1. 1 INTRODUCTION TO CORPORATE INFORMATION SYSTEMS IS524 BY CHANDRA S. AMARAVADI

2. 2 INTRODUCTION (PART I) Definition of Corporate Systems Types of IS & Evolution Roles of IS Characteristics

3. 3 DEFINITION OF CORPORATE INFORMATION SYSTEMS Corporate Information Systems: A collection of systems designed to fulfill the information/information processing needs of an organization. Information processing: collect, store, process, disseminate ORGANIZATION SYSTEM

4. 4 CUSTOMER PRODUCTION INFORMATION PROCESSING IN ORGANIZATIONS orders order fulfillment ACCOUNTING/ FINANCE raw materials SUPPLIERS SALES/ MARKETING INVENTORY availability

5. 5 THE EVOLUTION OF INFORMATION SYSTEMS Transaction processing Reporting systems Database management systems Decision support Office information systems Database systems AI based systems Executive information systems Strategic systems Enterprise information systems E-Commerce systems Knowledge Management systems BI systems (EIS) 1950’s 1970’s 1980’s 1990’s

6. 6 THE EVOLUTION OF INFORMATION SYSTEMS.. 1950’s1960’s1970’s1980’s TP Systems 1990’s-2000’s Reporting Systems Database Systems Enterprise Systems Expert Systems DSSExec. info. Systems BI Systems E-commerce Systems KM Systems OIS introduced because of problems with reporting integrated converted

7. 7 AN OVERVIEW OF THE DIFFERENT INFORMATION SYSTEMS Transaction processing systems: process business transactions Reporting systems: summarize transaction information Database management systems: systems to manage information Decision support systems: support analysis of data to aid in d.m. Executive information systems: systems to support executive d.m. BI: systems to provide execs with business intelligence (same as EIS) Office information systems: provide support to office workers (OIS) AI & expert systems: use artificial intelligence to duplicate human activity (in organizations). Strategic systems:systems which support the strategy of the organization and improve competitive advantage. Enterprise information systems: systems which support all functional areas, from marketing to production. E-commerce systems: systems for browsing, ordering, payment etc.

8. 8 ACRONYMS AI – Artificial Intelligence TP – Transaction Processing DSS – Decision Support Systems EIS -- Executive Information Systems BI – Business Intelligence ES -- Expert Systems ERP – Enterprise Resource Planning (same as Enterprise Systems) KM – Knowledge management Systems MSS – Management Support Systems OIS -- Office Information Systems

9. 9 POS – point of sale; dm – decision making Support Operations example POS, ATM Provide information/knowledge example KM systems Support decision making example DSS Support organization work (other than d.m) example KM system (same as above) Support strategy, organizational design/redesign example conferencing systems

10. 10 CLASSIFICATION OF CORPORATE SYSTEMS BI – Business Intelligence; DSS – Decision Support Systems; EIS – Executive Information Systems; ERP – Enterprise resource planning; GDSS – Group Decision Support Systems; KM – Knowledge Management; TP – Transaction processing; Type of Information System – Systems that: Examples Support operationsTP, ERP, E-Commerce Provide information/knowledgeDB/reporting, BI, KM Support decision makingDSS, BI, GDSS Support organizational work (other than decision making) KM, Expert Systems, OIS Strategic and organizational (org. design)Workflow systems, strategic systems Artificial Intelligence

11. 11 CHARACTERISTICS OF IS Used in all organizations Majority of applications are operational systems Rest are DSS etc. Most IS have database as a back end Type of users depend on type of system TP systems are being phased out (legacy systems) AI is becoming part of every other system DSS, BI, OIS customized from generic software Note: GL stands for Generation Language

12. 12 FOR DISCUSSION IT consists of information systems: T/F? DSS are most common IS: T/F? E-commerce systems are operational systems? Office Systems support decision making: T/F? What type of systems supply information? DSS evolved from EIS: T/F? A collection of systems to fulfill information processing needs is called __________ Following chart shows a “gas tax map” of the U.S. It illustrates an example of a display in a (an) __________ system.

13. 13 Perspectives on information systems Role of information systems IS strategy Development of IS INTRODUCTION (PART II)

14. 14 DEFINING INFORMATION SYSTEMS: PERSPECTIVES Systems, STS, Work System, Strategic Systems

15. 15 Any set of related elements (which are under consideration) working together towards the common purpose of transforming inputs into outputs Examples: transportation network, education, building... In the IS context: a system is any part (or whole) of the organization which satisfies the definition above THE SYSTEM CONCEPT

16. 16 SYSTEM CHARACTERISTICS boundaries inputs, processes & outputs subsystems life cycle Systems have characteristics: The systems concept is used to: understand systems analyze systems Processes Inputs Outputs

17. 17 SYSTEMS PERSPECTIVE How can we view a harbor as a system? A bank?

18. 18 INFORMATION SYSTEMS FROM SYSTEMS PERSPECTIVE data inputs/ outputs Outputs: reports/ Screens/ files BUSINESS PROCESSING Inputs: screens/ files The systems perspective provides a template for studying information systems.

19. 19 THE STS APPROACH Socio-technical system: A system based on reciprocal inter- relationships between humans and machines. To be successful, any IS implementation must consider the impact on work and power relationships. Org consists of systems. What systems? IS implementations can cause disruptions to ???? when implementing IS need to consider ??? any definition of a system should include ______ system systems should fit workplace rather than vice versa Organization

20. 20 ‘IS’ FROM STS PERSPECTIVE Processes InputsOutputs Information System Above is a model of information systems based on STS.

21. 21 THE WORK SYSTEM PERSPECTIVE “Custo- mers” “Products and Services” Business Process Participants ContextIT Resources InformationTechnology Information System Another perspective of an information system.

22. 22 THE WORK SYSTEM PERSPECTIVE Customers – beneficiaries of the IS i.e. users and their management. Products/services – the physical products/services provided by the IS. Processes – the steps performed within the IS e.g. taking orders. Participants – the people who perform the steps in the processes. Information – information used to perform the work. Technology – hardware, software etc. Context – the organizational, competitive, technical and regulatory realm within which the system operates IT Resources – refers to the IT department and leadership

23. 23 THE STRATEGIC SYSTEM PERSPECTIVE IS as a competitive weapon Started with classic cases of SABRE & AHS SABRE -- reservation system of AA AHS (BAXTER) -- system now classified as SCM. IS should support org. strategies Note: AA – American Airlines; AHS – American Hospital Supply, now Baxter AHS HOSPITAL

24. 24 DISCUSSION How do we view an ERP system from the system’s perspective? How do you compare system’s with STS? When does the STS perspective come into play? How is it applied? How do you compare STS with Work System perspective? Which is the most comprehensive perspective? Which perspective is applicable if Merck wants to use IT for its drug delivery process to get drugs faster to market than competitors? Why?

25. 25 IS STRATEGY & IMPACTS

26. 26 IS Strategy is to support corporate strategy e.g. use CRM systems to monitor customers e.g. use robots to cut mfg. costs IS implementations can have strategic impacts Such systems are called strategic systems Model of IT/IS impacts can be used to predict impacts identify IS that can cause them. IS STRATEGY & IMPACTS IS has many different roles most important is strategic

27. 27 Infrastructure Leadership Personnel Information Systems Improve mgmt. proc. Improve product/Svc. Improve admin. proc. COSTS, FIRM SIZE, CUST. BASE ETC. GENERAL MODEL OF IT/IS IMPACTS Improve operations

28. 28 GENERAL MODEL OF IT IMPACTS IT could be utilized to improve management, administrative and manufacturing processes or it could be used to impact the product itself or the “reach” of the organization. Improve operations – use IT to support the firm’s operations Improve product – primarily where information-based product/ service is possible, e.g. on-line car-service records. Improve management processes -- through “better information” to management via EIS, data mining etc. Improve administrative processes – through streamlining them via customized applications or through workflow automation (OIS).

29. 29 IS DEVELOPMENT

30. 30 IS development is an organized process for developing an information system. Consists of many stages and many actors. INFORMATION SYSTEMS DEVELOPMENT IS development refers to software development Stages in the development cycle (SDLC) are: planning, analysis, design, implementation, maintenance.

31. 31 THE IS DEVELOPMENT PROCESS Developers Users Business Analysts Project Manager (PM) System specs code Project plan Sr. Analyst or PM design Planning/feasibility AnalysisDesign Implementation Note: actors are shown in black, outputs in blue and stages in green

32. 32 DISCUSSION How can we analyze ‘order processing’ in an org.? Who are “customers”? Company uses IT to support drug development process. Company uses web technologies to develop an online store What happens to an organization if an ERP system is implemented? What activity/activities take place when specs are received? What is the role of a developer? Identify the framework that answers these questions and then answer each of the following questions:

33. 33 WHAT DOES THIS ILLUSTRATE? Management Organization (design) information Decisions.

34. 34 THE END