1. POSTECH Strategic Management of Information Systems Lab. 1 / 13 Introduction to Information Systems IMEN 381

2. POSTECH Strategic Management of Information Systems Lab. 2 / 13 Contents  Introduction  Trend in Business and Management  What is an Information System?  What Does an Information System Do?  Does Information System Need Computers?  What Types of Information System Exist?

3. POSTECH Strategic Management of Information Systems Lab. 3 / 13 Introduction Information System Information System

4. POSTECH Strategic Management of Information Systems Lab. 4 / 13 Trend in Business and Management Business and Management Business and Management Global Customer Information Technology  Blurring of industry boundaries  Deregulation of industries  Faster pace of business  Increasing foreign competition  Global business community  An information society  Increasing complexity of management  Interdependence of organization units  Improvement of productivity  Availability of computers for end-users  Recognition of information as a resource driven

5. POSTECH Strategic Management of Information Systems Lab. 5 / 13 What is an Information System?(1/2) A set of people, data, procedure to provide useful information Information System People Data Procedure Communication of information Management of activities Decision making

6. POSTECH Strategic Management of Information Systems Lab. 6 / 13 What is an Information System?(2/2) Computer based loan information systems Banking database Economic database Fund on deposit Loan balance Balance financial plan Loan portfolio Employment data Economic data Processor Information supplied by applicant for loan Financial status Loan details Employment status Components of a Loan Information System

7. POSTECH Strategic Management of Information Systems Lab. 7 / 13 What Does an Information System Do?  An information system performs three general activities  It accepts data from sources as input  It acts on data to process(produce) information : information generating system  The system outputs the information for the user, manager or staff member Input of data Information generating Output First StepSecond StepThird Step

8. POSTECH Strategic Management of Information Systems Lab. 8 / 13 Does an Information System Need Computer? 95%5% YesNo As the volume of work grows  procedures increase in complexity,  activities become more interrelated,  improvements can be gained by introducing computer assistance Small size mana- gemen -t

9. POSTECH Strategic Management of Information Systems Lab. 9 / 13 What types of Information Systems Exist?(1/4) IS Recognition about Information The adventExplanation TPS(Transaction Processing System) EfficiencyComputer To process data about transactions MIS(Management Information System) ControlDatabase To enable people to make decision(action) DSS(Decision Support System) Decision PC and Model based To assist managers with unique strategic decisions that relatively unstructured Types of Information Systems

10. POSTECH Strategic Management of Information Systems Lab. 10 / 13 What types of Information Systems Exist?(2/4) IS Recognition about Information The adventExplanation ESS(Executive Support System) Strategic Resource Executive Support To assist top-level executive Work Group Support System Communication To exchange information (ex : EDI, WP) ES(Expert System)KnowledgeAI To mimic the decision process of a human expert Types of Information Systems

11. POSTECH Strategic Management of Information Systems Lab. 11 / 13 What types of Information Systems Exist?(3/4) 195019601970198019902000~ TPS (Transaction Processing System) MIS (Management Information System) IPS (Information Processing System) DSS (Decision Support System) ESS (Executive Support System) EIS (Executive Information System) ES (Expert System) ?

12. POSTECH Strategic Management of Information Systems Lab. 12 / 13 What types of Information Systems Exist?(4/4) LevelIS TopEIS HighDSS MiddleMIS/IPS LowTPS Organization Triangle to explain the relationship between the organizational structure and IS

13. POSTECH Strategic Management of Information Systems Lab. 13 / 13 Summary  Today Information Systems touch every aspects of Biz.  The effective use of information systems in management builds on a vision.  A computer is a useful and powerful tool in Information Systems.  Types of Information Systems are TPS, MIS, IPS, DSS, ESS, EIS and ES.