Information Systems Chapter 10 – Computers: Understanding Technology, 3 rd edition 1November 13, 2008

Information System Definition: combination of people, hardware, software, computer networks, and data that organizations use to manage daily and long-term operations Examples in daily life: ATMs, gas pumps which take credit cards, bar scanners in grocery stores 2November 13, 2008

Information Systems Classified by Function Distribution Management – reduction in cost of inventory overhead –Traditional distribution management – inventory maintained in bulk storage at place of production, transported to wholesalers, and finally delivered to retail outlets –just-in-time - delivery just before used in manufacturing process, production to meet market demand –Stockless inventory – daily delivery from factory or distribution center; print-on-demand where bookstores can print a paperback book 3November 13, 2008

Information Systems Classified by Function (cont.) Office Information System –Maintaining standard operating procedures (manual and computerized) –Connectivity to other programs and devices –Electronic data processing – often batch processing, more efficient than updating the database every time a change takes place Management Information System – typically integrates information from different departments or functions into one database, provides reports either on periodic or on- demand basis 4November 13, 2008

Information Systems Classified by Function (cont.) Decision support systems – custom built for each application –Spreadsheets - spreadsheet as “killer application” for early PC sales, performing “what-if” analyses involving data modeling (simulation of real world situation) – –Expert systems – attempt to model an expert’s knowledge of a topic –Online analytical processing – defines and clarifies methods of handling what-if questions posed to large databases, to produce business intelligence 5November 13, 2008

Information Systems Classified by Function (cont.) Executive Support Systems – upper management tool bringing together information from an entire organization Factory Automation –Computer Aided Manufacturing (CAM) – factory robots –Computer-Integrated Manufacturing (CIM) – broader coverage than CAM, connecting the factory to other parts of the organization –Statistical Quality Control 6November 13, 2008

Impact of a New Information System Expanded technical staff – programmers, trainers Increased Information Technology Costs Increased Profit Margins Enhanced Product Quality Reduced Clerical Staff Temporary Disruption 7November 13, 2008

Factors in Choosing a New Information System User interface design Open (using company can modify) vs closed (serviced and supported by original vendor) Niche information system –Because it is customized to the application, can be used without a lot of training –Small market may lead to high price –May lag technologically 8November 13, 2008

Factors in Choosing a New Information System (cont.) Turnkey solutions – simply turn the key to get the system running; because of customization, often expensive and difficult to upgrade System support 9November 13, 2008

Developing a New Information System Project team – project manager, system analysts, software engineers, technicians (hardware issues) System development life cycle –Planning – needs analysis, feasibility study, request for proposal (RFP) –Design – functional specification (what the system must accomplish, design specification (how the goals laid out in the functional specification will be achieved) 10November 13, 2008

System Development Lifecycle (cont.) Implementation –Prototype (you won’t always have one) –Development –Hardware and software purchasing –Installation and testing –User training –Approval Support 11November 13, 2008