This document discusses information systems and their components and types. It describes transaction processing systems, which record and process daily business transactions in real-time or in batches. These systems provide data that is used by management information systems to generate reports for managers. Decision support systems and executive information systems then use this data to support managers and executives in their decision making. Expert systems are also discussed as a type of artificial intelligence system that captures human expertise in a specific domain through knowledge bases and inference engines.
3. System An assembly of inter-related elements comprising a unified whole. The components (elements) are connected together in order to facilitate the flow of information, matter or energy. It works towards a common goal by accepting inputs and producing outputs. System - Input Process Output Control Feedback
4. What is Information System? It is an organized combination of people, hardware, software, communications networks, and data resources that stores and retrieves, transforms, and disseminates information in an organization. Evolution of Information System Enterprise & Internetworking (1990s/2000s) e.g. internet worked IS, Intranet, Extranet, Internet, etc. Strategic & End User Support (1980s/1990s) e.g. Expert System, etc. Decision Support System (1970s/1980s) Management Reporting (1960s/1970s) e.g. MIS Data Processing (1950s/1960s) E.g. EDPS, TPS, etc.
5. Elements/Resources of IS Computer Hardware Refers to computer systems and other associated equipment including the communication links that a modern IT installation may need. One needs to assess the nature of IT needs, the volume of data to be processed, sources of data, complexity of data analysis and impact of other related factors to determine the hardware resources. Computer Software It is the lifeline of the IT infrastructure and it makes the computer hardware function. It is set of interrelated computer programs. Data Collection of facts or events from both internal and external sources represented in the form of symbols, such as digits, alphabets, pictures, graphs, etc. Capturing, processing and storage of data are the essential functions. Human Resource They are the catalyst in process of generation of information and thus are very vital. Procedures It includes the operational and control procedures for the use of IT infrastructure. It contains instructions for users regarding the use of IT infrastructure for day to day activities and for also handling specific situations.
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7. Types of Information Systems Operations Support Systems Management Support Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems Management Information Systems Decision Support Systems Executive Information Systems Information Systems
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11. Steps in Processing a Transaction Enter data Step 1 Validate data Step 2 Process the data into information Step 3 Store the processed data Step 4 Generate output Step 5 Support user queries Step 6
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21. Managers should answer two types of questions What? …Why? What Computers are excellent at computations (answering what questions) Why People are excellent at applying intuition & judgment to solve problems (answering why questions) DSS uses computer computations and put them into models that systemize decision processes
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38. Knowledge Base Knowledge Human experts Journals Books Databases others Experts captures & acquires this knowledge Knowledge acquisition Experts represents knowledge in the system Knowledge representation Facts, rules, theorem, & principles Knowledge Base
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43. Top Middle Lower Office Automation Systems Expert Systems Types of Information Systems and Levels of Management EIS DSS MIS TPS
51. Data mining: Analysis of large pools of data to find patterns and rules that can be used to guide decision making and predict future behavior. The cost of acquiring a new customer has been estimated to be five times that of retaining an existing customer. By carefully examining transactions of customer purchases and activities, firms can identify profitable customers and win more of their business. Supply chain management: Integration of supplier, distributor, and customer logistics requirements into one cohesive process. Supply chain: A collection of physical entities, such as manufacturing plants, distribution centers, conveyances, retail outlets, people, and information, which are linked together into processes supplying goods or services from source through consumption. To manage the supply chain, a company tries to eliminate delays and cut the amount of resources tied up along the way. Information systems make efficient supply chain management possible by integrating demand planning, forecasting, materials requisition, order processing, inventory allocation, order fulfillment, transportation services, receiving, invoicing, and payment.
52. SUPPLY-CHAIN MANAGEMENT SHIPPING INVENTORY PLANNING & FORECASTING ORDER PROCESSING PRODUCTION PROCUREMENT ACCOUNTING SUPPLIERS CUSTOMERS LOGISTICS SERVICES DISTRIBUTORS INTRANET INTRANET
57. Strategic use of IT Building a customer focus business Reengineering Business Processes Improving Business Quality Becoming an agile company Creating a virtual company Building a knowledge creating company The challenge of strategic IS
58. SALES & MARKETING INFORMATION SYSTEM SYSTEMS FROM A FUNCTIONAL PERSPECTIVE