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Intro to Business
Information System
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Chapter 2 : Introduction toInformation System and
Technologies
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Can be defined technically as set ofinterrelated component that
workingtogether to collect, Process, Store anddistribute
information to support decision
making, control, analysis and visualization inan
organization.
Information system may also help managersand workers analyze
problem and createnew product.
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What is InformationSystem?
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Input
Captures or collection of raw data from within theorganization
or from its external environment for
processing an information system
Processing
Convert the raw input into more meaningful form.
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Main activities in IS
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Output Transfers the processed information to the people
who will use it or to the activities for which it willbe
used.
IS also required feedback, which is outputthat is returned to
the appropriate members ofthe organization to help them evaluate
orcorrect the input.
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Figure 1-1:Function of an information system
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From business perspective, IS is animportant instrument for
creating value forthe firm.
IS enable firm to increase its revenue or
decrease its costs by providing informationthat helps managers
make better decisions.
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Business Perspective on IS
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Using Information System effectivelyrequires an understanding of
theorganization, management and informationtechnology shaping the
systems.
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Information Technology Supports StrategicManagement
Innovative applications:
Create innovative applications that provide directstrategic
advantage to organizations.
Cost leadership :
Becoming a low cost producer of product and services inthe
industry or finding ways to help suppliers orcustomers reduce their
costs or increase the costcompetitors.
Competitive weapons:
Information systems themselves are recognized as acompetitive
weapon
Changes in processes:
IT supports changes in business processes that translateto
strate ic advanta e
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Using IT for StrategicAdvantages
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Key management issues
How can organizations obtain business value from
their information systems?
What complementary assets are needed to use
information technology effectively?
How can firms understand the business and
system requirements of a global economic
environment?
How can organization develop an information
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The challenge of IS
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Benefit Is can helps companies learn more about
purchase pattern and preference of theircustomer
Information system provide new efficienciesthrough services such
as ATM, telephone system,air terminal etc
IS have made possible new medical advance insurgery, radiology
and patient monitoring
The internet distribute information instantly tomillions of
people across the world.
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Positive and Negativeimpacts of IS
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Negative impacts By automating activities that were
previously
perform by people, IS may eliminate jobs IS may allow
organization to collect personal
details that violate their privacy concern Miscommunication
Users of IS may suffer repetitive stress injury,
techno stress, health problems.
Internet can course of distribute of illegal copiesof software,
book, articles and etc
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