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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 units– To collaborate– To 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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Type of information systems

• Manual information systems

• Informal information systems

• Formal information systems

• Computer-based information systems (CBIS)

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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 – technological side of IS– Hardware, software, networking, data management

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

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Recognizing Information Systems (Group Discussion)

• We will try to recognize and visualized IS in several organizations in terms of following characters: – 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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What Should Business Professionals Know?

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Classification

• By organizational level• By the type of support provided

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Organization Level

Strategic Planning

Managerial Control

Operational Control

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Orga. A

System

Orga. B

System

Orga.C

System

Human Resources ISFinance IS

Product IS

Administrative IS

Interorganizational Systems

Organizational systems

Departmental systems

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Fundamental Roles of IS in Organization

O'Brien, James; Marakas, George 2008

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Trends in Information SystemsO'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 transactions– Control industrial processes– Support communications and collaboration– Update 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 Processing– Accumulate transactions over time and process

periodically– Example: a bank processes all checks received in a

batch at night

• Online Processing– Process transactions immediately– Example: 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 Systems– Provide expert advice– Example: credit application advisor

• Knowledge Management Systems– Support creation, organization, and dissemination

of business knowledge throughout company– Example: intranet access to best business

practices

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Measuring IT Success

• Efficiency– Minimize cost, time, and use of information

resources

• Effectiveness– Support business strategies– Enable business processes– Enhance organizational structure and culture– Increase 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