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Information System

Information System
Information System www.ThesisScientist.com 1Definition Data • Raw facts such as an employee’s name and number of hours worked in a week, inventory part numbers or sales orders. Information • A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves. www.ThesisScientist.com 2Data Vs Information Data Information 35,000 12 Units Salesperson: J. Jones Sales 12,000 J. Jones Western Territory: Western Region Data Processing Region 100,000 100 Current Sales: Units 35 Units 147 Units = 147,000 www.ThesisScientist.com 3Information System • Information System is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data. • The IS’s designer is concerned with how to use computer systems effectively in producing data for the right person at the right time. www.ThesisScientist.com 4Definition Information Systems • An information system is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective. – Open System – Close System www.ThesisScientist.com 5Information System www.ThesisScientist.com 6Computerbased Information System An Information System is an organized combination of people, hardware, software, communication networks and the data resources that collects, transforms and disseminates information in a organization. www.ThesisScientist.com 7IS Vs IT Payroll System INFORMATION Inventory TECHNOLOGY System Hardware are used to build Software INFORMATION Databases SYSTEMS Networks Marketing Other related System components Customer Service System www.ThesisScientist.com 8Expanding Roles of IS 1. Data Processing: 1950s1960s 2. Management Reporting: 1960s1970s 3. Decision support: 1970s1980s 4. Strategic and End User Support: 1980s1990s 5. Global Internetworking: 1990s2000s www.ThesisScientist.com 9Data Processing: 1950s1960s The first business application of computers (in the mid 1950s) performed repetitive, high volume, transactioncomputing tasks. The computers "crunched numbers” summarizing and organizing transactions and data in the accounting, finance, and human resources areas. Such systems are generally called transaction processing systems (TPSs) www.ThesisScientist.com 10Management Reporting: 1960s1970s Management Information Systems (MISs): these systems access, organize, summarize and display information for supporting routine decision making in the functional areas. Office Automation Systems( OASs): such as word processing systems were developed to support office and clerical workers. www.ThesisScientist.com 11Decision support: 1970s1980s Decision Support Systems: were developed to provide computer based support for complex, nonroutine decision. www.ThesisScientist.com 12Strategic and End User Support: 1980s1990s • The use or development of information systems by the principal users of the systems’ outputs, such as analysts, managers, and other professionals. • Intelligent Support System (ISSs): Include expert systems which provide the stored knowledge of experts to nonexperts, and a new type of intelligent system with machine learning capabilities that can learn from historical cases. • „ Knowledge Management Systems: Support the creating, gathering, organizing, integrating and disseminating of organizational knowledge. www.ThesisScientist.com 13Global Internetworking: 1990s2000s • „ Mobile Computing: Information systems that support employees who are working with customers or business partners outside the physical boundaries of their company; can be done over wire or wireless networks. www.ThesisScientist.com 14Classification of IS Information Systems Operations Support Management Support System System Transaction Process Office Decision Executive Management processing automation support information information Control systems systems systems systems systems systems www.ThesisScientist.com 151. Operations support systems process data generated by business operations Major categories are: i) Transaction processing systems ii) Process control systems iii) Office automation systems 2. Management Support Systems provide information and support needed for effective decision making by managers Major categories are: i) Management Information System ii) Decision Support Systems iii) Executive Information System www.ThesisScientist.com 161. Operations Support System i) Transaction processing systems • Process business exchanges • Maintain records about the exchanges • Handle routine, yet critical, tasks • Perform simple calculations ii) Process control systems monitor and control industrial processes. iii) Office automation systems automate office procedures and enhance office communications and productivity. www.ThesisScientist.com 172. Management support systems provide information and support needed for effective decision making by managers Major categories are: i) Management information systems • Routine information for routine decisions • Operational efficiency • Use transaction data as main input • Databases integrate MIS in different functional areas www.ThesisScientist.com 18ii) Decision Support System • Interactive support for nonroutine decisions or problem • Endusers are more involved in creating a DSS than an MIS iii) Executive information systems provide critical information tailored to the information needs of executives www.ThesisScientist.com 19Functional Aspects MIS is an integrated collection of functional information systems, each supporting particular functional areas. www.ThesisScientist.com 20Internet An Organization’s MIS Financial MIS Business transactions Drill down reports Accounting MIS Transaction Exception reports Databases processing of Demand reports systems valid transactions Keyindicator reports Marketing MIS Scheduled reports Business transactions Databases Human of Etc. Resources external MIS data Extranet Etc. www.ThesisScientist.com 21MIS Financial MIS • Provides financial information to all financial managers within an organization. Marketing MIS • Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness www.ThesisScientist.com 22MIS Human Resource MIS • Concerned with all of the activities related to employees and potential employees of the organization. Accounting MIS • Provides aggregated information on accounts payable, accounts receivable, payroll, and other applications. www.ThesisScientist.com 23A Framework For Information Systems Architecture  What is an Information Systems Architecture  An information systems architecture provides a unifying framework into which various people with different perspectives can organize and view the fundamental building blocks of information systems.  Stakeholders have different views of the system and each has something “at stake” in determining the success of the system.  Stakeholders can be broadly classified into four groups:  System Owners  System Users  System Designers  System Builders 24 www.ThesisScientist.comINFORMATION SYSTEMS FRAMEWORK INFORMATION SYSTEM FOCUSES INFORMATION SYSTEM SCOPE SYSTEM OWNERS (purpose and vision; goals and objectives; costs and benefits) S Y INFORMATION SYSTEM REQUIREMENTS S SYSTEM USERS T (WHAT the system "is" and "must do" independent of technology) E M A N A L Y SYSTEM INFORMATION SYSTEM DESIGN S DESIGNERS (HOW the system will be implemented using technology) T S INFORMATION SYSTEM COMPONENTS SYSTEM BUILDERS (the actual, technical implementation of the system) Networking Software Interface Technology Data Technology Technology Technology www.ThesisScientist.com 25Perspectives The People Side of Information Systems  What are Information Workers  The term information worker (also called knowledge worker) was coined to describe those people whose jobs involve the creation, collection, processing, distribution, and use of information.  System Owners  System owners are an information system's sponsors and chief advocates. They are usually responsible for budgeting the money and time to develop, operate, and maintain the information system. They are also ultimately responsible for the system’s justification and acceptance. www.ThesisScientist.com 26Perspectives The People Side of Information Systems  System Users  System users are the people who use (and directly benefit from) the information system on a regular basis – capturing, validating, entering, responding to, storing, and exchanging data and information.  There are many classes of system users including:  Internal Users • Clerical and service workers • Technical and professional staff – Knowledge workers are a subset of information workers whose responsibilities are based on a specialized body of knowledge. • Supervisors, middle managers, and executive managers www.ThesisScientist.com 27Perspectives The People Side of Information Systems  System Users  There are many classes of system users including: (continued)  Remote and Mobile Users  External Users  System Designers  System designers translate users' business requirements and constraints into technical solutions. They design the computer files, databases, inputs, outputs, screens, networks, and programs that will meet the system users' requirements. They also integrate the technical solution back into the daytoday business environment. www.ThesisScientist.com 28Perspectives The People Side of Information Systems  System Builders  System builders construct the information system components based upon the design specifications from the system designers. In many cases, the system designer and builder for a component are one and the same.  The applications programmer is the classic example of a system builder.  The Role of the System Analyst  For the system owners and users, the analyst typically constructs and validates their views.  For the system designers and builders, the analyst (at the very least) ensures that the technical views are consistent and compatible with the business views. www.ThesisScientist.com 29Qualities of Information System Management information systems (MIS) is an organized approach to gathering information from company operations and making a strategic management decision. Developing quality characteristics for gathering information is essential to making solid management decisions. The main qualities of good management information system are: 1.Relevance 2. Accuracy 3. Timely 4. Exhaustive 5. CostEffective • www.ThesisScientist.com 30Main Qualities of Good Management Information System 1. Relevance: Information should be relevant to the strategic decision that company management is currently reviewing. Because companies may review several business opportunities at one time, avoiding information not relating to the decision is essential. 2. Accuracy: MIS information should be accurate and avoid any probable costs. Making decisions based on estimates can lead to cost overruns or lower profits from future operations. 3. Timely: Many management decisions are based on information from a certain time period, such as quarterly or annual periods. Information outside of the requested time frame may skew information and lead to an improperly informed decision. 4. Exhaustive: MIS information gathering should resemble an upsidedown triangle. The early stages of information gathering should be exhaustive, including all types of company information. As management narrows its decisionmaking process, the information is refined to include only the most relevant pieces. 5. CostEffective: The MIS needs to be a costeffective and efficient system for gathering information. Most of these systems are developed internally, creating costs that cannot be passed to clients. www.ThesisScientist.com 31IS Resources • The individual data being processed through the use of hardware and software and shared through network connection has allowed us to utilize more information in less time. www.ThesisScientist.com 32Information Systems Resources • Networks …connected in some manner that allows to sharing of resources • Hardware and Peripheral Devices …tangible and can be touched • Software …intangible and can’t be touched physically • Data …one piece of a record • People …work together to create usable information www.ThesisScientist.com 33
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