MIS Lesson1 Intro IS

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MIS Lesson1 Intro IS

  1. 1. Information Systems Dr. David Asirvatham [email_address] January 2, 2010 Introduction Information Systems David Asirvatham
  2. 2. Organisation <ul><li>Primary Objective </li></ul><ul><ul><li>To satisfy the needs of its market or clients </li></ul></ul><ul><li>Organisational environment </li></ul><ul><ul><li>macro- economic e.g. inflation, economic growth, etc </li></ul></ul><ul><ul><li>financial e.g. exchange rate, interest rate , etc. </li></ul></ul><ul><ul><li>political </li></ul></ul><ul><ul><li>market-based e.g. consumer tastes, design , etc </li></ul></ul><ul><ul><li>competition </li></ul></ul><ul><ul><li>technology </li></ul></ul><ul><ul><li>legal </li></ul></ul><ul><ul><li>etc. </li></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  3. 3. Organisational Environment January 2, 2010 Introduction Information Systems David Asirvatham
  4. 4. Organisation components <ul><li>There are five broad classes: </li></ul><ul><li>resource input </li></ul><ul><ul><li>capital/money, people, raw materials, services, information </li></ul></ul><ul><li>Primary activities </li></ul><ul><ul><li>inbound logistics (purchasing) </li></ul></ul><ul><ul><li>operation (conversion of input to desired output) </li></ul></ul><ul><ul><li>marketing and sales </li></ul></ul><ul><ul><li>outbound logistics (delivery, quality inspection) </li></ul></ul><ul><ul><li>services and support </li></ul></ul><ul><li>Support activities (or secondary activities) </li></ul><ul><ul><li>those activities that are needed to support the primary activities </li></ul></ul><ul><ul><li>e.g. R&D, training, planning, procedures, etc </li></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  5. 5. Organisation components <ul><li>Tools and techniques </li></ul><ul><ul><li>they are needed to assist decision making </li></ul></ul><ul><ul><li>they are needed for planning, scheduling, analysis , etc </li></ul></ul><ul><li>Resource outputs </li></ul><ul><ul><li>output can be in terms of goods or services </li></ul></ul><ul><ul><li>the recipient of the output can be </li></ul></ul><ul><ul><ul><li>customers or clients </li></ul></ul></ul><ul><ul><ul><li>owners or shareholders </li></ul></ul></ul><ul><ul><ul><li>employees </li></ul></ul></ul><ul><ul><ul><li>society </li></ul></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  6. 6. Key elements of an organisation January 2, 2010 Introduction Information Systems David Asirvatham Value Added Money People Info Material Support Activities Primary activities Clients Owners Society Emp.
  7. 7. Management Structure January 2, 2010 Introduction Information Systems David Asirvatham Strategic Tractical Operational TRADITIONAL CURRENT FUTURE
  8. 8. Data vs Information <ul><li>Data </li></ul><ul><ul><li>is a complete range of facts, events, measurements, opinions, etc </li></ul></ul><ul><ul><li>raw data </li></ul></ul><ul><li>Information </li></ul><ul><ul><li>data that is appropriate or useful to the requirements of a particular user </li></ul></ul><ul><ul><li>data that has been processed </li></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham Data Info Data Processing Manual Machine
  9. 9. Data vs Information: Example January 2, 2010 Introduction Information Systems David Asirvatham <ul><li>2345 James Noad 4,500 Penang </li></ul><ul><li>2376 Ali Samat 5,750 Ipoh </li></ul><ul><li>1290 Samy Nara 5,390 JB </li></ul><ul><li>3478 Lee Chee Sing 8,210 KL </li></ul><ul><li>2288 Raman Jass 10,290 KL </li></ul><ul><li>Etc. </li></ul><ul><li>Penang </li></ul><ul><li>Average Salary: RM5,700 </li></ul><ul><li>2. Ipoh </li></ul><ul><ul><li>Average Salary: RM4,500 </li></ul></ul><ul><li>3. KL </li></ul><ul><li>Average Salary: RM6.573 </li></ul>DATA INFORMATION
  10. 10. Data vs Information January 2, 2010 Introduction Information Systems David Asirvatham
  11. 11. Data Information Conversion Process January 2, 2010 Introduction Information Systems David Asirvatham Raw Data Data capture Data processing Data communication User Data Information
  12. 12. Data <ul><li>Problem encounter with data </li></ul><ul><ul><li>where it is located </li></ul></ul><ul><ul><li>cost of locating, capturing, processing, communicating, storing and updating </li></ul></ul><ul><ul><li>cost of accessing the data may exceeds its value </li></ul></ul><ul><li>What are the ways in which data is available in an organisation? </li></ul><ul><ul><li>Written or documents form </li></ul></ul><ul><ul><li>oral </li></ul></ul><ul><ul><li>visual (actions and reactions) </li></ul></ul><ul><ul><li>subconscious </li></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  13. 13. Value of Information <ul><li>What are the factors that determines the value of the data or information? </li></ul><ul><ul><li>Accuracy </li></ul></ul><ul><ul><ul><li>must be error free </li></ul></ul></ul><ul><ul><ul><li>GIGO </li></ul></ul></ul><ul><ul><li>timely </li></ul></ul><ul><ul><ul><li>available when needed </li></ul></ul></ul><ul><ul><li>accessible </li></ul></ul><ul><ul><ul><li>right format </li></ul></ul></ul><ul><ul><ul><li>easy to access </li></ul></ul></ul><ul><ul><li>relevant </li></ul></ul><ul><ul><ul><li>must be useful for a decision maker </li></ul></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  14. 14. Value of Information (con’t) <ul><ul><li>Complete </li></ul></ul><ul><ul><ul><li>contains all the important facts </li></ul></ul></ul><ul><ul><li>Economical </li></ul></ul><ul><ul><ul><li>economical to produce </li></ul></ul></ul><ul><ul><ul><li>computers can help to reduce processing cost </li></ul></ul></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><ul><li>can be used for variety of purposes </li></ul></ul></ul><ul><ul><ul><li>e.g inventory in hand - useful to sales, production and financial executives </li></ul></ul></ul><ul><ul><li>Reliable </li></ul></ul><ul><ul><ul><li>reliability depends on the source </li></ul></ul></ul><ul><ul><ul><li>e.g. rumor of share or oil price may go up </li></ul></ul></ul><ul><ul><li>Secure </li></ul></ul><ul><ul><ul><li>cannot be access by unauthorised users </li></ul></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  15. 15. Systems <ul><li>What is a system? </li></ul><ul><li>A system is a set of interrelated subsystems which when combined serve a defined purpose and achieve a specific objective. </li></ul><ul><li>- input; process; output </li></ul><ul><li>Can you give examples of systems? </li></ul><ul><li>What is the environment of a system? </li></ul><ul><li>What are the boundaries of a system? </li></ul><ul><li>Open vs Closed systems </li></ul><ul><li>Open systems interact with the environment </li></ul><ul><li>Close systems do not interact with the environment that is there is no exchange of information or business transactions. They are self-contained. </li></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  16. 16. Systems Theory <ul><li>Types of systems </li></ul><ul><li>Deterministic systems </li></ul><ul><ul><li>the output can be predetermined </li></ul></ul><ul><ul><li>input should be invariable </li></ul></ul><ul><ul><li>e.g. mechanical systems </li></ul></ul><ul><ul><li>business systems do not come under this catergory </li></ul></ul><ul><li>Probabilistic or stochastic systems </li></ul><ul><ul><li>the output cannot be determined precisely; it is only possible to assess their probable output </li></ul></ul><ul><ul><li>e.g business systems </li></ul></ul><ul><li>Adaptive or cybernatic systems </li></ul><ul><ul><li>dynamic to changes in the environment </li></ul></ul><ul><ul><li>e.g computerised stock control system </li></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  17. 17. Information Systems <ul><li>Information System may be defined as a series of interrelated activities concerned with the capture, processing, communication and conversion of data to information </li></ul><ul><li>An IS is typically concerned with providing data on a particular situation or problem of concern to the user or organisation </li></ul>January 2, 2010 Introduction Information Systems David Asirvatham Situation or Problem Data Capture Data Processing Data Communication Processing by users Improve Knowledge Changes in behaviour Changes in perception Action Decision Feedback Outline Model of IS
  18. 18. Basic Feedback System January 2, 2010 Introduction Information Systems David Asirvatham PROCESS SENSOR ADJUST STANDARD COMPARATOR EFFECTOR INPUT OUTPUT CONTROLLER
  19. 19. January 2, 2010 Introduction Information Systems David Asirvatham <ul><li>Improve Operation </li></ul><ul><li>New products and services </li></ul><ul><li>Better Customer and supplier relationship </li></ul><ul><li>Improved decision making </li></ul><ul><li>Competitive advantage </li></ul>Role of Information Systems
  20. 20. <ul><li>Improved efficiency results in higher profitability </li></ul><ul><li>Example: </li></ul><ul><ul><li>Wal-Mart is the champion of combining information systems and best business practices to achieve operational efficiency—and $285 billion in sales in 2005 </li></ul></ul><ul><li>Explain how the Operation of your company can be improved using IS </li></ul>January 2, 2010 Introduction Information Systems David Asirvatham Improve Operation
  21. 21. January 2, 2010 Introduction Information Systems David Asirvatham <ul><li>Information systems and technologies enable firms to create new products, services, and business models </li></ul><ul><li>A business model includes how a company produces, delivers, and sells its products and services </li></ul><ul><li>Explain what new products or services can be introduced by your company using IS and technology? </li></ul>New products, services, and business models:
  22. 22. January 2, 2010 Introduction Information Systems David Asirvatham <ul><li>IS can improve Customers & Supplier relationship </li></ul><ul><ul><li>Returning customers </li></ul></ul><ul><ul><li>Better service from suppliers </li></ul></ul><ul><ul><li>Reduce cost </li></ul></ul><ul><li>Example: </li></ul><ul><ul><li>The Mandarin Oriental in Manhattan uses information systems and technologies to keeping track of customer preferences </li></ul></ul><ul><li>Explain how you could IS/Technology to improve customer relationship in your company? </li></ul>Better Customer and supplier relationship
  23. 23. January 2, 2010 Introduction Information Systems David Asirvatham <ul><li>With information, decisions will more of guesswork </li></ul><ul><li>Real-time data have improved the ability of managers to make decisions </li></ul><ul><li>Example: </li></ul><ul><ul><li>Verizon uses a Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages </li></ul></ul>Improved decision making:
  24. 24. January 2, 2010 Introduction Information Systems David Asirvatham <ul><li>What are the competitive advantages: </li></ul><ul><ul><li>Better decision </li></ul></ul><ul><ul><li>Right pricing </li></ul></ul><ul><ul><li>Better performance </li></ul></ul><ul><ul><li>Understand the customer preference </li></ul></ul><ul><ul><li>Quality Products </li></ul></ul><ul><li>Business need to invest in IS/Technology </li></ul>Competitive advantage:
  25. 25. example January 2, 2010 Introduction Information Systems David Asirvatham
  26. 26. Value-chain of a manufacturing Company January 2, 2010 Introduction Information Systems David Asirvatham Raw materials Inbound Logistic Warehouse Production Finished Product Outbound Logistic Marketing & Sales Customer Service Explain how IS can be applied at each stage of the Value-Chain
  27. 27. Use of IS <ul><li>The value-chain consists of a series of activities </li></ul><ul><li>Each activity increases the value perceived by the customer </li></ul><ul><li>Customers value may mean low-price, high quality, better customer service or uniqueness of product, etc </li></ul><ul><li>The value comes from the skill, knowledge, time and energy invested by the company </li></ul><ul><li>What role will IS play? </li></ul><ul><ul><li>To control & monitor value-added processes to ensure effectiveness and efficiency </li></ul></ul><ul><ul><li>feedback systems may be used </li></ul></ul><ul><ul><li>summaries the performance of the system and it will form the basis for changes </li></ul></ul><ul><ul><li>the changes could be use different raw materials, new assembly-line, new product, new services, etc. </li></ul></ul><ul><ul><li>in general, IS is considered part of the process itself </li></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham
  28. 28. Questions <ul><li>What is an organisation? </li></ul><ul><li>What is a system? </li></ul><ul><li>What is the difference between Data and Information? </li></ul><ul><li>Explain the role of IS in Businesses </li></ul><ul><li>An Information System may be defined as a series of interrelated activities concerned with the conversion of data into information. Briefly discuss an outline model of this conversion process. </li></ul><ul><li>Explain the components of a feedback system </li></ul><ul><li>Explain how IS/Technology is applied in: </li></ul><ul><ul><li>Pasar Malam Store </li></ul></ul><ul><ul><li>Seven-Eleven Store </li></ul></ul><ul><ul><li>Giant Supermarket </li></ul></ul>January 2, 2010 Introduction Information Systems David Asirvatham

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