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Introduction to Information System


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Study of information production, flow and use within organizations

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Introduction to Information System

  1. 1. Information System Concepts Prepared by Sir Gio Friginal
  2. 2. Information System System - Set of components that interact to achieve common goal Information  A measure of the quantity of data in a message (information theory concept)  Any data that is relevant or has some value (information system concept) Data – Any sign, symbol or measure, which is a form that can be directly captured by a computer or machine  Real-world data – represent facts in the real world. Ex. Population  Synthetic data – random numbers generated by a computer
  3. 3. Information System Information vs. Data  Data becomes relevant and of value if it actually makes a difference in a decision-making process  If data has no relevance to the decision made, then data is not information  The value of information therefore depends on the context  If it ceases to be in that context, then it ceases to be information
  4. 4. Information System A particular discipline or branch of learning that is concern with the application of information to organizational needs Study of information production, flow and use within organizations A combination of hardware, software, people, procedures and data that provides data processing capabilities for a business or organization Makes extensive use of Information Technology, to capture, transmit, store, manipulate and display information
  5. 5. Information System Information Technology – Development, installation and implementation of computer systems and applications Capabilities of Information System  Input  Processing  Output  Feedback
  6. 6. Information System Input – capturing or gathering of raw data which can be in a manual process or may be automated Input can come from:  An inquiry, which is a request for information  Source data  Response to prompt (ex. “Y” or “N”)  Message to another user on the system  Editing to a record  An instruction (ex. “Print file”, “Save file”)
  7. 7. Information System Processing  Producing useful outputs  Can be calculations, comparisons, and to store data for future use  Manually or with the assistance of computers  Ex. Payroll system – hours worked * hourly rate
  8. 8. Information System Output  Come in documents, reports, and transaction data where it involves producing useful information  Various forms: Hard copy, soft copy, control output
  9. 9. Information System Feedback  Enhancement or adjustment to input or processing activities  Important to managers and decision makers
  10. 10. Manual vs. Computer-BasedInformation System Both types of use established patterns for work practices and information flow Manual Information System  Manual systems consist of people, procedures, and data  Manual information system can include analyst that manually draw charts and trend lines that help them assists in making investment decisions  These analyst track data on stock prices (input) then develops patterns on graph papers (output) and determines prices of stocks would be likely in a few days or weeks (process)
  11. 11. Manual vs. Computer-BasedInformation System Computer-Based Information System  Hardware  Software  Database  Telecommunication  People
  12. 12. Manual vs. Computer-BasedInformation System Manual Payroll System  The Payroll Clerk 1. Receives time sheets from supervisor 2. Retrieves each employee’s record file from the filing cabinet 3. Calculates the gross wage manually with a calculator 4. Manually calculates all deductions to get the net wage 5. Manually types the pay cheque and stub 6. Updates the payroll register (stores every detail of wages paid, deductions made, etc) study of information production, flow and use within organizations
  13. 13. Manual vs. Computer-BasedInformation System Computer-based Payroll System  The Payroll Clerk 1. Processes the stored time-sheet details 2. Retrieves each employee’s record from database file 3. Calculates the gross salary 4. Calculates deductions 5. Prints the net cheques 6. Updates the payroll register
  14. 14. Functional-based VS IntegratedInformation System Function-based Integrated System  Intended for the exclusive support of a specific application area  Has its own set of database files, which start out being the same  Database files easily become different as one is updated but the other ones aren’t
  15. 15. Functional-based VS IntegratedInformation System Integrated Information System  Share a common set of database files  Only one database file implies 0% redundancy and 100% data integrity  Database Management System software is used as a tool to integrate data and information flow through an organization
  16. 16. Types of Information System Knowledge-Based System  Expert System (ES)  Decision Support System (DSS)  Executive Information System (EIS) Management Information System  Database Management Systems Transaction Processing System
  17. 17. Knowledge-Based System Uses knowledge-base techniques that supports decision-making and is capable of cooperating with users of information systems Does not only store “information”, but also the rules that can be used to manipulate the “information” to answer questions about it. Knowledge is provided as a set of explicit rules about how to manipulate different kinds of data or information Examples of knowledge-based systems are: Expert System, Decision Support System and Executive Information System
  18. 18. Expert System Application programs that perform a task that would otherwise be performed by a human expert Tools that allow programs to be built that closely resemble human logic It is a program that stimulates the judgment and behavior of human or organization that has expert knowledge and experience in a particular field It contain knowledge-base containing accumulated experience and set of rules
  19. 19. Expert System Examples of Expert System are those used to diagnose human illness, make financial forecast, schedule routes for delivery vehicles and those that play chess can then be enhanced with additions to the knowledge based Applications •Computer fault diagnosis  Medical diagnosis •VLSI design  Chemical analysis •Software development and debugging •Configuring computer systems  Genetics •Financial analysis  Geology •Education
  20. 20. Expert System Advantages  Used for solving the difficult problems, usually those that require high levels of expertise on the part of human problem solvers  Provide increased consistency and standardization of the techniques used in solving problem  Different analysts using the same program will obtain the same results  Suitable for problems that involves diagnosis, design and interpretation
  21. 21. Expert System Building an expert system involves extracting the relevant knowledge from the human expert Knowledge engineer – has the job of studying how human experts make decisions, extract the knowledge needed, translate the rules into terms that the computer can understand and build the expert system knowledge-base Initial prototype Building an expert system can be very difficult. Subconscious The most commonly used technique for developing expert systems are rule-based programming. This technique uses rules to represent heuristics or “rules of thumb,” which specify a set of actions to be performed for a given situation
  22. 22. Expert System IF-THEN portions  The IF portion of a rule is a series of patterns that specify the data which causes the rule to be applicable  The expert system will provide the mechanism called an inference engine that automatically determines which rules are applicable  The THEN portion of a rule is a set of actions to be executed when a rule is applicable Goal driven vs. data driven
  23. 23. Expert System Rule-based Expert System Architecture
  24. 24. Expert SystemGuidelines The need for a solution must justify the cost involved in development Human expertise is not available in all situations where it is needed The problem may be solved using symbolic reasoning techniques The problem is well-structured and does not require (much) common sense knowledge The problem cannot be easily solved using more traditional computing methods Cooperative and articulate experts exist The problem is of proper size and scope
  25. 25. Expert System This example will identify if a certain Norwegian coin is 20 Kroner, 5 Kroner or 1 Kroner Identify the variable  SIZE  COLOR  DECORATION
  26. 26. Expert System Assign the range of values for each variable  SIZE  Diameter is >25 mm  Diameter is <25 mm  COLOR  Silver  Bronze  DECORATION  Head  Crown  Ship  Lion
  27. 27. Expert System The rules are constructed based on the combination of attributes  RULES  IF SIZE > 25 mm and COLOR is BRONZE and DECORATION is Ship THEN coin is 20 Kroner  IF SIZE <25 mm and COLOR is Silver and DECORATION is Crown THEN coin is 1 Kroner  IF SIZE >25 mm and COLOR is silver and DECORATION is Lion THEN coin is 5 Kroner
  28. 28. Decision Support System Management Decision Systems Interactive computer based system for informing and supporting decision makers It help decision-makers use data and models to solve problems Can take on many different forms and can be used in many different ways Can be a computer program that analyzes business data and presents it so those users can make business decisions more easily It is a tool that helps managers retrieve, summarize and analyze decision relevant data
  29. 29. Decision Support System Classification of DSS  Enterprise-wide DSS  Desktop DSS
  30. 30. Decision Support System Typical information that a decision support system might gather and present would be:  Comparative sales figures  Project revenue figures based on new products sales assumptions  The consequences of different decision alternatives, given past experiences in a context that is described
  31. 31. Decision Support System Characteristics of a DSS  Handle large amount of data  Obtain and process from different sources  Provide report and presentation flexibility  Have both textual and graphical orientation  Perform complex, sophisticated analysis and comparisons using advance software packages  Support optimization, satisfying and heuristic approach  Perform “what if” and goal-seeking analysis
  32. 32. Decision Support System  Some other terms used to describe a system intended to inform and support decision-makers are:  Business intelligence  Data mining  On-line analytical processing (OLAP)  Groupware  Knowledge ware  Knowledge management
  33. 33. Executive Information System  A tool that provides direct on-line access to relevant information in a useful and navigable format  It is commonly considered as a specialized form of decision support system (DSS)  Help executives to make decisions at the strategic level by providing graphics and communication support technologies in accessible places  They help executives address unstructured decision problems by creating an environment which helps them think about strategic problems in an informed way
  34. 34. Executive Information System  Example  Drill-down analysis  Status access
  35. 35. Executive Information System  Differ from other traditional information systems in several ways  Specifically tailored to the executive’s needs  Able to access data about the specific issues and problems as well as aggregate results  Provide extensive on-line analysis, tools including trend analysis and exception reporting capability  Access a broad range of internal and external data  Particularly easy to use, either mouse driven or touch screen  Used directly by executives without assistance  Present information in a graphical form
  36. 36. Executive Information System  Purpose  To support managerial learning about an organization, its works process, and its interaction with the external environment  To allow timely access information  To direct management attention to specific areas of the organization or specific business problems
  37. 37. Transaction Processing System A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise Payroll system was the first transaction processing system
  38. 38. Transaction Processing System Features of TPS  Rapid Response  Reliability  Inflexibility  Controlled processing
  39. 39. Transaction Processing SystemMethods of TPS  Batch processing  On-line or Real- time transaction processing (OLTP)  On-line entry with delayed processing
  40. 40. Transaction Processing System  Batch processing
  41. 41. Transaction Processing System  On-line or Real-time transaction processing (OLTP)
  42. 42. Management InformationSystem An integrated computer system for business and other organizations that collects and analyzes information from all departments to support operations, management and decision making functions It is designed to provide an organization’s management with up-to-date information whenever it is needed
  43. 43. Management InformationSystem Outputs of MIS  Scheduled reports  Reports that come out at fixed times  Key-indicator reports  Brings together all the key variables that change over time in any business  Demand reports  Reports that come out when somebody needs them  Exception reports  Report that comes out only when something happens, like an accident or other non expected occurrence
  44. 44. Questions?Clarifications?