1. Introduction to Information Systems
ISYS 363
David Chao

2. What Is an Information System?
Information system is a collection of components that work together to process data and provide information to help in the operation and management of an organization.
Information system is an organizational and management solution, based on information technology, to a challenge posed by the environment.

3. The Fundamental Roles of Information Systems
Support of business operations
Support of managerial decision making
Support of strategic competitive advantage
Information systems that give a company a competitive advantage in the market place.

4. Fundamental Roles of IS in Business

5. Types of Information Systems
Operations Support Systems
Management Support Systems

6. Operations Support Systems
What do they do?
Efficiently process business transactions
Control industrial processes
Support communications and collaboration

7. Types of Operations Support Systems
Transaction Processing Systems
Record and process business transactions
Large amount of data, high processing speed, high reliability, accuracy, and security (fault tolerant)
Data: internal, historical, detailed
Examples: sales processing, 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

8. 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

9. Management Support Systems
What do they do?
Provide information and support for effective decision making by managers

10. 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

11. Management Information Systems (Information Reporting Systems)
Facilitate management control by producing summarized reports that compare actual performance against planned performance on a regular and recurring basis.
Management control: Ensuring that performance meets established standards.

12. MIS Report Example

13. Information and Management Decisions
A decision is a selection between several courses of action:
Penalty for bad decision
Information helps reduce uncertainty:
Incomplete information
Information systems improve decision-making effectiveness by providing decision makers with information related to the decisions for which they are responsible.

14. Decision Support Systems
Facilities for assisting decision making.
Structured decision
The information requirements are known precisely.
The criteria for making decision are known.
The quality of a decision can be measured precisely.
Internal and external data

15. DEGREE OF PROBLEM STRUCTURE
The DSS Focuses on Semistructured Problems
Manager + Computer
(DSS)
Solution
Computer
Solution
Manager
Solution
Structured Semistructured Unstructured
DEGREE OF PROBLEM STRUCTURE

16. Using Decision Support Systems
What-IF Analysis:Observing how changes to selected variables affect other variables.
Sensitivity Analysis: Observing how repeated changes to a single variable affect other variables.
Goal-Seeking Analysis:Set a target value for a variable, and then repeatedly changes other variables until the target is achieved.
Example: Benefit.Xls
Optimization Analysis
Simulation

17. Other Information Systems
Expert Systems
Provide expert advice
Knowledge base and rules
Example: Investment Expert System
Knowledge Management Systems
Support creation, organization, and dissemination of business knowledge throughout company
Example: intranet access to best business practices, FAQ

18. Other Information Systems
Functional Business Systems
Focus on operational and managerial applications of basic business functions
Examples: accounting, finance, or marketing

19. Components of an Information System
Information technology
People
Database
Procedure

20. People Information specialists End-user: End-user computing
programmer, system analyst, database administrator, etc.
End-user:
Menu-level end users
Command-level end users
End-user programmer
End-user computing

21. Ethical Responsibilities
What uses of IT might be considered improper or harmful to other individuals or society?
What is the proper business use of the Internet or a company’s IT resources?
How can you protect yourself from computer crime?

22. Do you think it is wrong to
Copy company’s software for use at home?
35 % say no.
Use company equipment like computers to search for a new job?
34% say no.
Blame your own personal errors on technological glitches?
39% say no.
Use office computers to do personal shopping on the Internet?
46% say no.

23. Workplace PCs May Not Be Very Private
Don’t be fooled: It may be personal, but it is not private.
Cyber-surveillance: The person most likely to be spying on you is your boss. 27% of businesses surveyed by the American Management Association said they review employee .
Reasons:
Productivity
Liability
Network performance

24. Database A group of related files Support business operations
Provide information

25. An example of database application
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26. Major Functions of Database Management
Creating a database
Analysis: Entity-Relationship Diagram
Design: Design file structure
Implementation
Accessing a database
Updating a database

27. Database Security Logical protection: Physical protection
Illegal access
Illegal update
Virus
Physical protection

28. Internet firms flocks to store data in blast-proof bunker
Some biggest companies are running their Internet operations on systems installed in a 300-foot-deep nuclear blast-proof bunker.

29. Procedures
Procedure: A step-by-step process or a set of instructions for accomplishing specific results.
Operations
Backup and Recovery
Security
Development

30. Operations Procedure: A procedure that describes how a computer system or application is used, how often it can be used, who is authorized to use it, and where the results of processing should go.
Backup Procedure: A procedure that describes how and when to make extra copies of information or software to protect against losses.
Recovery Procedure: An action taken when information or software must be restored.
Security Procedure: A procedure designed to safeguard data centers, communications networks, computers, and other IT components from accidental intrusion or intentional damage.
Development Procedure: A procedure that explains how IT professionals should describe user needs and develop applications to meet those needs.

31. Measuring IS Success Efficiency Effectiveness
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