Introduction to Information Systems · Introduction toIntroduction to Information Systems Dr....

WORLD MARITIME UNIVERSITY

Introduction toIntroduction to Information Systems

Dr. Gunnar StefanssonProgramme Director – The IT-university in Göteborg

and Chalmers University of TechnologyDiv. of Logistics and Transportation

Göteborg, Sweden

gunnar.stefansson @ chalmers.se

Logistics Information Systemsand Technology, 6 - 10 October 2008 Dr. Gunnar Stefansson

g @


Introduction

• Information system (IS)– Set of interrelated components: collect, manipulate, p , p ,

disseminate data and information– Provide feedback to meet an objectivej– Examples: ATMs, airline reservation systems, course

reservation systems

Logistics Information Systemsand Technology, 6 - 10 October 2008 Dr. Gunnar Stefansson2


Information Concepts: Data VersusInformation Concepts: Data Versus Information

• Data: raw facts– Alphanumeric, image, audio, and video

• Information– Organized collection of factsg– Have value beyond the facts themselves



Data Versus Information (continued)



Relation between dataRelation between data, information and knowledgeg

Accumulatedknowledge

Knowledge

Format, filtersummarize

Interpret,decide, actInformationData Results


(Source: Alter 1996)


The Characteristics of Valuable Information



The Characteristics of ValuableThe Characteristics of Valuable Information (continued)



The Components of an Information System



Computer-Based Information Systems

• Manual versus computerized information systems • Computer-based information system (CBIS)p y ( )

– Hardware, software, databases, telecommunications, people, and procedures

– Collect, manipulate, store, and process data into information



Computer Based Information SystemsComputer-Based Information Systems (continued)



Business Information Systems

• Most common types of information systems used in business organizations:– Electronic and mobile commerce systems– Transaction processing systems– Management information systems– Decision support systems– Specialized business information systems



Electronic and Mobile Commerce

• E-commerce: any business transaction executed electronically between parties such as:electronically between parties such as:– Companies (B2B)

Companies and consumers (B2C)– Companies and consumers (B2C)– Consumers and other consumers (C2C)

Business and the public sector– Business and the public sector– Consumers and the public sector



Transaction Processing Systems andTransaction Processing Systems and Enterprise Resource Planning

• Transaction: business-related exchangePayments to employees– Payments to employees

– Sales to customersP t t li– Payments to suppliers

• Transaction processing system (TPS)– A collection of people, procedures, software, databases,

devicesR d l t d b i t ti– Records completed business transactions



Transaction Processing Systems andTransaction Processing Systems and Enterprise Resource Planning (continued)

The inputs (numbers of employee hours worked and pay rates) goThe inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)



Enterprise Resource Planning

• Integrated programs that manage all business operationsC di t l i i t t l d ti d• Coordinate planning, inventory control, production, and ordering



Information and Decision Support Systems:Information and Decision Support Systems: Management Information Systems

• Management information system (MIS)f f– A collection of people, procedures, software, databases,

devicesP id i f ti t /d i i k– Provides information to managers/decision makers

• Primary focus is operational efficiency• MIS outputs

– Scheduled reports– Demand reports– Exception reports



Management Information SystemsManagement Information Systems (continued)



Decision Support Systems

• Decision support system (DSS)– A collection of people, procedures, software, databases, p p , p , , ,

devices– Supports problem-specific decision makingpp p p g

• Focus is on decision-making effectiveness



Decision Support Systems (continued)



Specialized Business Information Systems

• Artificial intelligence (AI) systems• Expert systems• Virtual reality systems • Other special-purpose business information systems



Systems Development

• Systems development– Creating or modifying existing business systems

• Systems investigation: gain an understanding of the problem to be solved or opportunity to be addressed

• Systems analysis: define problems and opportunities of the existing systemg y



Systems Development (continued)

• Systems design: determine how the new system will work to meet the business needs defined during systems analysis

• Systems implementation: create or acquire the various system components defined in the design step, assembling them, and putting the new system into

tioperation• Systems maintenance and review: check and modify

th t th t it ti t t h ithe system so that it continues to meet changing business needs



Organizations and Information Systems

• Organization: a collection of people and other resources established to accomplish a set of goals

• An organization is a system– Inputs: resources (materials, people, money)– Outputs: goods or services



Organizations and Information SystemsOrganizations and Information Systems (continued)




• Value chain: a series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service

• Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities

• Downstream management: management of finished product storage, outbound logistics, marketing and sales,

d t iand customer service



Organizations in a Global Society

• As companies rely on virtual structures and outsourcing to a greater extent, businesses can operate around the world

• Challenges to operating in a global society– Every country has a set of customs, cultures, standards,

politics, and laws– Language barriers– Difficulty in managing and controlling operations in different

countries



Competitive Advantage

• Significant, long-term benefit to a company over its competitioncompetition

• Ability to establish and maintain a competitive advantage i it l t ’is vital to a company’s success



Strategic Planning for CompetitiveStrategic Planning for Competitive Advantage

Change the structure of the industry• Change the structure of the industry• Create new products or services• Improve existing products or services• Use information systems for strategic purposes



Performance-Based Information Systems

• Consider both strategic advantage and costsU d ti it t i t t (ROI) t t• Use productivity, return on investment (ROI), net present value, and other measures of performance



Three Stages in the Business Use ofThree Stages in the Business Use ofInformation Systems



Productivity

• Output achieved divided by input required• Higher level of output for a given level of input means

greater productivity



Return on Investment and the Value ofReturn on Investment and the Value of Information Systems

• Earnings growth• Market share• Customer awareness and satisfaction• Total cost of ownership


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