
3. Intellectual assets such as patents and trademarks
4. Organizational know-how for things such as best practices
Data, Information,
Knowledge
Data, Information,
Knowledge
Data, information,
Knowledge
Data, information,
Knowledge
 Data, Information, Knowledge

QUALITY ATTRIBUTES OF INFORMATION/KNOWLEDGE

• Timeliness
– When you need it
– Describing the right time period

• Location (no matter where you are)

• Form (text, image, audio, video, etc.)
• Validity (credibility)
Lack of any of the above can create GIGO (garbage-
in, garbage-out) in a decision-making process
CIS RESOURCE #2: PEOPLE
1.2 CIS RESOURCE #2: PEOPLE
• Technology-literate (Computer Literate)
– Current knowledge and understanding
of computers and their uses
– Knows how and when to apply technology

• Information-literate (Informed User)

– Can define information needs
– Knows how and where to obtain information
– Understands information
– Acts appropriately based on information
1.2 CIS RESOURCE #2: PEOPLE
• Ethics
– Principles and standards that guide our
behavior toward other people
– More subjective
– More a matter of personal or cultural
interpretation
• Laws
– Either clearly require or prohibit an
action
1.2 CIS RESOURCE #2: PEOPLE

You always want

your actions to fall in
Quadrant I – both
ethical and legal.
Why Should You Study IS and IT?
1. To be an Informed User:
A person knowledgeable of Information Systems (IS)
and Information Technology (IT)

When you are an informed user:

• You benefit more when you understand what is “behind”
IT applications
• You can provide valuable input
• You can recommend and help select IT applications
• You will be aware of new technology
• You understand how IT improves performance
• Understanding IT is beneficial to entrepreneurs
Why Should You Study IS and IT?
2. To contribute to the digital transformation
of your organization

Digital Transformation: Business strategy that

leverages IS and IT to:
• Dramatically improve employee, customer, and
business partner relationships;
• Support continuous improvement in business
operations and business processes:
• Develop new businesses and business models

3. To contribute to managing of the IT and IS

function within your organization
 CIS RESOURCE #3:
INFORMATION TECHNOLOGY
1.2 CIS RESOURCE #3:
Information Technology
 Components of Computer-
1.3
based Information Systems
TYPES OF COMPUTER-
BASED INFORMATION
SYSTEMS
 Overview of Computer-Based
Information Systems

• Information System (IS):

– Collects, processes, stores, analyzes, and
disseminates information for a specific purpose
– The purpose of IS is getting the right information to
the right people, at the right time, in the right amount,
and in the right format
• Computer-Based Information System (CIS):
– Information system that uses Information Technology
to perform some or all of the its intended tasks
– Today most of IS are computerized
Major Capabilities of Information
Systems
TABLE 1.4 Types of
Organizational CISs
 Types of Computer-Based
Information Systems (CIS)
• Two Criteria Used to Categorize CIS:
1. Whether the CIS supports the entire
organization, parts of the organization or
groups of organizations (breadth of
support for the CIS)

2. Whether the CIS supports particular

employees within the organization
(support for organizational employees)
Criteria #1: Breadth of Support for CIS
Criteria #1: Breadth of Support for CIS
Criteria #1: Breadth of Support for CIS

• Breath of Support:
– Whether the CIS supports the entire organization, parts
of the organization or groups of organizations

• According to this criteria (breath of support)

there are 5 types of CIS:
– Transaction Processing Systems (TPS)
– Functional Area Information Systems (FAIS)
– Enterprise Resource Planning Systems (ERP)
– Inter-organizational Information Systems (IOS)
– E-Commerce Systems (EC)
Criteria #1: Breadth of Support for CIS
• Transaction Processing System (TPS): Systems
that support the monitoring, collection, storage, and
processing of data from the organization’s basic
business transactions, each of which generates data

• Functional Area Information Systems (FAIS) : A

collection of application programs in a single
department or functional area.
Criteria #1: Breadth of Support for CIS
• Enterprise Resource Planning (ERP):
– Systems are designed to correct a lack of
communication among the functional area IS
– The simplest way to define ERP is to think about all the
core processes needed to run a company: finance,
manufacturing, HR, supply chain, services,
procurement, and others. At its most basic level, ERP
integrates these processes into a single system
Criteria #1: Breadth of Support for
CIS

• Inter-organizational Information systems

(IOSs): Information systems that connect two or
more organizations.

• Electronic Commerce (e-commerce) Systems:

An inter-organizational information system that
enable organizations to conduct transactions online
– Example: Business-to-business (B2B) electronic commerce,
and business-to-consumer (B2C) electronic commerce.
Criteria #1 - Breadth of Support for CIS:
CIS Inside the Organization
Criteria #1 - Breadth of Support for CIS:
CIS Inside the Organization

• IT Components: Hardware, Software, a database,

a network, procedures, and people.
• IT Services: IT Personnel use IT Components to
develop CIS’s, oversee security & risk, and
manage data.
• IT Infrastructure: The IT components and IT
services.
• Application: A program designed to support a
specific task or business process.
Criteria #1 - Breadth of Support for CIS:
CIS that function among multiple organizations
1.4 Types of Computer-Based
Information Systems (CIS)

• Two Criteria Used to Categorize CIS:

1. Breadth of Support for Computer
Information Systems (CIS)
2. Support for Organizational Employees
 Criteria #2: Support of
Organizational Employees
• Support of Organizational Employees:
– CIS that support particular employees within the
organization

• According to this criteria (support of organizational

employees) there are 4 types of CIS:
– Management Information Systems (MIS)
– Decision Support Systems (DSS)
– Expert Systems (ES)
– Business Intelligence (BI) Systems
– Dashboards Systems
Organizational Pyramid
Types of Employees in an
Organization
• Clerical Workers
• Knowledge Workers
• Lower-level Managers
• Middle Managers
• Top Managers (Top Executives)
• Chef Executive Officers (CEO)
Organizational Pyramid
Organizational Pyramid
 Criteria #2: Support for
Organizational Employees
• Management Information Systems:
Produce reports summarized from transaction data,
usually in one function area
• Decision Support Systems: Provide access to
data and Analysis tools
• Business Intelligence (BI) Systems: CIS
that provide computer-based support for complex,
non-routine decisions, primarily for middle managers
and knowledge workers
 Criteria #2: Support for
Organizational Employees
• Expert Systems (ES): CIS that attempt to
duplicate the work of human experts by applying
reasoning capabilities, knowledge, and expertise
within a specific domain
• Dashboards: A special form of CIS that support all
managers of the organization by providing rapid
access to timely information and direct access to
structured information in the form of reports
• Executive Dashboards: Present structured,
summarized information about aspects of business
import to executives
Criteria #2 - Support for Organizational
Employees:
Who Uses Which CIS?