Chap 1:

1. Information system: A group of interrelated or interacting elements forming a unified

whole, or a group of interrelated components working together toward a common goal
by accepting inputs and producing outputs in an organized transformation process
(dynamic system).
A system = a set of interrelated components, with a clearly defined boundary,
working together to achieve objectives in a process
An information system = people + hardware + software + communications
networks + data resources + policies and procedures that store, retrieves,
transform and disseminate information.
*5 main components of IS: software, hardware, data, human, and
process

People

Software Hardware

IS resources

Network Data

- Hardware = physical embodiment of an information system. (one of the main

elements which creates the information system cycle)
Ex: the physical computers, networks, communication equipment,
scanners, digital drives, machines, media,...
- Data = the stored data, raw facts
- Network = data process, media, communications channels
- Software = information processing instructions and procedure. It has 2
categories – system software and application software.
- People (Human) has 3 types: end-user, internal and external users
+ End-Users: the staff, customers, suppliers and others who
communicate with the information system.
+ Internal Users: the managers, technicians, sales representatives
and corporate officers.
+ External Users: the customers who use the company’s system for
performing transactions, suppliers who use the system for planning
sales, and the staff who use the system outside office hours
Ex: specialists, users,...
Software: programs, procedures,...
 Network: communication media and processors, network access,...
*2 additional components: feedback and control.
- A system with feedback and control components is sometimes called a
cybernetic system, that is, a self-monitoring, self-regulating system.
*Feedback: is data about the performance of a system.
Ex: data about sales performance are feedback to a sales manager
*Control: involves monitoring and evaluating feedback to determine
whether a system is moving toward the achievement of its goals. The
control function then makes necessary adjustments to a system's input
and processing components to ensure that it produces proper output.
2. IS helps understanding the effective use + management of a system.
3. Subsystem= A system that is a component of a larger system, where the
larger system is its environment
- System Boundary = separated from others.
- Interface = connect one to another.
- Open System = interacts with others in its environment. (connected to its
environment by exchanges of inputs and outputs).
- Adaptive System = change itself or its environment in order to survive
*IS play a vital role in the e-business and e-commerce operations,
enterprise collaboration and management, and strategic success of
businesses that must operate in an internet-worked global environment.
- IS has become a major functional area of business administration.
*Major role of IS:

Support competitive
advantage

Support business decision making

 Support of business processes and operations
*6 categories:
- Transaction Processing (TPS) can access and record information
-> human order taker can be bypassed
-> The output from this transaction is the account statement
- Management Info (MIS) generates reports for management (brief,
useful; obtained and processed at the right time to make a decision)
-> the information that has been extracted from TPS
- Executive Info (EIS) makes strategic decisions. (Info report sys+ decision
support sys)
-> online access directly to the relevant info
-> identify statregic issues and can then explore information
- Decision Support (DSS) determines the effectiveness of the decision.
-> help choose a product
- Office Info (OIS) collects info for whoever needs it.
- Expert (ES) combines the use of knowledge, facts, and techniques to
make a decision
-> Use an inference engine to select the most appropriate response
The success or failure of an information system dependson whether the system that has been developed
canfulfill the user's requirements, and the users feel satisfiedwith the results and the system's operation.
A successful systemrequiresintegrated effortsfrominformationtechnology experts

Chap 2: Computer hardware

Convert
electronic
Convert information
data into into human-
electronic intelligible
form form
- Central processing unit (CPU) (or microprocessor) - the actual hardware that interprets and executes the program
(software) instructions and coordinates how all the other hardware devices work together
- Control unit: interprets software instructions and literally tells the other hardware devices what to do, based on the
software instructions
Arithmetic-logic unit (ALU) - performs all arithmetic operations (for example, addition and subtraction) and all
logic operations (such as sorting and comparing numbers)

• Primary storage - the computer’s main memory, which consists of the random access memory (RAM),
cache memory, and the read-only memory (ROM) that is directly accessible to the CPU
• Random access memory (RAM) - the computer’s primary working memory, in which program
instructions and data are stored so that they can be accessed directly by the CPU via the processor’s high-
speed external data bus
• Volatility : do not retain its contents when the power is switched off
• Save work frequently
Semiconductor memory
• Microelectronic semiconductor memory chips
• Used for primary storage
• Advantage:
• Small size
• Fast
• Shock and temperature resistance
• Disadvantage:
• Volatility: must have uninterrupted electric power or lose memory
• Cache memory
• small unit of ultra-fast memory
• Used to store recently accessed or frequently accessed data 🡪 CPU does not have to retrieve this data
from slower memory such as RAM.
• ROM: read only memory
• The portion of a computer’s primary storage that does not lose its contents when one switches off the
power 🡪 Permanent storage
• Can be read but cannot be overwritten
• Store start-up program : frequently used programs burnt into chips during manufacturing (Called
firmware)

Chap 3: Software

• Classify based on how it was developed

- Custom software: Software applications that are developed within an organization for use by that
organization
 - COTS software (Commercial Off-the-shelf (COTS)): Software developed with the intention of selling
the software in multiple copies
• Software suites integrate software packages
Advantages:
Cost less than buying individual packages
All have a similar GUI
Work together well
Disadvantages
Features not used by all users
Take a lot of disk space
• Integrated packages
Combine the functions of several programs into one package
E.g., Microsoft Works, AppleWorks
Advantages:
Many functions for lower price and smaller disk space
Disadvantage
Limited functionality

● System softwares
- Software that manages and supports a computer system
- System management programs
+ Programs that manage hardware, software, network, and data resources
+ E.g., operating systems, network management programs, database management systems, systems
utilities
- Systems development programs
+ Programs that help users develop information system programs
● Operating system
- Integrated system of programs that
+ Manages the operations of the CPU
+ Controls the input/output and storage resources and activities of the computer system
 + Provides support services as computer executes applications programs

Resource management
• Part of operating system that manages the hardware and networking resources of a computer system
Includes CPU, memory, secondary storage device, telecommunications, and input/output peripherals
• Virtual memory
Swapping parts of programs and data between memory and magnetic disks
File management: Part of the operating system that controls the creation, deletion, and access of files of data and
programs
Task Management: Part of the operating system that manages the accomplishment of computing tasks of the end
users
Machine Languages: First-generation languages. All program instructions had to be written using binary codes
unique to each computer. Programmers had to know the internal operations of the specific type of CPU
Assembler Languages: Second-generation languages. Symbols are used to represent operation codes and storage
locations. Need language translator programs to convert the instructions into machine instructions. Used by systems
programmers (who program system software)
High-Level Languages: Third-generation languages. Instructions that use brief statements or arithmetic
expressions. Macroinstructions: each statement generates several machine instructions when translated by
compilers or interpreters; easier to learn than assembler; machine independent, less efficient than assembler
Fourth-Generation Languages: Variety of programming languages that are nonprocedural and conversational
- Nonprocedural – users specify results they want while computer determines the sequence of
instructions that will accomplish those results
- Natural Language – very close to English or other human language
Object-Oriented Languages: Most widely used software development languages today (Visual Basic, C++,
Java…)
- Easier to use and more efficient for graphics-oriented user interfaces
- Reusable: can use an object from one application in another application
Chap 4: E-commerce:
� Business-to-consumer
 ◦ Example: Bookstore selling books to customers (amazon.com)

◦ Annual online spending in 2002 was $85 billion

� Business-to-business

◦ Example: A data processing company handling data services for a company (adp.com)

◦ $5.3 trillion impact by 2005

� Consumer-to-consumer

◦ Example: A customer selling goods to another customer (ebay.com)

Advantages:
- Cut transaction costs
- Speed flow of goods and information
- Improve customer service
- Coordinate manufacturers, suppliers, and customers
Conversion to e-commerce supply chain management provides businesses with an opportunity to:
- Increase revenues or decrease costs by eliminating time-consuming and labor-intensive steps
throughout the order and delivery process
- Improve customer satisfaction by enabling customers to view detailed information about delivery dates
and order status
- Reduce inventory including raw materials, safety stocks, and finished goods

Hardware: The amount of storage capacity and computing power required of the Web server depends primarily on
two things:

◦ the software that must run on the server

◦ the volume of e-commerce transactions that must be processed

Software
 � Web server software

◦ Apache Server

◦ Microsoft Internet Information Server

� Web site development tools

◦ FrontPage, NetStudio
� Web page construction software

◦ Static Web page: Always the same information (ISE 100 Web page)

◦ Dynamic Web page: Content created based on demand (Google search results)

� Database management system

◦ SQL Server

◦ Oracle
� E-commerce software

◦ Catalog software

◦ Product configuration software

◦ Electronic shopping cart

Catalog Management Software: Combines product data formats into a standard format creates a central repository
of product data; catalog resides on a database
Product Configuration Software: Allow buyers to build the products they want to buy
Electronic Shopping Cart: Track items selected for purchase, let buyers modify their choices (add or delete
items); let buyers “checkout” (begins a purchase transaction) => Wish list
Electronic Payment Systems: Electronic cash, Electronic wallets; Credit, charge, debit, and smart cards
Traditional Transaction Processing Methods
� Batch processing – method of computerized processing in which business transactions are accumulated
over a period of time and prepared for processing as a single unit
� On-line transaction processing (OLTP) - method of computerized processing in which each transaction is
processed immediately and the affected records are updated
Transactions activities: consist of all the components of a CBIS, including databases, telecommunications, people,
procedures, software, and hardware devices to process transactions.
- Data collection: Capturing data necessary for the transaction
- Data editing: Check validity and completeness

◦ Ex: 400 hours/week instead of 40 hours/week

- Data correction: Correct the wrong data
- Data manipulation: Calculate, summarize
- Data storage: Update transactions
- Document production and reports: Create end results (paychecks)