Information

Systems
Applications

Information
data as processed, stored, or
transmitted by a computer.

System
a group of related hardware
units or programs or both,
especially when dedicated to
a single application.

What is Information
System?

Information system(IS) is
the study of complementary
networks of hardware and
software (information
technology) that people and
organizations use to collect,
filter, process, create and
distributedata.

HISTORY OF INFORMATION SYSTEMS

The earliest mainframe computers
could only process a single task by a
single user
o 1946: ENIAC (Electronic Numerical Integrator
and Calculator) was developed
o 1951: first computer installed by the U.S.
Census Bureau
o 1954: first computer used by G.E.

Over the last half century, hardware has

seen many-fold increases in speed and
capacity and dramatic size reductions
Applications have also evolved from
relatively simple accounting programs to

Multitasking
IBM revolutionized the
computer industry in the mid1960s by introducing the IBM
System/360 line of computers
These computers were the
first to perform multiple
processing tasks concurrently

Smaller Computers
The first small-scale systems, called
minicomputers, were smaller and less
powerful but could handle processing for
small organizations more cheaply
Even smaller microcomputers designed
for individual use were later developed,
first by Apple and Tandy Corp.
In 1982, IBM introduced the first
personal computer, or PC, in 1982,
which has since become the standard for
individual computing

Moore's Law
Coined in the 1960s by Gordon
Moore, one of the founders of Intel
States that the storage density (and
therefore the processing power) of
integrated circuits is doubling about
every year
By the 1970s the doubling rate had
slowed to 18 months, a pace that has
continued up to the present

Information Systems
Applications

What functions and

procedures does the system
perform?
What type of information does
the system provide?
Which business functional
unit can it support?
Who uses and benefits from the
system?

Role of Information Systems

in Organizations
Support of its business
processes and operations
Support of decision-making
by its managers
Support of its strategies for
competitive advantage

Role of Information Systems

in Organizations
It can provide early warning signals of
problems that originate both externally
and internally
It can automate routine clerical
operations
It can assist all levels of managers in
making routine (programmed) decisions
It can provide the information necessary
for management to make strategic
(non-programmed) decisions

Major Types of
Information Systems

Transaction Processing Systems

Office Automation Systems
Knowledge Work Systems
Management Information Systems
Decision Support Systems
Expert Systems
Expert Support/Information
Systems

Transaction Processing
Systems

Developed to process large

amounts of data for routine
business transactions

Transaction Processing
Systems

Boundary-spanning systems
that permit the organization
to interact with the external
environment

Transaction Processing
Systems

Allow sorting, listing,

merging, and updating of
data and information

Transaction Processing
Systems

Handle and produce data and

information in the form of
transactions, events, detailed
reports, lists, and summaries

Transaction Processing
Systems

Sales and Marketing Systems

oSales Order Information System
oMarketing Research System
oPricing System
oOrder Tracking and Processing

Transaction Processing
Systems

Manufacturing and Production

Systems
oMaterials Resource Planning
System
oPurchase Order Control System
oEngineering System
oQuality Control System

Transaction Processing
Systems

Accounting and Finance

Systems

oGeneral Ledger System

oAccounts Payable/Receivable
System
oBudgeting System
oFunds Management System

Transaction Processing
Systems

Human Resource
Systems

oPayroll System
oEmployee Records
System
oBenefit System
oCareer Path System
oTraining and
Development System

Transaction Processing
Systems

Office Automation
Systems

Systems that make use of

tools like word processing,
electronic mail, calendaring
features, and reminder files

Office Automation
Systems

Handle document
management, scheduling,
and communications
Support data workers

Office Automation
Systems

Word Processing
Document Imaging
Electronic Calendars
Spreadsheets
Desktop Publishing
Video Conferencing
Voice Mail

Office Automation
Systems

Knowledge Work Systems

Support professional workers
such as scientists, engineers
and doctors by aiding them to
create new knowledge

Knowledge Work Systems

Support the creation,
organization, and
dissemination of business
knowledge to employees and
managers throughout the
organization

Knowledge Work Systems

Computer Aided Design
Computer Aided
Manufacturing
E-Learning Systems
Scientific Computing Systems
Engineering, Graphics, and
Managerial Workstations

Knowledge Work Systems

Management Information
Systems

Deals with the planning for,

development, management,
and use of information
technology tools to help
people in the organization
perform all tasks related to
information processing and
management

Management Information
Systems

Provide information in the

form of reports and displays
to managers and many
business professionals

Management Information
Systems

Provide access to current

performance and historical
records of the organization

Management Information
Systems

Focus entirely on internal

events, providing the
information for short-term
planning and decision making

Management Information
Systems

Sales Management
Inventory Control
Annual Budgeting
Capital Investment Analysis
Relocation Analysis

Management Information
Systems

Decision Support Systems

Focus on helping managers
make decisions that are semistructured, unique, or rapidly
changing, and not easily
specified in advance

Decision Support Systems

Have greater analytical power
than other systems,
incorporate modeling tools,
aggregation and analysis
tools, and support what-if
scenarios

Decision Support Systems

Sales Region Analysis
Production Scheduling
Cost Analysis
Pricing/Profitability Analysis
Contract Cost Analysis

Decision Support Systems

Expert Systems
Also known as KnowledgeBased Systems
Application of Artificial
Intelligence
Designed to mimic the
performance of human
experts

Expert Systems
Effectively capture and use
the knowledge of an expert
for solving a particular
problem experienced in an
organization

Expert Systems
Training Systems
Equipment Diagnostics
Portfolio Management
Troubleshooting Systems

Expert Systems

Executive
Support/Information
Systems
Help executives organize
their interaction with the
external environment and
looking for ways to help them
make decisions on the
strategic level

Executive
Support/Information
Systems
Address unstructured
decisions and create a
generalized computing and
communications
environment, rather than
providing any fixed
application or specific
capability

Executive
Support/Information
Systems
Designed to incorporate data
about external events, such
as new tax laws or
competitors, and also draw
summarized information from
internal Management
Information Systems and
Decision Support Systems

Executive
Support/Information
Systems
These systems filter,
compress, and track critical
data, emphasizing the
reduction of time and effort
required to obtain information
useful to executive
management

Executive
Support/Information
Systems
Sales Trend Forecasting
Operations Planning
Budget Forecasting
Profit Planning
Manpower Planning

Executive
Support/Information
Systems

Enterprise Resource Planning Systems (ERP)

Over time, firms began to use many different
kinds of information systems throughout the
firm
During the 1990s firms began to see the value
in integrating all of these systems so that they
could function as a coordinated unit
ERP systems are computer-based systems
aimed at meeting this need that enable the
management of all of a firms resources on an
organization-wide basis

Thank you