Introduction to Information Systems Chapter 1 Introduction to Information Systems

Information Concepts Data vs. Information Data Information Raw facts Distinct pieces of information, usually formatted in a special way Information A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves

Data versus Information Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100 West Charles Mann 1200 100 79154 TM Shoes

Examples Transformation Data – thermometer readings of temperature taken every hour: 16.0, 17.0, 16.0, 18.5, 17.0,15.5…. Information – ? Today's High – 18.5 Today’s Low – 15.5 Transformation

Types of Data Data Represented by Alphanumeric data Numbers, letters, and other characters Image data Graphic images or pictures Audio data Sound, noise, tones Video data Moving images or pictures

Data  Information Data Transformation Information

Characteristics of Valuable Information Accurate Complete Economical Flexible Reliable Relevant Simple Timely Verifiable Accessible Secure

System Definition A set of elements or components that interact to accomplish goals A combination of components working together

System Example System Elements Goal Inputs Processing elements Outputs Movie Actors, director, staff, sets, equipment Filming, editing, special effects, distribution Finished film delivered to movie studio Entertaining movie, film awards, profits

Information System (IS) Definition A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective (IS) Pronounced as separate letters, and short for Information Systems or Information Services. For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).

The importance of Information Systems An information system is a set of people , procedures and resources that: collect transform disseminates information in an organization. Information is used for better management Companies cannot operate any more without automated information systems

A Framework for Business Users

A Framework for Business Users Foundation Concepts Fundamental concepts about the components and roles of information systems. Information Technologies Major concepts, developments, and management issues in information technology.

A Framework for Business Users Business Applications The major uses of information systems for operations, management, and competitive advantage. Development Processes How business professionals and information specialists plan, develop, and implement information systems. Management Challenges The challenge of managing ethically and effectively.

Business Processes and Operations Major Roles of IS Support Strategies for Competitive Advantage Support Business Decision Making Support of Business Processes and Operations

Expanding Roles of Information Systems Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce 1950-1960 1960-1970 1970-1980 1980-1990 1990-2000 - TPS Information Systems - Ad hoc Reports Computing Exec Info Sys Expert Systems SIS Business & -Internetworked E-Business &

Expanding Roles of Information Systems 1950s-1960s: Data Processing Electronic Data Processing systems, Transaction Processing, Record keeping, Traditional accounting 1960s-1970s: Management reporting Management Information Systems Mgt. reports for pre-specified information to support decision making 1970s-1980s: Decision Support Decision Support Systems Interactive ad hoc support of the managerial decision process

Expanding Roles of Information Systems 1980s-1990s:Strategic and End User Support End User Computing Systems: direct productivity support Executive Information Systems : Critical Information Expert Systems: Knowledge based expert advise for end users Strategic Information Systems: for competitive advantage 1990s – 2000s : Global internetworking Internet worked information systems For end-user, enterprise, and inter-organizational computing, collaboration, including global operations and management on the internet and other interconnected enterprise and global networks.

The Future.. E-Business The use of Internet technologies to internet work and empower… Business processes Electronic commerce, and Enterprise communication & collaboration within a company & with its customers, suppliers, & other business stakeholders.

} The System Concept Input Processing Output Feedback Control System: A group of interrelated components or interacting elements forming a unified whole. Input Processing Output Feedback Control } - Environment - Other systems

Environment Other Systems Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Feedback System Boundary

Computer-Based Information Systems Manual versus computerized information systems Computer-based information system (CBIS) Hardware, software, databases, telecommunications, people, and procedures Collect, manipulate, store, and process data into information

Organisation as a System Organization: a collection of people and other resources established to accomplish a set of goals. An organization is a system Inputs: resources (materials, people, money) Outputs: goods or services

Information systems in the Company

Purchase Order - Traditional

Purchase Order – E-commerce

Electronic Banking Account status Exchange rates Economic information Bank transfers Reports Batch payments Security via magnetic cards, password, control totals

Decision Support Financial models What-if analyze Goal seeking Risk analysis Statistical analysis Management models Graphical representations Personal databases

Hospital Information Systems Patient registration Laboratory management Medical files Pharmacy Stock management and purchasing Human resources and scheduling Billing and A/C receivable Book keeping Operation theater

Other Applications Transport Insurance Tourism Department stores Just in time Routing Shipping Insurance Tourism Department stores

Components of an Information System Communications media and network support People Resources : End users and IS specialists Data , Model , and Knowledge Bases Data Resources Control of System Performance Input of Data Resources Processing Data into Information Output of Information Products Programs and Procedures Software Resources Machines and Media Hardware Resources Storage of Data resources Communications media and network support Network resources

IS Resources and Products People Resources Specialists: system analysts, programmers, operators End users : anyone else using the system Hardware Resources Machines: computers, video monitors, disks, printers, scanners Media: floppies, tapes, disks, plastic cards, paper forms, ... Software Resources system, application, procedures Programs: OS , spreadsheet programs, payroll programs , Procedures: data entry, error correction, paycheck distribution, ...

IS Resources and Products Data Resources database, model base, knowledge base Product descriptions, customer records, inventory databases,... Network resources Communication media, network support, ...

Information System Activities Input Processing Output Storage Control

IS Activities Input of Data Resources: Data about business transactions and other events must be captured and prepared for processing by the input activity. Input typically takes the form of data entry activities such as recording and editing. Once entered, data may be transferred onto a machine-readable medium such as magnetic disk or tape, until needed for processing. Eg: Optical Scanning of bar-coded tags on merchandise

IS Activities Processing of Data into Information Data is typically subjected to processing activities such as calculating, comparing, sorting, classifying, and summarizing. These activities organize, analyze, and manipulate data, thus converting them into information for end users. A continual process of correcting and updating activities must maintain quality of data stored in an information system. Eg: Calculating employee pay, taxes and other payroll deductions

IS Activities Output of Information Products Information in various forms is transmitted to end users and made available to them in the output activity. The goal of IS is to produce information products for end users. Common information products include messages, reports, forms and graphic images Eg : Producing reports and displays about sales performance.

IS Activities Storage of Data Resources: Storage is a basic system component of information systems. Storage is the information system activity in which data and information are retained in an organized manner for later use. Eg: Maintaining records on customers, employees and products.

IS Activities Control of System Performance: An important information system activity is the control of its performance. An information system should produce feedback about its input, processing, output, and storage activities. Feedback must be monitored and evaluated to determine if the system is meeting established performance standards. Feedback is used to make adjustments to system activities to correct deficiencies. Eg: Generating audible signals to indicate proper entry of sales data

Types of Information Systems

Types of Information Systems Operations Support Systems – efficiently process business transactions, control industrial processes, support enterprise collaboration and update corporate database Transaction processing systems Batch – transaction data accumulate over time, processed periodically. Real-time – data processed immediately after a transaction occurs.

Operations Support system Process Control Systems – monitor & control physical processes. (Electronic Sensors) Enterprise Collaboration Systems – enhance team and workgroup communications and productivity.

Types of Information Systems Management Support Systems Management Information Systems – pre-specified reports & displays to support decision-making. Decision Support Systems – provide interactive ad hoc support. Executive Information Systems – critical information tailored to the information needs of executives.

Other Classification of IS Expert System – provide expert advice for operational chores like equipment diagnostics or managerial decisions such as loan portfolio management. Knowledge Management Systems – Knowledge based IS that support creation, organisation and dissemination of business knowledge to employees and managers throughout the company Functional Business System – IS that focus on operational and managerial application in support of basic functions such as marketing, accounting etc., Strategic IS – Apply IT to a firms products, services or business processes to help it gain a strategic advantage over its competitors

END OF PART - I