Information System: A collection of components that work together Equipment; Computer

Information System is not one thing

Instructions for the Equipment People to operate the System Procedures for the people to follow

An IS may not include computers, people still using manual system

Computer Information System/CIS Information Technology/IT

An IS may involve a Single Application or Several Applications

Popular Information Systems

Inventory Control System/ICS
Keeps Track Of Daily Operation/Sales Keeps Track Business Stocks Reduces The Quantity In The Stock Increases The Quantity In The Stock Connects Directly To Suppliers Order Entry System/OES Reduces Human Labor Ensures Daily Operation Offers Maximum Accuracy Fills Customer Orders Receives Payments

Production Scheduling System (PSS)

Tracks Items That The Manufacturers Should

Produce At What Times

It Keeps Track Demand and Supply Measures The Capacity of Production Facility

Information System (IS) Functions: Four functions

Input Function: Accepts data front outside the system. Storage Function: Retains the input data along with stored
data and retrieves stored data when it is needed by the system.

Processing Function: Calculates/manipulates the input &

stored data.

Output Function: Produces the results of processing for use

outside the system.

Information System Components

Hardware: Computer & other devices used in a system Software: Instructions that tell hardware what to do Stored Data: Data that the system stores, not input and output data Personnel: People supply input & receive output from the system. Procedures: Tell people how to use and operate the system

Types of Information Systems

Individual Information Systems:

Affect the work of a Single Person Operate on PC LAN connection is not available

Affect groups of individuals who work together

Workgroup IS:

Operate on PCs that are connected in a LAN People at different computers can work with each other.

Organizational Info.. System: Inter-Organizational IS:

Functions among Several Firms

Affects many people throughout a firm Operates in Mainframes computers LAN connection is necessary

Operate on groups of computers located in different firms

Connected in an inter-organizational Network

Allow the firms to transact business among them selves

Global Information Systems: International System

Operates in more than one country Such International Business often have IS that Span National Borders

Benefits of Information Systems

Better Information:
Reduce person's uncertainty Better information offers better outcome of the decision

Improved Service:
Operate at any time of the Day or Night Process data faster than humans

Serves customers/clients more conveniently and efficiently than human

Increased Productivity:
Use Minimum Resources Get Maximum Output Allows people to Do More Work In A Period than they would de before

Competitive Advantage:
People are very much Price Sensitive Allows to Reduce Price of the products and services

Limitations of Information Systems

Common Sense Lacking Memory without a Brain Security Home & Hobby

Word Processing

Areas of Application of Computer

Professional Educational Small Business Engineering & Scientific

Levels of Computerization

Complete Computerization Partial Computerization

Computer aided Applications

Planning

Why should a manager study about IS?

Organizing
Staffing Controlling.

1) What is an Information System? What is CIS?

Identify & describe some popular IS. 2) Describe the Functions of Information Systems. Define the components of IS. 3) What is Information Technology? Identify & describe

the types of Information Systems?

4) Describe some Benefits of Information Systems. 5) Describe the Levels of Computerisation & main areas of applications. Identify some limitations of IS

The Inter-networked Enterprise

Enterprise collaboration systems involve the use of groupware tools to support communication, coordination, & collaboration among the members of networked teams and workgroups. An internetworked enterprise depends on intranets, the Internet, extranets and other networks to implement such systems.

Business Process Reengineering

Reengineering guru Michael Hammer defines
reengineering as "the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements, such as cost, quality, service, and speed".
When IT substitutes for human effort, it automates a task or
process. When IT augments human effort, it informates a task or

process.
When IT restructures, it transforms a set of tasks or processes.

Competitive Advantage with IT

Cost strategies: Using information technology helps to become a low cost producer, lower the customers' or suppliers' costs, or increases the costs of competitors and they must pay to remain in the industry

Differentiation strategies: Developing ways to use information technology to differentiate the company's products or services from competitors' so the customers perceive products or services as' having unique features or benefits for them to enjoy

Innovation strategies: Introducing unique products or services that include IT components.