INTRODUCTION TO INFORMATION SYSTEMS

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INTRODUCTION TO INFORMATION SYSTEMS
Contents 1. Information technology and
information systems 2. Information 3. Information
systems personal, workgroup and enterprise 4.
Role of information systems in business
processes 5. Types of information systems
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• Example
• Processing sales orders in a company
• Dataflow diagram

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• INFORMATION TECHNOLOGY (IT)
• The range of products and systems which handle,
  manage, process and produce information using
  computer and/or telecommunications
  technologies.
• INFORMATION SYSTEM (IS)
• A collection of people, equipment,
  and procedures designed to collect, record,
  process, store, retrieve and present
  information.
• IT comprises the computer hardware,
  software, peripherals and communications that
  enable IS to be automated.

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• Information
• Knowledge derived from data
• Data placed within a context
• Amount of uncertainty that is reduced
  when a message is received (Shannon and Weaver,
  1949)
• A difference that makes a difference (Bateson,
  1978)

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Data 6 6.0 -6 Oasis Information 6 6.0 marks
awarded in the competition -6C Knowledge It is
raining, therefore I shall get wet. The
temperature is -6C, so it is cold! The engine of
the car is hot it must have been recently
used. Oasis are good musicians.
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• Characteristics of good information
• Pertinence
• Timeliness
• Accuracy
• Reduced uncertainty (element of surprise)

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Why Are IS Used?

• Enterprise IS
• integrates activities of separate departments
• enables the organisation to function as a
  single unit
• Workgroup IS
• integrates activities of employees in a working
  group
• common group goals
• share data and information
• Personal IS
• facilitates the work of a single individual

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• IS support
• Planning
• setting objectives
• determining resources and actions
• Organising
• dividing work into tasks
• coordinating tasks
• Controlling
• comparing the actual results to the intended
  results
• taking corrective actions

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IS is 1. purposive system 2. open
system 3. common model of action
Input/Process/Output
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What components comprise IS?

• IS
• people procedures data
• Computer-based IS
• people procedures data
• programs hardware
• storage, processing, communication, presentation

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Components of Personal IS

• Number of users
• One
• Perspective
• Individual
• Roles
• User,
• User operator,
• User developer

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Components of Workgroup IS
LAN - Local Area Network processing
communication

• Number of users
• Many, usually fewer than 25
• Perspective
• Group
• Roles
• User,
• User operators,
• Professional developers

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Components of Enterprise IS
Centralised computer terminals for users

• Number of users
• Many, often hundreds
• Perspective
• Organisation
• Roles
• User,
• Professional operators,
• Professional developers

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How are IS created?

• System development life cycle

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Role of IS in business processes

• Operational-Level
• structured problems
• Management-Level
• less structured problems
• Strategic-Level
• requires subjective judgement

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Questions about Day-to-Day Operations Is
Elizabeth March enrolled in the Milwaukee seminar
next week? How much money has Allied Industries
paid for the seven attendees at the Atlanta
seminar next month? What are the names of the
attendees at tomorrow's seminar? Management
Questions Are there sufficient attendees to
justify holding the seminar in Milwaukee next
week? What was the profit from the seminar in
Boston? What's our most profitable seminar
topic? Strategic Questions Should we increase
prices?Are follow-on seminars worth
developing? Is there enough consulting work? Do
we want to be in this business?
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TYPES OF IS
1. Transaction Processing Systems (TPS)

• Support day-to day operations
• Detailed, record oriented
• Performance, reliability crucial
• Supporting technology stable

• On-line interactive systems
• Batch systems

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2. Management Information Systems (MIS)

• Support longer-term management of operations
• Summarised and standardised reports
• Regular recurring reports
• Timeliness, reliability important
• Simple models
• Technology stable

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Profit Revenue - Total Expenses Revenue
Number-of-Attendees Seminar-Price Total-Expense
Fixed-Cost Variable-Cost Fixed-Cost
Hotel-Cost Travel-Expense Hotel-Cost
Daily-Meeting-Room-Cost Number-of-Days Travel-E
xpense Airfare (Daily-Lodging-Cost 65)
Number-of-days Variable-Cost Material-Cost
Food-Cost ...
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3. Decision Support Systems (DSS)

• Support decision making in less structured
  situations .
• Involve models of business activities
• Flexibility, adaptability critical
• Technology evolving

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Structure Query Language SELECT COURSE, COUNT
() FROM ENROLL GROUP BY COURSE Course Count
100 38 110 47 120 33 200 17 210 19
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Expert Systems (ES)

• Use reasoning to render advice, make
  recommendation diagnose the problem

• Involve knowledge bases

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4. Office Automation Systems (OAS)

• Create, store, modify and process interpersonal
  communications,
• in written, verbal or video form
• Word-processors, e-mail, electronic bulletin
  boards, fax machines
• Voice-message systems
• Image-processing systems
• Collaborative writing systems
• Video conferencing
• Multimedia systems

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• Multimedia applications
• Technology exploding

• Important issues
• 1. Connectivity
• different vendors
• nature of competition
• 2. Storage
• data compression
• optical disk storage

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5. Executive Support Systems (ESS)

• Support senior executive information needs
• High-level, aggregated information
• Integrates many sources of data
• Graphical, easy to use interface
• Timeliness, accuracy crucial
• Technology involving

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Domains of IS
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References 1. Management Information Systems,
D. Kroenke, R. Hatch, Third edition,
Mc_Graw Hill, 1994. 2. Essentials of Management
Information Systems Organisation and
Technology, K.C. Laudon, J.P.Laudon,
Second edition, Prentice Hall, 1997.
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SUMMARY

• Definitions of the important terms are given
  IT, IS, information .
• ISs follow the three organisational levels of
  an enterprise
• 1) Enterprise systems, 2) Workgroup systems,
• 3) Personal systems.
• At each of these levels, people use IS to plan,
  organise and control their work.
• Systems development occurs in a cyclical
  fashion.

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SUMMARY (continued)

• Types of IS
• 1. Transaction Processing System
• 2. Management Information System
• 3. Decision Support System
• 4. Office Automation System
• 5. Executive Support System