Information Technology Reference
In-Depth Information
SUMMARY
Principle
The value of information is directly linked to how it
helps decision makers achieve the organization's
goals.
that is used to make adjustments or changes to input or pro-
cessing activities.
The components of a computer-based information system
(CBIS) include hardware, software, databases, telecommuni-
cations and the Internet, people, and procedures. The types
of CBISs that organizations use 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. The key to understanding these types of
systems begins with learning their fundamentals.
E-commerce involves any business transaction executed
electronically between parties such as companies (business-
to-business), companies and consumers (business-to-
consumer), 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 trans-
actions that make purchasing easier for big corporations.
E-commerce also offers opportunities for small businesses
to market and 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.
The most fundamental system is the transaction process-
ing 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 can manage the vital business
operations for an entire multisite, global organization. A man-
agement information system (MIS) uses the information from
a TPS to generate information useful for management
decision making.
A decision support system (DSS) is an organized collection
of people, procedures, databases, and devices that help make
problem-specific decisions. A DSS differs from an MIS in the
support given to users, the emphasis on decisions, the devel-
opment and approach, and the system components, speed,
and output.
Specialized business information systems include knowl-
edge management, artificial intelligence, expert, and virtual
reality systems. Knowledge management systems are orga-
nized collections of people, procedures, software, databases,
and devices used to create, store, share, and use the organi-
zation's knowledge and experience. Artificial intelligence (AI)
includes a wide range of systems in which the computer takes
on the characteristics of human intelligence. Robotics is an
area of artificial intelligence in which machines perform com-
plex, 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 computers interpreting and acting on
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 indispens-
able tools to help you achieve your career goals. Learning
about information systems can help you get your first job, earn
promotions, and advance your career.
Data consists of raw facts; information is data trans-
formed into a meaningful form. The process of defining rela-
tionships among data requires knowledge. Knowledge is an
awareness and understanding of a set of information and the
way that information can support a specific task. To be valu-
able, information must have several characteristics: It should
be accurate, complete, economical to produce, flexible, reli-
able, relevant, simple to understand, timely, verifiable, acces-
sible, and secure. The value of information is directly linked
to how it helps people achieve their organization's goals.
Principle
Computers and information systems are constantly
making it possible for organizations 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. A system uses
feedback to monitor and control its operation to make sure
that it continues to meet its goals and objectives.
System performance is measured by its efficiency and
effectiveness. Efficiency is a measure of what is produced
divided by what is consumed; effectiveness measures the
extent to which a system achieves its goals. A systems per-
formance standard is a specific objective.
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 and orga-
nizations that reach their goals.
Information systems are sets of interrelated elements that
collect (input), manipulate and store (process), and dissemi-
nate (output) data and information. Input is the activity of
capturing and gathering new data, processing involves con-
verting or transforming data into useful outputs, and output
involves producing useful information. Feedback is the output
