Instructor: Kevin Robertson

Introduction to Information Systems

Lecture Outline1
Introduction to Information Systems
 Instructor
 Kevin Robertson
 Ke.Robertson@uwinnipeg.ca

 Textbook
 Ralph Stair and George Reynolds:
Fundamentals of Information Systems,
Ninth Edition.

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Principles and Learning Objectives
 The value of information is directly linked to how it helps decision
makers achieve the organization’s goals

 Distinguish data from information and describe the characteristics used to

evaluate the quality of data

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Principles and Learning Objectives
 Knowing the potential impact of information systems and having the
ability to put this knowledge to work can result in a successful
personal career, organizations that reach their goals, and a society
with a higher quality of life

 Identify the basic types of business information systems and discuss who
uses them, how they are used, and what kinds of benefits they deliver

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Principles and Learning Objectives
 System users, business managers, and information systems
professionals must work together to build a successful information
system

 Identify the major steps of the systems development process and state the
goal of each

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Principles and Learning Objectives
 The use of information systems to add value to the organization can
also give an organization a competitive advantage

 Identify the value-added processes in the supply chain and describe the
role of information systems within them

 Identify some of the strategies employed to lower costs or improve service

 Define the term competitive advantage and discuss how organizations are
using information systems to gain such an advantage
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Principles and Learning Objectives
 IS personnel is a key to unlocking the potential of any new or
modified system

 Define the types of roles, functions, and careers available in information

systems

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Why Learn About Information Systems
in Organizations?
 Information systems used by:
 Sales representatives
 Managers
 Financial advisors

 Information systems:
 Indispensable tools to help you achieve your career goals
 Businesses can use information systems to increase revenues and reduce
costs
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Information Concepts
 Information system (IS):
 A set of interrelated components that collect, manipulate, and disseminate
data and information and provide feedback to meet an objective

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Information Concepts
 Information:
 One of an organization’s most valuable resources
 Often confused with the term data
 Future (Microsoft 2019)

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The Role of Information Systems in
Business Today
 New products, services, and business models:
 Business model: describes how company produces, delivers, and sells
product or service to create wealth
 Information systems and technology a major enabling tool for new
products, services, business models

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The Role of Information Systems in
Business Today
 Customer and supplier intimacy:
 Serving customers well leads to customers returning, which raises
revenues and profits.
 Example: High-end hotels that use computers to track customer preferences and
used to monitor and customize environment
 Intimacy with suppliers allows them to provide vital inputs, which lowers
costs.
 Example: Wal-Mart’s Information System which links sales records to contract
manufacturer

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The Role of Information Systems in
Business Today
 Improved decision making
 Without accurate information:
 Managers must use forecasts, best guesses, luck
 Results in:
 Overproduction, underproduction
 Misallocation of resources
 Poor response times
 Poor outcomes raise costs, lose customers
Example: Verizon’s Web-based digital dashboard to provide managers
with real-time data on customer complaints, network performance, line
outages, and so on

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The Role of Information Systems in
Business Today
 Operational excellence:
 Improvement of efficiency to attain higher profitability
 Information systems, technology an important tool in achieving greater
efficiency and productivity
 Walmart’s Retail Link system links suppliers to stores for superior
replenishment system

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The Role of Information Systems in
Business Today
 Competitive advantage
 Delivering better performance
 Charging less for superior products
 Responding to customers and suppliers in real time
 Examples: Apple, Walmart, UPS

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Data, Information, and Knowledge
 Data:
 Raw facts
 Information:
 Collection of facts organized in such a way that they have value beyond
the facts themselves
 Process:
 Set of logically related tasks
 Knowledge:
 Awareness and understanding of a set of information

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Data, Information, and Knowledge

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Data, Information, and Knowledge*

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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

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The Characteristics of Valuable
Information

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The Characteristics of Valuable
Information (con’t)

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The Value of Information
 Directly linked to how it helps decision makers achieve their
organization’s goals
 Valuable information:
 Can help people and their organizations perform tasks more efficiently
and effectively

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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

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What is an Information System?

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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

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Manual and Computer-based
Information Systems
 An information system can be:
 Manual or computerized

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Manual and Computer-based
Information Systems
 Example:
 Investment analysts manually draw charts and trend lines to assist them in
making investment decisions
 Computer-based Information Systems (CBIS) or Management
Information Systems (MIS):
 Follow stock indexes and markets and suggest when large blocks of stocks
should be purchased or sold

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Management Information Systems
(MIS)
 Single set of hardware, software, databases, telecommunications,
people, and procedures:
 Composed of Application, Technical, and Organizational components
 Configured to collect, manipulate, store, and process data into information

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Management Information Systems
(MIS)
 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
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Management Information Systems
(MIS)
 Telecommunications, networks, and the Internet:
 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

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Management Information Systems
(MIS)
 People:
 The most important element in most management information systems
 Procedures:
 Include strategies, policies, methods, and rules for using the MIS

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Management Information Systems
(MIS)
 Application Components (Application Software, Databases)
 Outer: menu screens, input screens, query screens, reports
 Application components are most directly related to the business situation
that the system supports
 Technical Components (Hardware, Telecommunications)
 Hardware, system software, telecommunication technology
 These “house” the application components
 Organizational Components (People, Processes)
 Who does what, Where, and How with this system, in the organization?
(procedures)
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Introduction to Information Systems

End of Lecture 1

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