IFS131: Intro to Information systems

Authors: Stair, R., Reynolds, G., Chesney, T., Hattingh (2025)
Textbook Reference: Principles of Business Information Systems (5th Ed), Cengage Learning
ISBN: 9781473774629 (Print), 9781473774629 (eText)

Definition of a System:
- A set of elements or components that interact to accomplish goals.
- Systems can include:
  - Automatic car washes
  - Heating systems in buildings
  - The human body
Key Process in Systems:
- INPUT (Collect)
- PROCESSING (Manipulate & store)
- OUTPUT (Disseminate)
- FEEDBACK (Corrective actions)
- Example: Think of systems encountered today.

Explanation of an Info System:
- A set of interrelated components that collect, manipulate, store, and disseminate data and information while providing feedback mechanisms to meet objectives.
Importance of IS:
- Drive sales, ensure customer satisfaction, help with business decisions.
- Information economy: value lies in the exchange of information rather than tangible goods.

Definition of an Organization:
- A formal collection of people and other resources established to accomplish goals.
Organization as a System:
- Has inputs, processing mechanisms, outputs, and feedback.
- Inputs: Money, people, materials, machines, data, and decisions.
- Processing: Transformation of inputs into outputs.
- Outputs: Goods and services that are more valuable than the inputs.
Environmental Factors Influencing Organizations:
- Customers, competitors, economy, suppliers, shareholders, business partners, governments, technology.

Input: Capital, equipment, facilities, materials, labor, knowledge.
Processing Mechanisms: Alteration, manufacture, transportation, and storage.
Outputs: Goods and services with value addition, and feedback as corrective actions.
Feedback: Monitoring and control to ensure success in the objectives of the organization.

Importance of Security:
- Data and information security in organizations is increasingly critical
- Rising cyberattacks and investments in cybersecurity, e.g., $21.8 billion in 2021.
- Reasons for prevalent incidents:
  - Increased complexity
  - Bring Your Own Device (BYOD) policies
  - Use of software with known vulnerabilities
  - Sophistication of perpetrators.

Types of Attack Vectors:
- Ransom
- Distributed Denial-of-Service attack
- Data breaches
- Cyberespionage
- Cyberterrorism
Individual Attack Types:
- Smishing: Phishing via texting.
- Vishing: Phishing via voicemail messages.
- Social Engineering: Deception to obtain access.
- Spam: Unsolicited emails.
- Trojan Horse: Malicious code disguised as useful software.
- Virus: Code that causes unexpected behavior in computers.
- Worm: A program that duplicates itself without human intervention.

Types of Costs:
- Direct costs: Stolen or damaged assets.
- Business disruption: Ineffective operations.
- Recovery costs: May require days to weeks for system recovery.
- Legal consequences: Fines for Data Protection Act violations.
- Reputation damage.

Measures to Protect Organizations:
- Authentication methods
- Biometric systems
- Firewalls (Next-generation firewalls)
- Encryption
- Security education for employees
- Antivirus software should be installed on all systems.

Ethics vs Law:
- Ethics: Principles about right and wrong guiding decisions.
- Law: System of rules outlining legal conduct.
- Ethical concerns may arise where legal actions may not align with ethical standards.

Types of Business Information Systems:
- Executive Support Systems (ESS): Strategic decisions for senior management.
- Management Information Systems (MIS): Routine information for middle management.
- Decision Support Systems (DSS): Support for problem-specific decisions.
- Transaction Processing Systems (TPS): Daily transaction processing; critical for business operations.

Definition:
- Centralized system that integrates information across all business functions for management.
Evolution: Evolved from Materials Requirement Planning (MRP).
Advantages: Improved data access, elimination of legacy systems, enhanced processes, updated tech infrastructure.
Disadvantages: High costs, time for implementation, integration challenges, risk of failure.

Structured vs Unstructured Decisions:
- Structured: Measurable and computerizable.
- Unstructured: Cannot be quantified easily; relies on judgment.
Decision-making Steps:
- Intelligence: Identify problems or opportunities.
- Design: Develop potential solutions.
- Choice: Select a solution.
- Implementation: Put the solution in effect.
- Monitoring: Evaluate the effectiveness of the solution.

Importance of Innovation: Needed for competitive edge in a global market.
Innovation Types:
- Sustaining: Enhancements to existing products/services.
- Disruptive: A lower-performing initial product that improves over time.
Change Management:
- Factors leading to organizational change: internal shifts (e.g., new managers) and external shifts (e.g., economic changes).
Leavitt’s Diamond:
- Interconnection of people, tasks, structure, and technology; changes in one necessitate adjustments in all.

Information System (IS): Interaction of inputs, processing, outputs, and feedback to achieve objectives.
Computer-based IS: Hardware, software, databases configured into a coherent system.
Transaction Processing System (TPS): Records business transactions.
Management Information System (MIS): Supports routine decision-making through organized information.
Decision Support Systems (DSS): Offers insights for problem-specific decisions.