1. Introduction to Information Systems
ISYS 363
David Chao

2. 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
An organizational solution, based on information technology, to challenges posed by the environment.

3. Fundamental Roles of IS in Business

4. Types of Information Systems
Operations Support Systems
Efficiently support day-to-day operations
Management Support Systems
Provide information and support for effective decision making by managers
Strategic Information Systems
Help get a strategic advantage over customer

5. Operations Support Systems
Transaction Processing Systems, TPS
Record and process business transactions
Any exchange of money or other benefits between two or more parties
Order processing, purchasing
General ledger, accounts payable, accounts receivable
Large amount of data, high processing speed, high reliability, accuracy, and security (fault tolerant)
Data: internal, historical, detailed

6. Current Trend in Operations Support Systems
Enterprise Resources Planning ERP
for the internal world of a company
Customer Relationship Management CRM
for the external world of a company.

7. Enterprise Resources Planning, ERP
ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business.
Integrated
Cross-functional
Shared database
Major vendors:
SAP, Oracle, Microsoft

8. Typical Functional Structure

9. Silo Effect
Focusing on functional objectives without regard to process objectives
Optimizing functional goals vs. process goals
Process execution requires
Communication and coordination among functions

10. Enterprise Systems
Enterprise systems (ES) support end-to-end processes
Investments in ES have provided
Increased profitability
Increased productivity
Competitive edge

11. Business Processes
Sequence of tasks or activities that produce desired outcomes
Key processes
Procurement
Fulfillment
Production
Processes interrelated with other processes
Processes may have sub-processes

12. A Generic Business Process

13. A Procurement Process

14. A Fulfillment Process

15. Fulfillment Process Steps

16. SAP Demo
Client #: 290
User: GBIFAC-01

17. Customer Relationship Management, CRM
Front office operations:
Direct interaction with customers, e.g. phone calls, , online services etc.
Call Center
Sales Force Automation
tracks all contact that has been made with a given customer, the purpose of the contact, and any follow up that might be required.
Sales Intelligence
Cross-selling/Up-selling/Switch-selling
Example: SalesForce.Com

18. 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

19. Management Information Systems
Facilitate management control by producing summarized reports that compare actual performance against planned performance on a regular and recurring basis.
Management control: Ensuring that performance meets established standards.
Serve middle management
Provide reports on firm’s current performance, based on data from TPS

20. Sample MIS Report

21. Sample MIS Report

22. Other Examples: Budget control: LYTD VS YTD Sales comparison
LYTD VS YTD Sales comparison

23. Budget Control Report

25. Sales Comparison

27. Decision support systems
Serve middle management
Support nonroutine decision making
E.g. What is impact on production schedule if December sales doubled?
Often use external information as well from TPS and MIS

28. Information and Management Decisions
A decision is a selection between several courses of action:
Penalty for bad decision
Information helps reduce uncertainty:
Incomplete information
Information systems improve decision-making effectiveness by providing decision makers with information related to the decisions for which they are responsible.

29. Components of DSS
Database: Current & Historical Data from Many Sources.
Internal and external data
Model base: Collection of Mathematical & Analytical Building Blocks
Interface for analysis: What - If Questions; visual dashboard

30. Using Decision Support Systems
What-IF Analysis:Observing how changes to selected variables affect other variables.
Sensitivity Analysis: Observing how repeated changes to a single variable affect other variables.
Goal-Seeking Analysis:Set a target value for a variable, and then repeatedly changes other variables until the target is achieved.
Example: Benefit.Xls
Optimization Analysis
Simulation: IBM Innov8 2.0

31. Components of an Information System
Information technology
People
Database
Procedure

32. People Information specialists End-user:
programmer, system analyst, database administrator, etc.
End-user:
Menu-level end users
Command-level end users
End-user programmer
End-user computing and management

33. Ethical Responsibilities
What uses of IT might be considered improper or harmful to other individuals or society?
What is the proper business use of the Internet or a company’s IT resources?
How can you protect yourself from computer crime?

34. Workplace PCs May Not Be Very Private
Don’t be fooled: It may be personal, but it is not private.
Cyber-surveillance: The person most likely to be spying on you is your boss. 27% of businesses surveyed by the American Management Association said they review employee .
Reasons:
Productivity
Liability
Network performance

35. Database A group of related files Support business operations
Provide information

36. An example of database application
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37. Major Functions of Database Management
Creating a database
Analysis: Entity-Relationship Diagram
Design: Design file structure
Implementation
Accessing a database
Updating a database

38. Database Security Logical protection: Physical protection
Illegal access
Illegal update
Virus
Physical protection

39. Internet firms flocks to store data in blast-proof bunker
Some biggest companies are running their Internet operations on systems installed in a 300-foot-deep nuclear blast-proof bunker.

40. Weird Data Center Location

41. Procedures
Procedure: A step-by-step process or a set of instructions for accomplishing specific results.
Operations
Backup and Recovery
Security
Development

42. Operations Procedure: A procedure that describes how a computer system or application is used, how often it can be used, who is authorized to use it, and where the results of processing should go.
Backup Procedure: A procedure that describes how and when to make extra copies of information or software to protect against losses.
Recovery Procedure: An action taken when information or software must be restored.
Security Procedure: A procedure designed to safeguard data centers, communications networks, computers, and other IT components from accidental intrusion or intentional damage.
Development Procedure: A procedure that explains how IT professionals should describe user needs and develop applications to meet those needs.