The world of Information System!

Dr.Muhammad Omar
 Learning Objectives
Upon successful completion of this chapter, you will
be able to:
• Define what an information system is by
identifying its major components
• Describe the basic history of information systems;
and
• Describe the basic argument behind
the article "Does IT Matter?"
 Information Systems
People – to help support decision making, coordination,
control, analysis, and visualization in an organization

An
Information
System has all
3 dimensions Technology – hardware,
Process – collects, working software, and networks
processes, stores, and together that support the business
disseminates information processes and people
 Information Systems in Organizations
The table below shows a small list of information systems you can find in a
variety of businesses:
Organization Purpose Description
American Apparel Point-of-Sale (POS) System POS data (the data recorded when merchandise is sold) is integrated
with an inventory database, so more merchandise can be ordered.

Orange County Department of Education Employee Hiring System Web based system that posts job opportunities and lets people apply
online. Hiring systems often filter resumes using the digital keywords
from the online application. Hiring systems also manage the application
through the hiring process.

Sales Dashboard Sales Dashboard The digital dashboard gives a quick view of revenue earned this year
compared to last, number of new leads generated, top 5 products, sales
per rep and regional sales.

Sports Analytics Any professional team Consultants and specialists to look at various data to make a team more
successful and recruit players that add to the team’s success.

Coursera.com Online education. “Take the world’s best courses, online, for free.” Video lectures and online assignments are offered for free. It costs a
nominal fee for a certificate of completion.

Boeing Corporation SAP System Integrated enterprise-wide information system that handles
procurement, manufacturing, marketing, sales, employee benefits,
accounting, finance…and just about every business function you can
think of.
Obamacare National healthcare system for the United States Individual exchanges for each state in which people are required to
register to insurance.
Waze.com Geographic information system. App that provides mapping, traffic reporting and routing to avoid traffic.

WireShark Network Analyzer Software that helps users to examine network traffic to identify
problems.
AS-Software.com Sonograms (ex. Seeing a fetus inside the mother’s womb) Specialized software for ultrasound reporting and image management,
reporting and consultation.
 Anthony’s Triangle
Convenient way to categorize and understand the purpose of different
information systems in organizations:
Executive Information
Systems (EIS) for senior
management decision
Strategic making

Management Information

Tactical Systems (MIS) for decision

making by middle
management

Transaction Processing

Operational Systems (TPS) for daily

transactions of the business
 Information System Components
Several components work together to add value to
an organization:
1. Hardware
2. Software Technology Related
3. Data Roles
4. People
5. Process
 Technology
• Hardware – physical components

• Software – instructions that tell the physical components what to do

– Operating systems – interacts with the hardware
– Application software – interacts with the user

• Data – collection of facts

• Networks – allows the transmission and sharing of data

 People
• Also known as users
• Person who uses and operates the computer
or other machine
• All levels of the organization
• Can be your outside partners such
as suppliers
 Process
• Series of steps to achieve a desired outcome
• Benefits:
– Increased productivity
– Better decision making ability
– Improved processes using available data
• Within the company
• Externally with suppliers and customers
– Continuous improvement using technology
– Competitive advantage
 1- Introduction
ERP
E- Enterprise : Large Organization
R- Resource : Human Resources , Material , Money , Machine, Assets, etc.
P- Planning : Manage present and readiness for future

ERP- is a complete business solution package that encapsulates world best

business practices, integrates all the major business function of an enterprise
through efficient flow of information. The primary objective of ERP is to bring
standardization and automation in the business processes that stimulate
innovation and growth of the company. Thomas H.Davenport-1998.
 Advantages

ERP System
➢Improved efficiency

➢Single source of TRUTH

➢Real time information

➢Better communication and coordination

Single Source of TRUTH
➢Improved decision making
➢Better customer service and retention
➢Better asset Management
➢Ease of growth or expansion with enhance
flexibility
ERP Research Fields (Al-Mashari –2002) [68]
Detailed Modules - Enterprise Resource Planning
Most Frequently Shortlisted ERP Vendors
across the Globe

Source: Panorama’s 2015 ERP Report

SAP History & Details
WHY SAP R/3 HAS BEEN SUCCESSFUL

•Secure
Information
•Multi-Lingual

•Integrated

•Multi-Currency

•Best Business •Enterprise-Wide

Practices
 Does IT Matter?
Question posed by Nicholas Carr in Harvard Business Review:
• Information technology has become a commodity
– Similar to a utility
– Cost of doing business, not an investment
• What IT needs:
– Managed to reduce costs
– Ensure that it is always running
– Risk-free as possible
Walmart’s Use of Information Systems

Source: YouTube
 Summary
• Defined what an information system is by
identifying its major components
• Described the basic history of information
systems; and
• Described the basic argument behind the
article "Does IT Matter?" by
Nicholas Carr