2. 1-2
Outline
Section 1:
Why study IS and IT?
What is an Information System?
What Should Business Professionals Know about IS?
Fundamental Roles of IS in Business
Trends in Information Systems
What is E-Business?
Types of Information Systems
IT Careers
The IS Functions
3. 1-3
Outline
Section 2:
System Concepts: A Foundation
What is a System?
Basic Functions of a System
Cybernetic System
A Business as a System
Other System Characteristics
Components of an IS
Basic IS Activities
Recognizing Information Systems
4. 1-4
Foundation Concepts
Improves efficiency and
effectiveness of
business processes
Improves efficiency and
effectiveness of
business processes
Facilitates managerial
decision making
& workgroup
collaboration
Facilitates managerial
decision making
& workgroup
collaboration
Strengthens
competitive position in
rapidly changing
marketplaces
Strengthens
competitive position in
rapidly changing
marketplaces
Vital component of
successful businesses
Vital component of
successful businesses
Why study
information systems and
information technology?
6. 1-6
What is an Information System?
Any organized
combination of…
Policies and
procedures
Data resources
Communication
networks
Hardware and
software
Stores, retrieves, transforms,
and disseminates information
in an organization
People
7. 1-7
Early Information Systems
They weren’t computerized
– Smoke signals
– Library card catalogs
– Book bag, day planner, and notebooks
– Cash registers
– Accounting ledger
11. 1-11
What is E-Business?
Using Internet technologies to empower…
Business processes
Electronic commerce
Collaboration within a company
Collaboration with customers, suppliers,
other business stakeholders
In essence, an online exchange of value
17. 1-17
Operational Support Systems
RoleUses of
Operations
Support
System
Transaction processing
Process control
Support Enterprise collaboration
Updating of corporate databases
18. 1-18
Types of Operations Support Systems
Transaction Processing Systems
Record and process data resulting from business transactions
Produce documents; Update organization database
Sales, inventory, and accounting systems
Process Control Systems
Monitor and control physical processes
Using sensors to monitor refinery processes
Enterprise Collaboration Systems
Enhance and support team/workgroup
communication
Email, video conferencing
20. 1-20
Two Ways to Process Transactions
Batch Processing
Accumulate
transactions over time
and then process
periodically
Ex: Banks process all
checks in a batch at night
Online Processing
Process all
transactions
immediately
Ex: A bank processes
ATM withdrawals
immediately
Also called “real-time
processing “
21. 1-21
Management Support Systems
What do they do?
Provide information and support for
effective decision making by managers
Management
information
systems
Decision
support
systems
Executive
information
systems
22. 1-22
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)
– Provide critical information from MIS, DSS and other
sources tailored for executives and managers needs
– Example: easy access to actions of competitors
23. 1-23
Other Information Systems
Knowledge-based systems that
provides expert advice
Credit application advisor
Expert
Systems
Expert
Systems
Knowledge-based systems that
support the creation, organization,
dissemination of knowledge
throughout company
Intranet access to
best business practices
Knowledge
Management
Systems
Knowledge
Management
Systems
24. 1-24
Other Information Systems
Helps get strategic advantage
Shipment tracking, e-commerce
Strategic
Information
Systems
Strategic
Information
Systems
Focus on support operational and
managerial application of basic
business functions
Accounting, finance, marketing
Functional
Business
Systems
Functional
Business
Systems
25. 1-25
IT Careers
Economic downturns affecting all job
sectors, including IT
Rising labor costs are pushing jobs to
India, the Middle East, Asia-Pacific
NegativeNegative
IT employment opportunities strong,
with new jobs emerging daily
Frequent shortages of IT personnel
Long-term job outlook is positive
and exciting
PositivePositive
27. 1-27
IT Careers
The need to backfill positions
Information sharing and
client/server environments
Rapid growth in computer system
design and related services
Need for those with problem-solving skills
Falling hardware and software prices, which
fuel expanded computerization of operations
Job increases will be driven by…
28. 1-28
The IS Function
Major functional area of
business
Important contributor to
operational efficiency,
employee productivity,
customer
service/satisfaction
Vital ingredient in
developing competitive
products and services in
global marketplace (SIS)
Major source of
information and support
for decision making
(e.g. DSS)
Dynamic and challenging
career opportunity
Key component of
today’s networked
business
29. 1-29
System Concepts: A Foundation
Hardware, software, data
management, telecommunications
networks
To support inter-connected
information systems
Finding ways to use information
technology; includes designing basic
information system components
Emphasizes the quality, strategic
business value, and security of an
organization’s information systems
Technology
Applications
Development
Management
30. 1-30
What is a System?
A system is…
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
31. 1-31
Basic Functions of a System
InputInput
Capturing
and
assembling
elements
that enter
the system
to be
processed
ProcessingProcessing
Transforma-
tion process
converts
input into
output
OutputOutput
Transferring
transformed
elements to
their
ultimate
destination
33. 1-33
Cybernetic System
All systems have input, processing, output
A cybernetic system, a self-monitoring, self-
regulating system.
– Feedback data about the performance of a
system. E.g. speed.
– Control… monitoring and evaluating feedback
to determine whether a system is moving
toward the achievement of its goal and make
the necessary adjustments.
35. 1-35
Other System Characteristics
Systems exist and function in an environment
containing other systems
Subsystem: is a system that is a component
of a larger system.
The larger system is an environment
– Several systems may share one environment
– Systems may be connected via a shared
boundary (interface)
Types of systems…
– Open (e.g. Marketing)and Adaptive (e.g. DSS)
40. 1-40
People Resources
People are the essential ingredient for the
successful operation of all IS
– End users:
(users or clients) in all levels of org. e.g. customers,
managers.
Knowledge workers
– IS Specialists
e.g. Systems analysts, software developers, system
operators.
41. 1-41
Hardware Resources
Machines and media
Examples of hardware in computer-based IS:
- Computer Systems. E.g. laptop
- Computer peripherals. E.g. keyboard
42. 1-42
Software Resources
Example of software resources:
System software e.g. OS Microsoft
Application software e.g. Word processing
Procedures e.g. instructions for using a
software package.
43. 1-43
Data Resources
Data resources are as important as other
resources.
Highly protected
Data takes many forms and types
Data resources are accessed by:
- Databases
- Knowledge bases
44. 1-44
Data Versus Information
Data are raw facts, typically about physical
phenomena or business transactions
– Specifically, objective measurements of the
attributes of entities
Information is data that was converted into
meaningful and useful context for end users
– The form is : Aggregated, manipulated, and
organized
– The content is : Analyzed and evaluated
– Placed in proper context for a human user
Important to understand as any other functional area of the business
You might just as well ask why study accounting, finance, operations management, marketing, human resources, management.
Most business majors include a class in IS.
efficiency
doing the thing right
doing things in the most economical way (good input to output ratio)
effectiveness
doing the right thing
doing "right" things, i.e. setting right targets to achieve an overall goal (the effect)
Case 1: Value Through Business Intelligence
eCourier
Tracks customersatisfaction in real time
Immediate attention to complaints, problems
Allows GPS tracking of couriers and orders
Books 95% of deliveriesonline
Uses SeeWhy softwareto spot trends and anomalies
Optimizes system on an ongoing basis
Uses online surveys to retain customers
Responds to complaints and problems within 24 hours
In theory, IS could be paper based
Retrieves= recover
disseminates = spread, distribution of information
What is a system?
A system
Is a set of interrelated components
With a clearly defined boundary
Working together to achieve a common set of objectives
Almost everything is a system
One system can be made up of other systems or can be part of a bigger system
A computer is a system, like many others. A system has 3 components:
Input
Process
Output
Take a cash machine for example.
It should be noted that a system does not necessarily need to contain a computer. Delivering a letter is a system for example:
You input the letter (to the mailbox).
The system processes it.
Your recipient receives the output.
Even today we have loads of IS that have nothing to do with information systems
THEY ALL transmit info.
Book bag with day planner, notebooks, that allows you organize inputs from lectures, presentations and discussions. Process them in to the output is homework and good exam grades.
Foundation Concepts: fundamental behavioral, technical, business and managerial concepts
Examples: general systems theory, competitive strategies. Covered in chapters 1, 2
Information Technology: Hardware, software, networks, data management and Internet-based technology
Business Applications: Major uses of the IS in the organization
Chapter 7: applications in functional areas, Chapter 8: electronic commerce applications and Chapter 9: decision making
Development Processes: How to plan, develop and implement IS to meet business opportunities
By both business professionals and IS specialists.
Management Challenges: The challenges of effectively and ethically managing IT
Managing IT at the end user, enterprise and global levels of a business. Chapter 11 is security challenges and Chapter 12 is how to manage IT in global businesses.
Support business process: help record , do work faster, keep accurate information
Ex: IS used in the college, in the book store down stares.
Support business decision: help make better decisions
Ex: SIS can help college management decide to open or close sections,
Support strategies: help create a competitive advantage
Competitive advantage ميزة تنافسية
an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.
allowing it to generate greater sales or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support.
All roles interact with each others and they try to achieve integration in their systems so information can flow freely which add flexibility and more business support
Integrate = to unite with something else ; blend into a functioning or unified whole
Note that while IS has expanded, they are still doing the same basic things that they’ve been doing.
What has changed is: more integration of functions, greater connectivity across components, better use for maximum advantage of business and strategic opportunities
AI: computer systems to simulate the processes of problem solving and duplicate human brain functions.
Expert systems (ES) are a category of programs based on the theory and methods of artificial intelligence.
Strategic Information System SIS: such as ERP
Ad hoc :
is a Latin phrase meaning "for this". It generally signifies a solution designed for a specific problem or task, non-generalizable, and not intended to be able to be adapted to other purposes
The use of Internet technologies
to work and empower business processes, electronic commerce, and enterprise collaboration
within a company and with its customers, suppliers, and other business stakeholders.
Exchange = give and take.
The role of operation support system pg.13
Transaction is an agreement, communication, or movement carried out between separate entities or objects, often involving the exchange of items of value, such as information, goods, services, and money.
A transaction is an event that generates or modifies data that is eventually stored in an information system.
Batch processing is not transaction processing. Batch processing involves processing several transactions at the same time, and the results of each transaction are not immediately available when the transaction is being entered; there is a time delay. Transactions are accumulated for a certain period (say for day) where updates are made especially after work.
Real-time and batch processing
There are a number of differences between real-time and batch processing. These are outlined below:
Each transaction in real-time processing is unique. It is not part of a group of transactions, even though those transactions are processed in the same manner. Transactions in real-time processing are stand-alone both in the entry to the system and also in the handling of output.
Real-time processing requires the master file to be available more often for updating and reference than batch processing. The database is not accessible all of the time for batch processing.
Real-time processing has fewer errors than batch processing, as transaction data is validated and entered immediately. With batch processing, the data is organised and stored before the master file is updated. Errors can occur during these steps.
Infrequent errors may occur in real-time processing; however, they are often tolerated. It is not practical to shut down the system for infrequent errors.
More computer operators are required in real-time processing, as the operations are not centralised. It is more difficult to maintain a real-time processing system than a batch processing system.
testing the temperature of food as it’s being prepared
Strategic Information Systems
Support operations or management processes that provide a firm with strategic products that helps get strategic advantage
Example of an Adaptive system:
Digital cameras – Digital cameras use adaptive systems software to adjust various parameters depending on the environmental conditions.
Fraud detection – Banks and other financial institutes use adaptive systems for fraud detection (credit cards, transactions etc). The adaptive system learns the habits and style of the account holder and it can detect anomalies. Since the broader introduction of these technologies, credit card fraud has dropped, breaking a decade long trend of ever increasing rates.
