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Understanding Information Systems: Components, Hardware, Software, and E-commerce, Summaries of Business Systems

Vietnam National University Ho Chi Minh City (VNUHCM)Business Systems

An overview of information systems (IS), their main components (hardware, software, data, human, and process), and their role in e-business and e-commerce operations. It also covers the conversion to e-commerce supply chain management and the importance of hardware and software in e-commerce transactions.

Typology: Summaries

2021/2022

Uploaded on 12/09/2022

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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
-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,...
IS resources
People
Hardware
DataNetwork
Software
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Download Understanding Information Systems: Components, Hardware, Software, and E-commerce and more Summaries Business Systems in PDF only on Docsity!

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

- 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,...

IS resources People Hardware Network Data Software

  • 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,...

*6 categories :

  • Transaction Processin g (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

Support of business processes and operations

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 data into electronic form Convert electronic information into human- intelligible form

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

🐀 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