Presentation on theme: "Information Systems in Business"— Presentation transcript:
1Information Systems in Business UOITCBusiness Information Technology DepartmentInformation Systems in BusinessDr. Alla Talal YassinLecture : 01
2Why study Information Systems and Information Technology? Vital component of successful businessesHelps businesses expand and competeBusinesses use IS and ITTo improve efficiency and effectiveness of business processesFor managerial decision makingFor workgroup collaborationYou might just as well ask why study accounting, finance, operations management, marketing, human resources, management.Most business majors include a class in IS.
9Objectives of Information systems The use of information systems facilitates better decision making in the company.management is able to review all the present practices and norms and formulate new ones for the future.Information systems are used across all realms and functions of the business.management is able to better control its people and processes and attain organizational goals.
10Is a set of interrelated components With a clearly defined boundary What is a system?A systemIs a set of interrelated componentsWith a clearly defined boundaryWorking together to achieve a common set of objectivesAlmost everything is a systemOne system can be made up of other systems or can be part of a bigger system
11What is a System? Environment Control by Management Output of Input of ManufacturingProcessInput ofRaw MaterialsOutput ofFinished ProductsEnvironmentOther SystemsControl byManagementControlSignalsFeedbackSystem Boundary
12What is an Information System? This is a simple definition that we will expand upon laterWhat’s an example?Smoke signals to transmit informationCard catalogs in a libraryBook bag with day planner, notebooks, that allows you organize inputs from lectures, presentations and discussions. The output is homework and good exam gradesCash register at restaurantOther examples?
13What is an Information System? An organized combination ofPeopleHardwareSoftwareCommunications networksData resourcesPolicies and proceduresThat stores, retrieves, transforms, and disseminates information in an organization
14The Components of a Computer-Based Information System
15Types of Information Systems TransactionProcessingSystemsProcessControlEnterpriseCollaborationOperationsSupportManagementInformationDecisionExecutiveInformation Systems
17Need of information systems Utilization of large quantity of data and information.Decision SupportData and informationInformation flexibilityInformation SecurityInformation SharingSmooth running of operations
18Information System (IS) versus Information Technology (IT) IS is all the components and resources necessary to deliver information and functions to the organizationIT is hardware, software, networking and data managementIn theory, IS could be paper basedBut we will focus on Computer-Based Information Systems (CBIS)Definition of IS from prior slide:An organized combination ofPeopleHardwareSoftwareCommunications networksData resourcesPolicies and proceduresThat stores, retrieves, transforms, and disseminates information in an organizationIn theory, an IS could be pencil and paper based
19Computer-Based Information Systems Computer-based information system (CBIS)A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into informationExamples: a company’s payroll systems, order entry system, and inventory control systems
22keyboard, mouse hardware data storage; A computer-based IS is a whole that consists of (1) data, (2) computer hardware and software (information technologies), and (3) procedures applied to data, software & hardware.*ENVIRONMENTkeyboard, mouse hardwaredata storage;processors for transforming datarunning softwarescreen, printer hardwareDataTransformed & OrganizedINPUT partPROCESSING partOUTPUT partDo not forget procedures! A procedure is a certain way of doing something, usually including steps in a certain sequence. This is similar to the concept of business process used in this course, but the latter is a broader concept and may include many procedures.Procedures are applied to data at the input point (e.g., formatting), to hardware (e.g., typing on a keyboard), and to the use of software (how to do these various tasks with data).Procedures are also called know-how (know-how-to-do). So, they are a particular kind of knowledge.Important: Know-how procedures of an IS are often work procedures. For example, when an accountant updates an account in an Accounting Information System (AIS), the AIS procedures he uses are the procedures of the accounting job. In other words, accounting procedures are coded in the AIS. Or, when a marketer determines groups of customers by using a Marketing IS (MktIS), the MktIS procedures she uses make the marketing job.Data are the heart of IS. Inputted data are different than outputted data.Basic Concepts
23Objectives of information system Information should be accurate, timely, right, right format, right people and to filter unwanted and unnecessary information.SMART Ratio: Specific, Measurable, Agreed, Realistic, and Time Specific.Judging the performance of the system.23 of 17
24IS Knowledge Framework for Business Professionals :
25Major Roles of Information Systems Support ofStrategicAdvantageManagerialDecision MakingBusiness Operations
26What should a Business Professional know about IS? Foundation Concepts: fundamental behavioral, technical, business and managerial conceptsInformation Technology: Hardware, software, networks, data management and Internet-based technologyBusiness Applications: Major uses of the IS in the organizationDevelopment Processes: How to plan, develop and implement IS to meet business opportunitiesManagement Challenges: The challenges of effectively and ethically managing ITRefers back to figure 1.2 on prior slideFoundation Concepts: Examples: general systems theory, competitive strategies. Covered in chapters 1, 2Information Technology: Covered in chapters 3-6Business Applications: Chapter 7: applications in functional areas, Chapter 8: electronic commerce applications and Chapter 9: decision makingDevelopment Processes: By both business professionals and IS specialists. Chapter 10.Management Challenges: Managing IT at the end user, enterprise and global levels of a business. Chapter 11 is security challenges and Chapter 12 is how to manage IT in global businesses.
27Support of business processes and operations. Fundamental Roles of IS in BusinessSupport of business processes and operations.Support of decision making by employees and managers.Support of strategies for competitive advantage.
28What is an Information System? Input ofDataResourcesProcessingOutput ofInformationProductsControl of System PerformanceStorage of Data Resources
29What does IS do for a business? Examples of business processes: record purchases, track inventory, pay employees, etc. Business would stop without such IS.Examples of decision making: what lines of merchandise need to be added, what kind of investment required.Examples of competitive advantage: put kiosk in store to connect to e-commerce website. Help gain advantage over competitor without such a kiosk.
30Decision Making as a Component of Problem Solving (continued) Principles of Information Systems, Ninth Edition
31Trends in Information Systems Note that while IS has expanded, they are still doing the same basic things that they’ve been doing.What has changed is: more integration of functions, greater connectivity across components, better use for maximum advantage of business and strategic opportunities
33Information systems model Major components of an information: people, hardware, software, data and networks.These components perform input, processing, output, storage, and control activities.
34Components of an IS People Resources Hardware Resources End users: the people who use the IS or the information from the ISIS specialists: the people who develop and operate ISHardware ResourcesAll physical devices used in information processingMachines, data media, peripheralsSoftware ResourcesAll information processing instructions including programs and proceduresSystem software, application software and proceduresHardware:Peripherals include keyboard, mouse, video screen, printer
35Classifications of IS by scope Functional business systemsFocus on operational and managerial applications of basic business functionsExamples: support accounting, finance or marketingStrategic information systemsHelp get a strategic advantage over its customersExamples: shipment tracking, e-commerce web systemsCross-functional information systemsSystems that are combinations of several types of information systemsProvide support for many functionsIn reality most systems are Cross-functional
36Measuring success of an IS EfficiencyMinimize cost, time and use of information resourcesEffectivenessSupport business strategiesEnable business processesEnhance organizational structure and cultureIncrease the customer and business valueWhat’s the difference between Efficiency and Effectiveness?
37IS Activities Input of data resources Data entry activitiesProcessing of data into informationE.g., calculate, compare, sort, classify, summarizeOutput of information productsMessages, reports, forms and graphic imagesStorage of data resourcesData elements and databasesControl of system performanceMonitoring and evaluating feedback
38Recognizing ISAs a business professional, you should be able to look at an IS and identifyThe people, hardware, software, data and network resources they useThe type of information products they produceThe way they perform input, processing, output, storage and control activities