Information System

Information System – Primary Purpose Collects data, processes it into information then converts information into knowledge for a specific purpose. Data Elementary description of things, events, activities, and transactions that are recorded, classified, and stored, but not organized to convey any specific meeting Information Data that has been organized so that they have meaning and value to the recipient Knowledge Information that has been organized and processed to convey understanding, experience and expertise as they apply to a current problem or activity

Activity 1

Basic component of ISs: Hardware: it’s a set of devices such as processor, monitor, keyboard, and printer. Together, they accept data and information as an input, process them, and display them as an output.

Basic component of ISs: Software: it’s a set of programs that instruct the hardware to process data. A database: is a collection of related files, tables, relations, and so on, that stores data and the associations among them.

Basic component of ISs: A network: is a connecting system that permits the sharing of resources by different computers. It can be wireless. Policies and Procedures: are the set of instructions about how to combine the above components in order to process information and generate the desired output.

Basic component of ISs: People: are those individuals who work with the system, interface with it, or use its output.

IS Activities Input of data resources Data entry activities Processing of data into information Calculations, comparisons, sorting, and so on Output of information products Messages, reports, forms, graphic images Storage of data resources Data elements and databases Control of system performance Monitoring and evaluating feedback

Recognizing Information Systems As professional of EMIS, you should be able to look at an information system and identify… The people, hardware, software, data, and network resources they use The type of information products they produce The way they perform input, processing, output, storage, and control activities

Major Capabilities of Information Systems Facilitate work in hazardous environments. Facilitate interpretation of vast amounts of data. Perform high-speed, high-volume, numerical computations. Store huge amounts of information in an easy-to-access, yet small space. Provide fast, accurate, and inexpensive communication within and between organizations. Allow quick and inexpensive access to vast amounts of information worldwide.

Major Capabilities of Information Systems Enable communication and collaboration anywhere, any time. Increase the effectiveness and efficiency of people working in groups in one place or in several locations. Vividly present information that challenges the human mind. Automate both semiautomatic business processes and manually done tasks. Facilitate global trade. Can be wireless, thus supporting unique applications anywhere. Accomplish all of the above much less expensively than when done manually.

All ISs have a purpose and social context.

Purpose A typical purpose is to provide solution to a (business) problem. Example: To coordinate internal units To collaborate To improve performance

Social context The social context of the system consists of the values and beliefs that determine what is admissible and possible within the culture of the people and groups involved.

Foundations of Information Systems

Foundation Concepts Why study information systems and information technology? Vital component of successful businesses Helps businesses expand and compete Improves efficiency and effectiveness of business processes Facilitates managerial decision making and workgroup collaboration

What is a System? A group of interrelated or interacting elements forming a unified whole

What is a System? A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives

What is a System? A system is… A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives By accepting inputs and producing outputs In an organized transformation process

Type of information systems Manual information systems Informal information systems Formal information systems Computer-based information systems (CBIS)

System Concepts: A Foundation System concepts help us understand… Technology: hardware, software, data management, telecommunications networks Applications: to support inter-connected information systems Development: developing ways to use information technology includes designing the basic components of information systems Management: emphasizes the quality, strategic business value, and security of an organization’s information systems

Cybernetic System All systems have input, processing, and output A cybernetic system, a self-monitoring, self-regulating system, adds feedback and control: Feedback is data about the performance of a system Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal the essential goal of cybernetics is to understand and define the functions and processes of systems that have goals, and that participate in circular, causal chains that move from action to sensing to comparison with desired goal, and again to action. Studies in cybernetics provide a means for examining the design and function of any system, including social systems such as business management and organizational learning, including for the purpose of making them more efficient and effective.

Other System Characteristics If a system is one of the components of a larger system, it is a subsystem The larger system is an environment Several systems may share the same environment Some may be connected via a shared boundary, or interface Types of systems… Open Adaptive

What is an Information System? An organized combination of… People Hardware and software Communication networks Data resources Policies and procedures This system… Stores, retrieves, transforms, and disseminates information in an organization

Information Technologies Information Systems All the components and resources necessary to deliver information and functions to the organization Could be paper based Information Technologies – technological side of IS Hardware, software, networking, data management Our focus will be on computer-based information systems (CBIS)

Recognizing Information Systems (Group Discussion) We will try to recognize and visualized IS in several organizations in terms of following characters: The people, hardware, software, data, and network resources they use The type of information products they produce The way they perform input, processing, output, storage, and control activities

What Should Business Professionals Know?

Classification By organizational level By the type of support provided

Organization Level Managerial Control Operational Control Strategic Planning Managerial Control Operational Control

Interorganizational Systems Finance IS Human Resources IS Orga. B System Orga. A System Product IS Interorganizational Systems Orga. C System Administrative IS Organizational systems Departmental systems

Fundamental Roles of IS in Organization O'Brien, James; Marakas, George 2008

Trends in Information Systems O'Brien, James; Marakas, George 2008

Types of Information Systems Operations Support Systems Efficiently process business transactions Control industrial processes Support communication and collaboration Update corporate databases Management Support Systems Provide information as reports and displays Give direct computer support to managers during decision-making

Purposes of Information Systems O'Brien, James; Marakas, George 2008

Operations Support Systems What do they do? Efficiently process business transactions Control industrial processes Support communications and collaboration Update corporate databases

Types of Operations Support Systems Transaction Processing Systems Record and process business transactions Examples: sales processing, inventory systems, accounting systems Process Control Systems Monitor and control physical processes Example: using sensors to monitor chemical processes in a petroleum refinery Enterprise Collaboration Systems Enhance team and workgroup communication Examples: email, video conferencing

Two Ways to Process Transactions Batch Processing Accumulate transactions over time and process periodically Example: a bank processes all checks received in a batch at night Online Processing Process transactions immediately Example: a bank processes an ATM withdrawal immediately

Management Support Systems What do they do? Provide information and support for effective decision making by managers Management information systems Decision support systems Executive information systems

Types of Management Support Systems Management Information Systems (MIS) Reports and displays Example: daily sales analysis reports Decision Support Systems (DSS) Interactive and ad hoc support Example: a what-if analysis to determine where to spend advertising dollars Executive Information Systems (EIS) Critical information for executives and managers Example: easy access to actions of competitors

Other Information Systems Expert Systems Provide expert advice Example: credit application advisor Knowledge Management Systems Support creation, organization, and dissemination of business knowledge throughout company Example: intranet access to best business practices

Measuring IT Success Efficiency Effectiveness Minimize cost, time, and use of information resources Effectiveness Support business strategies Enable business processes Enhance organizational structure and culture Increase customer and business value

Developing IS Solutions O'Brien, James; Marakas, George 2008

Components of an IS O'Brien, James; Marakas, George 2008

Information System Resources People Resources Specialists End users Hardware Resources Machines Media Software Resources Programs Procedures

Information System Resources Data Resources Product descriptions, customer records, employee files, inventory databases Network Resources Communications media, communications processors, network access and control software Information Resources Management reports and business documents using text and graphics displays, audio responses, and paper forms

ACTIVITY 3