INFORMATION SYSTEMS
Overview
Information Systems and
Management
An Introduction to Information Systems
Information System:
An information system is a set of interrelated components that
collect, manipulate, store data and disseminate information and
provide a feedback mechanism to monitor performance.
What is an Information System?
An organized combination of
people, hardware, software,
communications networks, and
data resources that collects data,
transforms it, and disseminates
information.
Data Vs. Information
Data: Raw unorganized facts
Information:
A collection of facts organized in such a way that
they have additional value beyond the value of the facts
themselves.
Defining and organizing relationships among data creates
information.
Information Concepts
Process:
A set of logically related tasks performed to achieve a
defined outcome.
Knowledge:
An awareness and understanding of a set of
information and ways that information can be made
useful to support a specific task or reach a decision
The Value of Information
The value of Information is directly linked to
how it helps decision makers achieve their
organization’s goals.
System
A system is a set of elements or
components that interact to
accomplish goals.
CBIS
Hardware:
Computer Equipment
Software:
Computer Programs
Databases:
An organized collections of facts
CBIS
Telecommunications:
Electronic transmission of signals for communication
Networks: Distant electronic communication
Internet: Interconnected Networks
Intranet: Internal Corporate Network
Extranet: Linked Intranets
CBIS
People
Procedures:
Strategies, policies, methods, and rules for using a CBIS.
Business Information
Systems
Electronic and Mobile Commerce
E-Commerce:
Any business transaction executed
electronically
M-Commerce:
Transactions conducted anywhere, anytime
Relies on wireless communications
TPS and ERP
• Transaction
– business related exchange
– Evidence of a business event
• Transaction Processing System (TPS)
– A system which records completed business transactions
• Enterprise Resource Planning (ERP)
– A set of integrated programs for managing the entire business
operations
Business Information Systems
Management Information System:
A system used to provide routine information to
managers and decision makers
Decision Support System:
A system used to support problem- specific decision
making
Specialized Business I.S.
Artificial Intelligence (AI):
A field in which the computer takes on
the characteristics of human intelligence
Expert System:
A system that gives a computer the
ability to make suggestions and act like
an expert in a particular field.
Knowledge Base:
The collection of data, rules,
procedures, and relationships that
must be followed to achieve value or
the proper outcome.
Virtual Reality:
The simulation of a real or
imagined environment that can be
experienced visually in three
dimensions
Systems Development
Systems Development:
The activity of creating or modifying
existing business information systems
Systems Investigation
and Analysis
Understand the problem
and potential solutions
Systems Design,
Implementation,
Maintenance and Review
Determine how the new system will
meet business needs
Put the new system into operation
Ensure the system continues to
meet changing business needs
Information Systems in Society
Security, Privacy, Ethical Issues in
Information Systems and the Internet.
Computer Literacy:
Knowledge of computer systems and equipment
and the ways they function
General Information Systems Diagram
Management
Decisions
(Environment)
Data Input Process Output Information
Control
Feedback
Data:
Raw unorganized facts
Information:
Data organized in a meaningful
way for the user (in consideration of
the environment)
Informal Information System
Each organization has a unique culture, or
fundamental set of assumptions, values, and ways
of doing things, that has been accepted by most of
its members
Environment:
• Business - other functional areas
• Computer – hardware, software, other IS
Sub System:
Component of a larger system
System Boundary:
Interaction with environment (user or
other system) via an interface
Information System
Activities
1. Input of Data Resources
2. Process Data into Information
3. Output of Information
Input of Data Resources
• Data entry
• Editing
• Machine readable
• Source documents
– Formal record of a transaction
• User interface
– How users interact with information system
– Optical scanning; menu; prompts; fill in blanks
Process Data into Information
• Calculate
• Compare
• Sort
• Classify
• Summarize
The quality of the data must be maintained by a continual
process of correcting and updating activities
Output of Information
• Transmit information to users
– Display; paper; audio
• Storage of data
– Data are retained in an organized manner
• Fields; records; files; data bases
• Control of system performance
– Feedback must be monitored and evaluated to determine if the
information system is meeting established performance
standards
Systems Applications in the Organization
Decisions Management Levels Information Systems
Unstructured Senior ESS
Strategic Management
DSS
Knowledge and
GIS, CAD/CAM,
Tactical Data Worker
OAS
Middle
Management MIS
Lower
TPS
Management
Technical
(Operational)
Buy Make Sell Keep
Functions
Structured Track
Impact of IS on Organizations
• Flow of Information - Information is a key resource for all
organizations. What information describes might be
internal, external, objective or subjective.
• Information in an organization can flow in four direction
and these include upward flow of information, downward
flow of information, outward flow of information and
horizontal flow of information.
Transaction processing
• TPS will update any transaction process and store that
information in a database, so any concerned party in the
organization can access that information via a centralized
information storage network of internet.
Decision support
• A DSS works together with an artificial intelligence system
to help the worker create information through (OLAP)
online analytical process to facilitate decision making
tasks that require significant effort and analysis.
•
Workgroup support
• For Workgroup Communication
Executive support
• An executive information system (EIS) is an interactive
management information system (MIS) combined with
decision support systems and artificial intelligence for
helping managers identify and address problems and
opportunities.
• An EIS allows managers to view information from different
angles. Yet it also provides managers with the flexibility to
easily create more views to better understand the problem
or opportunity at hand.
Data Management
• With the help of database software, an organization
stores all its relevant data on a database. This
infrastructure can be designed when it is internal or
external.
Communication
• Information technology accounts in the development of
communication technology. Services like electronic mail
make communication within and outside the organization
easy and first. Now days email communication is a default
communication technology used by every organization.
Communication is a great tool in business develops, with
advanced communication tools, employees and
managers can easily make beneficial decisions in the
organization.
