Introduction to IS & Fundamental Concepts Infsy 540 Dr. R. Ocker

What are some characteristics of today’s business environment?

Characteristics of today’s business environment: n globalization  global marketplace  global competition  global work groups  global information systems

Characteristics of today’s business environment: n transformation of industrial economies  knowledge and information-based economies  productivity  innovation  time-based competition  shorter product life  turbulent environment

Characteristics of today’s business environment: n transformation of the organization  flatter  decentralized  flexible  collaborative work and teamwork  empowered workforce  lower operating costs

Transformation of the Business Enterprise n traditional business firm -  hierarchical  centralized  standard operating procedures for mass production n new style of business firm -  flatter  decentralized  flexible arrangement of generalists and specialists

Transformation of the Business Enterprise n similar to a symphony n consist of knowledge workers  college educated  members of profession (e.g., engineers, doctors, lawyers, scientists, etc.)  jobs consist primarily of creating new information and knowledge  IT has evolved to enable and support new form of organization

What is an information system (IS)? n interrelated components working together to –collect, process, store, disseminate information n to support –decision making, coordination, control, analysis, and visualization in an organization

Components of an IS n Hardware n software n databases n telecommunications (networks) n human resources (system professionals and end users) n procedures (specifications for the use, operation, & maintenance of IS)

3 activities in an IS produce information n 1.input - capture of raw data n 2.processing - conversion, manipulation, and analysis of raw input n 3.output - distribution of processed information n CBIS - computer-based information system - our focus in this course

Information vs. Data n information technology = IS + telecommunications n information - data that have been shaped into a form that is meaningful and useful to humans n data - raw facts before they have been organized and arranged into a form useful to people

Information is a corporate resource...

Attributes of Quality Information n Timely n complete n concise n relevant n accurate n precise n appropriate form

Business perspective on IS n an IS is an organizational and management solution, based on IT, to solve a business problem n to use IS effectively, must understand  organization - e.g. culture  knowledge workers - users of technology  management - diff. levels require diff. types of systems  role of IT within the organization

Sociotechnical Perspective n We will take a sociotechnical perspective on IT - the technology and the organization must mutually adjust to one another to achieve satisfactory fit task technology people structure

Different kinds of systems n Organizations and info. systems can be divided into four levels: – operational-level – knowledge-level – management-level – strategic-level

Organizational information systems provide: n knowledge-work support n support knowledge and data workers in an organization; help workers design products, distribute information, and cope with paperwork; fastest growing applications n operational support n monitor low-level activities and transactions of the organization

Organizational information systems provide: n management-level support n support management activities of monitoring, controlling, decision-making, and administrative activities of middle managers n executive-level support n support long-range planning activities of senior management

Six Major types of Systems n TPS transaction processing systems n MRS management reporting systems DSS decision support systems n EIS executive information systems n PSSprofessional support systems n OIS office information systems

1.TPS transaction processing systems  operational level  perform and record daily routine transactions necessary to conduct the business

2.MRS management reporting systems  Used by managers responsible for specific functions or processes in a firm  provide routine summary and exception reports  managers use these reports to help control their area of responsibility

3.DSS decision support systems  Designed to support individual and collective decision making  often use information from external sources  more analytical power than other types of systems

4.EIS executive information systems  strategic level of the organization  support long-term, strategic view  used by senior executives  easy access to summarized company data  incorporate external information on industry and economy

5.PSS professional support systems  Support performance of tasks specific to a given profession  For example  lawyers doing legal research  architects designing buildings  designers modeling a new automobile

6.OAS office information systems  support and help coordinate knowledge work in an office environment  emphasis on increased productivity  systems include , scheduling systems, word processing

7. Expert Systems (ES) n Branch of Artificial Intelligence n suggest a decision n based on a knowledge base (rather than a data base) n incorporate heuristics –informal “rules of thumb” n ES can be incorporated into all types of IS or can be used as stand-alone system

Information Architecture n particular form that IT takes in an organization to achieve goals n computer systems base -  HW, SW, data, telecommunications  operated by technical people

Information Architecture n Managers design an organization’s information architecture n decide how to arrange and coordinate the various computer technologies and business system applications to meet the information needs of each level of the organization –operational, knowledge, management, strategic n more details next lecture

10 Principal capabilities of IS n 1. Fast and accurate data processing with large-capacity storage and rapid communication between sites n 2. Instantaneous access to information n 3. Means of coordination n 4. Boundary spanning n 5. Support for decision making

10 Principal capabilities of IS n 6. Supporting organizational memory and learning n 7. Routinizing organizational practice n 8. Differentiation of products and services n 9. Modeling n 10. automation