1. HUANG Lihua, Fudan University Session 2 Concept of Information Systems PART I Foundations of Information Systems in Business

2. HUANG Lihua, Fudan University Feb., - July., 2005 What is a SYSTEM? A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. –Components and their attribution Systems structure: relationship between components Subsystems –Environment and Boundary –Input and Output S1 S2 S3 S4 Systems structure Subsystems Systems Boundary Environment Systems Input Output

3. HUANG Lihua, Fudan University Feb., - July., 2005 Abstract Concept of a Systems INPUTOUTPUTPROCESS FEEDBACK

4. HUANG Lihua, Fudan University Feb., - July., 2005 Example: a manufacturing system INPUT of raw materials OUTPUT of finished products Manufacturing PROCESS Control by Management Control signals Control signals Feedback signals Feedback signals System Boundary Environment

5. HUANG Lihua, Fudan University Feb., - July., 2005 Pottery Company Organization Systems INPUT OUTPUTPROCESS Control by Management Control signals Control signals Feedback signals Feedback signals System Boundary Environment

6. HUANG Lihua, Fudan University Feb., - July., 2005 Systems Category in Pottery Company Systems Organization System Function Systems –Manufacturing System –Sell System –Procurement System –HR System –Finance System –Product design System –……. Infrastructure System –Plant system –Machine system –…… Information system –Informal IS, formal IS, formal computer-based IS Logistics System, Capital system

7. HUANG Lihua, Fudan University Feb., - July., 2005 What is an Information Systems? An information system can be any organized combination of people, hardware, software, communications network, and data resources that collects, transforms, and disseminates information in an organization

8. HUANG Lihua, Fudan University Feb., - July., 2005 Components of an Information System Control Input Process Memory Output Data People Software network computer

9. HUANG Lihua, Fudan University Feb., - July., 2005 Information Systems In Pottery Company System: Information Product: People resources hardware resources Software resources Data resources Network resources Specialists End users Machines Media Programs Procedure Data entities and attribution Communicati on hardware Communicati on software

10. HUANG Lihua, Fudan University Feb., - July., 2005 Information Systems Activities Input of Data –Manual input by key, scanning, sound, image,… Processing of Data into Information –Calculate, sort, find, report, disseminate…… Output of Information Products –Report, display, suggestion, …… Storage of Data Resource –Database, data file, maintenance, ….. Control of System Performance –Audit, ……

11. HUANG Lihua, Fudan University Feb., - July., 2005 DATA & INFORMATION & KWONLEDGE DATA: –Streams of raw facts representing events such as business transactions, simple observations of the state of the world Easily structured Easily captured on machines Often quantified Easily transferred

12. HUANG Lihua, Fudan University Feb., - July., 2005 DATA & INFORMATION & KWONLEDGE INFORMATION: –Data endowed with relevance and purpose, or, Clusters of facts meaningful & useful to human beings in processes such as making decisions. Requires unit of analysis Need consensus on the meaning Human mediation necessary

13. HUANG Lihua, Fudan University Feb., - July., 2005 Data & Information

14. HUANG Lihua, Fudan University Feb., - July., 2005 DATA & INFORMATION & KWONLEDGE KNOWLEDGE –Information from the human mind (includes reflection, synthesis, context ), which guide human behavior in correct way. –Information synthesized and contextualized to provide value. Hard to structure Difficult to capture on machining Hard to transfer

15. HUANG Lihua, Fudan University Feb., - July., 2005 Wrap Up Concepts –A System –An information system –5 resource components in an information systems –A activities in an information System –Data, information and knowledge

16. HUANG Lihua, Fudan University Feb., - July., 2005 Assignment for Session 2 P. 33: Review Quiz –Write down in your book, not submit Preparation for session 3 –Reading Materials Textbook: chapter 1 –Group Case study: Cisco Systems Architecture What is the legacy system problem at Cisco? How big a problem is it? How important is the ERP to solution of the problem and to the overall architecture? Do you see the ERP component as something that will be undertaken by some, most or all companies at they build their information age IT architecture? What are the essential components of Cisco’s Strategic I-Net? What is the role of Cisco’s Strategic I-Net?