Information System 1

Information System – Primary Purpose Data – Elementary description of things, events, activities, and transactions that are recorded, classified, and stored, but not organized to convey any specific meeting Information – Data that has been organized so that they have meaning and value to the recipient Knowledge – Information that has been organized and processed to convey understanding, experience and expertise as they apply to a current problem or activity 2 Collects data, processes it into information then converts information into knowledge for a specific purpose.

Activity 1 3

Basic component of ISs: 1.Hardware: it’s a set of devices such as processor, monitor, keyboard, and printer. Together, they accept data and information as an input, process them, and display them as an output. 4

Basic component of ISs: 2.Software: it’s a set of programs that instruct the hardware to process data. 3.A database: is a collection of related files, tables, relations, and so on, that stores data and the associations among them. 5

Basic component of ISs: 4.A network: is a connecting system that permits the sharing of resources by different computers. It can be wireless. 5.Policies and Procedures: are the set of instructions about how to combine the above components in order to process information and generate the desired output. 6

Basic component of ISs: 6.People: are those individuals who work with the system, interface with it, or use its output. How would these information relevant to your project? 7

IS Activities Input of data resources – Data entry activities Processing of data into information – Calculations, comparisons, sorting, and so on Output of information products – Messages, reports, forms, graphic images Storage of data resources – Data elements and databases Control of system performance – Monitoring and evaluating feedback 8

Recognizing Information Systems As professional of EMIS, you should be able to look at an information system 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 9

Major Capabilities of Information Systems 1.Facilitate work in hazardous environments. 2.Facilitate interpretation of vast amounts of data. 3.Perform high-speed, high-volume, numerical computations. 4.Store huge amounts of information in an easy-to-access, yet small space. 5.Provide fast, accurate, and inexpensive communication within and between organizations. 6.Allow quick and inexpensive access to vast amounts of information worldwide. 10

Major Capabilities of Information Systems 7.Enable communication and collaboration anywhere, any time. 8.Increase the effectiveness and efficiency of people working in groups in one place or in several locations. 9.Vividly present information that challenges the human mind. 10. Automate both semiautomatic business processes and manually done tasks. 11.Facilitate global trade. 12.Can be wireless, thus supporting unique applications anywhere. 13.Accomplish all of the above much less expensively than when done manually. 11

All ISs have a purpose and social context. 12

Purpose A typical purpose is to provide solution to a (business) problem. Example: – To coordinate internal units – To collaborate – To improve performance 13

Social context The social context of the system consists of the values and beliefs that determine what is admissible and possible within the culture of the people and groups involved. 14

Foundations of Information Systems 15

Foundation Concepts Why study information systems and information technology? – Vital component of successful businesses – Helps businesses expand and compete – Improves efficiency and effectiveness of business processes – Facilitates managerial decision making and workgroup collaboration 16

What is a System? A group of interrelated or interacting elements forming a unified whole 17

What is a System? A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives 18

What is a System? A system is… – 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 19

Type of information systems Manual information systems Informal information systems Formal information systems Computer-based information systems (CBIS) 20

System Concepts: A Foundation System concepts help us understand… – Technology: hardware, software, data management, telecommunications networks – Applications: to support inter-connected information systems – Development: developing ways to use information technology includes designing the basic components of information systems – Management: emphasizes the quality, strategic business value, and security of an organization’s information systems 21

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Other System Characteristics If a system is one of the components of a larger system, it is a subsystem – The larger system is an environment Several systems may share the same environment – Some may be connected via a shared boundary, or interface Types of systems… – Open – Adaptive 23

System types SimpleComplex Has few components, and the relationship or interaction between elements is uncomplicated and straightforward Has many elements that are highly related and interconnected OpenClosed Interact with its environmentHas no interaction with the environment StableDynamic Undergoes very little change over timeUndergoes rapid and constant change over time AdaptiveNon-adaptive Is able to change in response to changes in the environment Is not able to change in response to changes in the environment PermanentTemporary Exists for a relatively long period of timeExists for only relatively short period of time 24

What is an Information System? An organized combination of… – People – Hardware and software – Communication networks – Data resources – Policies and procedures This system… – Stores, retrieves, transforms, and disseminates information in an organization 25

Information Technologies Information Systems – All the components and resources necessary to deliver information and functions to the organization – Could be paper based Information Technologies – technological side of IS – Hardware, software, networking, data management Our focus will be on computer-based information systems (CBIS) 26

Recognizing Information Systems (Group Discussion) We will try to recognize and visualized IS in several organizations in terms of following characters: – 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 27

What Should Business Professionals Know? 28

Classification By organizational level By the type of support provided 29

Organization Level Strategic Planning Managerial Control Operational Control 30

31 Orga. A System Orga. B System Orga. C System Human Resources ISFinance IS Product IS Administrative IS Interorganizational Systems Organizational systems Departmental systems

Fundamental Roles of IS in Organization 32 O'Brien, James; Marakas, George 2008

Trends in Information Systems 33 O'Brien, James; Marakas, George 2008

Types of Information Systems Operations Support Systems – Efficiently process business transactions – Control industrial processes – Support communication and collaboration – Update corporate databases Management Support Systems – Provide information as reports and displays – Give direct computer support to managers during decision- making 34

Purposes of Information Systems 35 O'Brien, James; Marakas, George 2008

Operations Support Systems What do they do? – Efficiently process business transactions – Control industrial processes – Support communications and collaboration – Update corporate databases 36

Types of Operations Support Systems Transaction Processing Systems – Record and process business transactions – Examples: sales processing, inventory systems, accounting systems Process Control Systems – Monitor and control physical processes – Example: using sensors to monitor chemical processes in a petroleum refinery Enterprise Collaboration Systems – Enhance team and workgroup communication – Examples: , video conferencing 37

Two Ways to Process Transactions Batch Processing – Accumulate transactions over time and process periodically – Example: a bank processes all checks received in a batch at night Online Processing – Process transactions immediately – Example: a bank processes an ATM withdrawal immediately 38

Management Support Systems What do they do? – Provide information and support for effective decision making by managers Management information systems Decision support systems Executive information systems 39

Types of Management Support Systems Management Information Systems (MIS) – Reports and displays – Example: daily sales analysis reports Decision Support Systems (DSS) – Interactive and ad hoc support – Example: a what-if analysis to determine where to spend advertising dollars Executive Information Systems (EIS) – Critical information for executives and managers – Example: easy access to actions of competitors 40

Other Information Systems Expert Systems – Provide expert advice – Example: credit application advisor Knowledge Management Systems – Support creation, organization, and dissemination of business knowledge throughout company – Example: intranet access to best business practices 41

Measuring IT Success Efficiency – Minimize cost, time, and use of information resources Effectiveness – Support business strategies – Enable business processes – Enhance organizational structure and culture – Increase customer and business value 42

Developing IS Solutions 43 O'Brien, James; Marakas, George 2008

Components of an IS 44 O'Brien, James; Marakas, George 2008

Information System Resources People Resources – Specialists – End users Hardware Resources – Machines – Media Software Resources – Programs – Procedures 45

Information System Resources Data Resources – Product descriptions, customer records, employee files, inventory databases Network Resources – Communications media, communications processors, network access and control software Information Resources – Management reports and business documents using text and graphics displays, audio responses, and paper forms 46

ACTIVITY 3 47