March 6, 2016

Principles of Information Systems - Ralph M. Stair and George W. Reynolds

Book Details - Publishers site Cengage

Principles of Information Systems, 12th Edition © 2016 | Published
Ralph M. Stair Professor Emeritus, Florida State University
George Reynolds Strayer University
ISBN-10: 1285867165  |  ISBN-13: 9781285867168
752 Pages
List Price = $ 319.95

Chapter 1 An Introduction to Information Systems

(More detailed summary of the chapter:
The value of information is directly linked to how it helps decision makers achieve the organization’s

Data consists of raw facts; information is data transformed into a meaningful form. The process of defining relationships among data requires knowledge. Knowledge is an awareness and understanding of a set of information and the way that information can support a specific task.

To be valuable, information must have several characteristics: it should be accurate, complete,
economical to produce, flexible, reliable, relevant, simple to understand, timely, verifiable, accessible, and secure. The value of information is directly linked to how it helps people
achieve their organizations’ goals.

Models, computers, and information systems are constantly making it possible for organizations to improve the way they conduct business.

Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life.

System users, business managers, and information systems professionals must work together to build a successful information system.

Chapter: Organizations and Role of  Information Systems

(More detailed summary of the chapter:
Computers and information systems help make it possible for organizations to improve the way they
conduct business.

The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change.

Organizations use information systems to support their goals. System performance is measured by its efficiency and effectiveness. Efficiency is a measure of what is produced divided by what is consumed; effectiveness measures the extent to which a system achieves its goals. A systems performance standard is a specific objective.

An organization is a formal collection of people and other resources established to accomplish a set of goals.

Organizations are systems with inputs, transformation mechanisms, and outputs. Value-added processes increase the relative worth of the combined inputs on their way to becoming final
outputs of the organization. The value chain is a series (chain) of activities that includes (1) inbound logistics, (2) warehouse and storage, (3) production, (4) finished product storage, (5)
outbound logistics, (6) marketing and sales, and (7) customer service.

Organizational structure refers to how organizational subunits relate to the overall organization. Several basic organizational structures include traditional, project, team, and virtual.

Organizational culture consists of the major understandings and assumptions for a business, corporation, or organization.

Organizational change deals with how organizations plan for, implement, and handle change. Change
can be caused by internal or external factors. The stages of the change model are unfreezing, moving, and refreezing. According to the concept of organizational learning, organizations adapt
to new conditions or alter practices over time.

Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage.

Business process reengineering,  Continuous improvement,  Total quality management are improvement initiatives.  Six Sigma is often used in quality control. It is based on a statistical term that means 99.9997 percent of the time, products and services will meet quality standards. Companies can achieve this quality level by repeatedly applying six sigma technique with additional inputs from their understanding of the system inputs.

Developing information systems that measure and control productivity is a key element for most organizations. A useful measure of the value of an IS project is return on investment (ROI). This measure investigates the additional profi ts or benefits that are generated as a percentage of the investment in IS technology. Total cost of ownership (TCO) can also be a useful

Information systems must be applied thoughtfully and carefully so that society, businesses, and
industries can reap their enormous benefits.

Systems development involves creating or modifying existing business systems. The major steps of this process and their goals are systems investigation (gain a clear understanding of
what the problem is), systems analysis (define what the system must do to solve the problem), systems design (determine exactly how the system will work to meet the business needs),
systems implementation (create or acquire the various system components defined in the design step), and systems maintenance and review (maintain and then modify the system so that
it continues to meet changing business needs).

 Effective information systems can have a major impact on corporate strategy and organizational success. Businesses around the globe are enjoying better safety and service, greater effi ciency and effectiveness, reduced expenses, and improved decision making and control because of information systems. Changes in society as a result of increased international trade and cultural exchange due
to globalization have always had a significant impact on organizations and their information systems. These opportunities, however, introduce numerous obstacles and issues, including challenges involving culture and language.


Information systems personnel are the key to unlocking the potential of any new or modified system.

Chapter Hardware and Software


Computer hardware must be carefully selected to meet the evolving needs of the organization and its
supporting information systems.

The computer hardware industry and users are implementing green computing designs and products.


Assembling an effective, efficient computer system requires an understanding of its relationship to the information system and the organization. The computer system objectives are subordinate to, but supportive of the information system and the organization.


When selecting computer devices, you also must consider the current and future needs of the information system and the organization. Your choice of a particular computer system device should always allow for later improvements.



Systems and application software are critical in helping individuals and organizations achieve their


Organizations should not develop proprietary application software unless doing so will meet a compelling business need that can provide a competitive advantage.


Organizations should choose a programming language whose functional characteristics are
appropriate for the task at hand, considering the skills and experience of the programming staff.


The software industry continues to undergo constant change; users need to be aware of recent trends and issues to be effective in their business and personal life.

Chapter Organizing Data and Information

The database approach to data management provides significant advantages over the traditional file-based approach

A well designed and well managed database is an extremely valuable tool in supporting decision making.

Further improvements in the use of database technology will continue to evolve  and yield real business benefits

Chapter: Telecommunications and Networks

Effective communications is essential to organizational success.

An unmistakable trend of communication technologies is that more people are able to send and receive all forms of information over greater distances at a faster rate.

The effective use of telecommunications and networks can turn a company into an agile, powerful, and creative organization, giving it a long-term competitive advantage.

Chapter: The Internet, Intranets, and Extranets

The internet is like many other new technologies-it provides a wide range of services, some of which are effective and practical for use today, others of which are still evolving, and still others of which will fade away from lack of use.

Before the internet becomes universally used and accepted for business use, management issues, service bottlenecks, and privacy and security issues must be addressed and solved.

Chapter. Electronic Commerce

E-commerce is a new way of conducting business, and as with any other new application of technology, it presents both opportunities for improvement and potential problems.

E-commerce requires the careful planning and integration of a number of technology infrastructure components.

Users of the new e-commerce technology must take safeguards to protect themselves.

Organizations must define and execute a strategy to be successful in e-commerce.

Chapter: Transaction Processing and Enterprise Resource Planning Systems

An organization's TPS must support the routine, day-to-day activities that occur in the normal course of business and help a company add value to its products and services.

Implementation of an enterprise resource planning system enables a company to achieve numerous business benefits through the creation of a highly integrated set of systems.

Chapter: Information and Decision Support Systems

The Management information system (MIS) must provide the right information to the right person in the right fashion at the right time.

Decision support systems are used (DSSs) when the problems are more unstructured.

Specialized support systems, such as group decision support systems (GDSSs) and executive support systems (ESSs), use the overall approach of a DSS in situations such as group and executive decision making.

Chapter: Specialized Business Information Systems: Artificial Intelligence, Expert Systems, and Virtual Reality

Artificial intelligence systems form a broad and diverse set of systems that can replicate human decision making for certain types of well-defined problems.

Expert systems can enable a novice to perform at the level of an expert but must be developed and maintained very carefully.

Virtual reality systems have the potential to reshape the interface between people and information technology by offering new ways to communicate information, visualize processes, and express ideas creatively.

Chapter: System Investigation and Analysis

Effective systems development requires a team effort of stake holders, users, managers, systems development specialists, and various support personnel and it starts with careful planning.

Systems development often uses tools to select, implement, and monitor projects, including net present value (NPV), prototyping, and  rapid application development.

Systems development starts with investigation and analysis of existing systems.

Chapter: Systems Design, Implementation, Maintenance, and Review

Designing new systems or modifying existing ones should always be aimed at helping an organization achieve its goals.

The primary emphasis of system implementation is to make sure that the right information is delivered to the right person in the format at the right time.

Maintenance and review add to the useful life of a system but can consume large amounts of resources. These activities can benefit from the same project management techniques applied to systems development.

Chapter: Information Systems in Business and Society.

Policies and procedures must be established to avoid computer waste and mistakes.

Computer crime is a serious and rapidly growing area of concern requiring management attention.

Jobs equipment and working conditions must be designed to avoid negative health effects.

Faculty slides

Updated  5 Feb 2016, 13 Oct 2015

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