Information Systems Fundamentals

An Information System is a set of (primarily) electronic components that collect, analyze and disseminate data and information to meet an objective. Data: raw facts, e.g. text, image, audio, video. By itself, data cannot help us make decisions Information: aggregation, analysis and selection of data that enables organizations to meet objectives. Some characteristics of information:

timely accurate reliable appropriate complete secure

Definitions

Information system is a system of communication among people and it is involve in gathering, processing, distributing and use of information. An information system consists of hardware, software, data, people and procedures. The system that deliver information and communication services. The organization function that plans, develops and manages the information systems. An information system is defined technically as a set of interrelated components that collect, process, store and distribute information to support decision making and control in an organization.

Information Systems Fundamentals (contd)

Organizations may be classified according to the systems they employ:

Simple vs. complex Open vs. closed Natural vs. man-made Adaptive vs. non adaptive Permanent vs. temporary

System performance can be measured along three dimensions:

Efficiency Effectiveness Equity (fairness)

Information Systems Fundamentals (contd)

System: a collection of related elements or components that interact to accomplish goals. Composed of:

Inputs Processing mechanisms Outputs Feedback/assessment

Many processes, whether or not they have a significant IS component, can be viewed as systems:

Personnel management University admissions Production and inventory management Criminal justice system

System activities
Inputs: raw data

May be physical, electronic or conceptual May use a manual or automated process May be comprised of computations, data storage, choosing alternatives May be a manual or automated process May be delivered in paper form or electronically Outputs of one system may be inputs to another system

Processing: conversion of inputs to outputs

Outputs: information used to make decisions

Feedback/assessment: outputs used to improve system performance

Indication for managerial interventions Can flag for incorrect processing Supply estimates of future input values (forecasting

Systems are designed, implemented and managed using models: abstractions of reality that allow us to apply principles assumed to hold true for many different systems Model types:

Information Systems Fundamentals (contd)

Narrative model, e.g. verbal descriptions of model features, goals, resources Physical model, e.g. prototypes Schematic model, e.g. graphs and flowcharts Mathematical, e.g. equations and relations

All models are based on assumptions, e.g. market conditions, legal restrictions, physical performance limitations. Assumptions must be well-known and consistent

Changing Face of Business Environment

Can business survive without an information system? 1970s IS were TPS enabling an org. to carry out its routine transactions such as payroll, accounting, inventory management etc. 1980s- DSS became the popular inf. Sys. Application as it could support structured and uncertain decision situations. 1990s- Inf. Sys. brought about business transformation with the emergence of BPR. Eg. BPCL, HLL, ICICI, Indian railways, ITC, Tisco & Godrej were implementing the inf. Sys. for business transformation. 2000 onwards, inf. Sys. have been the cause of strategic transformation in industry due to widespread use of Internet. Eg. Dell, FedEx and CISCO.

Impact of Information System

a
Information System

for

Organization

Customer Satisfaction Productivity Profitability

Impact

Business Value

Better Software Lower Hardware Costs Easier to use software Reliable hardware Reduced cost

Changing Role of Inf. Sys.

Traditional Major IS Functions:

Managing system development and system project management Managing computer operations, including the computer center Staffing, training and developing IS skills Providing technical skills Initiating & designing specific strategic inf. Sys. Infrastructure planning, development & control Incorporating the internet & e-commerce into the business Managing systems integration including the internet, intranet & extranet Educating the non-IS managers about IT Educating the IS staff about business Supporting end-user computing Actively participating in BPR Proactively using business & technical knowledge to speed the mangers with innovative ideas Creating business alliances with vendors and IS departments in other organization

New (Additional) Major IS Functions:

Components of an Information System

`
Software Resources People Resource End Users and IS Specialists Programs and Procedures

System Activities

Control of System Performance

Input of Data Resources

Data Resources Data & Knowledge Bases

Processing Data into Information

Output of Information Products

Hardware Resources Machine and Media

Storage of Data Resources

Network Resources Communication Media and Network Support

Computer-Based IS Components

Hardware, computer equipment used for

input processing outputs systems software applications software

Software, computer programs that run on hardware:

Databases: specialized applications software designed to organize data and information on an organizations operations Infrastructure: equipment designed to link hardware across space:

telecommunications networks Internet

People: IS personnel and users Procedures: rules for developing and using the IS

Information System Resources and Products

People Resources
Specialists- system analysts, software developers, system operators End Users- anyone else who uses information systems

Hardware Resources
Machines- computers, video monitors, magnetic disk drives, printers, scanners. Media- floppy disks, magnetic tape, optical disk, plastic cards.

Software Resources
Programs- operating system programs, spreadsheet programs, word processing, payroll programs Procedures- data entry procedures, error correction procedures, paycheck distribution procedures.

Data Resources
Product descriptions, customers records, employee files, inventory databases

Network Resources
Communications media, communications processors, network access and control software

Information Products Management reports and business documents using text and graphics displays, audio responses and paper forms

Business Information Systems

Transaction processing: automation of routine, labor-intensive processes

payroll customer purchases accounts payable

Transaction processing systems have historically been mainframebased, often run in batch, using older, less flexible technology. E-commerce: commercial transactions conducted electronically

business-to-business business-to-consumer public sector-to-business public sector-to-customer

Value of E-commerce is estimated at $434 billion, with about 20% of total devoted to business-to-customer transactions

Business Information Systems (contd)

Management information systems: collection of people, procedures, software, hardware and databases designed to generate information for management decisions about organization strategy. MISs may comprise:

Marketing MIS Financial management MIS Operations MIS Transaction processing systems

Decision support systems: an MIS intended to address specific, complex decision problems requiring interaction of managerial and machine expertise. Composed of:

Database Models User interface Reporting

MIS Demo: Workforce Training Information System (Fall 1998)

Policy context

Increase in spending on local constuction Need to remedy lack of minority participation in construction Increased govt funding for organizations that can show positive results from job training programs Registration information on all program participants Assignment of participants to training program classes Recording personal and class outcomes Relational database application using Microsoft Access97 Web pages describing project teams, problem and solution using Microsoft FrontPage98 (http://pirate.heinz.cmu.edu)

Desired features

Implementation

Information System Development

Analysis and Design

problem definition justification of solution approach system requirements project team conceptual application model

Implementation

Prototyping Large-scale development Testing Deployment

Evaluation of delivered product Customer support Upgrades

Maintenance and Review

Operations

Careers in Information Systems/Information Technology

systems maintenance LAN operations data entry systems analysis hardware/software development data administration Web development/maintenance

Systems Development

Support

Interface

IS analysis in functional areas: engineering, planning and management Participation in multi-disciplinary teams bridging policy and IS

Maximizing Returns from IT Investments

Step1:
- identify the need - the type of IT investment and the IT metric will depend on strategic moves, improvements in productivity and performance, value addition to the product, and gaining leverage

Step2:
- identify the type of application - find out whether the application focuses on the infrastructure, process, user (employee), or customer - metrics will change depending upon the type of application

Maximizing Returns from IT Investments

Step 3:
- identify the user

- find out if the application will be used by a single function, multiple functions , or all over the organization

Step 4:
- identify the approach to measure returns - if part of a strategic move then the options approach is the most suitable - if IT investment is made to the improve performance of the organization then the scenario, business value, and performance approaches would be more suitable