Introduction to Information System CSC unit

Introduction to Information System CSC 311 2 unit
Ikono, Rhoda (PhD) Department of Computer Science & Engineering Faculty of Technology

Course Content This course will expose students to Information Systems software and hardware through laboratories, homework and project. Students will be able to use and build software with a variety of information system tools, including the internet and database packages. Student will also learn strategies and techniques for information system use, development and management. Also design models, implementation techniques, strategic information system planning, process improvement and information system quality control.

Project INSTRUCTION: Visit an organisation of your choice; observe the flow of information within the organisation. Analyse the system, their limitations and advantages. Proffer a solution that will best enhance the organization's management. It's information system with effect to its effectiveness and efficiency of use in productivity. Write brief but informative report on every step, structure, method used during the project work.

LECTURE 1

Rational for the study Explain the difference between data and information Understand the characteristics of valuable information system To provide you with a basic knowledge of the different elements of information systems:

Objectives Define the basic concepts of Information System (IS)
Distinguish data from information and describe the characteristics used to evaluate the quality of data analyse the way in which information flows in and out of an organization. Identify the components of an IS and describe several system characteristics Identify the basic types of models and explain how they are used

CONTENT INTRODUCTION Information Concept System and Modelling Concept
Transforming data into information Characteristics of valuable information system Information flow within an Organization System and Modelling Concept System components and boundaries System performance and standards System modelling Recap Evaluation questions Assignments.

Information Concept Data: data is raw. It simply exists and has no significance beyond its existence (in and of itself). It can exist in any form, usable or not. It does not have meaning of itself. In computer parlance, a spread sheet generally starts out by holding data. Refer to CSC 681 for measuring data: Binary numbers Types of data Data Represented by Alphanumeric data Numbers, letters and other characters Image data Graphic images and pictures Audio data Sound, noise or tones Video data Moving images or pictures. Organizations offer products to customers to make money. These products can be goods or services. In most organizations, huge volumes of data accumulate: data of products, data of customers, data of employees, data of the delivery of products, and data of other sources. These data therefore play an important role in contemporary organizations and must be stored, managed, and processed, which is where information systems come into play. Csc 681 Advanced Computer Architecture

Information Information is data that has been given meaning by way of relational connection. This "meaning" can be useful, but does not have to be. In computer parlance, a relational database makes information from the data stored within it. When we compare data with information, the first obvious difference is that information must be seen in a context in which it makes sense. The second characteristic is that there must be a process by which data gets transformed into information Understanding the basic terms of data, information, and knowledge. These terms will be referred to as “data” refers to the syntax, “information” refers to the interpretation, and “knowledge” refers to the way information is used

Process This is a set of logically related tasks performed to achieve a defined outcome. That is turning data into information. The process of defining relationships among data to create useful information requires knowledge.

Knowledge This involves both data and the relationships among data elements or their sets. This organization of data based on relationships is what enables one to draw generalizations from the data so organized, and to formulate questions about which one wishes to acquire more data. The act of selecting or rejecting facts based on their relevancy to particular tasks is also based on a type of knowledge used in the process of converting data into information.

The transformation process (applying knowledge by selecting, organizing and manipulating data
Information The process of Transforming Data into Information

The value of information
Data becomes information when it is applied to some purpose and adds value for the recipient. The value of information is directly linked to how it helps people achieve their organizational goal. Can help people and their organizations perform tasks more efficiently and effectively The value of information must also relate to the frequency of its provision, and to the level in the management hierarchy where it is sent and used. Can help managers decide whether to invest in additional information systems and technology To be valuable, information must have several characteristics such as:

Characteristics of valuable data
Definitions Accurate How accurate is the information. Accurate information is error free Complete Does it contain all the important facts? Complete information contains all the important facts Economical How much did it cost to produce the information? Information should also be relatively economical to produce. Flexible Flexible information can be used for a variety of purposes. Reliable How dependable is the information? It is related to how the information was obtained. Relevant How pertinent is the information to the question or decision? Simple How complex or detailed is the information? Timely How up-to-date is the information? Verifiable Can the correctness of the information be checked? Accessible Should be easily accessible by authorized users Secure Should be secure from access by unauthorized users If information is not accurate or complete – People can make poor decisions, costing thousands, or even millions, of dollars • Information can be of little value to the organization – If information is not relevant, not delivered to decision makers in a timely fashion, or too complex to understand Valuable information – Can help people and their organizations perform tasks more efficiently and effectively – Can help managers decide whether to invest in additional information systems and technology

Flow of Information Without a good flow of information, most organisations would not find it possible to function Information flows in a Hierarchy and project based organisation Dynamics in Technology has made it faster for information flow Information has become more readily available due to the explosion of electronic information

Information Mapping Mapping the information flow into and out of an organization is one way to think about how effectively information is managed. To do this, Identification of the source of information is necessary and the people that require the information Determine how effective this information meets decision making needs Determine how it meets the information needs of others within and outside the organisation.

System System: Since a system is a subjective concept, there is no unanimously accepted definition of a system. a system is a set of elements or components that interact to accomplish a goal or set of objectives The system does something, i.e. it exhibits a type of behaviour unique to the system or has a specific objective or purpose. Each component contributes specifically towards the behaviour of the system and is affected by being in the system. If a component is removed, it will change the system behaviour.

Example System Element Inputs Processing Mechanism Outputs Goals
College Students, Professors, Administrators, Text books, Equipment Teaching, Research, Services Educated students; Meaningful research; Services to community, state and nation Acquisition of knowledge An example of systems and their goals and element

System components and boundaries
The components of a system include inputs, processing mechanism and outputs. The system components responsible for these transformations are called the interfaces. Systems also contain boundaries that separate them from the environment and each other. The boundaries between the three terms are not always clear. The part of the outside world with which the system interacts is called the system’s environment

The basic elements of a system
Input Transformation Processing Output Feedback System Boundary Environment

Example Patient with glasses is a lot better. (feedback) Environment
Eye problem due to so much focus on the computer screen. (input) Obtains glasses. (output) Visits an Ophthalmologist who checks and prescribes the aid of glasses. (Process)

Classification of Systems
Simple Complex Has many elements that are highly related and interconnected Has few components, and the relationships or interaction between elements is uncomplicated and straightforward Open Closed No interaction with the environment Interacts with the environment Stable Dynamic Undergoes rapid and constant change over time Undergoes very little change over time Adaptive Non adaptive Not able to change in response to change in the environment Is able to change in response to change in the environment Permanent Temporary Exists for only a relatively short period of time Exists for a relatively long period of time

System Performance System performance is measured by its effectiveness and efficiency Efficiency is a measure of what is produced divided by what is consumed. 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦= 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑 𝑐𝑜𝑛𝑠𝑢𝑚𝑒𝑑 Effectiveness is a measure of the extent to which a system achieves its goal. It can be computed by dividing the goals actually achieved by the total of the stated goal. 𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒𝑛𝑒𝑠𝑠= 𝑎𝑐𝑡𝑢𝑎𝑙 𝑔𝑜𝑎𝑙𝑠 𝑎𝑐ℎ𝑖𝑒𝑣𝑒𝑑 𝑡𝑜𝑡𝑎𝑙 𝑠𝑡𝑎𝑡𝑒𝑑 𝑔𝑜𝑎𝑙𝑠 Effectiveness, like efficiency is a relative term used to compare systems.

System Performance Standard
System Performance Standard is a specific objective of the system. It can be computed by dividing the goals actually achieved by the total of stated goal. Once standards are established system performance is measured and compared with the standard. Variances from the standard are determinants of system performance. System variable A quantity or item that can be controlled by the decision maker E.g. the price a company charges for a product System parameter A value or quantity that cannot be controlled by the decision maker E.g., cost of a raw material A system variable is a quality or item that can be controlled by the decision maker. A system parameter is a value or quantity that cannot be controlled.

System Modelling The real world is complex and dynamic. Therefore when testing for different relationships and their effects, models of systems are used which are simplified instead of real life systems. Hence a model can be said to be an abstraction or an approximation that is used to represent reality.

Types of System Model There are for basic types of models: narrative, physical, schematic and mathematical. Narrative model provides a verbal description of reality A physical model is a tangible representation of reality often computed, designed or constructed. A schematic model is a graphic representation of reality such as a graph, chart. A mathematical model is an arithmetic representation

Four Basic Types of System Model
Narrative Physical Design of Full Adder Circuit Recall from the truth table for full adder circuit design Schematic Mathematical

Recap In this module we have been able to Additional reading
Learn what data, information, knowledge, process and the components or elements of information Also study about Transforming data into information and its measurement, critically considered the factors that affect the quality and use of data and information Understood the concept of system and system modelling. Additional reading Book Information Systems Essentials, Stephen Haag and Maeve Cummings. Published by McGraw-Hill Irwin Website

Evaluation questions How does a knowledge worker differ from other types of workers How are data, information, process and knowledge related? Distinguish data from information and describe the characteristics used to evaluate the quality of data Identify four basic types of models and explain how they are used.

Assignment QUESTION 1 Do some research to obtain the rate of growth of Internet example number of computers connected to the Internet, number of Internet websites etc. Use plotting capability of your spreadsheet to produce a bar chart of the growth over a number of years?. QUESTION 2 Go to an Internet search engine example yahoo and find any company of your choice. Write a report that summarizes the size of the company, number of employees, its products and location of its headquarters and its profit and loss for last year. Would you like to work with this company? QUESTION 3 Create a table that lists all the courses you are taking in the first column, other columns should be weeks of the semester/quarter such as week1, week2. The body of the table should contain actual assignments quizzes, exams for each course. Create the table into a database for the first-three weeks and print the result. Create another table in the database for hardest classes for all the weeks and print result?. [For harmony of work we can all use access database tool]

LECTURE 2 INFORMATION SYSTEM

Rational for the study Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career; organizations that reach their goals, and a society with a higher quality of life.

Objectives By the end of this lecture you will
Explain what information system is Identify the basic types of information system Discuss who uses them, how they are used and what kind of benefits they deliver Have been introduced to the Systems Development Life Cycle. Learn about the stages (or phases or steps) involved in Information System Development. Been introduced to some SDLC development methodologies and/or models

CONTENT INTRODUCTION Information System Why Information System
Components of Information System Classification of Information System Uses of Information System Why Information System Computer Literacy Information System Literacy Types of Information System Electronic Commerce Transaction Processing System Management Information System and Decision Support System Special Purpose Business information System System Development Information System Development Methods The Information System Development Life Cycle

Introduction What is Information System?
Information systems are sets of interrelated elements that collect (input), manipulate and Store (process), and disseminate (output) data and information. Set of interrelated components that Collect/retrieve, process, store, and distribute information to Support decision making, coordination, control Help managers and workers Analyse problems Visualize complex subjects Create new products A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective

The components of an IS Feedback is critical to the successful operation of a system Input – Gathering and capturing raw data • Processing – Converting or transforming data into useful outputs • Output – Production of useful information, usually in the form of documents and reports • Feedback – Output that is used to make changes to input or processing activities

Classification of IS Information systems can be classified into
Computer based information system CBIS and non-computer based systems. Components of CBIS are People, Hardware, Software, Database, Telecommunication (Computer networks (Internet, Intranet and Extranet) and Procedures. While the non-computer based are further classified into Informal information systems and Manual information systems. Example: Developing patterns and trends on graph paper for stock analysis Computer-Based Information Systems • Single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information • Information technology (IT) – Hardware, software, databases, and Telecommunications An information system can be: – Manual • Example: Developing patterns and trends on graph paper for stock analysis – Computerized • Example: Using program trading to track the market and trade large blocks of stocks when discrepancies occur

Components of CBIS People Requires skilled people to Build, Maintain and Use Adequate Training Employee attitudes affect ability to use systems productively Role of managers Perceive business challenges Set organizational strategy Allocate human and financial resources Creative work, new products, services Hardware Computer equipment used to perform input, processing and output activities. Software The computer programs that govern the operation of the computer. Database An organized collection of facts and information Telecommunication The electronic transmission of signals for communications; enables organizations to carry out their processes and task through effective computer network. Procedures The strategies, policies, methods and rules for using CBIS

Uses of IS The benefits derived from information systems include
efficient operations, effective management and competitive advantage. The role of information systems has continually expanded and those aspects of the organization impacted by information system has also grown. On the other hand, information systems projects can be large and complex and thus there is a considerable risk of failure which may result in an inability to support business operations, management and strategic objectives. Information systems, apart from supporting business operations and manage activities of organization must also support long term goals and objectives such as survival, sustainability, profitability, expansion, market share, customer satisfaction and employee satisfaction.

Information Technology
Various hardware/software, networking, data management components necessary for IS to operate PCs, disk drives, hand held PDA, iPods Operating Systems - Windows, Linux, MS Office desktop productivity suite, programs, … Fundamental Roles of IS in Business Support of business process and operations Support of business decision making Support of strategies for competitive advantage IS and IT often used interchangeably Information technology (IT) – Hardware, software, databases, and telecommunications

Why Information System
IS play a fundamental and ever expanding role in all business organizations. Hence, Information system literacy and computer literacy are prerequisites for numerous job opportunities. Information System Literacy Knowledge of how data and information are used by individuals, groups and organizations. Computer Literacy Knowledge of information technology and the way they function, it stresses equipment and devices (hardware), programs and instructions (software), databases and telecommunications Information System is divided into three dimensions which are people, organization and technology

Organizations People Technology Integral Part – Vice Versa
Coordinate work through structured hierarchy and business processes Business processes → Logically related tasks and behaviours for accomplishing work Fulfilling an order, Developing a new product May be informal or include formal rules Culture embedded in information systems What is Organizational Culture ? People Requires skilled people → Build, Maintain and Use Adequate Training Employee attitudes affect ability to use systems productively Role of managers Perceive business challenges Set organizational strategy Allocate human and financial resources Creative work, new products, services Technology IT Infrastructure → Foundation or platform that information systems built on Computer hardware Computer software Data management technology Networking and telecommunications technology Internet and Web, extranets, intranets Voice, video communications

Types of IS Information System Operations Support System
Specialized Processing System Expert System Knowledge Management System Strategic Information Systems Functional Business Systems Transaction Processing System Process Control System Enterprise Collaboration Systems Management Support System Management Information Systems Decision Support System Executive Information System Specialized Processing Systems Types of IS

Management Support System
Management information systems Provide information and support for effective decision making by managers Two Types: Management of IS in organizations Specific information systems for mid-level managers Types of reports: Scheduled report Key-indicator report Exception report Drill-down report Ad hoc report Examples: Sales forecasting Financial management and forecasting Manufacturing planning and scheduling Inventory management and planning Advertising and product pricing Used to provide routine information to managers and decision makers. Example: daily sales analysis reports Decision Support Systems (DSS) Provide interactive ad hoc support for decision making Example: A what-if-analysis to determine where to spend advertising dollars

Management Information System
It helps the middle managers with reports, with on-line access to the organization’s current performance and historical records. It primarily serves the functions of planning, controlling, decision-making at the management level. Generally it depends on TPS for data. It summarizes and reports on the basic operations of the organization. It usually serve managers interested in weekly, monthly, and yearly results, not day-to-day activities. It generally addresses structured questions that are known in advance. It is not flexible and have little analytical capability.

Management Information System…
Functions of management-level info system? Helps middle managers for monitoring, controlling, decision-making, and administrative activities. Generally it provides periodic reports rather than instant information However, some systems supports non-routine decision making. It should answer the questions: Relocation Control System: It reports on the total moving, house-hunting, and home financing costs for all employees in the organization. It will also notify if actual costs exceed the budgets. What would happen to our return on investment if an organization schedule were delayed for six months?

Executive Information Systems (EISs)
Provide critical information for executives and managers Used at executive level of the organization Highly aggregated form Data types Soft data – news and non-analytical data Hard data – facts and numbers Examples: Executive-level decision making Long-range and strategic planning Monitoring internal and external events; easy access to actions of competitors Crisis management Staffing and labor relations

Executive Information Systems
It helps senior managers. It addresses unstructured decisions. It provides a generalized computing & telecommunications capability to solve problems. It employs the most advanced graphics software. It can deliver graphs & (historical data and competitive data) from internal corporate systems and external databases. Senior managers often have little experience with computer-based information systems, ESS should have easy-to-use graphic interfaces.

Operation Support Systems
Transaction Processing Systems An organized collection of people, procedures, software, databases and devices used to record completed business transactions. Types 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 Transactions: Used at Operational level of the organization Goal: to automate repetitive information processing activities Record and process data from business transactions Increase speed Increase accuracy Greater efficiency Data input Manual data entry Semi-automated data entry Fully automated data entry Examples: Payroll Sales and ordering Inventory Purchasing, receiving, shipping Accounts payable and receivable

Process Control Systems
Rule based management software that directs, coordinates and monitors execution of an interrelated set of tasks arranged to form a business process. Monitors and controls physical processes Example: in a petroleum refinery use sensors to monitor chemical processes Enterprise Collaboration Systems Enterprise Resource Planning (ERP) is a set of integrated programs capable of managing a company’s vital business operations for an entire multisite, global organization. Enhance team and work group communications Examples: , videoconferencing

Special Purpose Business Information System
Expert Systems Provide expert advice and act as consultant to users Example: process monitor, credit application advisor Knowledge Management Systems Collection of data, rules, procedures and relationships that must be followed to achieve value or the proper outcome. Supports creation, organization of business knowledge Example: Internet access to best business practices Strategic Information Systems Support operations/management processes that provide strategic product/services for competitive edge Example: Online stock trading, shipment tracking

Business Information System
CBIS plays an important role in todays business and society. The key to understanding the existing variety of system begins with learning their fundamentals. The types of business information system used within organizations can be classified into four basic groups: E-commerce Data processing or transaction processing systems Management information systems and Decision supporting systems Special purpose business information system Artificial intelligence Expert systems and Virtual reality systems

Levels of Management These levels of management correspond approximately to four different types of information systems Levels of management and types of support system it’s about how businesses can make the best use of computer technology to provide the information needed to achieve their goals. In the same way as your own needs and priorities are unique to you, each organisation has different goals and requirements, and the successful implementation of IS requires a through understanding of the business issues involved, as well as the different technologies that are available. Businesses make use of information systems so that accurate and up-to-date information will be available when it is required.

Characteristics of each level of management
The table below summarises the major differences between the four levels of organisational support systems based on heir major inputs, processing characteristics and outputs:

Role of Critical Thinking
What is Critical Thinking? Sustained suspension of judgment with an awareness of multiple perspectives and alternatives Without critical thinking, easy to jump to conclusions, misjudge a problem and waste resources Best protection against incorrect results Four Elements Maintaining doubt and Suspending judgment Being aware of different perspectives Testing alternatives and letting experience guide Being aware of organizational and personal limitations Connections Business Objectives, Problems, Solutions When firms cannot achieve business objectives these objectives become challenges Information systems often present solutions, partially or fully, to these challenges

Information System and Business Careers
Accounting Accountants → Information Systems Summarize Transactions Create Financial Records Organize Data Perform Financial Analysis Skills IT, software used in auditing, accounting functions System and network security issues Enterprise systems for financial reporting

Finance Skills Financial Management/Services → Information System
Develop Financial Reports Direct Investment Activities Implement Cash Management Strategies Skills IT, software used by financial managers and financial services firms New technologies for financial transactions, trading Enterprise systems for financial reporting

Marketing and Advertising
Technology driven changes Internet Advertising → Fastest growing, 30% annually Skills Understanding of Internet, marketing database systems Impact on marketing activities → brand development, promotion, sales Enterprise systems for product management, sales force management, customer relationship management

Operations Management Services/Manufacturing
Coordinate and Optimize Resources to produce goods and services Industrial Production Managers Administrative Services Managers Operation Analysts Skills Hardware and software platforms for operations management How enterprise systems for production management, supplier management, sales force management, customer relationship management are used to achieve efficient operations and meet other goals

Management Skills Largest single group Industrial Production Managers
Administrative Services Managers Operation Analysts Skills Hardware and software to improve management, enhance leadership and coordination, improve achievement of overall corporate objectives In-depth understanding of how enterprise systems are used to achieve efficient operations and help make better decisions for improving firm performance

Information Systems Skills
Most dynamic of all business professions, fastest growing IT → Key business objectives Outsourcing and Offshoring Impact Managerial IS positions ↑, Lower-level technical jobs ↓ Skills In-depth knowledge of how new and emerging hardware and software to achieve six business objectives An ability to take a leadership role in the design and implementation of new information systems

Common Requirements How IT helps achieve six business objectives
Central role of databases Information analysis, impact of environment Working with specialists and systems designers Ethical, social, legal environment and issues Use of IT to meet legal requirements

Evaluation questions Name the components of an information system and describe several system characteristics. Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver.

LECTURE 3 System Development

Introduction Creating or modifying existing business systems
Systems development failures can be a result of: Poor planning and scheduling Insufficient management of risk Poor requirements determination Lack of user involvement Outsourcing Allows a company to focus on what it does best and delegate other functions

Introduction Recall that we said that A system is a set of components that interact to achieve a common goal. SDLC is a set of activities developers use to build an Information System (IS) IS is a set of HW, SW, people, data that work together to produce information. ISs are the support structure for meeting any company’s strategies and goals New systems are created because employees request them New systems are created to obtain a competitive advantage The system development life cycle is the overall process of developing, implementing, and retiring information systems through a multistep process from initiation, analysis, design, implementation, and maintenance to disposal. There are many different SDLC models and methodologies. but each generally consists of a series of defined steps or phases.

Introduction… An organization can consist of many different systems. E.g. in a business organization: Billing system Delivery system Manufacturing system Information system The SDLC process applies to information system development projects by ensuring that all functional and user requirements and organization/agency strategic goals and objectives are met. SDLC provides a structured and standardized process for all phases of any system development effort

Guidelines Involved in a System Development
Follow development phases Talk to users Develop and follow standards Who-is-who in the System Development Life Cycle Many different people participate Steering committee Decision-making body in a company Decides how to divide resources and different projects Project team People that work on a specific project Typically consists of systems analysts and other IT professionals Systems analyst Responsible for designing and developing the IS They study user requests and generate technical specifications Project management Process of planning, scheduling, and the controlling activities during the project Project leader The person managing the budget and schedule of a project Project manager A person who performs the planning, scheduling, and other project related activities Uses various tools

In Summary The SDLC is a phased approach to analysis and design that holds that systems are best developed through the use of a specific cycle of analyst and user activities.

Overview of SD

Traditional System Development Lifecycle (SDLC)
Oldest method for building information systems Phased approach with series formal stages Waterfall approach Formal division of labour System Specialist & Programmers → System Analysis, Design, Implementation End User → Limited to providing Info Requirements, Review Technical Staff’s work Used for building large, complex systems Time consuming and expensive to use

SDLC Phases & Major Activities

S/NO SDLC PHASE DELIVERABLES Planning Recognition of Need, Feasibility study, Planning and/or Problem identification System Request Feasibility Analysis Workplan Decision to go ahead or stop project System Analysis Requirement definition Requirement gathering Requirement analysis System specification System Proposal System Design How will the system work? Physical design Architectural design Interface design Database and file design Program design Design documentation System Implementation System delivery Construction Program building Program and system testing Installation Conversion strategy Training plan Support plan Operation System changed to reflect changing conditions System obsolescence Set of programs or program units New System and Maintenance Plan System Maintenance and Evaluation Checking and modifying the system so that it continues to meet changing business needs Provides ongoing assistance after system is implemented Build a help desk to support the system users Help desk - a group of people who responds to knowledge workers’ questions Provide an environment to support system changes

Cost /benefit analysis
Feasibility studies typically involve cost/benefit analysis. In the process of feasibility study, the cost and benefits are estimated with greater accuracy. If cost and benefit can be quantified, they are tangible ; if not , they are called intangible Tangible Costs - are costs and benefits that can be quantified (e.g., cost of hardware and software, employee salaries, and other quantifiable costs needed to develop and implement a solution). Tangible Benefits - are favourable results (e.g., decrease in payroll costs caused by a reduction in personnel or a decrease in inventory carrying costs caused by a reduction in inventory) Intangible Costs - costs and benefits that cannot be quantified (e.g., loss of customer goodwill or employee morale caused by errors and disruptions arising from the installation of a new system). Intangible Benefits - are hard to estimate (e.g., better customer service or faster and more accurate information for management).

PROTOTYPING Prototyping is the process of building a model system.
In terms of an information system, prototype are employed to help system designers build an information system that is intuitive & easy to manipulate by end users. Prototyping is an iterative process that is part of analysis phase of system development of life cycle.

Process involve in designing prototype

SDLC Examples - Waterfall

SDLC Examples – Unified Process

SDLC Examples - Agile

ADVANTAGES OF PROTOTYPING
Prototype reduce the development time. It reduce the development cost. It requires the users involvement. Its results are higher user satisfaction. Prototype are an active, not passive, model that end user can see, touch & feel. Prototyping can increase creativity because it allows for quicker user feedback which can lead to better solutions.

DISADVANTAGES OF PROTOTYPING
Prototyping often leads to premature commitment to a design. Prototyping can reduce creativity in designs. Not suitable for large applications. Structure of system can be damaged since many changes could be made. Developer misunderstanding of user objectives.

End User Development End users create simple information systems with little or no assistance from technical specialists Use fourth-generation languages, graphics languages, and PC software tools to access data, create reports, and develop information systems Completed more rapidly than systems developed with conventional tools, Higher user involvement/satisfaction Organizational risks Without formal development methodology → testing, documentation

Recap In this module we have been able to understand Information system, Computer-Based Information System, Types of CBIS, Why IS and system development life cycle Additional reading Information Systems Essentials, Stephen Haag and Maeve Cummings. Published by McGraw-Hill Irwin

Tutorial Question The most effective way to protect information and information systems is to integrate security into every step of the system development process. Describe and justify this integration process using a typical information system development project of your choice

Evaluation questions Identify the major steps of the systems development process and state the goal of each. Discuss why it is important to study and understand information systems. Consider the expense involve in opening regional call centres. How does this investment assist Home Depot in being a more efficient and effective company.

Assignment Go to an Internet search engine example yahoo and search for Global Com. Write a report that summarizes the size of the company, number of employees, its products and location of its headquarters and its profit and losses for Would you like to work with this company?

LECTURE 4 Organization and Information System

Objectives Identify and describe important features of organizations that managers need to know about in order to build and use information systems successfully. Evaluate the impact of information systems on organizations.

CONTENT INTRODUCTION Organizations and Information System
What Is an Organization? Features of Organizations HOW INFORMATION SYSTEMS IMPACT ORGANIZATIONS AND BUSINESS FIRMS Economic Impacts Organizational and Behavioral Impacts The Internet and Organizations Implications for the Design and Understanding of Information Systems The Organization Organizational Structure Organizational Culture Organizational Change

Introduction The use of IS to add value to the organization is strongly influenced by organizational structure, culture and change. Value added processes Support organizational goals Improve productivity An organization is a formal collection of people and various other resources established to accomplish a set of goals.  Has inputs, processing mechanisms, outputs, and feedback

Organizations & Information Technology
MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance ORGANIZATIONS INFORMATION TECHNOLOGY THE TWO-WAY RELATIONSHIP BETWEEN ORGANIZATIONS AND INFORMATION TECHNOLOGY This complex two-way relationship is mediated by many factors, not the least of which are the decisions made—or not made—by managers. Other factors mediating the relationship include the organizational culture, structure, politics, business processes, and environment.

Technical Microeconomic Definition of The Organization
An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs. This technical definition focuses on three elements of an organization

The Behavioural View of Organizations
A more realistic behavioural definition of an organization is that it is a collection of rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution.

The Behavioural View of Organizations…
The technical and behavioural definitions of organizations are not contradictory. Indeed, they complement each other: The technical definition tells us how thousands of firms in competitive markets combine capital, labour, and information technology, whereas the behavioural model takes us inside the individual firm to see how that technology affects the organization’s inner workings

Features of Organizations
All modern organizations have certain characteristics. They are bureaucracies with clear-cut divisions of labour and specialization. Organizations arrange specialists in a hierarchy of authority in which everyone is accountable to someone and authority is limited to specific actions governed by abstract rules or procedures. These rules create a system of impartial and universal decision making. Organizations try to hire and promote employees on the basis of technical qualifications and professionalism (not personal connections). The organization is devoted to the principle of efficiency: maximizing output using limited inputs. Other features of organizations include their Business processes, organizational culture, organizational politics, Surrounding environments, structure, goals, constituencies, and leadership styles. All of these features affect the kinds of information systems used by organizations

Common Features of Organizations
FORMAL STRUCTURE STANDARD OPERATING PROCEDURES POLITICS CULTURE

Structural Characteristics of All Organizations
CLEAR DIVISION OF LABOR HIERARCHY EXPLICIT RULES & PROCEDURES IMPARTIAL JUDGMENTS TECHNICAL QUALIFICATIONS MAXIMUM ORGANIZATIONAL EFFICIENCY

Unique Features of Organizations
ORGANIZATIONAL TYPES ENVIRONMENTS, GOALS, POWER CONSTITUENCIES, FUNCTION LEADERSHIP, TASKS TECHNOLOGY BUSINESS PROCESSES

Model of an Organization

ORGANIZATIONAL STRUCTURES
Organizational subunits and the way they relate to the overall organization An organization’s structure depends on its goals and approach to management, and can affect how it views and uses information systems. Organizational structure can have a direct impact on the organization’s information system Several basic organizational structures include traditional, project, team, and virtual. Traditional organizational structure , also called a hierarchical structure is an organizational structure in which major department heads report to a president or top-level manager. Project organizational structure is a structure centered on major products or services Team organizational structure is a structure centered on work teams or groups. A virtual organizational structure employs individuals, groups, or complete business units in geographically dispersed areas. These can involve people in different countries operating in different time zones and different cultures

ORGANIZATIONAL CULTURE
A set of major understandings and assumptions shared by a group Organizational culture The major understandings and assumptions for a business, a corporation, or an organization Organizational culture consists of the major understandings and assumptions for a business, corporation, or organization. Organizational change deals with how profit and nonprofit organizations plan for, implement, and handle change. Change can be caused by internal or external factors. The stages of the change model are unfreezing, moving, and refreezing. According to the concept of organizational learning, organizations adapt to new conditions or alter practices over time. When a company introduces a new information system, a few members of the organization must become agents of change to confront and overcome possible resistance to change. They are champions of the new system and its benefits. Understanding the dynamics of change can help them confront and overcome resistance from employees and others so that the new system can be used to maximum efficiency and effectiveness

ORGANIZATIONAL CHANGE
Deals with how for-profit and non-profit organizations plan for, implement, and handle change Organizational learning The way organizations adapt to new conditions or alter their practices over time The dynamics of change can be viewed in terms of a change model. A change model represents change theories by identifying the phases of change and the best way to implement them. A three-stage approach for change are unfreezing, moving and refreezing. Unfreezing is ceasing old habits and creating a climate that is receptive to change. Moving is learning new work methods, behaviors, and systems. Refreezing involves reinforcing changes to make the new process second nature, accepted, and part of the job

Reengineering Also called ‘Process redesign’ For example, to…
The radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results For example, to… Reduce delivery time Increase product and service quality Improve customer satisfaction Increase revenues and profitability To stay competitive, organizations must occasionally make fundamental changes in the way they do business. In other words, they must change the activities, tasks, or processes they use to achieve their goals. Reengineering, also called process redesign and business process reengineering (BPR), involves the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results.

Rules Reengineering requires finding and vigorously challenging old rules In contrast to simply automating the existing work process, reengineering challenges the fundamental assumptions governing their design. It requires finding and vigorously challenging old rules blocking major business process changes. These rules are like anchors weighing down a firm and keeping it from competing effectively. Selected Business Rules That Affect Business Processes

Other Models Continuous Improvement
Constantly seeking ways to improve business processes to add value to products and services. Comparing Business Process Reengineering and Continuous Improvement In contrast to reengineering, the idea of continuous improvement is to constantly seek ways to improve business processes and add value to products and services. This continual change will increase customer satisfaction and loyalty and ensure long-term profitability

User Satisfaction and Technology Acceptance
Technology acceptance model (TAM) Specifies factors that can lead to higher acceptance and usage of technology Technology diffusion Measure of widespread use of technology Technology infusion Extent to which technology permeates a department

Total Quality Management
A collection of approaches, tools, and techniques, that offers a commitment to quality throughout the organization Outsourcing involves contracting with outside professional services to meet specific business needs. This approach allows the company to focus more closely on its core business and to target its limited resources to meet strategic goals. Downsizing involves reducing the number of employees to reduce payroll costs; however, it can lead to unwanted side effects. Total quality management consists of a collection of approaches, tools, and techniques that fosters a commitment to quality throughout the organization. Six Sigma is often used in quality control. It is based on a statistical term that means products and services will meet quality standards percent of the time.

Implications for The Design and Understanding of Information Systems
To deliver genuine benefits, information systems must be built with a clear understanding of the organization in which they will be used. In our experience, the central organizational factors to consider when planning a new system are the following: The environment in which the organization must function The structure of the organization: hierarchy, specialization, routines, and business processes The organization’s culture and politics The type of organization and its style of leadership The principal interest groups affected by the system and the attitudes of workers who will be using the system The kinds of tasks, decisions, and business processes that the information system is designed to assist

Information Systems that Span Organizational Boundaries
Decision Support Systems (DSSs) Mimics human expertise by manipulating knowledge Designed to support organizational decision making Rules (If-then) Inference “What-if” analysis Collaboration Technologies Example of a DSS tool: Microsoft Excel Virtual teams Videoconferencing Text and graphs Models for each of the functional areas Groupware Electronic Meeting Systems (EMSs) Accounting, finance, personnel, etc. Functional Area Information Systems Office Automation Systems (OASs) Examples: Geared toward specific areas in the company: Communicating and scheduling Document preparation Human Resources Analyzing data Benefits Consolidating information Marketing Expert Systems (ESs)

Functional Area of IS

Decision-Making Levels of an Organization
Executive level (top) Long-term decisions Unstructured decisions Managerial level (middle) Decisions covering weeks and months Semistructured decisions Operational level (bottom) Day-to-day decisions Structured decisions

LECTURE 5 Business Strategic Planning

Objectives Explain what Strategic information system is
Identify the basic types of information system Discuss who uses them, how they are used and what kind of benefits they deliver

CONTENT INTRODUCTION Strategic Information System Competitive Advantage Porter’s Five Force Model The Value Chain Supply chain management Customer Relationship Management Business Intelligence USING INFORMATION SYSTEMS TO ACHIEVE COMPETITIVE ADVANTAGE Porter’s Competitive Forces Model Information System Strategies for Dealing with Competitive Forces The Internet’s Impact on Competitive Advantage The Business Value Chain Model Synergies, Core Competencies, and Network-Based Strategies USING SYSTEMS FOR COMPETITIVE ADVANTAGE: MANAGEMENT ISSUES Sustaining Competitive Advantage Performing a Strategic Systems Analysis Managing Strategic Transitions

Strategic Information System
A Strategic Information System (SIS) is a system that helps companies change or otherwise alter their business strategy and/or structure. It is typically utilized to streamline and quicken the reaction time to environmental changes and aid it in achieving a competitive advantage

Strategic Information Systems (SIS)
A strategic system alters the way an organization does business or the way it competes or the way it deals with its customers or suppliers some systems - offer a company a clear competitive advantage higher profits or increased market share most strategic systems - enable a company to be an effective competitor significantly change business performance contribute to attaining a strategic goal

What are Strategic Systems?
An information system designed to give the owner organization a strategic competitive advantage. A strategic system supports or shapes a business unit's competitive strategy. outward looking: customers, competitors, environments inward looking: employees, systems, procedures

Key features Decision support systems that enable to develop a strategic approach to align Information Systems (IS) or Information Technologies (IT) with an organization's business strategies Primarily Enterprise resource planning solutions that integrate/link the business processes to meet the enterprise objectives for the optimization of the enterprise resources Database systems with the "data mining" capabilities to make the best use of available corporate information for marketing, production, promotion and innovation. The SIS systems also facilitate identification of the data collection strategies to help optimize database marketing opportunities. The real-time information Systems that intend to maintain a rapid-response and the quality indicators.

Types The three general types of information systems that are developed and in general use are financial systems, operational systems, and strategic systems. These categories are not mutually exclusive and, in fact, they always overlap to some. Well-directed financial systems and operational systems may well become the strategic systems for a particular organization

Strategic systems External focus innovative use of IT
changes way firm competes innovative use of IT high degree of project risk

Elements of Strategic Management
Innovation Role of IT Competitive intelligence Internet Competitive strategy and sustainable advantage

Uncovering Strategic Use of Systems
1. Analyze competitive forces 2. Study the value chain

1. Competitive Forces model
used to describe the interaction of external influences -- threats and opportunities -- that affect an organization’s strategy and ability to compete competitive advantage - can be achieved by enhancing the firm’s ability to deal with customers, suppliers, substitute products and services, and new entrants to its market Objective - use this model to identify potential areas where IT can be used to gain a competitive advantage

Competitive Advantage
Porter’s Competitive Advantage Wiseman’s Strategic Perspective View McFarian’s Competitive Strategy Parson’s Strategic Information Technology Management.

Competitive Strategies for competing in marketplace
businesses can use four basic competitive strategies to deal with these competitive forces: Product Differentiation Cost leadership Focused differentiation Cost Focus

Competitive Strategies

1. Differentiation competitive strategy for creating brand loyalty
Develop products & services which are different from what the competition offers superior attributes distinguishing features

2. Cost leadership to prevent new competitors from entering their markets, businesses produce goods/services at lower price than competition based on efficient operations based on effective operations economies of scale

3. Focused differentiation
develop new market niche for specialized products or services so that business can compete in target market better than its competitors

4. Cost Focus Company serves narrow market segment with product/service which it offers at a significantly lower cost than competitors

Competitive Forces Use competitive strategy to combat 5 competitive forces in marketplace Five-forces model identifies key factors threat of new competitors bargaining power of suppliers bargaining power of customers substitute products rivalry within the industry Use IT to enact or counteract these forces with respect to customers existing & potential competitors suppliers

Threat of new competitors
Erect barriers to entry: use IT to slow down new firms entering market SABRE ASAP

Intensify rivalry among competitors
Change basis of competition novel IS can perhaps change the basis of competition - help offer product/service with new features e.g. delivery service allows customer to track progress of package you are now differentiated from competition no longer compete just on price basis

Pressures from potential substitute products
Deliver products with better value identify and track a market niche with IS that you can serve better than others try to prevent substitution

Bargaining power of customers
Introduce switching costs cost of switching to competitor deters customers from switching e.g. due to training and contracts, travel agents unlikely to switch to different airline reservation system

Bargaining power of suppliers
Develop Alternatives use IS to maintain information on available alternative sources of supply

Tactical Moves in Pursuing a Strategy
Firm can use any of several tactics to change its products or processes through use of SIS Internal innovation - generate new knowledge internal growth - economies of scale Mergers & acquisitions Strategic alliances - partnerships with other companies

IOS & Strategic Alliances
information partnership cooperative alliance formed between two firms Advantages share information systems reciprocity of competencies economy of time and money

Value Chain Tool to use to discover where a company can apply IS to gain a competitive advantage

The Value System Primary Value Chain Activities
Inbound Logistics > Operations Outbound Logistics Marketing & Sales Service The firm's value chain links to the value chains of upstream suppliers and downstream buyers. The result is a larger stream of activities known as the value system. The development of a competitive advantage depends not only on the firm-specific value chain, but also on the value system of which the firm is a part.

Value Chain with Typical Strategic IS mapped onto it

Value Chain Analysis of Strategic Opportunities
value chain model highlights the primary or support activities that add a margin of value to a firm’s products or services where information systems can best be applied to achieve a competitive advantage Value chain consists of the major activities that have been added to the product during its creation, development or sale.

Activities in the value chain
Activities in the creation of product or service inbound logistics - obtain raw materials Operations - transformation of inputs to finished goods Outbound logistics - storing products and delivering them Marketing/sales - establishing a customer need Service activities - after-sale service and maintenance each of these activities adds value to final product

Value Chain besides determining discrete steps in chain - also need to analyze linkages between steps in value chain Use value-chain analysis to identify strategic information systems to use IS strategically, must identify potentially info.-related aspects of each activity in value chain and linkages between them.

Virtual Value Chain Mirrors with information the physical value chain
possible to integrate the systems mapped onto the physical value chain to produce the virtual V.C. can also link V.C. to that of suppliers and customers to form an integrated supply chain

point of analysis identify stages and links where highest-impact potential is available and creatively use IS to bring about that potential.

Organizational Requirements for Successful SIS
Active support of Senior management - not just MIS management Integrated Planning - for strategic use of IS into overall company strategic planning process Readiness: successful use of MIS already, org. experience with tech. innovation

Sustainability of a competitive advantage
depends on: 1. lead time will allow the achievement of competitive advantage 2. Copy cats may fail because of Uniqueness 3. If copied: Your organization will still have preempted the marketplace

Performance-Based Information Systems
Three major stages Organizations focused on using information systems to reduce costs and improve productivity Companies generally ignored revenue potential, not looking for opportunities to use information systems to increase sales Companies carefully consider both strategic advantage and costs

Productivity Output achieved divided by input required
Higher level of output for a given level of input means greater productivity Lower level of output for a given level of input means lower productivity Productivity = (Output / Input) × 100%

Return on Investment and the Value of Information Systems
Earnings growth Increase in profits Market share Percentage of sales in relation to total market Customer awareness and satisfaction Based on feedback from internal and external users Total cost of ownership Sum of all costs over the life of the information system

Risk Managers must consider the risks of:
Designing, developing, and implementing new or modified information systems Information systems can be costly failures Costs of development and implementation can be greater than the returns from the new system

Evaluation questions What are the Characteristics of Strategic Information Systems

Assignment QUESTION 1 Select a popular product or company that you are familiar with, such as Apple's iPod. Apply Porter's competitive forces model to that product and/or company. Which of the four generic strategies is the company using? QUESTION 2 An international ad-hoc group of climatologists and oceanographers needs to set up a system to analyze massive amounts of data on ocean temperatures, collected hourly by hundreds of ships worldwide. The technology and hardware for gathering the data and transmitting the data to a computer is in place. What additional hardware might they need for storage and processing? What techniques or software might they use to make their research more efficient and lower costs?

Introduction to Information System CSC unit

Similar presentations

Presentation on theme: "Introduction to Information System CSC unit"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Introduction to Information System CSC unit

Similar presentations

Presentation on theme: "Introduction to Information System CSC unit"— Presentation transcript:

Similar presentations

About project

Feedback