Lecture Computing for management - Chapter 16

Lecture 16 - Introduction to information systems. After studying this chapter you will be able to understand: What is information? What is information system? Why need information system? Early history of IS with other disciplines, information system versus computer science, information technology, context and definitions, capabilities of information system.

Introduction to Information

Systems

Lecture 16

Summary of Previous Lecture

 In previous lecture we have been learnt about,

Summary of Previous Lecture

 Pros of Internet Advertisement

 Double Click Approach

 Advertisement Methods

Banners and Banner Exchanges

Banner Swapping

Summary of Previous Lecture

Advertisement Strategy

 Internet Based Ad Design

 Passive Pull Strategy

 Active Push Strategy

 Ad as a Commodity

Push Technology

Implementing Strategy

Intelligent Agents

Summary of Today’s Lecture

 What is information?

System components and concepts

Characteristics of information

 What is information system?

Why need information system?

Historical background of information system

Information system today.

Terminology related to MIS and IS

Summary of Today’s Lecture

Types of Information Systems

 Early history of IS with other disciplines

 Information system versus computer science

 Information technology

 Context and definitions

 Capabilities of information system

 Summary

System Components and Concepts

System components and concepts

Characteristics of a Valuable information

 Information should posses following characteristics,

What is an Information System?

 A set of interrelated elements or

components that collect (input), manipulate and store (process), disseminate (output) data and information, and provide a feedback mechanism to meet an objective.

 Computer based information system

Composed of hardware, software, data, telecommunications, people, and procedures to collect, manipulate, store, and process data into information

Why Need an Information System?

Here are some reasons for the need of an information

system,

 Global Competition for Market and for Labor

 Need for Real-time Operations

 Managing Work Force

 Customer-Oriented Operations

 Technological Innovation and Obsolescence

 Information Overload

 Social Responsibility of Organizations

 Government Regulation and Deregulation

 Organizational Responses to Business Pressures in the Information Age

Lets look at some historical definitions of information systems by famous writers.

Historical Background

 The growth of the 1960’s and 1970’s saw

a shift from “computer” orientation, to

“information” orientation.

Shift from Data storage to organized information systems

John Diebold (1979) wrote:

 “Information, which in essence is the analysis and synthesis of data, will unquestionably be one of the most vital corporate resources in the 1980’s It will be structured into models for planning and decision-making

It will be incorporated into measurements of performance and profitability It will be integrated into product design and marketing methods In other words, information will be recognized and treated as an asset.”

John Theurer Diebold (June 8, 1926 – December 26, 2005)

was an early champion of widespread use of computing and automated technology

IFIP/BCS (1985)

 An information system is a system which assembles,

stores, processes, and delivers information relevant to

an organization (or to society) in such a way that the information is accessible and useful to those who wish to use it, including managers, staff, clients, and citizens

An information system is a human activity (social) system which may or may not involve the use of computer systems

 International Federation for Information

Processing/British Computing Society 1985 curriculum

for information systems

International Federation for Information Processing/

British Computer Society: Founded 1957

McNurlin and Sprague (1989 & 1999)

 “The mission for information systems in organizations is

to improve the performance of people in organizations through the use of information technology.”

 The ultimate objective is performance improvement - a

goal based on outcomes and results rather than a through-the-steps process” goal

“go- The focus is the people who make up the organization

Improving organizational performance is by the people and groups that comprise the organization

 The resource for this improvement is information

technology.

Turban (1990)

 A management information system is a formal,

computer-based (but need not be) system intended to retrieve, extract, and integrate data from various sources

in order to provide timely information necessary for managerial decision-making

 An MIS is a business information system designed to provide past, present, and future information appropriate for planning, organizing, and controlling the operations of the organization

Vladimir Zwass (1992)

 A Management Information System is an organized

portfolio of formal systems for obtaining, processing, and delivering information in support of the business operations and management of an organization

Ken Laudon and Jane Laudon

(1995)

 Information system - (definition) Interrelated components that collect, process, store, and disseminate information to support decision- making, control, analysis, and visualization in an organization.

Turban, McLean, Wetherbe (1996)

 An information systems is a collection of components that collects, processes, stores, analyzes, and disseminates information for a specific purpose

 The major components of a computer-based information system (CBIS) can include (1) hardware, (2) software, (3) a database (4) a network (5 )procedures, and (6) people

 The system operates in a social context, and the software usually includes application programs which perform specific tasks for users

Components of Information System as Defined by

Turban, McLean, Wetherbe (1996)

Henry C Lucas (1997)

 Information systems may be described by five of their key components:

Decisions

transactions and processing

information and its flow

individuals or functions involved

communications and coordination

Where is the difference?

 Outcome of different definitions depicts

Trend and technological effects at that time

Information system definition evolved with respect to time.

People worked on data processing until they realized the need of information systems.

Information Systems Today

 The early focus on IS was for the support of operations, management, analysis and decision-making in organizations

Information System Today

 A significant emphasis was on models of planning and control

 The late 1980’s and early 1990’s saw IS expand from the

support not only of decision-making, but for improved

communication support as well Social impacts began to

be recognized

 The explosion of the Web has added the important

characteristic of providing information access

 Today the emphasis in organizations is on the support of business processes

Social Media Information System Today

 In many textbooks and contexts, the terms Management

Information Systems (or MIS) and Information Systems

(IS) are used interchangeably

 However, in other contexts, Management Information

Systems are considered as a subset of the more general Information Systems

 MIS are considered to be information systems which provides information specifically for managing an organization generally at a tactical or middle

management level Information Systems would be a

more general term that can include other systems (e.g group communication systems) We will generally follow this convention

Types of Information Systems

 Transaction Processing Systems (TPS)

 Management Information Systems (MIS)

 Decision Support Systems (DSS)

 Expert Systems (ES)

 Executive Information Systems (EIS)

 Office Automation Systems (including document

Types of Information Systems

Transaction Processing Systems

(TPS)

 It is an information system designed to process day-to-day business event data at the operational level of the organization.

 A transaction is an elementary activity conducted during business operations (e.g merchandise sale)

 Support the monitoring, collection, storage,

organization’s basic business transactions.

 Provides backbone for many other applications involving other support systems.

Different Examples of Transaction Processing Systems

TPS Data Entry Screen

Types of Transaction Processing

Systems

 Batch processing is a form of transaction processing

 Batch processing involves processing several transactions at the same time, and the results of each transaction are not immediately available when the transaction is being entered; there is a time delay

transaction processing that processes data as it becomes available

Management Information Systems

 A management information system (MIS) provides

information that is needed to manage organizations

efficiently and effectively

 Management information systems involve three primary resources:

 people,

 technology, and

 information or decision making

Management Information System

 Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization

 Different applications of MIS are, Human Resource Management System, Financial Management System etc

HR Management Software Example

Financial Management Software Example

Decision Support System

 A decision support system (DSS) is a

computer-based information system that supports business or organizational decision-making activities

 DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified

in advance

Decision Support Systems

 DSS include knowledge-based systems.

 Knowledge base is the set of rules that group together

to build knowledge

 Fundamental components of DSS model are,

 The database (or Knowledge base)

 the model (i.e., the decision context and user criteria),

and

 The user interface

 The users themselves are also important components

of the architecture

Decision Support System

Expert System

 An expert system is a computer system that

emulates the decision-making ability of a human expert.

 Expert systems are designed to facilitate tasks in the fields of accounting, medicine, process control, financial service, production, human resources, among others

Executive Information System

 They are intended to facilitate and support the information and decision-making

needs of senior executives by providing

easy access to both internal and external information relevant to meeting the

strategic goals of the organization

 It is commonly considered as a specialized form of decision support system (DSS)

Office Automation System

 Office automation systems helps in

optimizing or automating existing office

procedures.

 Office workflows of information and other documentation procedures are automated using office automation system.

Groupware information systems

 Collaborative software (or groupware)

is a type of information system, designed

to help people involved in a common task achieve goals

 One of the earliest definitions of

“collaborative software” is, "intentional group processes plus software to support them."

Collaboration software Example

The Early History of IS with other disciplines

Information systems have been used with variety

of different subject areas, including

 IS and Managerial Accounting

 IS and Operations Research

 IS and Management and Organization Theory

 IS and Computer Science

 IS and Cognitive Psychology

Information Systems vs Computer

Science

study of algorithms, computation, software, and data structures

management and organization theory that applies technical capabilities and solutions initially developed by computer science, to tasks

in organizations

For example, web development using HTML, XML, scripting may be a computer scientist job, but integrating all these to develop business portal is an Information Systems job.

Information Technology

 Information Technology (IT) sometimes refers to the technology component of an information system.

 However, the concept is often used by many to describe the collection of all information systems in organization.

Putting Things in Context

software, and networks that make Information

Systems possible.

information technology to capture, transmit,

store, retrieve, manipulate, and display

information.

activities that use people, information, and other resources, to create value for internal or external customers.

Putting Things in Context

number of interdependent business processes that work together to generate products of

services in a business environment.

everything else that affects its success, such as competitors, suppliers, customers, regulatory agencies, and demographic, social, and

economic conditions.

What goes wrong?

 Provide Fast and Accurate Transaction

 Provide Large Capacity, Fast Access Storage

 Provide Fast Communications (machine to machine, human to human)

 Reduce Information Overload

 Span Boundaries

 Provide Support for Decision Making

 Provide a Competitive Weapon

 General Technological Trends for IT

Capabilities of Information Systems

 Today we have learnt,

Information, information system, needs and importance

Historical perspectives of information systems

Different types of information systems

Capabilities of information system