Introduction to Business Information Systems

Business Information System

a group of interrelated components that interact to manipulate and process data into meaningful information.

Relevant

appropriate for the type of decision being made.

Information

data that a business information system has transformed into meaningful information.

Information Granularity

degree of detail needed for managers to make decisions.

Sufficient

enough information for its intended use, without having extraneous, unnecessary data.

Structured Decision

follow a formula or set of steps to arrive at a consistent answer.

Accurate

free from errors, and based on correct data.

Executive Information System

helpful for making strategic decisions that are unstructured, using highly summarized information.

Managerial Information System

helpful for making tactical decisions based on the strategic initiatives handed down from the executive level.

Expert User

high level of knowledge of how the information system works and can train others on how to used the system. Expert users can help convert from an old system to a new one, and conduct peer training.

Operational Information System

highly structured and captures daily organizational transactions.

Reliable

information from trusted sources, systems, or people.

Timely

information is available when a decision needs to be made.

Fine Granularity

information that is highly detailed. This type of information is useful for lower-level managers; for example, those who oversee ad floor-level department. A manager can always summarize detailed information from something that is finely granular.

Coarse Granularity

information that is highly summarized, usually in the form of a report. This type of information is useful to upper management. It is information that is already summarized from finely granular information.

Data

raw facts without further meaning.

IS Five-Component Model: Data

the characters (alpha, numeric, symbolic) fed into the computer system. Data is stored in tables, and can be manipulated through software instructions to convert into meaningful data. * Data is the bridge between the computer side on the left, and the human/people side on the right.

Cost-Effective

the information provides a benefit associated with a certain rate of return.

IS Five-Component Model: Procedures

the instructions for the people/users of the information systems. Some examples are how to back up the data, how to log on and off of the systems, etc. * Procedures are to people, as software is to hardware.

IS Five-Component Model: Hardware

the physical equipment used by an information system (CPU, monitor, mouse, etc.). These devices are controlled by the computer programs (software).

IS Five-Component Model: Software

the programs used to instruct the hardware. There are two types of software: * Systems software - controls system resources, such as operating systems. * Applications software - used to help people do their job. Example application software includes QuickBooks, MS Office, and Adobe Reader.

IS Five-Component Model: People

the users and administrators of the systems. * People are considered the most important component of a business information system.

Super User

understands the information system and how it works. This user could participate in defining requirements for a new or improved system and can identify the needs of the users. Super users help identify system inputs and outputs, such as data and reports.

IS Five-Component Model

1. Hardware 2. Software 3. Data 4. Procedures 5. People

Computer User

knows the proper procedure for operating a computer and general navigation.

Unstructured Decision

possibly several answer options would work, but they cannot be determined by a set of rules or formulas.