1. Chapter 11 Information Systems
Dr. Anita Goel
University of Delhi

2. Chapter-11: Information Systems
Contents
Data, Information, Knowledge
Characteristics of Information
What is a System
Information System (IS) - Components, Characteristics
Computer-Based Information Systems
Need for Efficient IS
Categories of IS
Operation Support System: TPS, OAS
Management Support System: MIS, DSS, EIS
Specialized System: Expert system, ERP, E-commerce
Careers in IS
Chapter-11: Information Systems

3. Data, Information, Knowledge
Data - raw facts, isolated values
Numbers, letters, characters, image, audio, video
Not organized. Does not convey meaning
Information - processed, manipulated, interpreted data
Created by defining, organizing relationship among data
Can be used for different purposes
Knowledge – inference, conclusion from information
8th
August
2008
China
Olympics
Olympics in China from 8th Aug 2008
I should plan trip to China around 8th August
Chapter-11: Information Systems

4. Characteristics of Information
Accurate
Must not contain any errors
Accessible
Access by authorized users
Complete
Must contain all important, related data
Economical
Both in terms of time and cost
Formatted
Should be available in desired format
Flexible
To be used for different purposes
Reliable
Dependable, generated using correct data
Relevant
Relevant, can be used by organization
Secure
Access allowed to authorized individuals only
Simple
Easily understandable, usable
Timely
Available when needed
Verifiable
Means to cross check
We all need information to make decisions and take actions, when needed.
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5. Chapter-11: Information Systems
Set of components that work together to achieve common goal
Accepts input, processes it, produces output
Composed of one or more subsystems
Two types
Closed system: Stand-alone system. Does not interact with other systems
Open system: Interacts with other systems
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6. Chapter-11: Information Systems
Set of interrelated components
Collect, manipulate, disseminate data & information, provide feedback to meet an objective
Uses resources: People, hardware, software, data, networks to perform input, processing, output, storage and control activities
E.g. ATM, railway reservation system, movie ticket reservation system
Needed both by people, business organizations
People: For entertainment and enlightenment
Organizations: To support decision making, coordination, problem solving, control
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7. Chapter-11: Information Systems
Input
Gathering & capturing raw data
Process
Transforms data into useful output.
Manipulate data using mathematical, statistical tools
Output
Generation, presentation of useful information.
In form of documents, reports
Components of IS
Feedback
Output that makes changes to input, processing activities
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8. Chapter-11: Information Systems
Characteristics of IS
Environment
Anything outside the system
Boundary
Separates system from environment
Input
Data from environment to system
Output
Information from system to environment
Components
Subparts of system
Interrelationships
Association between components
Interface
Interaction between components
Performance of IS
Efficiency (what is produced/what is consumed),
Effectiveness (extent to which the system attains goals)
Types
Manual, computerized (Computer-based IS)
Chapter-11: Information Systems

9. Characteristics of IS Environment Interrelationships Boundary
Component A
Component C
Inputs
Outputs
Information is a dynamic resource, it is constantly changing!
Component B
Component D
Interface
Chapter-11: Information Systems

10. Computer-Based Information System (CBIS)
Use computer, telecommunication technology
Uses hardware, software, database, people, telecommunication, procedures for collection, manipulation, storage, processing of data into information
Take raw data as input, process it, produce information as output
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11. Chapter-11: Information Systems
Components of CBIS
Hardware: computer devices - keyboard, monitor, processor, printer
Software: computer programs
Database: organized collection of data, consisting of related data files
People: Work with CBIS
Procedures: Strategies, policies, methods, rules
Telecommunication, Network and Internet: To connect computers, computer devices
E.g. e-commerce, e-banking, e-governance, e-learning, Internet advertising
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12. Chapter-11: Information Systems
Need for Efficient IS
Provides opportunity to do business in new way, gain huge profits, market shares
Facilitate acquisition, transformation, distribution of information. Improves decision making, enhances organizational performance, increases profitability
For strategic planning in competitive world. Allows changing structure, creating new services, improving existing services
Helps to better manage and secure critical data
Improves integration and work processes
For managing, controlling operations of organization located in different countries
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13. Chapter-11: Information Systems
Categories of IS
IS provide support at all levels of organization, in different functional areas
A pyramid divided both horizontally and vertically
Vertical divisions: Functional areas of organization
E.g. sales, marketing, accounting, human resource, manufacturing
Horizontal divisions: Operational level of organization, hierarchically from base of pyramid to top
E.g. low level, middle level, top level
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14. Categories of IS (contd..)
High Level Operations
Middle Level Operations
Low Level Operations
EIS
MIS
DSS
TIS
Sales
Marketing
Accounting HR
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15. Categories of IS (contd..)
Operations Support System
Transaction Processing System (TPS)
Office Automation System (OAS)
Management Support System
Management Information System (MIS)
Decision Support System (DSS)
Executive Information System (EIS)
Specialized information systems
Expert Systems,
Enterprise Resource Planning (ERP)
E-commerce system
Chapter-11: Information Systems

16. Operations Support System
Main function: Transaction processing
Provides information about day-to-day activities of organization
Support operations of organization, keeps track of resources, transactions
E.g.
Bank: keeps track of current balance of customer
Manufacturing unit: keeps track of inventory of items
Sales unit: keeps track of number of units of each item sold
Kinds: TPS, OAS
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17. Transaction Processing System (TPS)
Transaction: basic activity performed during business operation
E.g. withdrawal of money from bank, booking ticket for airline, selling of goods to customer
Organized collection of people, procedure, software, database, devices for recording business transaction
Records business transactions, generates documents related to transaction, automates data handling
Increases transaction processing speed, enhances productivity, simplifies processes
For different areas: Payroll TPS, Sales TPS, Marketing TPS
Chapter-11: Information Systems

18. Office Automation System (OAS)
Supports automation of tasks in office. Facilitates communication, both within office, between office & environment - managing documents, sending messages, arranging meetings, scheduling projects
Uses word processors, desktop publishing system, spreadsheets, presentation packages, personal database systems, note-taking systems
Includes communication systems for transmitting messages, documents, images, video, voice.
Uses network, Internet for , voice mail, web sites, teleconferencing
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19. Management Support System
Assists managers at different levels in organization, in controlling, management of business
Provide reports
summary report, sales report, customer balance report
Assist managers in decision making process
generates projected reports like projected sales report
Provides information to executives
about operations, growth, profits, performance
Provides detailed report specifying internal details
Kinds: MIS, DSS, EIS
Chapter-11: Information Systems

20. Management Information System (MIS)
Collection of people, procedures, software, databases, devices that provides information to managers & decision makers
Generates reports
Summary report: statistical information to managers
Exception report: about activities different from normal functioning
Detailed report: operational level reports
Reports
scheduled (periodic: weekly, monthly, quarterly)
ad-hoc (on-demand, whenever required by managers)
Focus: Operational efficiency
Chapter-11: Information Systems

21. Decision Support System (DSS)
Collection of people, procedures, software, databases, devices that support problem-specific decision making
Support middle level managers. Applies logical, mathematical models, interactions to solve problems
User-friendly, interactive
Uses data from TPS, MIS, external sources
Provides comparison of alternatives, recommendation of preferred option
Provide models, tools for simulation, optimization to managers, to evaluate from alternatives before decision making
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22. Executive Information System (EIS)
Provides generalized computing & communication environment to senior managers to support decisions
Provides summarized information in convenient form
Designed to facilitate access to information quickly, effectively, for senior managers
Used for identifying problem, trends, opportunity
Uses data from TPS, MIS, external sources
Has menu driven user friendly interfaces, interactive graphics to help visualization, telecommunication links to connect to external information
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23. Specialized Information System
Are both for organizational and individual use
Help organizations and individuals achieve goals
Different kinds
Expert Systems
Enterprise Resource Planning (ERP)
E-commerce
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24. Chapter-11: Information Systems
Expert Systems
AI: people, procedures, hardware, software, data, knowledge needed to develop computer systems that display characteristics of intelligence
An applied area of AI. Knowledge-based system
Two components: knowledge base, inference engine
knowledge base stores information, data, rules, cases, relationships
inference engine gets information and relationships from knowledge base, provides answers & predictions the way human expert does
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25. Expert System: Applications
Used in areas where need to
capture, preserve irreplaceable human expertise
provide expertise that is expensive or rare
share wisdom of human experts with large number of people
Used to explore new business possibilities, increase overall profitability, reduce costs
Provide information related to classification, diagnosis, process control, scheduling, planning
E.g. antilock braking system, television, plant layout, manufacturing, credit granting, stock picking
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26. Enterprise Resource Planning (ERP)
Computer software that manages, coordinates resources, information, functions of business from shared data stores
E.g. coordinate planning, inventory control, production, ordering
Integrate functions like human resources, supply chain management, customer relations management, financial, manufacturing functions
Helps to streamline processes, workflows, allow data sharing, improve efficiency & productivity levels, improves customer service
E.g. SAP (Systems, Applications and Products)
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27. Chapter-11: Information Systems
E-Commerce
Involves business transaction executed electronically between parties
Uses Internet & Web for doing business
, workflow software tools, Intranet, e-payment services
Involves buying, selling of products, services electronically
Parties involved - B2B, B2C, C2C
Web sites like on-line market places - sell & buy items, advertise product, establish newsgroups & blogs, post job-oriented resumes
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28. Chapter-11: Information Systems
Career in IS
IS department controls, coordinates, manages information system of organization
Career opportunities
Chief Information officer (CIO)
LAN administrators, System & Network operators
System analyst and Programmers
Network Analysts, Application Analysts
Database Administrator, Systems Administrators
Application Designers, Management Analysts
Business Systems Analyst, Designer
Information Systems Auditor, Database Architect
ERP Analyst, Web Content Designer
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29. Chapter-11: Information Systems
Thank You
Chapter-11: Information Systems