09.1 Information System

Introduction to
Information System
2008 Pearson Prentice Hall
Introduction
Information system (IS)
A set of interrelated components that
collect, manipulate, and disseminate
data and information, and provide
feedback to meet an objective
Examples: ATMs, airline reservation
systems, course reservation systems
Principles of Information
Systems, Eighth Edition
Information Concepts
Information is one of an
organizations most valuable
resources
Information is different from data
Data, Information, and

Knowledge
Data: raw facts
Information: collection of facts
organized in such a way that they have
value beyond the facts themselves
Knowledge: 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
Data, Information, and

Knowledge (continued)
Table 1.1: Types of Data

Data, Information, and Knowledge

(continued)
Figure 1.1: Defining and Organizing Relationships Among Data Creates

Information
Data, Information, and Knowledge

(continued)
Figure 1.2: The Process of Transforming Data into Information
The Characteristics of
Valuable Information
Table 1.2: Characteristics of Valuable Information

The Characteristics of
Valuable Information
(continued)
Table 1.2: Characteristics of Valuable Information (continued)

The Value of Information

Value of information is directly
linked to how it helps decision
makers achieve their organizations
goals
For example, value of information
might be measured in:
Time required to make a decision
Increased profits to company
10
System Concepts
System
A set of elements or components that
interact to accomplish goals
Components of a system
Input
Processing
Output
Feedback
11
System Concepts
(continued)
Figure 1.3: Components of a System
12
System Performance and

Standards
Efficiency: measure of what is
produced divided by what is
consumed
Effectiveness: extent to which
system attains its goals
System performance standard:
a specific objective of the system
13
What Is An Information
System?
Figure 1.5: The Components of an Information System
14
Input, Processing, Output,

Feedback
Input: activity of gathering and
capturing raw data
Processing: converting or
transforming data into useful outputs
Output: production of useful
information, usually in the form of
documents and reports
Feedback: output that is used to
make changes to input or processing
activities
15
Manual and Computerized

Information Systems
An information system can be:
Manual
Computerized
16
Computer-Based
Information Systems
Computer-based information
system (CBIS)
A single set of hardware, software,
databases, telecommunications,
people, and procedures that are
configured to collect, manipulate,
store, and process data into
information
17
Computer-Based Information
Systems (continued)
Figure 1.6: The Components of a Computer-Based Information System
Principles of Information Systems, Eighth Edition
18
Business Information
Systems
Most common types of information
systems used in business
organizations
Electronic and mobile commerce
systems
Transaction processing systems
Management information systems
Decision support systems
19
Electronic and Mobile

Commerce
E-commerce: any business transaction
executed electronically between parties such
as:
Companies (business-to-business, B2B)
Companies and consumers (business-toconsumer, B2C)
Consumers and other consumers (consumer-toconsumer, C2C)
Business and the public sector
Consumers and the public sector
20
Enterprise Systems: Transaction

Processing Systems and
Enterprise Resource Planning
Transaction: any business-related

exchange, such as payments to
employees, sales to customers, and
payments to suppliers
Transaction processing system
(TPS): an organized collection of
people, procedures, software,
databases, and devices used to record
completed business transactions
21
Transaction Processing
Systems
Figure 1.11: A Payroll Transaction Processing System
22
Information and Decision

Support Systems
An effective TPS provides a
number of benefits to a company
A TPS can speed business activities
and reduce clerical costs
Data stored in TPSs is used to help
managers make better decisions
23
Management Information
Systems
Management information system
(MIS): an organized collection of
people, procedures, software,
databases, and devices that provides
routine information to managers and
decision makers
Primary focus of an MIS is operational
efficiency
24
Management Information
Systems (continued)
Figure 1.12: Management Information System
25
Decision Support Systems

Decision support system (DSS):
an organized collection of people,
procedures, software, databases,
and devices used to support
problem-specific decision making
Focus of a DSS is on decisionmaking effectiveness
26
Decision Support Systems

(continued)
Figure 1.13: Essential DSS Elements

27
Enterprise Resource
Planning
A set of integrated programs that
manages the vital business
operations for an entire multisite,
global organization
Can replace many applications with
one unified set of programs, making
the system easier to use and more
effective
28
Specialized Business Information Systems:

Knowledge Management, Artificial
Intelligence, Expert Systems, and Virtual
Reality
Knowledge management systems
(KMSs): an organized collection of people,
procedures, software, databases, and
devices to create, store, share, and use the
organizations knowledge and experience
Artificial intelligence (AI): field in which
the computer system takes on the
characteristics of human intelligence
29
Artificial Intelligence
Figure 1.14: The Major Elements of Artificial Intelligence
30
Expert Systems
Give the computer the ability to make
suggestions and act like an expert in a
particular field
Allow organizations to capture and use
the wisdom of experts and specialists
The knowledge base contains the
collection of data, rules, procedures,
and relationships that must be followed
to achieve value or the proper outcome
31
Virtual Reality
Simulation of a real or imagined
environment that can be experienced
visually in three dimensions
Immersive virtual reality
Applications that are not fully immersive
Can be a powerful medium for
communication, entertainment, and
learning
32
Information Systems in
Society, Business, and
Industry
Information systems must be

implemented thoughtfully and
carefully
Information systems face a variety
of threats from unethical people
33
Security, Privacy, and Ethical

Issues in Information Systems
and the Internet
Figure 1.17: The Cost and Cause of Computer Attacks

34
Computer and Information

Systems Literacy
Computer literacy: knowledge of
computer systems and equipment
and the ways they function
Information systems literacy:
knowledge of how data and
information are used by individuals,
groups, and organizations
35
Information Systems in the

Functional Areas of
Business
Finance
and accounting
Sales and marketing
Manufacturing
Human resource management
Legal information systems
36
Industry
Airline industry
Investment firms
Banks
Transportation industry
Publishing companies
37
Industry (continued)
Healthcare organizations
Retail companies
Power management and utility
companies
Professional services
38
Global Challenges in
Information Systems
Cultural challenges
Language challenges
Time and distance challenges
Infrastructure challenges
Currency challenges
39
Global Challenges in
Information Systems
(continued)
Product and service challenges

Technology transfer issues
State, regional, and national laws
Trade agreements
40
Information System Types
Transaction Processing Systems (TPS)

Office Automation Systems (OAS)
Knowledge Work Systems (KWS)
Management Information Systems (MIS)
Decision Support Systems (DSS)
Expert Systems (ES)
Executive Support Systems (ESS)
Group Decision Support Systems (GDSS)
Computer-Supported Collaborative Work
Systems (CSCWS)
Kendall & Kendall
1-41
Strategic
Level
Higher
Level
A systems analyst
may be involved
with any or all of
these systems at
each organization
level
Knowledge
Level
Operational
Level
Kendall & Kendall
1-42
Operational Level
Transaction Processing System (TPS)
Process large amounts of data for routine
business transactions
Boundary-spanning
Support the day-to-day operations of the
company
Examples: Payroll Processing, Inventory
Management
Kendall & Kendall
1-43
Knowledge Level
Office Automation System (OAS)
Supports data workers who share information, but do
not usually create new knowledge
Examples: Word processing, Spreadsheets, Desktop
publishing, Electronic scheduling, Communication
through voice mail, Email, Video conferencing
Knowledge Work System (KWS)

Supports professional workers such as scientists,
engineers, and doctors
Examples: computer-aided design systems, virtual
reality systems, investment workstations
Kendall & Kendall
1-44
Higher Level
Management Information System (MIS)
Support a broad spectrum of organizational tasks

including decision analysis and decision making
Examples: profit margin by sales region, expenses vs.
budgets
Decision Support System (DSS)
Aids decision makers in the making of decisions

Examples: financial planning with what-if analysis,
budgeting with modeling
Expert System (ES)
Captures and uses the knowledge of an expert for

solving a particular problem which leads to a
conclusion or recommendation
Examples: MYCIN, XCON
Kendall & Kendall
1-45
Strategic Level
Executive Support System (ESS)
Helps executives to make unstructured strategic

decisions in an informed way
Examples: drill-down analysis, status access
Group Decision Support System (GDSS)
Permit group members to interact with electronic support

Examples: email, Lotus Notes
Computer-Supported Collaborative Work System

(CSCWS)
CDCWS is a more general term of GDSS
May include software support called groupware for
team collaboration via network computers
Example: video conferencing, Web survey system
Kendall & Kendall
1-46
Integrating New Technologies

into Traditional Systems
Ecommerce and Web Systems
Systems
Wireless Systems
Open Source Software
Need for Systems Analysis and
Design
Kendall & Kendall
1-47
Figure 1.2 Systems analysts need to be

aware that integrating technologies affects
all types of systems
Kendall & Kendall
1-48
Ecommerce and Web

Systems
Benefits
Increasing user awareness of the availability of
a service, product, industry, person, or group
The possibility of 24-hour access for users
Improving the usefulness and usability of
interface design
Creating a system that can extend globally
rather than remain local, thus reaching people
in remote locations without worry of the time
zone in which they are located
Kendall & Kendall
1-49

Systems (ERP)
Performs integration of many
information systems existing on
different management levels and
within different functions
Example: SAP, Oracle
Kendall & Kendall
1-50
Wireless Systems
System analyst may be asked to design
standard or wireless communication networks
that integrate voice, video and email into
organizational intranets or industry extranets
System analyst may also be asked to develop
intelligent agents
Example: Microsoft's new software based on
Bayesian statistics
Wireless communication is referred as mcommerce (mobile commerce)
Kendall & Kendall
1-51
Open Source Software

An alternative of traditional software
development where proprietary code is
hidden from the users
Open source software is free to distribute,
share and modify
Characterized as a philosophy rather than
simply the process of creating new
software
Example: Linux Operating System, Apache
Web Server, Mozilla Firefox Web browser
Kendall & Kendall
1-52
Need for Systems Analysis

and Design
Installing a system without proper planning
leads to great user dissatisfaction and
frequently causes the system to fall into
disuse
Lends structure to the analysis and design of
information systems
A series of processes systematically
undertaken to improve a business through
the use of computerized information systems
Kendall & Kendall
1-53
Roles of the Systems

Analyst
The analyst must be able to work
with people of all descriptions and
be experienced in working with
computers
Three primary roles:
Consultant
Supporting Expert
Agent of change
Kendall & Kendall
1-54
Qualities of the Systems

Analyst
Problem solver
Communicator
Strong personal and professional
ethics
Self-disciplined and self-motivated
Kendall & Kendall
1-55
Systems Development Life

Cycle (SDLC)
The systems development life cycle
is a phased approach to solving
business problems
Developed through the use of a
specific cycle of analyst and user
activities
Each phase has unique user
activities
Kendall & Kendall
1-56
Figure 1.3 The seven phases of

the systems development life
cycle
Kendall & Kendall
1-57
Incorporating HumanComputer Interaction (HCI)

Considerations
The demand for analysts who are

capable of incorporating HCI into the
systems development process keeps
increasing, as companies begin to
realize that the quality of systems and
the quality of work life can be
improved by taking a human-centered
approach at the outset of a project
Kendall & Kendall
1-58
Identifying Problems,
Opportunities, and Objectives
Activity:
Interviewing user management
Summarizing the knowledge obtained
Estimating the scope of the project
Documenting the results
Output:
Feasibility report containing problem
definition and objective summaries from
which management can make a decision on
whether to proceed with the proposed project
Kendall & Kendall
1-59
Determining Human
Information Requirements
Activity:
Interviewing
Sampling and investing hard data
Questionnaires
Observe the decision makers behavior and environment
Prototyping
Learn the who, what, where, when, how, and why of the
current system
Output:
Analyst understands how users accomplish their work
when interacting with a computer; and begin to know
how to make the new system more useful and usable.
The analyst should also know the business functions and
have complete information on the people, goals, data
and procedure involved
Kendall & Kendall
1-60
Analyzing System Needs

Activity:
Create data flow diagrams
Complete the data dictionary
Analyze the structured decisions made
Prepare and present the system proposal
Output:
Recommendation on what, if anything,
should be done
Kendall & Kendall
1-61
Designing the Recommended

System
Activity:
Design
Design
Design
Design
Design
procedures for data entry

the human-computer interface
system controls
files and/or database
backup procedures
Output
Model of the actual system
Kendall & Kendall
1-62
Developing and Documenting

Software
Activity:
System analyst works with programmers to develop
any original software
Works with users to develop effective documentation
Programmers design, code, and remove syntactical
errors from computer programs
Document software with help files, procedure
manuals, and Web sites with Frequently Asked
Questions
Output:
Computer programs
System documentation
Kendall & Kendall
1-63
Testing and Maintaining the

System
Activity:
Test the information system
System maintenance
Maintenance documentation
Output:
Problems, if any
Updated programs
Documentation
Kendall & Kendall
1-64
Implementing and Evaluating

the System
Activity:
Train users
Analyst plans smooth conversion from
old system to new system
Review and evaluate system
Output:
Trained personnel
Installed system
Kendall & Kendall
1-65
Figure 1.4 Some researchers estimate that the

amount of time spent on systems maintenance may
be as much as 60 percent of the total time spent on
systems projects
Kendall & Kendall
1-66
The Impact of Maintenance

Maintenance is performed for two
reasons
Removing software errors, and
Enhancing existing software
Over time the cost of continued

maintenance will be greater than that
of creating an entirely new system. At
that point it becomes more feasible
to perform a new systems study
Kendall & Kendall
1-67
Figure 1.5 Resource

consumption over the system
life
Kendall & Kendall
1-68
Approaches to Structured Analysis and

Design and to the Systems Development
Life Cycle
Traditional systems
development life cycle
CASE systems development
life cycle
Object-Oriented Systems
Analysis and Design
Kendall & Kendall
1-69
Case Tools
CASE tools are productivity tools for
systems analysts that have been
created explicitly to improve their
routine work through the use of
automated support
Reasons for using CASE tools
Increasing Analyst Productivity

Improving Analyst-User Communication
Integrating Life Cycle Activities
Accurately Assessing Maintenance Changes
Kendall & Kendall
1-70
Case Tool Classifications

Upper CASE tools perform
analysis and design
Lower CASE tools generate
programs from CASE design
Integrated CASE tools perform
both upper and lower CASE
functions
Kendall & Kendall
1-71
Upper CASE Tools

Create and modify the system
design
Help in modeling organizational
requirements and defining
system boundaries
Can also support prototyping of
screen and report designs
Kendall & Kendall
1-72
Lower CASE Tools

Lower CASE tools generate
computer source code from the
CASE design
Source code is usually
generated in several languages
Kendall & Kendall
1-73
CASE Repository
Kendall & Kendall
1-74
Figure 1.7 Traditional versus

CASE systems development life
cycle
Kendall & Kendall
1-75
Agile Modelling
Development Process
Kendall & Kendall
1-76
OOSAD Diagram
Kendall & Kendall
1-77
Which Development
Method to Use?
Kendall & Kendall
1-78
Summary
Data: raw facts
Information: collection of facts
organized in such a way that they have
value beyond the facts themselves
System: a set of elements that interact
to accomplish a goal
Components of an information system:
input, processing, output, and feedback
79
Summary (continued)
Computer-based information system
(CBIS): a single set of hardware, software,
databases, telecommunications, people,
and procedures that are configured to
collect, manipulate, store, and process
data into information
Transaction processing system (TPS): an
organized collection of people,
devices used to record completed
business transactions
80
Summary (continued)
Management information system (MIS):
an organized collection of people,
devices that provides routine information
to managers and decision makers
Decision support system (DSS): an
organized collection of people,
devices used to support problem-specific
decision making
Systems development: creating or
modifying existing business systems
81
Summary
Information is a key resource
Systems analysts deal with many types of
information systems
Integration of traditional systems with new
technologies
Roles and qualities of the systems analyst
The systems Development Life Cycle
CASE tools
Alternatives to structured analysis and
design and to the SDLC
Kendall & Kendall
1-82

09.1 Information System

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09.1 Information System

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Introduction to

2008 Pearson Prentice Hall

Data, Information, and

Data, Information, and

Table 1.1: Types of Data

Data, Information, and Knowledge

Figure 1.1: Defining and Organizing Relationships Among Data Creates

Data, Information, and Knowledge

Figure 1.2: The Process of Transforming Data into Information

Table 1.2: Characteristics of Valuable Information

Table 1.2: Characteristics of Valuable Information (continued)

The Value of Information

Figure 1.3: Components of a System

System Performance and

Figure 1.5: The Components of an Information System

Input, Processing, Output,

Manual and Computerized

Figure 1.6: The Components of a Computer-Based Information System

Principles of Information Systems, Eighth Edition

Electronic and Mobile

Enterprise Systems: Transaction

Transaction: any business-related

Figure 1.11: A Payroll Transaction Processing System

Principles of Information Systems, Eighth Edition

Information and Decision

Figure 1.12: Management Information System

Principles of Information Systems, Eighth Edition

Decision Support Systems

Decision Support Systems

Figure 1.13: Essential DSS Elements

Specialized Business Information Systems:

Figure 1.14: The Major Elements of Artificial Intelligence

Principles of Information Systems, Eighth Edition

Information systems must be

Security, Privacy, and Ethical

Figure 1.17: The Cost and Cause of Computer Attacks

Computer and Information

Information Systems in the

Product and service challenges

Information System Types

Transaction Processing Systems (TPS)

Kendall & Kendall

Kendall & Kendall

Kendall & Kendall

Knowledge Work System (KWS)

Support a broad spectrum of organizational tasks

Decision Support System (DSS)

Aids decision makers in the making of decisions

Expert System (ES)

Captures and uses the knowledge of an expert for

Kendall & Kendall

Helps executives to make unstructured strategic

Group Decision Support System (GDSS)

Permit group members to interact with electronic support

Computer-Supported Collaborative Work System

Kendall & Kendall

Integrating New Technologies

Figure 1.2 Systems analysts need to be

Kendall & Kendall

Ecommerce and Web

Enterprise Resource Planning

Kendall & Kendall

Kendall & Kendall

Open Source Software