IS 335 Lecture One Computer- Based Information Systems Overview Prof. Dr. Khalid A. Eldrandaly Dr. Soaad M. Naguib

Learning Objectives After studying this chapter, you should: n Know the main types of resources that are available to an organization. n Appreciate that information must be managed just as any other resource. n Understand why there is so much interest in managing information. n Know the users of computers. 1-2

Learning Objectives n Have an introductory understanding of systems concepts. n Know the difference between data and information. n Know the elements of CBIS and how they evolved. n Be familiar with the different types of information specialists who can assist the user in developing IS.

Information Management n The manager of a small firm can manage by observing the tangible assets. n As the scale of operation increases to a firm with several hundred or thousands employees, with operations scattered over a wide area, the manager relies less on observation and more on information. n The most valuable resource n Information: The most valuable resource 1-4

Five Main Resources n Personnel n Material n Machines n Money n Information (and data) Physical Conceptual } 1-5 (Tangible)

Five Main Resources n The task of the manager is to manage these resources in order to use them in the most effective way. n The first four resource types are tangible; they exist physically and can be touched (physical resources). n The fifth resource type, information, is not in tangible form. n That is we use the term conceptual resource to describe information and data. n Managers use conceptual resources to manage physical resources. n Information is the most valuable resource 1-6

How Resources are Managed n Acquire n Assemble, or prepare n Replace 1-7

Factors Stimulating Interest in Information Management n Increasing complexity of business activity –International economy –Worldwide competition n Improved computer capabilities –Size –Speed 1-8

Who are the Users? n Managers n Nonmanagers n Persons in the firm’s environment 1-9

Managers Can Be Found on All Levels and in All Functional Areas of the Firm Finance Function Human Resources Function Information Services Function Manufacturing Function Marketing Function Strategic planning level Management Control Level Operational Control Level 1-10

The Influence of Management Level on Information Form Strategic planning level Management control level Operational control level Detail Summary 1-11

What Managers do -- Fayol’s Functions n Fayol recognized that managers perform five major management functions: 1. Managers plan what they are to do. 2. They organize to meet the plan. 3. They staff their organization with the necessary resources. 4. They direct them to execute the plan. 5. They control the resources. 1-12

What Managers do -- Fayol’s Functions Strategic Planning Level Management Control Level Operational Control Level 1-13

What Managers do -- Mintzberg’s Roles n Interpersonal roles –Figurehead –Leader –Liaison n Informational roles –Monitor –Disseminator –Spokesperson n Decisional roles –Entrepreneur –Disturbance handler –Resource allocator –Negotiator 1-14

Management Skills n Communications n Problem solving How can an information specialist help? 1-15

Problem solving n Problem solving is defined as all activities that lead to the solution of a problem. n Problem is a condition or event that is harmful or potentially harmful to a firm in a negative way or is beneficial or potentially beneficial in a positive way. n Solution is the outcome of the problem solving activity. n Decision making is the act of selecting from alternative n Decision is the selected course of action. 1-16

Problem Solving Information Comes in Many Forms Computer Reports Noncomputer reports Electronic mail Periodicals Telephone Problem Solving Written Media Oral Media Internal Sources External Sources Scheduled Meetings Unscheduled Meetings Voice Mail Tours Letters & Memos 1-17

Management Knowledge n Computer literacy : The basic working knowledge of the computer necessary to function in today’s world which includes an understanding of computer terminology, an ability to use the computer(not necessarily to program it), and so on. The basic working knowledge of the computer necessary to function in today’s world which includes an understanding of computer terminology, an ability to use the computer(not necessarily to program it), and so on. n Information literacy : Consists of understanding how to use information at each step of the problem-solving process, where that information can be obtained, and how to share information with others. Consists of understanding how to use information at each step of the problem-solving process, where that information can be obtained, and how to share information with others.  Information literacy is not dependent on computer literacy 1-18

What is a System n A system is a group of elements that are integrated with the common purpose of achieving an objective. 1-19

System Elements Not all systems have the same combination of elements, but a basic configuration is illustrated below. System Elements Not all systems have the same combination of elements, but a basic configuration is illustrated below. Objectives Control mechanism Transformation InputOutput 1-20

Open and Closed-Loop Systems n Open-Loop System : A system without the control mechanism, feedback loop, and objective, such as a heating system without thermostat Transformation InputOutput

Open and Closed-Loop Systems n Closed-Loop System : A system with the three control elements (objective, control mechanism, and feedback loop), such as a heating system with a thermostat Objectives Control mechanism Transformation InputOutput

Open versus Closed Systems n Open system –Connected to its environment by means of resource flows n Closed system –Not connected to its environment (lab.) 1-23

Physical and Conceptual Systems n Physical system –The business firm –Composed of physical resources n Conceptual system –Represents a physical system –Uses conceptual resources »Information »Data 1-24

Systems Can Be Composed of Subsystems or Elemental Parts Systems Can Be Composed of Subsystems or Elemental Parts Subsystem A-2 Subsystem A-3 Subsystem B-2 Subsystem B-1 System Subsystem ASubsystem B Elemental Part C Subsystem A-1 Elemental part B1 1-25

Subsystem and Supersystem n Subsystem: a system within a system n Supersystem: when a system is a part of a larger system, the larger system is the supersystem. n Example: The state government is a supersystem of the town government and is also a subsystem of the national government. 1-26

A Systems View n Business operations are embedded within a larger environmental setting –Reduces complexity –Requires good objectives –Emphasizes working together –Acknowledges interconnections –Values feedback 1-27

Data and Information n Information processor –Key element in the conceptual system –Computer –Noncomputer –Combination n Data is the raw material transformed into information 1-28

Evolution of the CBIS n n Data Processing (DP) n n Management Information Systems (MIS) 1964 – –IBM promoted the concept as a means of selling disk files and terminals n n Decision Support Systems (DSS) 1971 – –Text book’s distinction: » »MIS: Organizational/group - general » »DSS: Individual - specific n n Office Automation (OA) 1964 n n Artificial Intelligence (AI)/ Expert Systems (ES) s – –Heavy investment by businesses 1-29

The CBIS Model Computer-based Information System (CBIS) Accounting Information System Management Information System Decision Support Systems The Virtual Office Knowledge-based Systems Decisions Problem Information ProblemSolution 1-30

Information Services Information specialists have full-time responsibility for developing and maintaining computer-based systems 1-31

Traditional Communication Chain Database Administrator User Systems Analyst Programmer Computer Network Specialist 1-32

End-User Computing (EUC) n End-user computing –[A]n information system developed by the users themselves rather than IT professionals to meet company operational or management information needs. An end-user application often extracts or transfers data from a corporate database as a starting point –A do-it-yourself mentality –Can raise many problerms –Information specialists act as consultants 1-33

IS and EUC The End-User Computing Communication Chain User Computer Information Specialists Support Communication 1-34

Justifying the CBIS n Justify in the same manner as any other large investment n Economic –Cost reduction n Noneconomic –Perceived value 1-35

Achieving the CBIS 1-36

Reengineering the CBIS n Business Process Reengineering (BPR) –Building a new IS forces changes in the organizational paths of information flow, therefore re-engineering of business processes within the organization is required. 1-37

Roles Played by the Manager and by the Information Specialist Implementation PhaseManagerInformation Specialist Control Planning Analysis Design Use Define problem Support System Study Design system Implement system Make available 1-38

Summary n Information is one of five main resources n Computer output used by managers and nonmanagers n A system is an integration of elements working toward an objective –Physical –Conceptual n Data vs. Information 1-39

Summary [cont.] n CBIS composed of various components –AIS –MIS –DSS –Virtual office –Knowledge-based systems n End-user computing trends n CBIS development 1-40