How do information systems work

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. 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. It was during this era that the first Enterprise Resource Planning ERP systems were developed and run on the client-server architecture. We will discuss ERP systems as part of the chapter on process chapter 9. First invented in , 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. While the first e-mail messages on the Internet were sent in the early s, companies who wanted to expand their LAN-based e-mail started hooking up to the Internet in the s.

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.

As web browsers and Internet connections became the norm, companies rushed to grab domain names and create websites. In , the National Science Foundation, which governed how the Internet was used, lifted restrictions on its commercial use. The year saw the establishment of both eBay and Amazon. A mad rush of investment in Internet-based businesses led to the dot-com boom through the late s, and then the dot-com bust in 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.

As it became more expected for companies to be connected to the Internet, the digital world also became a more dangerous place. 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. We will study information security in chapter 6.

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.

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. Web 2. This new web Some industries, such as bookstores, found themselves relegated to a 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. 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.

Section 1. Perspectives on Information Systems An information system is a set of interrelated components that collect or retrieve, process, store, and distribute information to support decision making and control in an organization. Figure Specifications for the use, operation, and maintenance of information systems, collected in help facilities, user manuals, operator manuals, and similar documents, frequently delivered in an electronic form. Organizations employ several types of information systems.

Transaction processing systems today generally work in on-line mode by immediately processing a firm's business transactions. A Transaction is an elementary activity conducted during business operations. TPS may work either in batch mode, processing accumulated transactions at a single time later on, or in on-line mode, processing incoming transactions immediately.

Today, most TPS work in the on-line mode. The objective of management reporting systems is to provide routine information to managers. Managers receive performance reports within their specific areas of responsibility. Generally, these reports provide internal information rather than spanning corporate boundaries. They report on the past and the present, rather than projecting the future.

In order to prevent information overloads, managers may resort to using demand or exception reports. Demand reports are requested when needed. Exception reports are produced only when preestablished out-of-bounds conditions occur and contain only the information regarding these conditions. Decision Support Systems [Figure 2. Decision support systems directly support a decision-making session. These systems facilitate a dialog between the user, who is considering alternative problem solutions, and the system that provides built-in models and access to databases.

The DSS databases are often extracts from the general databases of the enterprise or from external databases. Executive information systems support top managers with conveniently displayed summarized information, customized for them. They make a variety of internal and external information readily available in a highly summarized and convenient form. EIS are used to:. Monitor the performance of the organization. Develop strategic directions for the company's future.

The main objective of OIS is to facilitate communication between the members of an organization and between the organization and its environment. OIS are used to:. Help manage documents represented in an electronic format. Handle messages, such as electronic mail, facsimile, and voice mail. Facilitate teleconferencing and electronic meetings. Facilitate the use of the Internet for communication and access to information. Facilitate the use of task-oriented teams through the use of groupware.

Professional support systems help in tasks specific to various professions. As both organizational and individual experience with information systems grow, more and more specialized categories of professional support systems emerge. How does it work? What are its people, organization, and technology components? How will a four-step method for business problem solving help you solve information system-relations.

Each of the previously mentions plays a key roles in the organizational framework but must be utilized in the proper manner to work reliably and effectively. Chapter 1 1. E-mail, online conferencing, and cell phones have become essential tools for conducting business. Information systems are the foundation of fast-paced supply chains. The Internet allows many businesses to buy, sell, advertise, and solicit customer feedback online. Organizations are trying to become more competitive and efficient by digitally enabling their core business processes.

It can respond instantly to customers and changes in the marketplace as events unfold, while working closely with suppliers and retailers. The clinics include rehabilitation units, therapy facilities, hospice and geriatric units, and other highly specialized centers.

HealthCo operates with approximately 6, employees in the eastern United States.