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An Introduction to Information Systems | Chapter 1

31

phobias (fear of flying), entertainment, and, of course, virtual reality games. Students taking Television and the Modern Presidency at the University of Denver, are able to chat with former presidents, White House administrators, and Washington insiders.32

Figure 1.15

A Head-Mounted Display

The head-mounted display (HMD) was the first device of its kind providing the wearer with an immersive experience. A typical HMD houses two miniature display screens and an optical system that channels the images from the screens to the eyes, thereby presenting a stereo view of a virtual world. A motion tracker continuously measures the position and orientation of the user’s head and allows the image-generating computer to adjust the scene representation to the current view. As a result, the viewer can look around and walk through the surrounding virtual environment.

(Source: Image Courtesy of 5DT, Inc., www.5DT.com.)

Figure 1.16

A Data Glove

Realistic interactions with virtual objects via such devices as a data glove that senses hand position allow for manipulation, operation, and control of virtual worlds.

(Source: Image Courtesy of 5DT, Inc., www.5DT.com.)

It is difficult to predict where information systems and technology will be in 10 to 20 years. It seems, however, that we are just beginning to discover the full range of their usefulness. Technology has been improving and expanding at an increasing rate; dramatic growth and change are expected for years to come. Without question, a knowledge of the effective use of information systems will be critical for managers both now and in the long term. But how are these information systems created?

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

32

Part 1 | Information Technology Concepts

SYSTEMS DEVELOPMENT

systems development

The activity of creating or modifying existing business systems.

Figure 1.17

An Overview of Systems

Development

Systems development is the activity of creating or modifying existing business systems. People inside a company can develop systems, or companies can use outsourcing, hiring an outside company to perform some or all of a systems development project. Outsourcing allows a company to focus on what it does best and delegate other functions to companies with expertise in systems development. Cox Insurance Holdings, for example, outsourced its commercial underwriting operations to another company.33 Outsourcing enabled Cox Insurance to streamline its operations and reduce costs. Outsourcing, however, is not the best alternative for all companies. Toyota recently stopped outsourcing its financial services and started to perform the financial services function internally.34 According to the director of Toyota Financial Services, “ You depend on that service provider. you worry about whether or not it will be in business next year, and whether or not it will be able to service you consistently throughout the terms of the agreement and beyond.” Other companies have used outsourcing for software development, database development, and other aspects of systems development.

Developing information systems to meet business needs is highly complex and difficult, so much so that it is common for IS projects to overrun budgets and exceed scheduled completion dates. Business managers would like the development process to be more manageable, especially with predictable costs and timing. One strategy for improving the results of a systems development project is to divide it into several steps, each with a well-defined goal and set of tasks to accomplish (see Figure 1.17). These steps are summarized next.

SYSTEMS INVESTIGATION

Understand problem

SYSTEMS ANALYSIS

Understand solutions

SYSTEMS DESIGN

Select and plan best solution

SYSTEMS IMPLEMENTATION

Place solution into effect

SYSTEMS MAINTENANCE

AND REVIEW

Evaluate results of solution

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

An Introduction to Information Systems | Chapter 1

33

Systems Investigation and Analysis

The first two steps of systems development are systems investigation and analysis. The goal of the systems investigation is to gain a clear understanding of the problem to be solved or opportunity to be addressed. A cruise line company, for example, may launch a systems investigation to determine whether a development project is feasible to automate purchasing at ports around the world. Once an organization understands the problem, the next question to be answered is, “Is the problem worth solving?” Given that organizations have limited resources—people and money—this question deserves careful consideration. If the decision is to continue with the solution, the next step, systems analysis, defines the problems and opportunities of the existing system.

Systems Design, Implementation, Maintenance, and

Review

Systems design determines how the new system will work to meet the business needs defined during systems analysis. Systems implementation involves creating or acquiring the various system components (hardware, software, databases, etc.) defined in the design step, assembling them, and putting the new system into operation. The purpose of systems maintenance and review is to check and modify the system so that it continues to meet changing business needs.

INFORMATION SYSTEMS IN SOCIETY, BUSINESS,

AND INDUSTRY

Information systems have been developed to meet the needs of all types of organizations and people, and their use is spreading throughout the world to improve the lives and business activities of many citizens. But to provide their enormous benefits, information systems must be implemented thoughtfully and carefully. The speed and widespread use of information systems opens organizations and individuals to a variety of threats from unethical people.

Security, Privacy, and Ethical Issues in Information

Systems and the Internet

Although information systems can provide enormous benefits, there are a number of potential negative aspects to their use.35 Figure 1.18, for example, shows the percentage of businesses and other organizations attacked by various means in a one-year period. Figure 1.19 reveals the cost of losses during a one-year period of about 250 organizations that responded to a survey.

In addition to attacks on information systems, computer resources can be wasted, and computer-related mistakes and misuse have cost organizations millions of dollars. In an act of revenge, one fired employee in Australia used a computer to hack into a sewerage system and released millions gallons of raw waste into rivers and parks.36 He released raw waste more than 40 times before he was caught. Computer crime and the invasion of privacy are also potential problems.37

Increasingly, the ethical use of systems has also been highlighted in the news. Ethical issues concern what is generally considered right or wrong. Some IS professionals believe that computers may create new opportunities for unethical behavior. For example, a faculty member of a medical school falsified computerized research results to get a promotion—and a higher salary. In another case, a company was charged with using a human resource information system to time employee layoffs and firings to avoid paying pensions. More and more, the Internet is also associated with unethical behavior. Unethical investors have placed false rumors or wrong information about a company on the Internet and tried to influence its

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

34

Part 1 | Information Technology Concepts

Figure 1.18

Attacks on Businesses and Other Organizations in One Year

(Source: Data from Riva Richmond, “How to Find Your Weak Spots,” The Wall Street Journal, September 29, 2003, p. R3.)

Figure 1.19

The Cost and Cause of

Computer Attacks

(Source: Data from Riva Richmond, “How to Find Your Weak Spots,” The Wall Street Journal, September 29, 2003, p. R3.)

TYPE OF ATTACK

Virus

Insider abuse of

Internet access

Laptop theft

Unauthorized access by insiders

Denial of service

System penetration

Theft of proprietary information

Sabotage

Financial fraud

Telecommunications fraud

Telecommunications

eavesdropping

Active wiretap

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PERCENTAGE OF

ORGANIZATIONS ATTACKED

CAUSE

Theft of proprietary information

Denial of service

Virus

Insider abuse of

Internet access

Financial fraud

Laptop theft

Sabotage

System penetration

Active wiretap

Telecommunications fraud

Unauthorized access by insiders

Telecommunications

eavesdropping

0

10

20

30

40

50

60

70

80

90

100

COST

(MILLIONS OF DOLLARS)

stock price to make money. Stolen property is another issue. A few weeks before the $100million film, Hulk, first hit the big screen, pirated copies were available on the Internet, after a man in New Jersey got an illegal copy of the film before its formal release.38

Many organizations have codes of conduct to foster ethical behavior in the use of information systems. Some other security and control measures are controversial, however. The USA Patriot Act, enacted as a result of the September 11, 2001, terrorist attacks, requires companies to respond to a subpoena in five days or fewer. The USA Patriot Act can require organizations to supply financial and personal information, such as books checked out at a library. Like many companies, Sumitomo Mitsui Bank uses a new computer system to collect

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

An Introduction to Information Systems | Chapter 1

35

any necessary data and make it available to government agencies. Without the new information system, it could take weeks just to collect the needed data.39 Some believe that provisions in this act may violate an individual’s privacy.

Individuals and organizations can install security and control measures to protect themselves against some of the potential negative aspects of computerization. For example, a number of software products have been developed to detect and remove viruses from computer systems. Software can also protect you from spam, unwanted e-mail.40 Information systems can help reduce crime as well.41 A free computer center in Wellington, New Zealand, has cut vandalism by keeping young people off the street and giving people in the community a sense of pride. When a pair of headphones disappeared from the center, the community rallied to make sure that they were promptly returned.

Some individuals and companies install firewalls (software and hardware that protect a computer system or network from outside attacks) to avoid viruses and prevent unauthorized people from gaining access to the computer system. Identification numbers and passwords can also be used. One individual has proposed that Web cameras be put in critical areas and that “citizen spotters” be hired to monitor the Webcams.42 In response to possible abuses, a number of laws have been passed to protect people from invasion of their privacy, including The Privacy Act, enacted in the 1970s.

Use of information systems also raises a number of work concerns, including job loss through increased efficiency and some potential health problems from making repetitive motions and other workplace issues. Ergonomics, the study of designing and positioning computer systems, can help people and companies avoid health-related problems of using computer systems.

Computer and Information Systems Literacy

In the twenty-first century, business survival and prosperity continue to become more difficult. For example, increased mergers among former competitors to create global conglomerates, continued downsizing of corporations to focus on their core businesses and to improve efficiencies, efforts to reduce trade barriers, and the globalization of capital all point to the increased internationalization of business organizations and markets. In addition, business issues and decisions are becoming more complex and must be made faster. Whatever career path you take, an understanding of information systems will help you cope, adapt, and prosper in this challenging environment.

The Internet is one means for advancing your knowledge of information systems and other professional study. Increasingly, courses or entire degrees are being offered over the Internet. One Harvard University professor, for example, stays up late at night to teach a class on clinical design to doctors in Asia.43 In addition to traditional colleges and universities, a number of online degree programs are offered over the Internet.44 Online degree programs are especially attractive to people with full-time jobs because they can learn during nontraditional hours from home.45 While some people question the value of these online programs, others believe they foster motivation and determination in working professionals.

A knowledge of information systems will help you make a significant contribution on the job. It will also help you advance in your chosen career or field. Managers are expected to identify opportunities to implement information systems to improve their business. They are also expected to lead IS projects in their areas of expertise. To meet these personal and organizational goals, you must acquire both computer literacy and information systems literacy. Computer literacy is a knowledge of computer systems and equipment and the ways they function. It stresses equipment and devices (hardware), programs and instructions (software), databases, and telecommunications.

Information systems literacy goes beyond a knowledge of the fundamentals of computer systems and equipment. Information systems literacy is a knowledge of how data and information are used by individuals, groups, and organizations. It includes knowledge of not only computer technology but also aspects of the broader range of information technology.

computer literacy

Knowledge of computer systems and equipment and the ways they function; it stresses equipment and devices (hardware), programs and instructions (software), databases, and telecommunications.

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

36

Part 1 | Information Technology Concepts

information systems literacy

Knowledge of how data and information are used by individuals, groups, and organizations.

Most important, however, it encompasses how and why this technology is applied in business. Knowing about various types of hardware and software is an example of computer literacy. Knowing how to use hardware and software to increase profits, cut costs, improve productivity, and increase customer satisfaction is an example of information systems literacy. Information systems literacy can involve a knowledge of how and why people (managers, employees, stockholders, and other individuals) use information technology; a knowledge of organizations, decision-making approaches, management levels, and information needs; and a knowledge of how organizations can use computers and information systems to achieve their goals. Knowing how to deploy transaction processing, management information, decision support, and special-purpose systems to help an organization achieve its goals is a key aspect of information systems literacy.

Information Systems in the Functional Areas of Business

Studies have shown that the involvement of managers and decision makers in all aspects of information systems is a major factor for organizational success, including higher profits and lower costs. Information systems are used in all functional areas and operating divisions of business. In finance and accounting, information systems are used to forecast revenues and business activity, determine the best sources and uses of funds, manage cash and other financial resources, analyze investments, and perform audits to make sure that the organization is financially sound and that all financial reports and documents are accurate. In sales and marketing, information systems are used to develop new goods and services (product analysis), determine the best location for production and distribution facilities (place or site analysis), determine the best advertising and sales approaches (promotion analysis), and set product prices to get the highest total revenues (price analysis).

In manufacturing, information systems are used to process customer orders, develop production schedules, control inventory levels, and monitor product quality. In addition, information systems are used to design products (computer-assisted design, or CAD), manufacture items (computer-assisted manufacturing, or CAM), and integrate multiple machines or pieces of equipment (computer-integrated manufacturing, or CIM). Information systems are also used in human resource management to screen applicants, administer performance tests to employees, monitor employee productivity, and more. Legal information systems are used to analyze product liability and warranties and to develop important legal documents and reports.

Information Systems in Industry

Information systems are used in almost every industry or field. The airline industry employs Internet auction sites to offer discount fares and increase revenue. Investment firms use information systems to analyze stocks, bonds, options, the futures market, and other financial instruments, as well as to provide improved services to their customers. Banks use information systems to help make sound loans and good investments, as well as to provide online check payment for account holders. The transportation industry uses information systems to schedule trucks and trains to deliver goods and services at the lowest cost. Publishing companies use information systems to analyze markets and to develop and publish newspapers, magazines, and books. Healthcare organizations use information systems to diagnose illnesses, plan medical treatment, track patient records, and bill patients. HMOs use Web technology to access patients’ insurance eligibility and other information held in databases to cut patient costs. Retail companies are using the Web to take customer orders and provide customer service support. Retail companies also use information systems to help market products and services, manage inventory levels, control the supply chain, and forecast demand. Power management and utility companies use information systems to monitor and control power generation and usage. Professional services firms employ information systems to improve the speed and quality of services they provide to customers. Management consulting firms use intranets and extranets to provide information on products, services, skill levels, and past engagements to its consultants. These industries will be discussed in more detail as we continue through the book.

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

An Introduction to Information systems | Chapter 1

37

SUMMARY

Principle

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

Information systems are used in almost every imaginable career area. Regardless of your college major or chosen career, you will find that information systems are indispensable tools to help you achieve your career aspirations. Learning about information systems can help you get your first job, obtain promotions, and advance your career.

Data consists of raw facts; information is data transformed into a meaningful form. The process of defining relationships between data requires knowledge. Knowledge is an awareness and understanding of a set of information and the way that information can be made useful to support a specific task. To be valuable, information must have several characteristics: It should be accurate, complete, economical to produce, flexible, reliable, relevant, simple to understand, timely, verifiable, accessible, and secure. The value of information is directly linked to how it helps people achieve their organization’s goals.

Principle

Models, computers, and information systems are constantly making it possible fororganizations to improve the way they conduct business.

A system is a set of elements that interact to accomplish a goal or set of objectives. The components of a system include inputs, processing mechanisms, and outputs. Systems also contain boundaries that separate them from the environment and each other. Feedback is used by the system to monitor and control its operation to make sure that it continues to meet its goals and objectives. Systems may be classified in many ways. They may be considered simple or complex. A stable, nonadaptive system does not change over time, while a dynamic, adaptive system does. Open systems interact with their environments; closed systems do not. Some systems exist temporarily; others are considered permanent.

System performance is measured by its efficiency and effectiveness. Efficiency is a measure of what is produced divided by what is consumed; effectiveness is a measure of the extent to which a system achieves its goals. A systems performance standard is a specific objective. A system variable is a quantity or item that can be controlled by the decision maker, such as how much of a product to produce, while a system parameter is a value or quantity that cannot be controlled, such as the cost of raw material.

There are four basic types of models: narrative, physical, schematic, and mathematical. These models serve as an abstraction or an approximation that is used to represent reality. Models enable us to explore and gain an improved understanding of real-world situations. The narrative model provides a verbal description of reality. A physical model is a tangible representation of reality, often computer designed or constructed. A schematic model is a graphic representation of reality such as a graph, chart, figure, diagram, illustration, or picture. A mathematical model is an arithmetic representation of reality.

Principle

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 asociety with a higher quality of life.

Information systems are sets of interrelated elements that collect (input), manipulate and store (process), and disseminate (output) data and information. Input is the activity of capturing and gathering new data; processing involves converting or transforming data into useful outputs; and output involves producing useful information. Feedback is the output that is used to make adjustments or changes to input or processing activities.

The componentsof a computer-based information system include hardware, software, databases, telecommunications and the Internet, people, and procedures. CBISs play an important role in today’s businesses and society. The key to understanding the existing variety of systems begins with learning their fundamentals. The types of business information systems used within organizations can be classified into four basic groups: (1) e-commerce and m-commerce, (2) TPS and ERP systems, (3) MIS and DSS, and (4) specialized business information systems.

E-commerce involves any business transaction executed electronically between parties such as companies (business- to-business), companies and consumers (business-to-con- sumer), business and the public sector, and consumers and the public sector. The major volume of e-commerce and its fastest-growing segment is business-to-business transactions that make purchasing easier for big corporations. E- commerce also offers opportunities for small businesses by enabling them to marketand sell at a low cost worldwide, thus allowing them to enter the global market right from start-up. M-commerce involves anytime, anywhere computing that relies on wireless networks and systems.

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

38

Part 1 | An Overview

The most fundamental system is the transaction processing system (TPS). A transaction is any business-related exchange. The TPS handles the large volume of business transactions that occur daily within an organization. An enterprise resource planning (ERP) system is a set of integrated programs that is capable of managing a company’s vital business operations for an entire multisite, global organization.

The management information system (MIS) uses the information from a TPS to generate information useful for management decision making. Managementinformation systems produce a variety of reports. Scheduled reports contain prespecified information and are generated regularly. Demand reports are generated only at the request of the user. Exception reports contain listings of items that do not meet a predetermined set of conditions.

A decision support system (DSS) is an organized collection of people, procedures, databases, and devices used to support problem-specific decision making. A DSS differs from an MIS in the support given to users, the decision emphasis, the development and approach, and system components, speed, and output.

The specialized business information systems include artificial intelligence systems, expert systems, and virtual reality systems. Artificial intelligence (AI) includes a wide range of systems, in which the computer system takes on the characteristics of human intelligence. Robotics is an area of artificial intelligence 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 have “sight” and to store and process visual images. Natural language processing involves the ability of computers to understand and act on verbal or written commands in English, Spanish, or other human languages. Learning systems give computers the ability to learn from past mistakes or experiences, such as playing games or making business decisions, while neural networks is a branch of artificial intelligence that allows computers to recognize and act on patterns or trends. An expert system (ES) is designed to act as an expert consultant to a user who is seeking advice about a specific situation. Originally, the term virtual reality referred to immersive virtual reality, in which the user becomes fully immersed in an artificial, 3-D world that is completely generated by a computer. Virtual reality can also refer to applications that are not fully immersive, such as mouse-controlled navigation through a three-dimensional environment on a graphics monitor, stereo viewing from the monitor via stereo glasses, stereo projection systems, and others.

Principle

System users, business managers, and information systems professionals must work together to build a successful information system.

Systems development involves creating or modifying existing business systems. The major steps of this process and their goals include systems investigation (gain a clear understanding of what the problem is), systems analysis (define what the system must do to solve the problem), systems design (determine exactly how the system will work to meet the business needs), systems implementation (create or acquire the various system components defined in the design step), and systems maintenance and review (maintain and then modify the system so that it continues to meet changing business needs).

Principle

Information systems must be applied thoughtfully and carefully so that society, business,and industry can reap their enormous benefits.

Information systems play a fundamental and ever-expanding role in society, business, and industry. But their use can also raise serious security, privacy, and ethical issues. Effective information systems can have a major impact on corporate strategy and organizational success. Businesses around the globe are enjoying better safety and service, greater efficiency and effectiveness, reduced expenses, and improved decision making and control because of information systems. Individuals who can help their businesses realize these benefits will be in demand well into the future.

Computer and information systems literacy are prerequisites for numerous job opportunities, not just in the IS field. Computer literacy (a knowledge of computer systems and equipment) and information systems literacy (a knowledge of how data and information are used by individuals, groups, and organizations) is needed to get the most from any information system. Today, information systems are used in all the functional areas of business, including accounting, finance, sales, marketing, manufacturing, human resource management, and legal information systems. Information systems are also used in every industry, such as airlines, investment firms, banks, transportation companies, publishing companies, healthcare, retail, power management, professional services, and more.

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

An Introduction to Information systems | Chapter 1

39

CHAPTER 1: SELF-ASSESSMENT TEST

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

1.A (an) _________________ is a set of interrelated components that collect, manipulate, and disseminate data and information and provide a feedback mechanism to meet an objective.

2.Numbers, letters, and other characters are represented by

_____________.

a.image data

b.numeric data

c.alphanumeric data

d.symmetric data

3.Knowledge is an awareness and understanding of a set of information. True or false?

Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business.

4.A (an) _______________ is a set of elements or components that interact to accomplish a goal.

5.Which of the following is a way to classify systems?

a.permanent—temporary

b.simple—dynamic

c.input—output

d.open—adaptive

6.Graphs, charts, and figures are examples of physical models. True or false?

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.

7.A (an) ______________ consists of hardware, software, databases, telecommunications, people, and procedures.

8.Computer programs that govern the operation of a computer system are called _____________.

a.feedback

b.feedforward

c.software

d.transaction processing system

9.Payroll and order processing are examples of a computerized management information system. True or false?

10.What type of system is used when the problem is complex and the information needed to make the best decision is difficult to obtain?

a.TPS

b.MIS

c.DSS

d.AI

11._________________ involves anytime, anywhere commerce that uses wireless communications.

System users, business managers, and information systems professionals must work together to build a successful information system.

12.What determines how a new system will work to meet the business needs defined during systems investigation?

a.systems implementation

b.systems review

c.systems development

d.systems design

Information systems must be applied thoughtfully and carefully so that society, business, and industry can reap their enormous benefits.

13.______________ literacy is a knowledge of how data and information are used by individuals, groups, and organizations.

CHAPTER 1: SELF-ASSESSMENT TEST ANSWERS

(1) information system (2) c (3) True (4) system (5) a (6) False

(7) computer-based information system (CBIS) (8) c (9) False (10) c (11) Mobile commerce (m-commerce) (12) d (13) Information systems

KEY TERMS

artificial intelligence (AI) 29

database 19

enterprise resource planning (ERP)

computer-based information system

decision support system (DSS) 27

system 25

(CBIS) 17

e-commerce 21

expert system 30

computer literacy 35

effectiveness 11

extranet 20

data 05

efficiency 11

feedback 16

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

40

Part 1 | An Overview

 

 

forecasting 16

mobile commerce (m-commerce) 22

system parameter 11

hardware 17

model 13

system performance standard 11

information 05

networks 19

system variable 11

information system (IS) 04

output 16

systems development 32

information systems literacy 36

procedures 21

technology infrastructure 17

input 15

process 06

telecommunications 19

Internet 19

processing 15

transaction 25

intranet 20

software 18

transaction processing system (TPS)

knowledge 07

system 08

25

knowledge base 30

system boundary 09

virtual reality 30

management information system

 

 

 

(MIS) 26

 

 

REVIEW QUESTIONS

1.What is an information system? What are some of the ways information systems are changing our lives?

2.How would you distinguish data and information? Information and knowledge?

3.Identify at least six characteristics of valuable information.

4.Define the term system. What is the difference between a stable system and a dynamic system?

5.What are the components of any information system?

6.What is feedback? What are possible consequences of inadequate feedback?

7.How is system performance measured?

8.What is a model? What is the purpose of using a model?

9.What is a computer-based information system? What are its components?

10.Identify three functions of a transaction processing system.

11.What is the difference between an intranet and an extranet?

12.What is m-commerce? Describe how it can be used.

13.What are the most common types of computer-based information systems used in business organizations today? Give an example of each.

14.Identify three elements of artificial intelligence.

15.What are computer literacy and information systems literacy? Why are they important?

16.What are some of the benefits organizations seek to achieve through using information systems?

17.Identify the steps in the systems development process and state the goal of each.

DISCUSSION QUESTIONS

1.Why is the study of information systems important to you? What do you hope to learn from this course to make it worthwhile?

2.What is a database? Why is it an important part of a com- puter-based information system?

3.What is the difference between e-commerce and m-com- merce?

4.What is the difference between an MIS and a DSS?

5.Suppose that you are a teacher assigned the task of describing the learning processes of preschool children. Why would you want to build a model of their learning processes? What kinds of models would you create? Why might you create more than one type of model?

6.Describe the “ideal” automated auto license plate renewal system for the drivers in your state. Describe the input, processing, output, and feedback associated with this system.

7.How is it that useful information can vary widely from the quality attributes of valuable information?

8.Discuss the potential use of virtual reality to enhance the learning experience for new automobile drivers. How might such a system operate? What are the benefits and potential disadvantages of such a system?

9.Discuss how information systems are linked to the business objectives of an organization.

10.What are your career goals and how can a computer-based information system be used to achieve them?

Copyright © 2005 by Course Technology. All rights reserved.This publication is protected by federal copyright law. No part of this publication may be reproduced without prior permission in writing from Course Technology. Some of the product names and company names have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufactures and sellers.

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