Information Systems (IS) Rev: Feb, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management Engineering POSTECH

Contents ※ Discussion Questions 1 Information Systems 2 1) Introduction 2) Components of IS 3) General role of IS 2 Information Systems in Management Problem types The relationship between IS and Management The role of IS in Management 3 Case Study

Discussion Questions (1/2) Explain the difference between data and information. In a larger extent, what is the difference among data, information, decision aids, and knowledge ? (Refer to No. 6 PPT) Refer to THREE key attributes of information. Are the attributes of information mutually independent ? What is the least important component of IS among 6 components? What is the ultimate purpose of information systems ? DSS more focuses on solving (structured, semi-structured, unstructured) problem than (structured, semi-structured, unstructured). Justify your answer. Take an example of a semi-structured model and suggest how to solve it using an IS. By using IS, what were benefits E-mart gained?

Discussion Questions (2/2) Case 1 in textbook (pp. 5~6, Chapter 1) How do information technologies contribute to the business success of the companies depicted in the case? Provide an example from each company, explaining how the technology implemented led to improved performance The Bryan Cave law firm used BI technology to improve the availability, access, and presentation of existing information; this allowed them to provide tailored, innovative services to customers What other professions could benefit from a similar use of these technologies, and how? Discussion questions in textbook (p. 39, Chapter 1) Refer to the Real Word Case on eCourier, Cablecom, and Bryan Cave in the chapter. Jay Bregman, CTO and cofounder of eCourier, notes the company hopes their innovative use of technology will become a differentiator in their competitive market. More generally, to what extent do specific technologies help companies gain an edge over their competitors? How easy or difficult would be to imitate such advantages? Why do big companies still fail in their use of information technology? What should they be doing differently?

The transformation process 1. Information Systems 1) Introduction What is Information? Definition of Data Raw facts, typically about physical phenomena or business transactions Specifically, objective measurements of the attributes of entities such as number, name, etc. Definition of Information Facts that are organized and arranged in a meaningful manner. Data vs. Information (statistical analysis) Attributes of information Accuracy Timeliness Relevance Completeness Reliability Simplicity Verifiability Flexibility Economy Data Information The transformation process

What is a System? Definition of System Input Processing Output 1. Information Systems 1) Introduction What is a System? Definition of System 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 Input Capturing and assembling elements that enter the system to be processed Processing Transformation process converts input into output Output Transferring transformed elements to their ultimate destination

What is an Information System? 1. Information Systems 1) Introduction What is an Information System? Definition of Information System A set of interrelated components which are to collect, process, store, and distribute information to support decision making and control in an organization Information System

What Does an Information System Do? 1. Information Systems 1) Introduction What Does an Information System Do? An information system performs three general activities It accepts data from sources as input It acts on data to process(produce) information : information generating system The system outputs the information for the user, manager or staff member Information System Process Input of data Information generating Output Third Step First Step Second Step

Components of Information System (1/3) 1. Information Systems 2) Components of IS Components of Information System (1/3) Does an Information System Need Computer? 95% 5% Yes No As the volume of work grows procedures increase in complexity, activities become more interrelated, improvements can be gained by introducing computer assistance Small size management

Components of Information System (2/3) 1. Information Systems 2) Components of IS Components of Information System (2/3) A set of people, data, procedure to provide useful information Information System People Data Procedure Communication of information Management of activities Decision making What is an information system? An information system can be defined as a set of people, data, procedure to provide useful information. Roles of Information system can be summarized as follows. First, the communication of information. Second, the management of activities. Third, the decision making.

Components of Information System (3/3) 1. Information Systems 2) Components of IS Components of Information System (3/3) E.g. Components of a Loan Information System Fund on deposit Loan balance Balance financial plan Loan portfolio Banking database Processor Computer based loan information systems Economic database Information supplied by applicant for loan Financial status Loan details Employment status Employment data Economic data

Why do we study Information Systems?(1/2) 3) General role of IS Why do we study Information Systems?(1/2) Collect, distribute, analyze Data Why? Get information Why? Remove uncertainty Why? Make a good decision Why? Store knowledge

Why do we study Information Systems?(2/2) 3) General role of IS Why do we study Information Systems?(2/2) Vital component of successful businesses Improves efficiency and effectiveness of business processes Strengthens competitive position in rapidly changing marketplaces Facilitates managerial decision making & workgroup collaboration

Benefits and Uses of Information Systems 3) General role of IS Benefits and Uses of Information Systems Added Value to Products (Goods & Services) Higher-quality Products Improved health care & communications Reduced labor requirements & costs Increased efficiency & productivity Superior financial decision making, control over, operations, and managerial decision making Fewer errors Greater accuracy Better Safety & Service Product Labor Quality Management

Fuzzy Output User dependent Output 2. Information Systems in Management 1) Problem types Problem Types Input Problem Structure Definite Output Structured Problem Input Problem Structure Fuzzy Output Unstructured Problem Input Problem Structure User dependent Output Semi-structured Problem User Interaction User

What types of Information Systems Exist? 2. Information Systems in Management 2) The relationship between IS and Management What types of Information Systems Exist? IS Recognition about Information The advent Explanation TPS(Transaction Processing System) Efficiency Computer To process data about transactions MIS(Management Information System) Control Database To enable people to make decision(action) DSS(Decision Support System) Decision PC and Model based To assist managers with unique strategic decisions that relatively unstructured ESS(Executive Support System) Strategic Resource Executive Support To assist top-level executive ES(Expert System) Knowledge AI To mimic the decision process of a human expert ERP(Enterprise Resources Planning) Management IT To integrate management information across an entire organization Work Group Support System Communication To exchange information (ex: EDI, WP)

2. Information Systems in Management 2) The relationship between IS and Management Evolution of IS 1950 1960 1970 1980 1990 2000~ TPS(Transaction Processing System) MIS(Management Information System) DSS(Decision Support System) ESS(Executive Support System) ES(Expert System) ERP(Enterprise Resources Planning) WGSS(Work Group Support System)

A Business Perspective on Information Systems 2. Information Systems in Management 3) The role of IS in Management A Business Perspective on Information Systems Organizations Technology Management Information Systems

Technical & Behavioral Approaches to MIS 2. Information Systems in Management 3) The role of IS in Management Technical & Behavioral Approaches to MIS Computer Science Operations Research Sociology Political Psychology Management MIS Behavioral Approaches Technical

Case Study Domestic Case  Click Here

Reference O’Brien & Marakas, “Introduction to Information Systems – Fifteenth Edition”, McGraw – Hill, Chapter 1, pp. 3~42 Euiho Suh, “Introduction to Information Systems (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory) Euiho Suh, “Information & Management (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)