Presentation on theme: "Information Systems in Business Lecture : 01 UOITC UOITC Business Information Technology Department Dr. Alla Talal Yassin."— Presentation transcript:
Information Systems in Business Lecture : 01 UOITC UOITC Business Information Technology Department Dr. Alla Talal Yassin
Vital component of successful businesses Helps businesses expand and compete Businesses use IS and IT To improve efficiency and effectiveness of business processes For managerial decision making For workgroup collaboration Why study Information Systems and Information Technology?
Objectives 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.
A system Is a set of interrelated components With a clearly defined boundary Working together to achieve a common set of objectives What is a system?
What is a System? Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Control Signals Feedback Signals Feedback Signals System Boundary
What is an Information System?
An organized combination of People Hardware Software Communications networks Data resources Policies and procedures That stores, retrieves, transforms, and disseminates information in an organization What is an Information System?
The Components of a Computer-Based Information System
Types of Information Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems Operations Support Systems Management Information Systems Decision Support Systems Executive Information Systems Management Support Systems Information Systems
Need of information systems Utilization of large quantity of data and information. Decision Support Data and information Information flexibility Information Security Information Sharing Smooth running of operations
IS is all the components and resources necessary to deliver information and functions to the organization IT is hardware, software, networking and data management In theory, IS could be paper based But we will focus on Computer-Based Information Systems (CBIS) Information System (IS) versus Information Technology (IT)
Computer-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 information Examples: a company’s payroll systems, order entry system, and inventory control systems
Basic Concepts 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.* ENVIRONMENT keyboard, mouse hardware data storage; processors for transforming data running software screen, printer hardware Data Transformed & Organized Data INPUT part PROCESSING part OUTPUT part Data are the heart of IS. Inputted data are different than outputted data. 22 of 17
Objectives 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
IS Knowledge Framework for Business Professionals : 24 of 17
Major Roles of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations
Foundation Concepts: fundamental behavioral, technical, business and managerial concepts Information Technology: Hardware, software, networks, data management and Internet-based technology Business Applications: Major uses of the IS in the organization Development Processes: How to plan, develop and implement IS to meet business opportunities Management Challenges: The challenges of effectively and ethically managing IT What should a Business Professional know about IS?
Support of business processes and operations. Support of decision making by employees and managers. Support of strategies for competitive advantage. Fundamental Roles of IS in Business
What is an Information System? Input of Data Resources Input of Data Resources Processing Data Processing Data Output of Information Products Output of Information Products Control of System Performance Storage of Data Resources
What does IS do for a business?
Principles of Information Systems, Ninth Edition Decision Making as a Component of Problem Solving (continued)
Trends in Information Systems
Developing IS Solutions
Information systems model
Components of an IS People Resources End users: the people who use the IS or the information from the IS IS specialists: the people who develop and operate IS Hardware Resources All physical devices used in information processing Machines, data media, peripherals Software Resources All information processing instructions including programs and procedures System software, application software and procedures
Classifications of IS by scope Functional business systems Focus on operational and managerial applications of basic business functions Examples: support accounting, finance or marketing Strategic information systems Help get a strategic advantage over its customers Examples: shipment tracking, e-commerce web systems Cross-functional information systems Systems that are combinations of several types of information systems Provide support for many functions
Measuring success of an IS Efficiency Minimize cost, time and use of information resources Effectiveness Support business strategies Enable business processes Enhance organizational structure and culture Increase the customer and business value What’s the difference between Efficiency and Effectiveness?
IS Activities Input of data resources Data entry activities Processing of data into information E.g., calculate, compare, sort, classify, summarize Output of information products Messages, reports, forms and graphic images Storage of data resources Data elements and databases Control of system performance Monitoring and evaluating feedback
Recognizing IS As a business professional, you should be able to look at an IS 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