INFORMATION

TECHNOLOGIES
Lecturer:
MSc Fatima Rustamova
 Ədəbiyyat siyahısı
1. Stair, R. and Reynolds, G. (2010) principles of
information systems . 9th edn. Florida, Florida:
CENGAGE Learning.

2. Laudon, K.C. and Laudon, J.P. (2018) Management

Information Systems managing the digital firm.
15th edn. Harlow, England: Pearson.
1. Introduction to
Information Systems
Content
1. Information Concepts
2. System Concepts
3. What is an Information System?
4. Business Information Systems
5. Computer-based Information Systems
6. Decentralized vs Centralized Information Systems
7. Global Challenges in Information Systems
LEARNING OBJECTIVES
1. Discuss why it is important to study and understand information systems.
2. Distinguish data from information and describe the characteristics used to evaluate the
value of data.
3. Name the components of an information system and describe several system
characteristics.
4. List the components of a computer-based information system.
5. Identify the basic types of business information systems and discuss who uses them, how
they are used, and what kinds of benefits they deliver.
6. Identify the major steps of the systems development process and state the goal of each.
7. Describe some of the threats to security and privacy that information systems and the
Internet can pose.
8. Discuss the expanding role and benefits of information systems in business and industry.
Principles

The value of information is directly linked to how it helps decision

makers achieve the organization’s goals.
Principles

Computers and information systems are constantly making it

possible for organizations to improve the way they conduct
business.
Principles

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 organizations that reach their goals.
Principles

System users, business managers, and information systems

professionals must work together to build a successful information
system.
Principles

Information systems must be applied thoughtfully and carefully so

that society, business, and industry around the globe can reap
their enormous benefits.
Learning objective 1

Discuss why it is important to

study and understand
information systems.
Introduction
1. Discuss why it is important to study and understand information systems.

• For a business to succeed globally, it must be able to provide the right

information to the right people in the organization at the right time, even
if those people are located around the world.
• If a company’s information system is not efficient and effective, the
company will lose market share to a competitor with a better information
system.
• Managers use information systems to make multimillion-dollar decisions,
such as whether to build a manufacturing plant or research a cancer drug.
• Financial planners use information systems to advise their clients to help
them save for retirement or their children’s education.
Definition

information system (IS)

A set of interrelated components that collect, manipulate, store, and
disseminate data and information and provide a feedback mechanism to
meet an objective.
Learning objective 2

Distinguish data from

information and describe the
characteristics used to
evaluate the value of data.
Data & INFORMATION
2.Distinguish data from information and describe the characteristics used to evaluate the value of data.

Data consists of raw facts, such as an employee number, total hours worked in a week,
inventory part numbers, or sales orders. Several types of data can represent these facts. When
facts are arranged in a meaningful manner, they become information.

Information is a collection of facts organized so that they have additional value beyond the
value of the individual facts. For example, sales managers might find that knowing the total
monthly sales suits their purpose more (i.e., is more valuable) than knowing the number of sales
for each sales representative.
Knowledge
2. Distinguish data from information and describe the characteristics used to evaluate the value of data.

Turning data into information is a process, or a set of logically related

tasks performed to achieve a defined outcome. The process of defining
relationships among data to create useful information requires
knowledge.
Knowledge is the awareness and understanding of a set of information
and the ways that information can be made useful to support a specific
task or reach a decision. Having knowledge means understanding
relationships in information.
The Characteristics of Valuable Information
2. Distinguish data from information and describe the characteristics used to evaluate the value of data.
The Characteristics of Valuable Information
2. Distinguish data from information and describe the characteristics used to evaluate the value of data.
The Value of Information
2. Distinguish data from information and describe the characteristics used to evaluate the value of data.

• Consider a market forecast that predicts a high demand for a new

product. If you use this information to develop the new product and
your company makes an additional profit of $10,000, the value of this
information to the company is $10,000 minus the cost of the
information.
• A new computerized ordering system might cost $30,000, but
generate an additional $50,000 in sales. The value added by the new
system is the additional revenue from the increased sales of $20,000.
Learning objective 3

Name the components of an

information system and
describe several system
characteristics.
• In information systems, input is the activity of gathering and capturing
raw data.
• Processing means converting or transforming data into useful outputs.
Processing can involve making calculations, comparing data and taking
alternative actions, and storing data for future use.
• Output involves producing useful information, usually in the form of
documents and reports.
• Feedback is information from the system that is used to make changes to
input or processing activities. For example, errors or problems might make
it necessary to correct input data or change a process.
System Performance and Standards
3. Name the components of an information system and describe several system characteristics.

• System performance can be measured in various ways, including:

• Efficiency
• is a measure of what is produced divided by what is consumed. It can range from 0 to 100 percent. For
example, the efficiency of a motor is the energy produced (in terms of work done) divided by the energy
consumed (in terms of electricity or fuel). Some motors have an efficiency of 50 percent or less because of
the energy lost to friction and heat generation.
• Effectiveness
• is a measure of the extent to which a system achieves its goals. It can be computed by dividing the goals
actually achieved by the total of the stated goals. For example, a company might want to achieve a net
profit of $100 million for the year using a new information system. Actual profits, however, might only be
$85 million for the year. In this case, the effectiveness is 85 percent (85/100 = 85 percent).
• System performance standard
• is a specific objective of the system. For example, a system performance standard for a marketing campaign
might be to have each sales representative sell $100,000 of a certain type of product each year. After
standards are established, system performance is measured and compared with the standard. Variances
from the standard are determinants of system performance.
Learning objective 4

List the components of a

computer-based information
system.
Computer-Based Information Systems
4. List the components of a computer-based information system.

• A single set of hardware, software, databases, telecommunications, people, and

procedures that are configured to collect, manipulate, store, and process data
into information.
• A business’s technology infrastructure includes all the hardware, software,
databases, telecommunications, people, and procedures that are configured to
collect, manipulate, store, and process data into information.
Computer-Based Information Systems
4. List the components of a computer-based information system.

• Hardware
• Input devices
• keyboards, mice and other pointing devices, automatic scanning devices, and
equipment that can read magnetic ink characters
• Processing devices
• computer chips that contain the central processing unit and main memory
• Output devices
• printers and computer screens, printer kiosks
• Special-purpose hardware devices
• Computerized event data recorders (EDRs)
Computer-Based Information Systems
4. List the components of a computer-based information system.

Software
• System software controls basic computer operations including start-up and
printing
• Applications software, which allows you to accomplish specific tasks including
word processing or creating spreadsheets.

• System software programs work on its own while application software is

dependent on it.
• System software programs run in the background, while application software
interacts with users.
• System software is an operating system, whereas, application software is
Photoshop, VLC player, etc.
Computer-Based Information Systems
4. List the components of a computer-based information system.

Databases
an organized collection of facts and information, typically consisting of two or more related data
files. An organization’s database can contain facts and information on customers, employees,
inventory, competitors’ sales, online purchases, and much more.
Telecommunications
the electronic transmission of signals for communications, which enables organizations to carry
out their processes and tasks through effective computer networks.
Networks
connect computers and equipment in a building, around the country, or around the world to
enable electronic communication.
Computer-Based Information Systems
4. List the components of a computer-based information system.

Internet
the world’s largest computer network, consisting of thousands of interconnected networks, all
freely exchanging information. Research firms, colleges, universities, high schools, and
businesses are just a few examples of organizations using the Internet.

Intranet
allows people in an organization to exchange information and work on projects. Companies often
use intranets to connect their employees around the globe.
Extranet
a network based on Web technologies that allows selected outsiders, such as business partners
and customers, to access authorized resources of a company’s intranet. Companies can move all
or most of their business activities to an extranet site for corporate customers.
Computer-Based Information Systems
4. List the components of a computer-based information system.

In a centralized network, all users are connected to a central server that stores complete
network data and user information. On the contrary, a decentralized network has several peer-
to-peer user groups wherein each group has its separate server that stores data and
information relevant to only that particular group.
The idea behind Decentralized
information systems is “distributing”
the critical switching and control
equipment around the network. This
way, if one part of the network was
damaged, the undamaged sections
would continue functioning. 

Decentralized Centralized
Decentralized vs Centralized Info Systems
4. List the components of a computer-based information system.

• Advantages of Decentralized IS • Advantages of Centralized IS

1. The ability to tailor IT selection and 1. Lowers hardware expenses
configuration 2. Improved productivity for IT staff
2. More fail-safes and organizational 3. Increases purchasing power
redundancy 4. Helps meet industry regulations
3. Faster response to new IT trends 5. Improve the flow of information
Centralized vs Decentralized Info Systems
4. List the components of a computer-based information system.

How to choose the correct type of IS?

1. Decentralized IT structures are typically best for companies that rely on
technical agility to remain competitive.
2. Decentralized IT structures can be difficult to scale
3. Centralized IT structures tend to offer more cost savings, especially for large
organizations.
4. Centralized network structures are highly dependent on network connectivity.
Computer-Based Information Systems
4. List the components of a computer-based information system.
Learning objective 5

Identify the basic types of

business information
systems and discuss who
uses them, how they are
used, and what kinds of
benefits they deliver.
BUSINESS INFORMATION SYSTEMS
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and
what kinds of benefits they deliver.

The most common types of information

systems used in business organizations
are those designed for electronic and
mobile commerce, transaction
processing, management information,
and decision support.
Electronic and Mobile Commerce
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and what
kinds of benefits they deliver.

• E-commerce involves any business transaction executed electronically

between companies (business-to-business, or B2B), companies and
consumers (business-to-consumer, or B2C), consumers and other
consumers (consumer-to-consumer, or C2C), business and the public
sector, and consumers and the public sector.

• Mobile commerce (m-commerce) refers to transactions conducted

anywhere, anytime. M-commerce relies on wireless communications that
managers and corporations use to place orders and conduct business with
handheld computers, portable phones, laptop computers connected to a
network, and other mobile devices.
E-Commerce AND E-BUSINESS
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and what
kinds of benefits they deliver.

• E-commerce can enhance a company’s stock prices and market value. Today,
several e-commerce firms have teamed up with more traditional brick-and-
mortar businesses to draw from each other’s strengths. For example, e-
commerce customers can order products on a Web site and pick them up at a
nearby store.
• Electronic procurement (e-procurement), for ex- ample, involves using
information systems and the Internet to acquire parts and supplies. Electronic
business (e-business) goes beyond e-commerce and e-procurement by using
in- formation systems and the Internet to perform all business-related tasks
and functions, such as accounting, finance, marketing, manufacturing, and
human resource activities. E-business also includes working with customers,
suppliers, strategic partners, and stakeholders.
Transaction Processing Systems
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and what
kinds of benefits they deliver.

A transaction is any business-related exchange such as payments to

employees, sales to customers, or payments to suppliers. Thus,
processing business transactions was the first computer application
developed for most organizations. A transaction processing system
(TPS) is an organized collection of people, procedures, software,
databases, and devices used to record completed business
transactions. If you understand a transaction processing system, you
understand basic business operations and functions.
Enterprise Resource Planning
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and what
kinds of benefits they deliver.

• An enterprise resource planning (ERP) system is a set of integrated programs

that manages the vital business operations for an entire multisite, global
organization.
• Although the scope of an ERP system might vary from company to company,
most ERP systems provide integrated software to support manufacturing and
finance.
• The primary benefits of implementing an ERP system include easing adoption
of improved work processes and increasing access to timely data for decision
making.

• ERP by Oracle
Management Information Systems
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and what
kinds of benefits they deliver.

• A management information
system (MIS) is an organized
collection of people, procedures,
software, databases, and devices
that provides routine
information to managers and
decision makers. An MIS focuses
on operational efficiency.
Decision Support Systems
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and what
kinds of benefits they deliver.

• Decision Support Systems (DSS) are organized collection of people, procedures,

software, databases, and devices used to support problem-specific decision
making.
• The focus of a DSS is on making effective decisions. Whereas an MIS helps an
organization “do things right,” a DSS helps a manager “do the right thing.”
• A DSS goes beyond a traditional MIS by providing immediate assistance in solving
problems. Many of these problems are unique and complex, and key information
is often difficult to obtain. For instance, an auto manufacturer might try to
determine the best location to build a new manufacturing facility.
• MIS system brings about the information needed to manage an organization, and
DSS provides data, models, and analysis tools to help adopt decisions in non-
routine cases in the organization.
Specialized Business Information Systems
5. Identify the basic types of business information systems and discuss who uses them, how they are used, and what
kinds of benefits they deliver.

• Knowledge management systems

(KMSs), are organized collection of
people, procedures, software,
databases, and devices to create,
store, share, and use the
organization’s knowledge and
experience.
• Experimental specialized systems
in cars can help prevent accidents
(based on Artificial Intelligence
(AI)).
Learning objective 6

Identify the major steps of

the systems development
process and state the goal of
each.
Systems development
6. Identify the major steps of the systems development process and state the goal of each.

• Systems development is the activity of

creating or modifying business systems.

• Systems can be developed

• In-house - by company employees
• Outsourced – helps business focus on its key
competencies
Learning objective 7

Describe some of the threats

to security and privacy that
information systems and the
Internet can pose.
Security, Privacy, and Ethical Issues
7. Describe some of the threats to security and privacy that information systems and the Internet can pose.

Security of information systems

The protection of information
systems against unauthorized access
to or modification of information,
whether in storage, processing or
transit, and against the denial of
service to authorized users, including
those measures necessary to detect,
document, and counter such threats.
Security, Privacy, and Ethical Issues
7. Describe some of the threats to security and privacy that information systems and the Internet can pose.

• Information privacy is the relationship between the collection and

dissemination of data, technology, the public expectation of privacy, contextual
information norms, and the legal and political issues surrounding them. 
• Companies that fail to protect personal data and comply with data privacy
regulations aren’t just risking financial penalties. They also risk operational
inefficiencies, intervention by regulators and most importantly permanent loss
of consumer trust.
• Regulatory
• Reputational
• Financial and criminal
• Operational
Learning objective 8
Discuss the expanding role
and benefits of information
systems in business and
industry.
GLOBAL CHALLENGES IN INFORMATION
SYSTEMS
8. Discuss the expanding role and benefits of information systems in business and industry.
GLOBAL CHALLENGES IN INFORMATION
SYSTEMS
8. Discuss the expanding role and benefits of information systems in business and industry.

• Global markets have expanded. People and companies can get products and services from around the world,
instead of around the corner or across town. These opportunities, however, introduce numerous obstacles
and issues, including challenges involving culture, language, and many others.
• Cultural challenges
• Language challenges
• Time and distance challenges
• Infrastructure challenges
• Currency challenges
• Product and service challenges
• Technology transfer issues
• Regulatory issues
 THANKS!
ANY QUESTIONS?