© Paradigm Publishing Inc Chapter 10 Information Systems

© Paradigm Publishing Inc Presentation Overview The Role of an Information System Information Systems Classified by Function Considerations for Planning and Updating Information SystemsConsiderations for Planning and Updating Information Systems Factors to Consider When Choosing a New Information SystemFactors to Consider When Choosing a New Information System The Process of Developing a New Information SystemThe Process of Developing a New Information System

© Paradigm Publishing Inc The Role of an Information System An information system (IS) is a combination of people, hardware, software, computer networks, and data used to manage daily and long-term operations.

© Paradigm Publishing Inc The Role of an Information System What role do information systems play in business? Compared to pre-computer information systems, computer-based IS systems offer – improved speed – efficiency – quality – measurability

© Paradigm Publishing Inc Information Systems Classified by Function What functions do information systems perform? Common functional classifications for information systems are: – distribution management – office information – management information – executive support – factory automation

© Paradigm Publishing Inc Information Systems Classified by Function In a traditional inventory system, regularly scheduled deliveries move products from warehouse storage to storerooms until they are needed to stock the shelves.

© Paradigm Publishing Inc Information Systems Classified by Function In a just-in-time distribution system, deliveries are smaller and more frequent so that products are only in the storeroom briefly.

© Paradigm Publishing Inc Information Systems Classified by Function In a stockless inventory distribution system, deliveries move products from warehouse storage directly to the shelves with no need for a storeroom.

© Paradigm Publishing Inc Information Systems Classified by Function Office Information Systems (OIS) typically provide the following functions: – maintaining standard operating procedures (SOP) – connectivity – electronic data processing

© Paradigm Publishing Inc Information Systems Classified by Function Management Information Systems (MIS) typically provide the following functions: – integrate information from company departments into one database –provide support to management in regular reports, either on periodic or on-demand basis

© Paradigm Publishing Inc Information Systems Classified by Function Decision Support Systems (DSS) –Data modeling provides a simulation of a real- world situation built into a software application. –Expert systems make recommendations after posing questions to the user. –Online analytical processing (OLAP) defines and clarifies methods of handling what-if questions posed to large databases.

© Paradigm Publishing Inc Information Systems Classified by Function Executive Support Systems (ESS) –brings together information from an entire organization rather than one department or group –supports strategic decision making by facilitating the creation of high-level summary reports

© Paradigm Publishing Inc Information Systems Classified by Function Factory Automation and Plant Operations –Computer-aided manufacturing (CAM) involves direct use of computers to manufacture products. –Computer-integrated manufacturing (CIM) connects every department in a business, making information available to anyone who needs it. –Statistical quality control (SQC) tracks quality measurements of final product and compares them to conditions throughout manufacturing process.

© Paradigm Publishing Inc Considerations for Planning and Updating Information Systems What are major effects of upgrading or switching to a computer-based information system? – expanded technical staff – increased information technology costs – increased profit margins – enhanced product quality – reduced clerical staff – temporary disruption

© Paradigm Publishing Inc Factors to Consider When Choosing a New Information System What are important factors to consider when choosing a new information system? – user interface design – open versus closed system – niche information system – turnkey system – system support

© Paradigm Publishing Inc Factors to Consider When Choosing a New Information System User Interface Design –Interface design should be user-friendly and intuitive –Critical information should be readily apparent

© Paradigm Publishing Inc Factors to Consider When Choosing a New Information System Open or Closed System? –open system – company’s IT staff can alter system or hire third party to make alterations –closed system – must be serviced and supported by vendor

© Paradigm Publishing Inc Factors to Consider When Choosing a New Information System Niche Information System –exists to serve specially focused sets of customers –includes all needed forms and templates –does not need a lot of technical know-how or staff training

© Paradigm Publishing Inc Factors to Consider When Choosing a New Information System Turnkey System –contains everything a company needs to know to get system up and running –heavily customized and includes support people to tailor system to exact needs of a business

© Paradigm Publishing Inc Factors to Consider When Choosing a New Information System Questions Concerning System Support –Are installation, staff training, and on-site service and repair included in the system package? –If not, what are the cost of these services?

© Paradigm Publishing Inc The Process of Developing a New Infor- mation System Development of information systems follows an ongoing cycle that includes planning, design, implementation, and support.

© Paradigm Publishing Inc The Process of Developing a New Information System Gantt charts help visually communicate the critical steps and schedule for a project.

© Paradigm Publishing Inc The Process of Developing a New Information System Designing the System –A functional specification document is written first and states exactly what information system must accomplish. –A design specification describes how the goals in the functional specification will be reached.

© Paradigm Publishing Inc The Process of Developing a New Information System Commonly Used Information Systems Software

© Paradigm Publishing Inc The Process of Developing a New Information System Implementation –A prototype is a miniprogram that demonstrates the user interface and functionality of the system. –Development is where the software programming is done and technicians ensure the new hardware works. –Hardware and software purchasing is done and delivered before system can be installed and considered up and running.

© Paradigm Publishing Inc The Process of Developing a New Information System Implementation –Beta testing is where the system is rigorously tested before it is completely trusted to function as designed. –User training normally takes place at same time as beta testing. –The committee or executive overseeing purchase of the system inspects, tests, and approves it.

© Paradigm Publishing Inc The Process of Developing a New Information System Finally, The Support Stage –A support contract allows users to contact systems integrator for technical support, training, and on-site troubleshooting. –If system designed in-house, responsible department often operates as an independent entity.

© Paradigm Publishing Inc On the Horizon Based on the information presented in this chapter and your own experience, what do you think is on the horizon?