System Analysis and Design 3. Information systems Program: BSCS II (Advent Semester – 2014) Lecturer: Rebecca Asiimwe Email: rasiimwe@technology.ucu.ac.ug

Information systems What is an Information Systems? Computer- based vs. Manual systems Who uses Information Systems Types of Information Systems

Information Information is an organizational resource which must be managed as carefully as other resources Costs are associated with information processing Information processing must be managed to take full advantage of its potential To support and achieve bullet one and three above, we need information systems.

What is an Information system A set of interrelated components that work together to collect, process, store and distribute information to support decision making and control in an organization. Information system is an arrangement of components that are integrated to accomplish the purpose of fulfilling the information needs of an organization.

Why do organizations have Information Systems? To make operations efficient For effective management To gain a competitive advantage To support an organization's long-term goals

Information systems and Decisions

Information Systems Input, processing, storage and output are the activities in an IS that manipulate the information an organization needs. Input – Captures raw data from both the internal & external environments. Processing – Converts this raw data into a meaningful form Storage – storing /keeping data permanently on storage devices Output – transfers the information (processed data) to the people who will use it or to the activities for which it will be used.

Computer Based Vs. Manual ISs Information systems can either be Computer Based or Manual Manual systems: Paper based systems - don't need electricity to work. It is much more difficult for someone to steal information from a paper based system (provided it is stored safely) than it is for hackers to destroy or break into confidential records in a computer based system. They don't get viruses!

Computer Based Vs. Manual ISs Computer Based information systems : A set of hardware, software, database, telecommunications, people, and procedures that work together to collect, manipulate, store and process data into information.

Categories Information systems fall into one of the following eight categories: Transaction Processing Systems (TPS) Office Automation Systems (OAS) Knowledge Work Systems (KWS) Management Information Systems (MIS) Decision Support Systems (DSS) Expert Systems (ES) Group Decision Support Systems (GDSS) Executive Support Systems (EES)

IS as a part of a work system How work is performed by people and technology People, who enter, process and use information PEOPLE WORK PRACTICES INFORMATION SYSTEM Formatted data, text, images and sounds Hardware and software that process information INFORMATION INFORMATION TECHNOLOGY

Building Blocks of an Information System The components are grouped into five; People- users, managers and developers Data – raw material used to create useful information Activities-business activities ,data processing and information generating activities that support the business activities Network- the distribution of other building blocks to useful locations and communication and coordination between those locations Technology- the hardware and software that supports the other building blocks

Building Block-PEOPLE Most vital building block There are many roles for people in Information Systems. Systems are built by people and for the people System Owners, System users, System designer, System builder

Building Block- PEOPLE System Owners- are information system’s sponsors and chief advocates. They are usually responsible for budgeting the money and time to develop and support the system and acceptance of the system System Users- are people who use the Information System on a regular basis- capturing, validating, entering, responding to and storing data and information

Examples of System Users Clerical workers; book keeper, clerks, office workers Technical and professional staff- business and industrial specialists Supervisors-lowest level of Manager Middle managers- short term(tactical) planning, organizing and controlling and decision making Executive managers- long term (strategic) planning and control for the business Pyramid illustration of the system Users

Building Block- PEOPLE System Designers -translate users’ business requirements and constraints into technical solutions. They design components like databases, inputs, outputs, screens, networks and programs that will meet system users’ requirement System Builders - Construct the information system based on design specifications.

Building Block- DATA Data is raw, unorganized, discrete potentially-useful facts and figures that are later processed to produce information that must have value. In information systems, ones information may be another person’s data

Building Block-ACTIVITIES Information systems should do something useful Activities define the functionality of an information system We have business and information system activities Business activities- day-to-day processes that support an organization's purpose, mission ,goal and objectives Information System activities –IS processes that support business activities Different representations of activities are switched to different people

Activities Information systems provide different levels of support for different business functions and different users The functions are aligned with the information workers who typically use those functions thus the different types of information systems as will be discussed in later slides.

Building block- NETWORK This looks at the distributions structure of people, data, activities and technology for suitable business location and movement of data between these locations The intention of networking is to provide the cooperate processing between systems, computers and people

Building Block- TECHNOLOGY The base of Information Systems is Technology We have different kinds of technology Data technology- to capture and manage data resources Processing technology- to support business and Information System activities Communication Technology- to interconnect data and process technology at different locations

Types of information systems Organizations and individuals use different types of systems for different purposes. Below are some of the main types of Information Systems and their uses Key ones you need to know are TPS, MIS, DSS and EIS

Transaction Processing system (TPS) Basic business system- Data processing system Supports the operational level of the business TPS are information system applications that collect( capture), process and store information about transactions.

TPS Processes Has 6 processes: Data Entry Data Capture Data Validation (Process that ensures that the correct type and valued data is input into the system) Processing and Revalidation Storage And Output

TPS Often tied to other systems like inventory system Examples ATMs, store sales system, Visa Credit card payment system, Inventory systems, personnel record keeping, application tracking Supports on-line transaction processing

Office Automation System Office Automation System (OAS) is an information system application that provides for improved communication between all levels of information workers Used for increasing personal productivity and reducing paper warfare. Office Automation Systems are software packages such as MS Office which include word processors, spreadsheets, databases, presentation software, email, internet, desktop publishing programs and project management software.

Management Information System Condenses and converts TPS data into information for monitoring performance and managing an organization Transactions recorded in a TPS are analyzed and reported by an MIS They produce reports as outputs from large amounts of input Used by middle managers. Example: Annual Budgeting system

Decision Support Systems (DSS) Helps senior (strategic) staff make decisions by providing information, models or analysis tools. For support of semi-structured and unstructured decisions Used more for analytical work Their inputs are aggregate data, and they produce projections.

Decision Support and Expertise Sometimes managers don’t know what information will help them until the need to make a decision DSS is an application that provides users with decision- oriented information where decision making situation arises It doesn’t make decision /solve problems but provides useful information to support decision making

Expert Systems Expert systems are an extension of the DSS Expert system is an information system application that captures the knowledge or expertise of a specialist then simulates the thinking of that expert for those with less or no expertise Also known as Knowledge based system or Artificial intelligence based system

Executive Information System (EIS) EIS provides executives information in a readily accessible, interactive format. Form of MIS intended for top-level executive use. summarizing data at a very high level. This relates to reports, statistics, stock inventories, payroll details, budgets or any other details that assist managers run an organization Very expensive to run and require extensive staff support

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