CSE 441 Information Technology Saturday 12:00 PM Monday 9:00 AM Md. Shahrear Iqbal Lecturer Department of CSE BUET

Foundations of Information Systems in Business

Information system vs Information Technology Information Systems  is a large umbrella referring to systems designed to create, store, manipulate, or disseminate information. Information technology technology dealing with information processing, storage, and transmission. This includes in particular computer technology and the different communication technologies (electronic, radiowave, optical etc.).

Information system vs Information Technology Information technology can be considered as a subset of information systems. It deals with the technology part of any information system, and as such deals with hardware, servers, operating systems and software etc. A system is always a combination of people, machines, processes and technology. And IT is just a part of the system. Since a part can never be identical to whole, information systems is never going to be identical to information technology. Designing of a system takes much more than technology as people and processes are also involved.

Information system vs Information Technology ‘Information systems’ is in essence bridging the gap between business and the ever growing field of computers. On the other hand, information technology is all about managing technology and making use of it for the betterment of business.

Foundation Concepts Fundamental behavioral, technical, business, and managerial concepts about the components and roles of information systems. Example: Basic information systems concepts derived from general systems theory

Business Applications The major uses of information systems for the operations, management, and competitive advantage of the E-Business enterprise Includes electronic business, commerce, collaboration, and decision making using the Internet, intranets, and extranets

Development Processes How business professionals and information specialists plan, develop, and implement information systems to meet E-Business opportunities using several strategic planning and application development approaches

Management Challenges The challenges of effectively and ethically managing E-business technologies, strategies, and security at the end user, enterprise, and global levels of a business

Information Technologies Major concepts, developments, and management issues in information techology Hardware, software, networks, data resource management, and Internet based technologies Our main focus

What is an Information System? Simple Definition: It can be any organized combination of people, hardware, software, communications networks and data resources that collects, transforms, and communicates information in an organization. Hardware – physical device Software – processing instructions and procedures Communications channels – networks Stored Data – data resources

What is a System? Generic Def’n: IS Def’n A group of interrelated or interacting elements forming an unified whole IS Def’n A group of interrelated components working together toward a common goal by accepting inputs and accepting outputs in an organized transformation process

Basic System Components Input Capturing and assembling elements that enter the system to be processed. Ex: raw materials, energy, data Processing Involves transformation processes that convert input into output. Ex. Manufacturing processes, mathematical calculations Output Involves transferring elements that have been produced by a transformation process to their ultimate destination. Ex: finished products to their human users

Additional Components Feedback Data about the performance of a system. Ex: Data about sales performance is feedback to a sales manager Control Monitoring and evaluating feedback and control components to determine whether a system is moving toward the achievement of its goal. Ex. Reassigning salespeople after evaluating their performance System makes necessary adjustments to input and processing to make sure produces desired output

Other Characteristics Environment Other systems that the system interacts with Subsystem A system that is a component in a larger system Interface Means in which a system is connected to another Open system A system that interacts with other systems in its environment Adaptive System A system that has the ability to change itself or its environment in order to survive

Diagram of a System Environment Other Systems Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Feedback System Boundary

Components of an IS Four major concepts People, hardware, software, data and networks are the five basic resources of information systems People resources include end users, IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and networks include communications media and networks

Components of an IS Four major concepts continued… Data resources are transformed by information processing activities into a variety of information products for end users Information processing consists of input, processing, output, storage, and control activities

Information System Resources

Information System Resources People Resources End Users – the people who use an information system or the information it produces. Ex: Accountants, salespeople, customers IS Specialists – the people who develop and operate information systems based on the requirements of end users. Ex: programmers, analysts, system operators

Information System Resources Hardware Resources Machines, such as computers and other devices, and media, such as paper, disks Computer Systems such as the personal computer (desktop), mainframe, or laptop Computer peripherals such as keyboard, mouse, monitor, scanner, printer, disks

Information System Resources Software Resources Programs – sets of operating instructions that direct and control computer hardware Procedures – sets of information processing instructions that people need

Information System Resources Software Resources continued System Software – such as operating system that supports the operations of a computer system. Ex. Windows 98 Application Software – programs that direct processing for a particular use of computers by end users. Ex. Excel Procedures – operating instructions for people who will use an IS. Ex. Instructions for filling out a form.

Information System Resources Data Resources Types of data Text data Image data Audio data Data Storage Databases – hold processed and organized data Knowledge bases – hold knowledge in a variety of forms such as facts, rules, and case examples of successful business practices

Information System Resources Data Resources continued… Data Vs. Information Data – raw facts or observations, objective measurements of the characteristics of entities such as people, places, things and events Information – data that has been converted to a meaningful and useful context for specific end users.

Information System Resources Data Resources continued… Data is subjected to a value-added process Its form is aggregated, manipulated and organized Its content is analyzed and evaluated It is placed in a proper context for a human user Called data processing or information processing

Information System Resources Data Resources continued… West Charles Mann 1200 100 79154 TM Shoes Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100

Information System Resources Network Resources Communication media – Twisted pair wire, coaxial cable, fiber-optic cable and microwave, cellular, and satellite technologies Network support – people and all of the hardware, software, and data technologies that directly support the operation and use of a communication network.

Information System Activities Input of Data Resources Data about business transactions and other events must be captured and prepared for processing Input typically takes the form of data entry activities such as recording and editing End users typically enter data directly into a computer system or record it on some physical media such as a paper form

Information System Activities Processing of Data into Information Data is subjected to processing activities such as calculating, comparing, sorting, classifying and summarizing This organizes, analyzes, and manipulated data, turning it into information The quality of data stored in an information system must be maintained by a continual process of correcting and updating activities

Information System Activities Output of Information Products The goal of information systems is the production of appropriate information products for end users Examples are messages, reports, forms and graphic images which may be provided by video displays, audio responses, paper products, and multimedia

Information System Activities Information Quality Information that is outdated, inaccurate, or hard to understand is not meaningful, useful, or valuable to end users Information products should have characteristics, attributes, and qualities that make the information more valuable to the end users Information has three dimensions of time, form, and content

Information System Activities Information Quality continued..

Information System Activities Name Field Payroll Record File Personnel Database Storage of Data Resources Data and information are retained in an organized manner for later use Stored data is commonly organized into fields, records, files, and databases

Information System Activities Control of System Performance An IS should produce feedback about its input, processing, output, and usage activities This feedback must be monitored and evaluated to determine if the system is meeting performance standards Activities must be adjusted so that proper information products are produced for end users

Business Processes and Operations Roles of IS in Business Support of Strategic Advantage Business Decision Making Business Processes and Operations

History of Information Systems Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce 1950-1960 1960-1970 1970-1980 1980-1990 1990-2000 - TPS Information Systems - Ad hoc Reports Computing Exec Info Sys Expert Systems SIS Business & -Internetworked E-Business &

The E-Business Enterprise The use of Internet technologies to inter-network and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.

The E-Business Enterprise E-Business enterprises rely on information technologies such as the Internet to: Reengineer and revitalize internal business processes Implement electronic commerce systems among businesses and their customers and suppliers Promote enterprise collaboration among business teams and workgroup

The E-Business Enterprise Enterprise collaboration systems Involve the use of groupware tools to support communication, coordination, and collaboration among members of networked teams and workgroups Electronic Commerce The buying and selling, marketing and servicing of products, services and information over a variety of computer networks

The E-Business Enterprise Types of networks The Internet Intranets – the network existing inside an enterprise Extranets – networks existing between enterprises

The Internetworked Business Manufacturing and Production Engineering & Research Accounting, Finance, and Management Suppliers and Other Business Partners Procurement, Distribution, and Logistics Advertising Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets

Types of Information Systems Transaction Processing Systems Process Control Enterprise Collaboration Operations Support Management Information Decision Executive Information Systems

Operations Support Systems Role is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases Examples Transaction Processing Systems – record and process data from business transactions in one of two ways – batch process and real-time process Process Control Systems – monitor and control physical processes such petroleum refining Enterprise Collaboration Systems – enhance team and workgroup communications and productivity

Management Support Systems Focus on providing information and support for effective decision making by management Examples Management Information Systems – provide information in forms of reports and displays to managers and other professionals Decision Support Systems – giver direct computer support during the decision making process Executive Information Systems – provide critical information from a wide variety of internal and external sources in an easy to use displays

Other Classifications Expert Systems – provide expert advice for operational chores like equipment diagnostics Knowledge Management Systems – support the creation, organization, and distribution of business knowledge to employees and managers Functional Information Systems – focus on operational and managerial applications in support of basic business functions such as accounting Strategic Information Systems – apply information technology to a firm’s products, services, or business practices to gain a competitive advantage

Developing Information Systems Development Cycle

Managerial Challenges of IT Information systems and their technologies must be managed to support the business strategies, business processes, and organizational structures and culture of an enterprise to increase its customer and business value

Managerial Challenges of IT Business Strategies Business Processes Business Needs Customer Relationships Business Partners Suppliers Business Customers Ethical Considerations Potential Risks? Potential Laws? Possible Responses? IS Human Resources IS Development IT Infrastructure IS Performance Organization Structure and Culture User Acceptance

Ethics and IT Ethical Responsibilies What use of IT may be considered improper, irresponsible, or harmful to other individuals or society? How to protect yourself from computer crime? Use of Internet in the business environment?

The IS Function A major functional area of business that is as important to business success as the functions of accounting, finance, operations management, marketing, and human resource management An important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction A major source of information and support needed to promote effective decision making by managers and business professionals

The IS Function A vital ingredient in developing competitive products and services that give an organization a strategic advantage in the global marketplace A dynamic, rewarding, and challenging career opportunity for millions of men and women A key component of the resources, infrastructure, and capabilities of today’s e-business enterprises

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