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Lesson 1: Foundations of Information Systems

This document provides an overview of foundational concepts in information systems. It defines key terms like systems, data, information, and knowledge. It also describes different types of information systems like operations information systems, transaction processing systems, and business process management systems. For each system type, the document outlines their main purposes and features.

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FOUNDATIONS OF INFORMATION SYSTEMS - Lesson 1 - Angelina Njeguš, PhD Associate Professor at Singidunum University Belgrade - Serbia, 2013
Prof. dr Angelina Njeguš System Concept Entity 1 Entity 2 Entity N Entity 3 System boundary Environment Input Output Feedback
Prof. dr Angelina Njeguš Data, Information, Knowledge, Wisdom Source: Swindoll, 2011 (Available at: http://www.pursuant.com/blog/tag/dikw-model/)
Prof. dr Angelina Njeguš Information Systems (IS)  Organised and integrated set of:  Data  Processes  Interfaces  Networks  Technologies  People that are correlated in order to support and improve everyday business operations and decision making
Prof. dr Angelina Njeguš Information Systems Real life system Information System
Prof. dr Angelina Njeguš Basic IS Activities Output Input Processing Storage Control Source: O-Brien et al., 2010
Prof. dr Angelina Njeguš Information Processing Cycle Source: Morley et al., 2013
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (OLAP cubes, Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (OLAP cubes, Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Operations Information Systems (OIS)  Organised set of: ─ hardware ─ software ─ databases ─ telecommunications ─ people ─ procedures that are configured to: ─ collect ─ manipulate ─ store ─ process data into information, and support an organisation’s day-to-day business activities Any organised combination of … Data Processes Policies and procedures Interfaces Communi- cation networks Technologi- es People
Prof. dr Angelina Njeguš Operations Information Systems (OIS)  Support operational processes that constitute the core business and create the primary value stream  Typical operational processes are:  Finance  Manufacturing  Marketing  Human Resources ... Source: Rosen, 2006
Prof. dr Angelina Njeguš Transaction Processing Systems (TPS)  TPS collects, store, modify, and retrieve business trasactions  A transaction is an event that generates or modifies data that are stored in an information system  Any business-related exchange, such as payments to employees, sales to customers, payments to suppliers ...
Prof. dr Angelina Njeguš Ways to Process Transactions Batch processing • Accumulate transactions over time and then process periodically • Example: During the night, all daily OLTP database changes are all at one time extracted, transformed, and loaded into the data warehouse Online processing • Process all transactions immediately • Example: A bank system processes ATM withdrawals immediately
Prof. dr Angelina Njeguš Some TPS features  The main purpose of the TPS is to ensure the consistency and integrity of data  For example: In case of e-payment amount must be withdrawn from one account and added to another. If transaction fails, than rolleback function deletes all data changes that have occurred since the beginning of the transaction. Source: IBM, 2012
Prof. dr Angelina Njeguš Some TPS features (cont.)  Transaction systems must be able to support a large number of concurrent users and transaction types  For example: Multiple operators simultaneously access airline reservation system. When one operator access, booking is locked until it is completed. Otherwise, another operator could access the same data and make double booking.
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (OLAP cubes, Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Business Process Management Systems  Business process is a collection of related, structured, and coordinated value-added activities that combine available resources (input) to produce a specific output (product or service)  For instance, the process of filling a customer order involves several related tasks. Source: Interfacing, 2011
Prof. dr Angelina Njeguš Business Process  A business process transforms inputs into outputs, according to guidance (business policies, standards, procedures, business rules, etc.) employing resources of all types Input Output Guidance Resources
Prof. dr Angelina Njeguš Examples of Business Processes  Accounting Business Processes: – Accounts payable – Accounts receivable – Cash receipts – Invoice billings ...  Finance Business Processes: – Account collection – Bank loan applications – Business forecasts – Customer credit approval and credit terms ...  Marketing Business Processes: – Customer satisfaction surveys – Customer service contracts – Customer compliant handling – Sales order entry ...  Production/Operations Business Processes: – Bill of materials – Quality control for finished goods – Packing, storage, and distribution – Shipping and freight claims ...  Human Resources Business Processes: – Disabilities employment policies – Employee hiring policies – Files and records management – Health care benefits – Pay and payroll – Training/tuition reimbursement – Workplase rules and guidelines ... Source: Rainer et al., 2011
Prof. dr Angelina Njeguš Why are BPM systems important?  Business processes are strategic assets of an organization that must be understood, managed, and improved to deliver value-added products and services to clients – the goal of BPM systems  Economics: globalization demands flexibility  Business processes: changing quickly, shrinking cycle times  Revenue growth: at the top of CEO agenda  Reusable assets: can cut costs  Business Process Reengineering (BPR) – continuous process improvement  Business process management (BPM) systems give organisations the flexibility to quickly respond to changes in the competitive environment
Prof. dr Angelina Njeguš Business Process Management  Discover, document, automate, and continuously improve business processes to increase efficiency and effectiveness while striving for innovation, flexibility, and integration with technology
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Office and Collaboration Systems  A suite of applications (Software packages) for creating, editing, and sharing text, spreadsheet, presentations and other documents in order to facilitate and speed up the daily office tasks, as well as mutual business communication
Prof. dr Angelina Njeguš Collaboration Systems  Support communication, and coordination among teams and work groups over geographic distances  Depending on the level of collaboration, can be divided into three categories:  Communication tools - interchange of messages, files, data, or documents in order to facilitate the sharing of information ─ Examples: e-mail, voice mail, chat, Wikis, Web publishing ...  Conferencing tools - refers to interactive work toward a shared goal ─ Examples: Internet forums, online chat, Internet telephony, video conferencing, electronic meeting systems, Webcast ...  Collaborative management tools – facilitate and manage group activities ─ Examples: Time management software, Document Management Systems, Project management systems, Social software systems ...
Prof. dr Angelina Njeguš Collaboration Systems
Prof. dr Angelina Njeguš Collaboration Systems
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Operational data Information Business Intelligence Systems  Set of tools and systems for gathering, extracting, storing, analyzing and translating business information into knowledge to support decision- making and improve overall business effectiveness Knowledge workers
Prof. dr Angelina Njeguš Operations vs BI systems
Prof. dr Angelina Njeguš Decisions
Prof. dr Angelina Njeguš Business Intelligence System
Prof. dr Angelina Njeguš Decisions are based on
Prof. dr Angelina Njeguš Why Business Intelligence? • What happened? • What is happening? • Why did it happen? • What will happen? • What do I want to happen? ERP CRM 3PtySCM Past Present Future Data
Prof. dr Angelina Njeguš Frontend tools 34
Prof. dr Angelina Njeguš Decision structure
Prof. dr Angelina Njeguš BI Pyramid KPIs, Scorecards, Dashboards OLAP, Mining, Forecasting Management Reports Detailed Operational Reports INVOICES, SHIPPING DOCUMENTS, PICK LIST SALES TOTALS, LEADS ANALYSIS, CLICK THROUGH RATIOS, BUDGETS PERFORMANCE, PRODUCTION TIMES, CUSTOMER CHURN METRICS Complexity Quantity Executives, Top Managers Professionals, Problem solvers, Middle manager Front-line manager Transactors OPERATIONAL TACTICAL STRATEGIC REAL TIME
Prof. dr Angelina Njeguš Types of Business Intelligence Systems  Operational BI: Management Information Systems (MIS)  Provides routine information to managers and decision makers  Primary focus is operational efficiency  Reports and displays  Example: daily sales analysis reports  Tactical BI: Decision Support Systems (DSS)  Used to support problem-specific decision making  Focus is on decision-making effectiveness  Interactive OLAP and ad hoc decision support, data mining method analysis, predictive analytics  Example: where to spend advertising dollars  Strategic BI: Executive Information Systems (EIS)  Critical information for executives and senior managers  Example: easy access to actions of competitors, BSC, KPI ...
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Expert Systems (ES)  Field of Artifical Intelligence (AI)  AI focuses on the development and study of systems that support human behavior and intelligence (learning, understanding, problem solving, reasoning, knowledge, etc.)  The most important subdomains of AI are:  Natural Language Processing  Interpretation and processing of visual information and signals (Biometrics ...)  Robotics  Knowledge based systems or Knowledge Engineeering (Expert Systems ...)  Software Agents or Intelligent Agents  Machine Learning (Data Mining, Speech recognition, Text analysis ...)
Prof. dr Angelina Njeguš Expert Systems  Simulate the knowledge, and reasoning process in solving complex problems and emulates the decision-making ability of an expert in order to arrive at the same conclusions as a human expert would  Expert in a specific field:  has a high-degree of knowledge, skill, and experience  Understands the problem and recognizes structured and typical problem- solving process  Has heuristic knowledge (resillience, good judgment ...)  Recognizes the fastest way to come up with the soultion ...  Some knowledge representation techniques are:  Rules: IF you are hungry THEN eat  Semantic nets: graph with logically connected nodes ...
Prof. dr Angelina Njeguš ES Architecture Source: Abacus, 2009
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Geographic Information Systems Source: Bisag, 2009.
Prof. dr Angelina Njeguš Storing GIS Data for the Web  The steps of serving a map are:  Data are aggregated in a database  Data are transformed into an image using a rendering engine  The image is served through a map server  The main types of GIS data:  Vector data (points, lines, and polygons) are stored in tables as sets of geographic coordinates and attributes .  Raster data - collections of pixels that make up images  XML has become an important language for transferring geographic data over the internet  Open Geospatial Consortium (OGC) defined a Geography Markup Language (GML) standard Source: Bisag, 2009.
Prof. dr Angelina Njeguš GIS Applications Source: Abukhater, 2011.
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Knowledge Management Systems  IT-based systems developed to support, manage and enhance the organisational processes of knowledge creation, storage/retrieval, transfer, and application Source: ITSM, 2008
Prof. dr Angelina Njeguš Information Technology Infrastructure Library - ITIL  Documented set of best practices for IT service management (ITSM) that focuses on aligning IT services with the needs of business  ITSM is a discipline for managing IT systems  ISO/IEC 20000 standard - the first international standard for IT service management  ISO/IEC 20000 certification is an assessment of IT department as a means of showing that organization reached a level of maturity for services delivery
Prof. dr Angelina Njeguš Best practises
Prof. dr Angelina Njeguš Types of Information Systems Information Systems Operations Information Systems Transaction Processing Systems Business Process Management Systems Office and Collaboration Systems Business Intelligence Systems Management Information Systems Decision Support Systems Executive Information Systems Business Operations Support Decision making support Systems for Process Modelling, Simulation, Execution, Control and Optimisation Processing Business Transactions Prespecified Reporting for Managers (Operational BI…) Interactive Decision Support (Data Mining method analysis ...) Critical Information for Senior Management (BSC, KPI, Strategic BI …) Expert Systems Knowledge Management Systems Manage Organisational Knowledge (ITIL, ISO Standards …) Office and Team and Workgroup Collaboration Systems Specialised Information Systems Virtual Reality 3D Simulation of a Real or Imaginary Environment (tool for communication, entertainment, and learning) Emulates Expert Problem Solving Geographic Information Systems Intelligent Maps
Prof. dr Angelina Njeguš Virtual Reality  3D simulation of a real or imaginary environment  Tool for communication, entertainment, and learning  Virtual Reality in Tourism can be used:  to recreate historic sites and events  to provide a means of protecting the fragile state of some heritage  to create virtual experiences (virtual tours) for tourists  to create virtual guides  for marketing, planning and management, entertainment, education, accessibility ...
Prof. dr Angelina Njeguš Second Life I-Room  Virtual Space for Intelligent Interaction
Prof. dr Angelina Njeguš Trends in Information Systems Source: O’Brien, 2010
Prof. dr Angelina Njeguš References 1. Swindoll, C. (2011) „Redefining Fundraising – Data“, Pursuant [Online]. Available at: http://www.pursuant.com/blog/tag/dikw-model/ (accessed: 1.11.2012) 2. O’Brien, J.A., Marakas, G.M. (2010) Introduction to Information Systems, McGraw-Hill Companies, Inc. 3. Rosen, S. (2006) „Information Systems in the Enterprise“, Santa Rosa Junior College [Online]. Available at:http://www.santarosa.edu/~srosen/CIS66/ch2notes.htm (accessed 2.11.2012) 4. IBM (2012) „Rolling back work“, IBM [Online]. Available at: http://publib.boulder.ibm.com/infocenter/dzichelp/v2r2/index.jsp?topic=%2Fcom.ibm.db2z10.doc.intro%2Fsrc%2Ftpc%2Fdb2z_rollbackwork. htm (Accessed, 2.11.2012) 5. Interfacing Technologies Corporation (2011) „What is Business Process Management (BPM)?“, ODESIA Co. [Online]. Available at: http://www.interfacing.com/Literature/what-is-bpm (accessed: 2.11.2012) 6. Rainer, R. K., Cegielski, C.G. (2011) Introducing to Information Systems: Enabling and Transforming Business, 3rd edition, Wiley & Sons, Inc. 7. Kaur, E.B, Kaur, E.S. (2012) „Overview of Intelligent Systems“, International Journal of Computing & Business Research. 8. Abacus (2009) „Artificial Intelligence Systems“, Abacus Programming Corporation. Available at: http://www.abacuscorp.com/artificial_intelligence_systems.htm (accessed: 7.11.2012) 9. IT Service Management (2008) „ITIL Service Management“. Available at: http://itservicemngmt.blogspot.com/2008/03/iso-20000- rediscovered.html (accessed 7.11.2012) 10. Morley, D., Parker, C. (2013) Understanding Computers: Today and Tomorrow, 14th Edition, Course Technology Cengage Learning, Boston, MA, USA. 11. Bisag (2009). Thrust Areas for Geo-informatics Applications. Bhaskaracharya Institute For Space Applications and Geo-Informatics. Available at: http://www.bisag.gujarat.gov.in/research.htm (accessed 16.07.2013) 12. Abukhater, A. (2011). GIS for Planning and Community Development: Solving Global Challenges. Directions Magazine. Available at: http://www.directionsmag.com/articles/gis-for-planning-and-community-development-solving-global-challenges/149245 (accessed 16.07.2013) 13. GISC (2013). Storing GIS Data for the Web. Available at: http://giscollective.org/tutorials/web-mapping/wmsfive/ (accessed 16.07.2013)