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Information System

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Information System – Primary Purpose

Data Elementary description of things, events, activities, and

transactions that are recorded, classified, and stored, but not organized to convey any specific meeting

Information Data that has been organized so that they have meaning and

value to the recipient

Knowledge Information that has been organized and processed to

convey understanding, experience and expertise as they apply to a current problem or activity

Collects data, processes it into information then converts information into knowledge for a specific purpose.

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Activity 1

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Basic component of ISs:

1. Hardware: it’s a set of devices such as processor, monitor, keyboard, and printer.

Together, they accept data and information as an input, process them, and display them as an output.

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Basic component of ISs:

2. Software: it’s a set of programs that instruct the hardware to process data.

3. A database: is a collection of related files, tables, relations, and so on, that stores data and the associations among them.

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Basic component of ISs:

4. A network: is a connecting system that permits the sharing of resources by different computers. It can be wireless.

5. Policies and Procedures: are the set of instructions about how to combine the above components in order to process information and generate the desired output.

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Basic component of ISs:

6. People: are those individuals who work with the system, interface with it, or use its output.

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IS Activities Input of data resources

Data entry activities Processing of data into information

Calculations, comparisons, sorting, and so on

Output of information products Messages, reports, forms, graphic images

Storage of data resources Data elements and databases

Control of system performance Monitoring and evaluating feedback

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Recognizing Information Systems As professional of EMIS, you should be

able to look at an information system and identify… The people, hardware, software, data, and

network resources they use The type of information products they

produce The way they perform input, processing,

output, storage, and control activities

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Major Capabilities of Information Systems

1. Facilitate work in hazardous environments.2. Facilitate interpretation of vast amounts of

data.3. Perform high-speed, high-volume, numerical

computations. 4. Store huge amounts of information in an

easy-to-access, yet small space.5. Provide fast, accurate, and inexpensive

communication within and between organizations.

6. Allow quick and inexpensive access to vast amounts of information worldwide.

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Major Capabilities of Information Systems

7. Enable communication and collaboration anywhere, any time.

8. Increase the effectiveness and efficiency of people working in groups in one place or in several locations.

9. Vividly present information that challenges the human mind.

10. Automate both semiautomatic business processes and manually done tasks.

11. Facilitate global trade.12. Can be wireless, thus supporting unique applications

anywhere.13. Accomplish all of the above much less expensively

than when done manually.

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All ISs have a purpose and social context.

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Purpose

A typical purpose is to provide solution to a (business) problem.

Example:To coordinate internal unitsTo collaborateTo improve performance

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Social context

The social context of the system consists of the values and beliefs that determine what is admissible and possible within the culture of the people and groups involved.

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Foundations of Information Systems

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Foundation Concepts

Why study information systems and information technology? Vital component of successful businesses Helps businesses expand and compete Improves efficiency and effectiveness of

business processes Facilitates managerial decision making and

workgroup collaboration

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What is a System?

A group of interrelated or interacting elements forming a unified whole

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What is a System?

A set of interrelated components With a clearly defined boundary Working together To achieve a common set of

objectives

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What is a System?

A system is… A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives By accepting inputs and producing outputs In an organized transformation process

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System Concepts: A Foundation

System concepts help us understand… Technology: hardware, software, data

management, telecommunications networks Applications: to support inter-connected

information systems Development: developing ways to use

information technology includes designing the basic components of information systems

Management: emphasizes the quality, strategic business value, and security of an organization’s information systems

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Cybernetic System

All systems have input, processing, and output

A cybernetic system, a self-monitoring, self-regulating system, adds feedback and control: Feedback is data about the performance of

a system Control involves monitoring and evaluating

feedback to determine whether a system is moving toward the achievement of its goal

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Other System Characteristics If a system is one of the components of a

larger system, it is a subsystem The larger system is an environment

Several systems may share the same environment Some may be connected via a shared

boundary, or interface Types of systems…

Open Adaptive

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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

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Information Technologies

Information Systems All the components and resources necessary

to deliver information and functions to the organization

Could be paper based Information Technologies

Hardware, software, networking, data management

Our focus will be on computer-based information systems (CBIS)

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What Should Business Professionals Know?

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Fundamental Roles of IS in Business

O'Brien, James; Marakas, George 2008

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Trends in Information Systems O'Brien, James; Marakas, George 2008

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Types of Information Systems Operations Support Systems

Efficiently process business transactions Control industrial processes Support communication and collaboration Update corporate databases

Management Support Systems Provide information as reports and displays Give direct computer support to managers

during decision-making

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Purposes of Information Systems

O'Brien, James; Marakas, George 2008

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Operations Support Systems

What do they do?Efficiently process business

transactionsControl industrial processesSupport communications and

collaborationUpdate corporate databases

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Types of Operations Support Systems Transaction Processing Systems

Record and process business transactions Examples: sales processing, inventory systems,

accounting systems

Process Control Systems Monitor and control physical processes Example: using sensors to monitor chemical processes in a

petroleum refinery Enterprise Collaboration Systems

Enhance team and workgroup communication Examples: email, video conferencing

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Two Ways to Process Transactions

Batch ProcessingAccumulate transactions over time

and process periodicallyExample: a bank processes all checks

received in a batch at night

Online ProcessingProcess transactions immediatelyExample: a bank processes an ATM

withdrawal immediately

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Management Support Systems

What do they do?Provide information and support for

effective decision making by managers• Management information systems• Decision support systems• Executive information systems

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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

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Other Information Systems

Expert SystemsProvide expert adviceExample: credit application advisor

Knowledge Management SystemsSupport creation, organization, and

dissemination of business knowledge throughout company

Example: intranet access to best business practices

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Measuring IT Success

EfficiencyMinimize cost, time, and use of

information resources

EffectivenessSupport business strategiesEnable business processesEnhance organizational structure and

cultureIncrease customer and business value

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Developing IS Solutions

O'Brien, James; Marakas, George 2008

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Components of an IS

O'Brien, James; Marakas, George 2008

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Information System Resources People Resources

Specialists End users

Hardware Resources Machines Media

Software Resources Programs Procedures

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Information System Resources Data Resources

Product descriptions, customer records, employee files, inventory databases

Network Resources Communications media, communications

processors, network access and control software

Information Resources Management reports and business

documents using text and graphics displays, audio responses, and paper forms

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ACTIVITY 3