Foundations of Foundations of Information SystemsInformation Systems

in Businessin Business

SystemSystem® SystemSystem

A system is an interrelated set of business procedures used A system is an interrelated set of business procedures used within one business unit working together for a purposewithin one business unit working together for a purpose

A system has nine characteristicsA system has nine characteristics A system exists within an environmentA system exists within an environment A boundary separates a system from its A boundary separates a system from its environmentenvironment

ProcessingInput

Storage

Output

System

Characteristics of a SystemCharacteristics of a System ComponentsComponents Interrelated ComponentsInterrelated Components BoundaryBoundary PurposePurpose EnvironmentEnvironment InterfacesInterfaces InputInput OutputOutput ConstraintsConstraints

Information ConceptsInformation ConceptsData:Data: Streams of raw facts representing events occurring in organizations Streams of raw facts representing events occurring in organizations

or the physical environment before they have been organized and or the physical environment before they have been organized and arranged into a form that people can understand and use.arranged into a form that people can understand and use.

Information:Information: Clusters of facts meaningful and useful to human beings in the Clusters of facts meaningful and useful to human beings in the

processes such as making decisionsprocesses such as making decisions® KnowledgeKnowledge Data and/or information organized and processed to convey Data and/or information organized and processed to convey

understanding, experience, accumulated learning and expertise as understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.they apply to a current problem or activity.

® Characteristics of Information Characteristics of Information TimelyTimely - has it arrived in time to affect a decision-making process? - has it arrived in time to affect a decision-making process?Relevant Relevant - does it pertain to the problem at hand?- does it pertain to the problem at hand?ConciseConcise - is it to the point? - is it to the point?Accurate Accurate - Is it “correct enough” to be used?- Is it “correct enough” to be used?Complete Complete - is it thorough and not lacking any components?- is it thorough and not lacking any components?

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What is an Information System?® An organized combination of…

PeopleHardware and softwareCommunication networksData resourcesPolicies and procedures

® This system…Stores, retrieves, transforms, and disseminates

information in an organization.Definition:

An information system (IS) is typically considered to be a set of interrelated elements or components that collect (input), manipulate (processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

Components of an IS

People Reso

urcesEnd Users and IS

Specialists

Software Resources

Programs and Procedures

Har

dwar

e R

esou

rces

Machinesand media

Network ResourcesCommunications Mediaand Network Support

Data R

esources

Data andKnowledge

Bases

Input ofData

Resources

Processingof Data’into info

Output of Info

Products

Storage of Data Resources

Control of System Performance

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Information System Resources® People Resources

Specialists End users

® Hardware Resources Machines Media

® Software Resources Programs Procedures

® 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

Information Systems and Component Parts

An Information System:

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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)

The purpose of the computer based information system is to provide managers (and various categories of employees) with appropriate kind, of information to help them make decisions. It is used to collect and analyze data from all departments and is designed to provide an organization’s management with up to date information anytime.

® Formal System System resting on accepted and fixed definitions of data and

procedures, operating with predefined rules.

CBIS consists of following applications

Management Information Systems. Decision Support Systems. The Virtual Office. Knowledge Based Systems.

The fundamental work of CBIS is to manage information in an efficient way such that it can be utilized by the managers effectively to solve problems.

IS Vs IT

INFORMATION TECHNOLOGY

Hardware

Software

Databases

Networks

Other related components

are used to buildINFORMATION SYSTEMS

Payroll System

Inventory System

Marketing System

Customer Service System

INPUT OUTPUTPROCESS

FEEDBACK

Activities in an Information System

® Input:The capturing or collection of raw data from within the

organization or from its external environment for processing in an information system

® Processing:The conversion, manipulation and analysis of raw input

into a form that is more meaningful to humans® Output:

The distribution of processed information to the people who will use it or to the activities from which it will be used.

® Feedback:Output that is returned to the appropriate members of the

organization to help them evaluate or correct input

Activities in an Information System

Why Information System?® Globalization:

Management and control in a global marketplaceCompetition in world marketGlobal Work groupsGlobal delivery systems

® Transformation of Industrial EconomicsKnowledge and information based economicsNew products and servicesKnowledge: a central productive and strategic assetsTime based competitionShorter product lifeTurbulent or disordered environmentLimited employment knowledge base

® Transformation of the EnterpriseFlatteningDecentralizationFlexibilityLocation independenceLow transaction and coordination costsEmpowermentCollaborative work teamwork

® Emergence of the Digital FirmDigitally enabled relationship with customers, suppliers and

employmentCore business processes accomplished via digital networksDigital managementRapid sensing and responding to environment changes

Why Information System?

Functions of an Information System

The IS function is…A major functional area of businessAn important contributor to operational efficiency,

employee productivity, morale, customer service and satisfaction

A major source of information and support for decision making

A vital ingredient in developing competitive products and services in the global marketplace

A dynamic and challenging career opportunityA key component of today’s networked business

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What Should Business Professionals Know?

Business professionals 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.

Information Systems Framework

® Foundation Concepts Fundamental concepts about the components and roles of

information systems.® Information Technologies

Major concepts, developments, and management issues in information technology.

® Business Applications The major uses of information systems for operations,

management, and competitive advantage.® Development Processes

How business professionals and information specialists plan, develop, and implement information systems.

® Management Challenges The challenge of managing ethically and effectively. Emphasizes the quality, strategic business value, and security of

an organization’s information systems.

Information Systems Framework

A Business as a System

Information systems relate to the following business objectives:

Achieving operational excellenceDeveloping new products and servicesAttaining customer intimacy and serviceImproving decision makingPromoting competitive advantageEnsuring survival

Fundamental Roles of IS in Business

Business Information Systems is:

The study of office suites, object oriented programming, data base management, and multimedia decision.

Understanding and mobilizing technology in business.

Applying analytical techniques to business problems.

Understanding business concepts, terminology and culture.

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Systems Development Life Cycles

Systems InvestigationProblems and opportunities are identified

Systems AnalysisExisting systems and work processes are studied

Systems DesignDefines how the information system will do what it must do to solve the problem.

Systems Development Life Cycles (Cont..)

Systems ImplementationSystem components are assembled and the new or modified system is placed into operation.

Systems Maintenance and ReviewEnsures the system operates and is modified to keep up with business changes.

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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