1. © Paradigm Publishing, Inc. 10-1 Chapter 10 Information Systems Chapter 10 Information Systems

2. © Paradigm Publishing, Inc. 10-2 Presentation Overview The Role of an Information System Information Systems Classified by Function Planning and Updating Information SystemsPlanning and Updating Information Systems Choosing a New Information System The Process of Developing a New Information SystemThe Process of Developing a New Information System

3. © Paradigm Publishing, Inc. 10-3 The Role of an Information System An information system is a combination of people, hardware, software, computer networks, and data that organizations use to manage daily and long-term operations.

4. © Paradigm Publishing, Inc. 10-4 The Role of an Information System What role do information systems play in business? Computer-based information systems offer four key advantages over traditional information systems. Improved speed Improved efficiency Improved quality Improved measurability

5. © Paradigm Publishing, Inc. 10-5 Information Systems Classified by Function What are some common functional classifications for information systems? –Distribution management –Office information –Management information –Decision support –Executive support –Factory automation

6. © Paradigm Publishing, Inc. 10-6 Information Systems Classified by Function Distribution Management Systems –Designed to deliver products quicker, cheaper, and with fewer errors. –The major advantage provided by this type of system is the reduction of inventory overhead.

7. © Paradigm Publishing, Inc. 10-7 Information Systems Classified by Function In a traditional inventory system, regularly scheduled deliveries move products from warehouse storage to storerooms until they are needed to stock the shelves.

8. © Paradigm Publishing, Inc. 10-8 Information Systems Classified by Function In a just-in-time distribution system, deliveries are smaller and more frequent so that products are only in the storeroom briefly.

9. © Paradigm Publishing, Inc. 10-9 Information Systems Classified by Function In a stockless inventory distribution system, deliveries move products from warehouse storage directly to the shelves with no need for a storeroom.

10. © Paradigm Publishing, Inc. 10-10 Information Systems Classified by Function Office Information System (OIS) –Used to automate office work. –Typically provides the following functions Maintaining standard operating procedures Connectivity Electronic data processing

11. © Paradigm Publishing, Inc. 10-11 Information Systems Classified by Function Management Information System (MIS) –Provides information that assists in the management of business operations. –Typically Integrates information from different departments or functions into one database Provides support to management in the form of regular reports

12. © Paradigm Publishing, Inc. 10-12 Information Systems Classified by Function Decision Support System Helps managers make informed business judgments. Data modeling provides a simulation of a real- world situation built into a software application. A expert system is a sophisticated DSS that attempts to model an expert’s knowledge of a topic. An online analytical processing (OLAP) system defines and clarifies methods of handling what-if questions posed to large databases.

13. © Paradigm Publishing, Inc. 10-13 Information Systems Classified by Function Executive Support System (ESS) –Attempts to bring together information from an entire organization, not just one department or group. –Supports strategic decision-making by facilitating the creation of high-level summary reports.

14. © Paradigm Publishing, Inc. 10-14 Information Systems Classified by Function Factory Automation and Plant Operations –A computer-aided manufacturing (CAM) system involves the direct use of computers to manufacture products. –A computer-integrated manufacturing (CIM) system connects all departments in a manufacturing company. –A statistical quality control (SQC) system assesses how well a factory is operating.

15. © Paradigm Publishing, Inc. 10-15 Planning and Updating Information Systems What are the effects of upgrading or switching to a computer-based IS? –Expanded technical staff –Increased information technology costs –Increased profit margins –Enhanced product quality –Reduced clerical staff –Temporary disruption

16. © Paradigm Publishing, Inc. 10-16 Choosing a New Information System What are important factors to consider when choosing a new IS? –User interface design –Open versus closed system –Niche information system –Turnkey system –System support

17. © Paradigm Publishing, Inc. 10-17 Choosing a New Information System User Interface Design –The interface design should be user-friendly and intuitive. –Critical information should be readily apparent. Open or Closed System? –In an open system, the company’s IT staff can alter the system or hire a third party to do so. –A closed system must be supported by the original vendor.

18. © Paradigm Publishing, Inc. 10-18 Choosing a New Information System Niche Information System –Serves a specially focused set of customers. –Does not require a lot of training or technological know-how. –Can be expensive and tends to lag technologically.

19. © Paradigm Publishing, Inc. 10-19 Choosing a New Information System Turnkey System –Contains everything a business needs to get a new IS up and running. –Usually the best and most expensive. –The services of support people are included.

20. © Paradigm Publishing, Inc. 10-20 Choosing a New Information System System Support –Ask whether or not installation, staff training, and on-site service and repair are included in the package. –If they are not, these extra costs must be factored into calculations of the total cost.

21. © Paradigm Publishing, Inc. 10-21 The Process of Developing a New Information System The development of information systems follows an ongoing cycle that includes planning, design, implementation, and support.

22. © Paradigm Publishing, Inc. 10-22 The Process of Developing a New Information System Gantt charts help to visually communicate the critical steps and schedule for a project.

23. © Paradigm Publishing, Inc. 10-23 The Process of Developing a New Information System Designing the System –The functional specification document states exactly what the IS must accomplish. This document is usually written first. –The design specification spells out how these goals will be reached.

24. © Paradigm Publishing, Inc. 10-24 The Process of Developing a New Information System Commonly Used Information Systems Software

25. © Paradigm Publishing, Inc. 10-25 The Process of Developing a New Information System Implementation –A prototype is a miniprogram that demonstrates how the system works. This step is sometimes skipped. –In the development stage, software programming is done and the technicians ensure that the hardware works. –Before any system can be installed, hardware and software must be purchased.

26. © Paradigm Publishing, Inc. 10-26 The Process of Developing a New Information System Implementation –Once the system is installed, it undergoes beta testing—a period of rigorous testing to ensure that the system functions as designed. –User training often occurs at the same time. –Finally, the system must be approved by the committee or executive overseeing its purchase.

27. © Paradigm Publishing, Inc. 10-27 The Process of Developing a New Information System The Support Stage –A system goes into the support stage after it has been accepted and approved. –A support contract allows users to contact the systems integrator for technical support, training, and on-site troubleshooting.

28. © Paradigm Publishing, Inc. 10-28 On the Horizon Based on the information presented in this chapter and your own experience, what do you think is on the horizon?