INT 1010 02.pdf

Introduction to Information Technology
2. Information Systems
INT-1010
Prof C
Luis R Castellanos
1
02
Information Systems

2
POTUS 3

3
What was the first name of King
George VI, from the United
Kingdom?
1. George
2. Frederick
3. Albert
4. Arthur

1. Introduction
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Previous Chapter:

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✓ Define Information Systems
✓ Describe the role of Information
Systems
✓ Describe Information System users
✓ Identify Information System
components
Objectives

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In this chapter we will talk about the following topics:
Information
Systems
Introduction
Hardware
Evolution
Users Competitive
Advantage
Information
Systems
Components

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Introduction
Information Systems

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Evaluation
Student grades will be based upon
scores attained for the following:
1. - Concept Exams and Quizzes (35% of the
grade)
2. - Software Skills Assignments (35 % of the
grade)
3. - Other assignments (15% of the grade)
4. - Instructor Selected Tasks (15% of the
grade)
A system is a
group of
interacting or
interrelated
elements that act
according to a set
of rules to form a
unified whole.
https://en.wikipedia.org/wiki/System

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Classification
https://en.wikipedia.org/wiki/System
Natural Systems Artificial Systems
Human body
Ecosystem
The Universe
Milky Way
College cohort
A town
Highway system
Sports team

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“The whole is more than the sum of its
parts.“
Gestalt Psychology School
https://en.wikipedia.org/wiki/Gestalt_psychology
[
[

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Data is a raw and unorganized fact
that requires to be processed to
make it meaningful.
Generally, data comprises facts,
observations, perceptions numbers,
characters, symbols, image, etc.
Information is a set of data which
is processed in a meaningful way
according to the given requirement.
Information is processed,
structured, or presented in a given
context to make it meaningful and
useful.
Data Information
Processing
https://www.guru99.com/difference-information-data.html

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The history of temperature
readings all over the world for the
past 100 years is data.
If this data is organized and
analyzed to find that global
temperature is rising, then that is
information.
Data Information
Processing
https://www.diffen.com/difference/Data_vs_Information
The number of visitors to a website
by country is an example of data.
Finding out that traffic from the US
is increasing while that from
Australia is decreasing is
meaningful information.

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Information system is an integrated set of
components for collecting, storing, and processing
data and for providing information, knowledge, and
digital products.
https://www.britannica.com
/topic/information-system

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The prior definition doesn’t include computer
systems.
So a ledger could be considered an Information
System.
In the 20th Century, the definition implies the use of
computer (hardware).

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Business firms and other
organizations rely on information
systems to carry out and manage
their operations, interact with their
customers and suppliers, and
compete in the marketplace.
Information systems are used to
run interorganizational supply
chains and electronic markets.

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Information
Systems
Introduction
Hardware
Evolution
Users Competitive
Advantage
Information
Systems
Components

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Hardware
Evolution
Information Systems

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One of the roles of information systems is to take data and turn it into
information, and then transform that into organizational knowledge. As
technology has developed, this role has evolved into the backbone of the
organization.
And technology has changed, and changed the role of information systems.

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So, let’s see how technology has evolved and changed the role of the
information systems.
1. Mainframe
era
2. PC
revolution
3. Client -
server
4. WWW &
eCommerce
5. Web 2.0
6. Post PC
world

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Mainframe era
From the late 1950s through the 1960s,
computers were seen as a way to more
efficiently do calculations.
These first business computers were
room-sized monsters, with several
refrigerator-sized machines linked
together.
The primary work of these devices was
to organize and store large volumes of
information that were tedious to manage
by hand.
1
1

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Mainframe era
Only large businesses, universities, and
government agencies could afford them,
and they took a crew of specialized
personnel and specialized facilities to
maintain.
These devices served dozens to
hundreds of users at a time through a
process called time-sharing.
Typical functions included scientific
calculations and accounting, under the
broader umbrella of “data
processing.”
1
1

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Mainframe era
In the late 1960s, the Manufacturing
Resources Planning (MRP) systems were
introduced.
This software, running on a mainframe
computer, gave companies the ability to
manage the manufacturing process, making
it more efficient.
From tracking inventory to creating bills of
materials to scheduling production, the MRP
systems (and later the MRP II systems) gave
more businesses a reason to want to
integrate computing into their processes.
1
1

1 24
Mainframe era
IBM became the dominant mainframe
company.
Nicknamed “Big Blue,” the company
became synonymous with business
computing.
Continued improvement in software and
the availability of cheaper hardware
eventually brought mainframe
computers (and their little sibling, the
minicomputer) into most large
businesses.
1

1 25
Mainframe era
IBM and its competitors were also known as “Snow White and the seven dwarfs”.

1 26
International Business Machines

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Mainframe era
What is a Mainframe?
At their core, mainframes are high-
performance computers with large
amounts of memory and processors that
process billions of simple calculations
and transactions in real time.
The mainframe is critical to commercial
databases, transaction servers, and
applications that require high resiliency,
security, and agility.
1
https://www.ibm.com/topics/mainframe

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IBM System/360 Model 75 & the
Apollo Guidance Computer
Introduced in 1964 with the Model 30, IBM’s
System/360 series was extremely versatile,
making it perfect both for earthbound
commercial computing needs and for
figuring out the perfect path to the moon. It’s
still considered one of the most successful
and influential computers ever designed.
An ordinary smartphone has
more memory and storage
capacity, and is way much
faster than this mainframe.

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1
Lower
Management
Middle
Management
Top
Management
Data Processing Systems
1

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PC Revolution
In 1975, the first microcomputer was
announced on the cover of Popular
Mechanics: the Altair 8800.
Microcomputers' immediate popularity
sparked the imagination of
entrepreneurs everywhere, and there
were quickly dozens of companies
making these “personal computers.”
Though at first just a niche product for
computer hobbyists, improvements in
usability and the availability of practical
software led to growing sales.
2
2

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PC Revolution
The most prominent of these early
personal computer makers was a little
company known as Apple Computer,
headed by Steve Jobs and Steve Wozniak,
with the hugely successful “Apple II.”
Not wanting to be left out of the revolution,
in 1981 IBM (teaming with a little
company called Microsoft for their
operating-system software) hurriedly
released their own version of the personal
computer, simply called the “PC.”
2
2

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PC Revolution
Businesses, who had used IBM
mainframes for years to run their
businesses, finally had the permission
they needed to bring personal
computers into their companies, and the
IBM PC took off.
The IBM PC was named Time
magazine’s “Man of the Year” for 1982.
Because of the IBM PC’s open
architecture, it was easy for other
companies to copy, or “clone” it.
2
2

34
2

35
PC Revolution
During the 1980s, many new computer companies
sprung up, offering less expensive versions of the
PC.
This drove prices down and spurred innovation.
Microsoft developed its Windows operating
system and made the PC even easier to use.
Common uses for the PC during this period
included word processing, spreadsheets, and
databases.
These early PCs were not connected to any sort of
network; for the most part, they stood alone as
islands of innovation within the larger organization.
2
2

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PC Revolution
During this era, the first Information Systems
made their appearance, focusing on specific
areas:
2
✓ HR
✓ Logistics
✓ Finance
✓ Manufacturing
✓ Procurement
✓ Etc.

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2
Main types of
Information Systems
Decision
Management
Information
Executive

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2
Lower
Management
Middle
Management
Top
Management
Information Systems
2

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Client server
In the mid-1980s, businesses began to see
the need to connect their computers
together as a way to collaborate and share
resources.
This networking architecture was referred
to as “client-server” because users would
log in to the local area network (LAN) from
their PC (the “client”) by connecting to a
powerful computer called a “server,”
which would then grant them rights to
different resources on the network (such as
shared file areas and a printer).
3
3

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Client server
Software companies began developing
applications that allowed multiple users
to access the same data at the same
time.
This evolved into software applications
for communicating, with the first real
popular use of electronic mail appearing
at this time.
This networking and data sharing all
stayed within the confines of each
business, for the most part.
3
3

42
Client server
While there was sharing of electronic
data between companies, this was a very
specialized function.
Computers were now seen as tools to
collaborate internally, within an
organization.
In fact, these networks of computers
were becoming so powerful that they
were replacing many of the functions
previously performed by the larger
mainframe computers at a fraction of
the cost.
3
3

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Client server
It was during this era that the first Enterprise
Resource Planning (ERP) systems were
developed and run on the client-server
architecture.
An ERP system is a software application with
a centralized database that can be used to
run a company’s entire business. With
separate modules for accounting, finance,
inventory, human resources, and many,
many more, ERP systems, with Germany’s
SAP leading the way, represented the state of
the art in information systems integration.
3
3

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3
Lower
Management
Middle
Management
Top
Management
Information Systems
ERP’s
3

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WWW & eCommerce
First invented in 1969, the Internet was
confined to use by universities,
government agencies, and researchers
for many years.
Its rather arcane commands and user
applications made it unsuitable for
mainstream use in business.
One exception to this was the ability to
expand electronic mail outside the
confines of a single organization.
4
4

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WWW & eCommerce
While the first e-mail messages on the Internet
were sent in the early 1970s, companies who
wanted to expand their LAN-based e-mail
started hooking up to the Internet in the 1980s.
Companies began connecting their internal
networks to the Internet in order to allow
communication between their employees and
employees at other companies.
It was with these early Internet connections
that the computer truly began to evolve from a
computational device to a communications
device.
4
4

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Which email do you have?

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WWW & eCommerce
In 1989, Tim Berners-Lee developed a
simpler way for researchers to share
information over the network at CERN
laboratories, a concept he called the World
Wide Web.
This invention became the launching point
of the growth of the Internet as a way for
businesses to share information about
themselves.
As web browsers and Internet connections
became the norm, companies rushed to
grab domain names and create websites.
4
4

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The CERN Data Center in 2010, housing some WWW and Mail servers.

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WWW & eCommerce
In 1991, the National Science Foundation,
which governed how the Internet was used,
lifted restrictions on its commercial use.
The year 1994 saw the establishment of
both eBay and Amazon.com, two true
pioneers in the use of the new digital
marketplace.
A mad rush of investment in Internet-based
businesses led to the dot-com boom
through the late 1990s, and then the dot-
com bust in 2000.
4
4

51
WWW & eCommerce
While much can be learned from the
speculation and crazy economic theories
espoused during that bubble, one important
outcome for businesses was that thousands
of miles of Internet connections were laid
around the world during that time.
The world became truly “wired” heading
into the new millennium, ushering in the
era of globalization.
As it became more expected for companies
to be connected to the Internet, the digital
world also became a more dangerous place.
4
4

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WWW & eCommerce
Computer viruses and worms, once slowly
propagated through the sharing of
computer disks, could now grow with
tremendous speed via the Internet.
Software written for a disconnected world
found it very difficult to defend against
these sorts of threats.
A whole new industry of computer and
Internet security arose.
4
4

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Web 2.0
As the world recovered from the dot-
com bust, the use of technology in
business continued to evolve at a frantic
pace.
Websites became interactive; instead of
just visiting a site to find out about a
business and purchase its products,
customers wanted to be able to
customize their experience and interact
with the business.
5
5

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Web 2.0
This new type of interactive website,
where you did not have to know how to
create a web page or do any programming
in order to put information online,
became known as web 2.0.
Web 2.0 is exemplified by blogging, social
networking, and interactive comments
being available on many websites.
This new web-2.0 world, in which online
interaction became expected, had a big
impact on many businesses and even
whole industries.
5
5

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Web 2.0
Some industries, such as bookstores,
found themselves relegated to niche
status.
Others, such as video rental chains and
travel agencies, simply began going
out of business as they were replaced
by online technologies.
This process of technology replacing a
middleman in a transaction is called
disintermediation.
5
5

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5

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5

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Web 2.0
As the world became more connected, new
questions arose.
Should access to the Internet be considered a right?
Can I copy a song that I downloaded from the
Internet?
How can I keep information that I have put on a
website private?
What information is acceptable to collect from
children?
Technology moved so fast that policymakers did
not have enough time to enact appropriate laws,
making for a Wild West–type atmosphere.
5
5

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5
5

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Post PC world
After 30 years as the primary computing device
used in most businesses, sales of the PC are now
beginning to decline as sales of tablets and
smartphones are taking off.
Just as the mainframe before it, the PC will
continue to play a key role in business, but will no
longer be the primary way that people interact
and do business.
The limited storage and processing power of
these devices is being offset by a move to “cloud”
computing, which allows for storage, sharing, and
backup of the information on a massive scale.
6
6

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Post PC world
This will require new rounds of thinking
and innovation on the part of businesses as
technology continues to advance.
6

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Mainframe era
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1 1960’s
PC Revolution
2 1980’s
Client-server
3 1980’s-90’s
WWW
4 1990’s
Web 2.0
5 2000’s
Post PC
6 today
Terminals
PC
PC+PC clones
PC + PC clones
Laptops
Phones & tablets
6

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Information
Systems
Introduction
Hardware
Evolution
Users Competitive
Advantage
Information
Systems
Components

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Users
Information Systems

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Information Systems Users – Types
of Users
Besides the people who work to create,
administer, and manage information systems,
there is one more extremely important group of
people, namely, the users of information
systems.
This group represents a very large percentage of
an organization’s employees.
If the user is not able to successfully learn and
use an information system, the system is doomed
to failure.

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Information Systems Users
– Types of Users
Information systems must be
developed thinking in the users.
IT departments, in general, exist to
support users.

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Information Systems Users
– Types of Users
Everett Rogers identified five specific
types of technology adopters:
1. Innovators
2. Early adopters
3. Early majority
4. Late majority
5. Laggards

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of Users:
Innovators
1st individuals to adopt new technology.
Innovators are willing to take risks, are the
youngest in age, have the highest social class,
have great financial liquidity, are very social, and
have the closest contact with scientific sources
and interaction with other innovators.
Risk tolerance is high so there is a willingness to
adopt technologies that may ultimately fail.
Financial resources help absorb these failures.
1

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of Users:
Early adopters
Adopt innovation soon after a technology has
been introduced and proven.
These individuals have the highest degree of
opinion leadership among the other adopter
categories, which means that these adopters can
influence the opinions of the largest majority.
Characteristics include being younger in age,
having a higher social status, possessing more
financial liquidity, having advanced education,
and being more socially aware than later
adopters.
2

70
of Users:
Early majority
Individuals in this category adopt an innovation
after a varying degree of time.
This time of adoption is significantly longer than
the innovators and early adopters.
This group tends to be slower in the adoption
process, has above average social status, has
contact with early adopters, and seldom holds
positions of opinion leadership in a system
3

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of Users:
Late majority
The late majority will adopt an innovation after
the average member of the society.
These individuals approach an innovation with a
high degree of skepticism, have below average
social status, very little financial liquidity, are in
contact with others in the late majority and the
early majority, and show very little opinion
leadership.
4

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Information Systems Users – Types of
Users:
Laggards
The last to adopt an innovation.
Unlike those in the previous categories, individuals
in this category show no opinion leadership.
These individuals typically have an aversion to
change agents and tend to be advanced in age.
Laggards typically tend to be focused on
“traditions,” are likely to have the lowest social
status and the lowest financial liquidity, be the
oldest of all other adopters and be in contact with
only family and close friends.
5

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In which user group do you
think you are in?
1. Innovators
2. Early adopters
3. Early majority
4. Late majority
5. Laggards

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New Models of
Organizations
The integration of information
technology has influenced the
structure of organizations.
The increased ability to
communicate and share
information has led to a
“flattening” of the organizational
structure due to the removal of
one or more layers of
management.

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New Models of Organizations
The network-based organizational structure is
another change enabled by information
systems.
In a network-based organizational structure,
groups of employees can work somewhat
independently to accomplish a project.
People with the right skills are brought
together for a project and then released to
work on other projects when that project is
over.
These groups are somewhat informal and
allow for all members of the group to
maximize their effectiveness.

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Information
Systems
Introduction
Hardware
Evolution
Users Competitive
Advantage
Information
Systems
Components

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Competitive
Advantage
Information Systems

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What does it mean when a company has a
competitive advantage?
What are the factors that play into it?
Let’s go with one of the most accepted
definitions, developed by Michael Porter in
his book Competitive Advantage: Creating and
Sustaining Superior Performance.
A company is said to have a competitive
advantage over its rivals when it is able to
sustain profits that exceed average for the
industry.
According to Porter, there are two primary
methods for obtaining competitive advantage:
cost advantage and differentiation advantage.

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One of the ways that information
systems participated in competitive
advantage is through integrating the
supply chain electronically.
This is primarily done through a
process called electronic data
interchange, or EDI.
EDI can be thought of as the
computer-to-computer exchange of
business documents in a standard
electronic format between business
partners.

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By integrating suppliers and distributors via EDI, a company can vastly reduce
the resources required to manage the relevant information.
Instead of manually ordering supplies, the company can simply place an order
via the computer and the next time the order process runs, it is ordered.

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Using Information Systems for
Competitive Advantage
Now that we have an understanding of
competitive advantage and some of the ways
that IT may be used to help organizations gain
it, we will turn our attention to some specific
examples.
A strategic information system is an
information system that is designed specifically
to implement an organizational strategy meant
to provide a competitive advantage.
These sorts of systems began popping up in the
1980s.

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Specifically, a strategic information
system is one that attempts to do one
or more of the following:
• deliver a product or a service at a
lower cost;
• deliver a product or service that is
differentiated;
• help an organization focus on a
specific market segment;
• enable innovation.

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Collaborative Systems
As organizations began to implement
networking technologies, information systems
emerged that allowed employees to begin
collaborating in different ways.
These systems allowed users to brainstorm
ideas together without the necessity of physical,
face-to-face meetings.
Utilizing tools such as discussion boards,
document sharing, and video, these systems
made it possible for ideas to be shared in new
ways and the thought processes behind these
ideas to be documented.

85
Broadly speaking, any software that
allows multiple users to interact on a
document or topic could be considered
collaborative.
Electronic mail, a shared Word
document, social networks, and
discussion boards would fall into this
broad definition.
However, many software tools have
been created that are designed
specifically for collaborative purposes.
These tools offer a broad spectrum of
collaborative functions.

86

87
Information
Systems
Introduction
Hardware
Evolution
Users Competitive
Advantage
Information
Systems
Components

88
Components
Information Systems

89
Information systems are made up of
different components that work
together to provide value to an
organization.
They are made up of five components:
hardware, software, data, people, and
process.
The first three, hardware, software,
data, fitting under the category
technology, are generally what most
people think of when asked to define
information systems.

90
But the last two, people and process,
are really what separate the idea of
information systems from more
technical fields, such as computer
science.
In order to fully understand
information systems, we must
understand how all of these
components work together to bring
value to an organization.

91
Hardware
The first component is hardware of an
information system.
Hardware is the part of an information
system you can touch – the physical
components of the technology.
Computers, keyboards, disk drives,
tablets, and flash drives are all
examples of information systems
hardware.
1 2 3 4 5

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Software
Software, the second component of an
information system, is a set of
instructions that tells the hardware
what to do.
Software is not tangible – it cannot be
touched.
When programmers create software
programs, what they are really doing is
simply typing out lists of instructions
telling the hardware what to do.
1 2 3 4 5

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Data
The third component is data.
You can think of data as a collection of facts.
For example, your street address, the city you live
in, and your phone number are all pieces of data.
Like software, data is also intangible.
By themselves, pieces of data are not really very
useful.
But aggregated, indexed, and organized together
into a database, data can become a powerful tool
for businesses.
1 2 3 4 5

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People
When thinking about information systems, it is easy
to get focused on the technology components and
forget that we must look beyond these tools to fully
understand how they integrate into an organization.
A focus on the people involved in information
systems is the fourth component.
From the front-line help-desk workers to systems
analysts, to programmers, all the way up to the chief
information officer (CIO), the people involved with
information systems are an essential element that
must not be overlooked.
1 2 3 4 5

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Process
The last component of information
systems is process.
We have all heard the term process
before, but what exactly does it mean?
A process is a series of steps undertaken
to achieve a desired outcome or goal.
Processes are something that businesses
go through every day in order to
accomplish their mission.
The better their processes, the more
effective the business.
1 2 3 4 5

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Some businesses see their
processes as a strategy for
achieving competitive
advantage.
A process that achieves its goal
in a unique way can set a
company apart.
A process that eliminates costs
can allow a company to lower its
prices (or retain more profit).
1 2 3 4 5

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The simplest way to document a
process is to simply create a list.
The list shows each step in the process;
each step can be checked off upon
completion.
For example, a simple process, such as
how to create an account on eBay,
might look like this:
1. Go to ebay.com.
2. Click on “register.”
3. Enter your contact information in the “Tell
us about you” box.
4. Choose your user ID and password.
5. Agree to User Agreement and Privacy
Policy by clicking on “Submit.”

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Communication
Besides the components of hardware, software,
and data, which have long been considered the
core technology of information systems, it has
been suggested that one other component
should be added: communication.
An information system can exist without the
ability to communicate – the first personal
computers were stand-alone machines that did
not access the Internet.
However, in today’s hyper-connected world, it is
an extremely rare computer that does not
connect to another device or to a network

99

100
What is a system?
1. A holistic perspective about an
issue
2. Gestaltic point of view over a
group of elements
3. A group of elements in the
environment
4. A group of interacting elements
with rules

101
What is data?
1. Meaningful and useful pieces of
information
2. A raw and unorganized fact
3. Processed facts and observations
4. Structured facts

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What is information?
1. Set of raw data
2. Facts, observations, numbers
3. Processed data
4. Structured facts

103
What is a mainframe?
1. a computer connected to a network of
other workstations called 'clients’
2. high-performance computer with large
amounts of memory and processors
3. a computer that is used on its own
without requiring a connection to a
network
4. Portable computer with a screen,
keyboard and pointing device

104
Match the users
Innovators
Early adopters
Early majority
Late majority
Laggards
5. 1st individuals to adopt new
technology.
1. Adopt innovation soon after a
technology has been introduced and
proven.
3. adopt an innovation after a varying
degree of time.
2. Will adopt an innovation after the
average member of the society.
4. The last to adopt an innovation.

105
Match the IS
components Hardware
Software
Data
People
Processes
5. physical components of the
technology
1. instructions that tells the hardware
what to do
3. Users, designers, builders of IS
2. a collection of facts
4. steps undertaken to achieve a
desired outcome

106

107
• Which is the most important
component of the Information
Systems? (Word document). 25
points
• Chapter Quiz. 20 points
45 pts 125 pts

108

3. Hardware
109
Next Chapter:

Textbook
111
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Professor C
112
castellr@pgcc.edu
eLearning Expert
BS & MS in Systems Engineering
BS & MS in Military Arts and Science
HC Dr in Education
IT Professor | Spanish & GED Instructor
LCINT1010.wordpress.com
Presentation created in 01/2022.
Slides last updated on 10/2023

INT-1010
Prof C
Luis R Castellanos
113
02
Information Systems

INT 1010 02.pdf

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INT 1010 02.pdf