1. Information Systems (IS)
Rev: Feb, 2012
Euiho (David) Suh, Ph.D.
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT:
Dept. of Industrial & Management Engineering POSTECH

2. Contents ※ Discussion Questions 1 Information Systems 21)
Introduction 2)
Components of IS 3)
General role of IS 2
Information Systems in Management
Problem types
The relationship between IS and Management
The role of IS in Management 3
Case Study

3. Discussion Questions (1/2)
Explain the difference between data and information.
In a larger extent, what is the difference among data, information, decision aids, and knowledge ? (Refer to No. 6 PPT)
Refer to THREE key attributes of information. Are the attributes of information mutually independent ?
What is the least important component of IS among 6 components?
What is the ultimate purpose of information systems ?
DSS more focuses on solving (structured, semi-structured, unstructured) problem than (structured, semi-structured, unstructured). Justify your answer.
Take an example of a semi-structured model and suggest how to solve it using an IS.
By using IS, what were benefits E-mart gained?

4. Discussion Questions (2/2)
Case 1 in textbook (pp. 5~6, Chapter 1)
How do information technologies contribute to the business success of the companies depicted in the case?
Provide an example from each company, explaining how the technology implemented led to improved performance
The Bryan Cave law firm used BI technology to improve the availability, access, and presentation of existing information; this allowed them to provide tailored, innovative services to customers
What other professions could benefit from a similar use of these technologies, and how?
Discussion questions in textbook (p. 39, Chapter 1)
Refer to the Real Word Case on eCourier, Cablecom, and Bryan Cave in the chapter. Jay Bregman, CTO and cofounder of eCourier, notes the company hopes their innovative use of technology will become a differentiator in their competitive market. More generally, to what extent do specific technologies help companies gain an edge over their competitors? How easy or difficult would be to imitate such advantages?
Why do big companies still fail in their use of information technology? What should they be doing differently?

5. The transformation process
1. Information Systems
1) Introduction
What is Information?
Definition of Data
Raw facts, typically about physical phenomena or business transactions
Specifically, objective measurements of the attributes of entities such as number, name, etc.
Definition of Information
Facts that are organized and arranged in a meaningful manner.
Data vs. Information (statistical analysis)
Attributes of information
Accuracy
Timeliness
Relevance
Completeness
Reliability
Simplicity
Verifiability
Flexibility
Economy
Data
Information
The transformation process

6. What is a System? Definition of System Input Processing Output
1. Information Systems
1) Introduction
What is a System?
Definition of System
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
Input
Capturing and assembling elements that enter the system to be processed
Processing
Transformation process converts input into output
Output
Transferring transformed elements to their ultimate destination

7. What is an Information System?
1. Information Systems
1) Introduction
What is an Information System?
Definition of Information System
A set of interrelated components which are to collect, process, store, and distribute information to support decision making and control in an organization
Information
System

8. What Does an Information System Do?
1. Information Systems
1) Introduction
What Does an Information System Do?
An information system performs three general activities
It accepts data from sources as input
It acts on data to process(produce) information
: information generating system
The system outputs the information for the user, manager or staff member
Information System Process
Input of data
Information generating
Output
Third Step
First Step
Second Step

9. Components of Information System (1/3)
1. Information Systems
2) Components of IS
Components of Information System (1/3)
Does an Information System Need Computer?
95% 5%
Yes No
As the volume of work grows
procedures increase in complexity,
activities become more interrelated,
improvements can be gained by introducing computer assistance
Small size management

10. Components of Information System (2/3)
1. Information Systems
2) Components of IS
Components of Information System (2/3)
A set of people, data, procedure to provide useful information
Information System
People
Data
Procedure
Communication
of information
Management
of activities
Decision
making
What is an information system?
An information system can be defined as a set of people, data, procedure to provide useful information.
Roles of Information system can be summarized as follows.
First, the communication of information.
Second, the management of activities.
Third, the decision making.

11. Components of Information System (3/3)
1. Information Systems
2) Components of IS
Components of Information System (3/3)
E.g. Components of a Loan Information System
Fund on deposit
Loan balance
Balance financial plan
Loan portfolio
Banking database
Processor
Computer based loan information systems
Economic database
Information supplied by applicant for loan
Financial status
Loan details
Employment status
Employment data
Economic data

12. Why do we study Information Systems?(1/2)
3) General role of IS
Why do we study Information Systems?(1/2)
Collect, distribute, analyze Data
Why?
Get information
Why?
Remove uncertainty
Why?
Make a good decision
Why?
Store knowledge

13. Why do we study Information Systems?(2/2)
3) General role of IS
Why do we study Information Systems?(2/2)
Vital component
of successful
businesses
Improves efficiency
and effectiveness of
business processes
Strengthens
competitive position
in rapidly changing
marketplaces
Facilitates
managerial
decision making
&
workgroup
collaboration

14. Benefits and Uses of Information Systems
3) General role of IS
Benefits and Uses of Information Systems
Added Value to Products (Goods & Services)
Higher-quality Products
Improved health care & communications
Reduced labor requirements & costs
Increased efficiency & productivity
Superior financial decision making, control over, operations, and managerial decision making
Fewer errors
Greater accuracy
Better Safety & Service
Product
Labor
Quality
Management

15. Fuzzy Output User dependent Output
2. Information Systems in Management
1) Problem types
Problem Types
Input
Problem
Structure
Definite
Output
Structured Problem
Input
Problem
Structure
Fuzzy
Output
Unstructured Problem
Input
Problem
Structure
User dependent
Output
Semi-structured Problem
User Interaction
User

16. What types of Information Systems Exist?
2. Information Systems in Management
2) The relationship between IS and Management
What types of Information Systems Exist? IS
Recognition about Information
The advent
Explanation
TPS(Transaction Processing System)
Efficiency
Computer
To process data about transactions
MIS(Management Information System)
Control
Database
To enable people to make decision(action)
DSS(Decision Support System)
Decision
PC and
Model based
To assist managers with unique strategic decisions that relatively unstructured
ESS(Executive Support System)
Strategic Resource
Executive Support
To assist top-level executive
ES(Expert System)
Knowledge AI
To mimic the decision process of a human expert
ERP(Enterprise Resources Planning)
Management IT
To integrate management information across an entire organization
Work Group Support System
Communication
To exchange information
(ex: EDI, WP)

17. 2. Information Systems in Management
2) The relationship between IS and Management
Evolution of IS
1950
1960
1970
1980
1990
2000~
TPS(Transaction Processing System)
MIS(Management Information System)
DSS(Decision Support System)
ESS(Executive Support System)
ES(Expert System)
ERP(Enterprise Resources Planning)
WGSS(Work Group Support System)

18. A Business Perspective on Information Systems
2. Information Systems in Management
3) The role of IS in Management
A Business Perspective on Information Systems
Organizations
Technology
Management
Information
Systems

19. Technical & Behavioral Approaches to MIS
2. Information Systems in Management
3) The role of IS in Management
Technical & Behavioral Approaches to MIS
Computer
Science
Operations
Research
Sociology
Political
Psychology
Management
MIS
Behavioral
Approaches
Technical

20. Case Study
Domestic Case 
Click Here

21. Reference
O’Brien & Marakas, “Introduction to Information Systems – Fifteenth Edition”, McGraw – Hill, Chapter 1, pp. 3~42
Euiho Suh, “Introduction to Information Systems (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)
Euiho Suh, “Information & Management (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)