Provide examples of several major types of information systems. Identify several challenges that a business anger might face in managing the successful and ethical development and use of Information technology In a business. Section I Foundation Concepts: Information Systems and Information Technologies Foundation Concepts Foundations of Information In Business Presents an overview of the five basic areas of Information systems Knowledge needed by business professionals Including the conceptual system components Major types of information systems.
Why Information Systems Are Important An understanding of the effective and responsible use and management of Information systems and technologies Is Important for managers, business refashions, and other knowledge workers in doffs intertwined enterprises. Information systems play a vital role in the e-business and e-commerce operations, enterprise collaboration and management, and strategic success of businesses that must operate in an intertwined global environment.
Thus, the field of information systems has become a major functional area of business administration. Why You Need to Learn About Information Technology IT is Generally Interesting IT Facilitates Work in Organizations IT Offers Career Opportunities IT Is used by All Departments The IS knowledge that a business manager or professional needs to know is illustrated in the Figure.
This include:- 1) Foundation concepts: fundamental behavior, technical, business, and managerial concepts like system components and functions, or competitive strategies; 2) Information technologies: concepts, developments, or management issues regarding hardware, software, data management, networks, and other technologies; 3) Business applications: major uses of IT for business processes, operations, decision making, and strategic/ competitive advantage; 4) Development processes: how end users and IS specialists evolve and implement business/let solutions to problems and opportunities arising in business; and 5) Management challenges: how to effectively and ethically manage the IS function and IT resources to achieve top performance and business value in support of the business strategies of the enterprise. Information Systems Framework What IS a system? A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system). Three basic interacting components: Input: Involves capturing and assembling elements that enter the system to e processed. For example, raw materials, energy, data, and human effort must be secured and organized for processing Processing: involves transformation processes that convert input into output.
For example a manufacturing process, the human breathing process, or mathematical calculations Output: involves transferring elements that have been produced by a transformation process to their ultimate destination for example finished products, human services Feedback and Control: Two additional components of the system concept include feedback and control. A system with feedback and control components is sometimes called a cybernetic yester, that is, a self-monitoring, self-regulating system. Feedback is data about the performance of a system. Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goals. The control function then makes necessary adjustments to a system’s input and processing components to ensure that it produces proper output.
Add Feedback and Control Loops.. Cybernetic system becomes even more useful. Self-monitoring Self-regulating Other System Characteristics A system exists and functions in an environment containing other systems. Systems that share the same environment may be connected to one another through a shared boundary, or interface Interface: Several systems may share the same environment. Some of these systems may be connected to one another by means of a shared boundary, or interface. Open System: A system that interacts with other systems in its environment is called an open system (connected to its environment by exchanges of inputs and outputs).
Adaptive System: A system that has the ability to change itself or its environment in order to survive is called an adaptive system Information System An information system (IS) can be any organized combination of people, hardware, software, communications networks, and data resources that collect, transforms, and disseminate information in an organization. Information Technologies: Business professionals rely on many types of information systems that use a variety of information technologies. For example: Types of IS: Manual (paper-and-pencil) information systems Informal (word-of-mouth) information systems Formal (written procedures) information systems information systems What is a Computer-Based Information System? (CBS) Computer-based
Computer-based information systems (IS) use hardware, software, the Internet, and other telecommunications networks, computer-based data resource management techniques, and other forms of information technologies (IT) to transform data resources into a variety of information products for consumers and business professionals. OR A computer-based information system (CBS) is an information system that uses computer and often telecommunications technology to perform some or all of its intended tasks. An information technology is a particular component of a system, like a personal computer, a printer, or a network. Few information technologies are used alone. Rather, they are most effective combined into information systems.
The basic components of information systems are the following: Software Database Network Procedures People Hardware Components of Computer-based Information System End Users IS Specialists Hardware Resources Computer systems Peripherals Software Resources System software Application software Procedures Data Resources Data versus Information Network Resources Communication media Network support Role of Information System in an Organization Information systems provide an organization with the support for; 1) Business Operations 2) Managerial Decision Making 3) Strategic Advantage Business Operations: Transaction processing, customer purchasing, inventory control, payment to employee and buying new materials Managerial Decision Making: Decision made by managerial staff; what items should be added/discarded? What are the requirements for the organization? These can be done after the analysis of a System Analyst Strategic Advantages: Making decision for better performance; Advantages, Customer services and Ordering machines Data Versus Information
Data: are raw facts or observations, typically about physical phenomena or business transactions. More specifically, data are objective measurements of the attributes (characteristics) of entities, such as people, places, things, and events. Information: is processed data, which has been placed in a meaningful and useful context for an end user. Data is subjected to a process (data processing or information processing) where: Its form is aggregated, manipulated, and organized. Its content is analyzed and evaluated It is placed in a proper context for a human user The Characteristics of Valuable Information I Characteristics I Accurate I Definitions I Accurate information is error free.
In some cases, inaccurate information is generated I because inaccurate data is fed into the transformation process (this is commonly called I I I garbage in, garbage out [GIG]) I Complete I Complete information contains all the important facts. For example, an investment report that’ll I Does not include all important costs is not also be relatively economical to produce. Decision makes must always I I I balance the balance of information with the cost of producing it. Flexible I Flexible information can be used for a variety of purposes. For example, information on how I I I much inventory is on hand for a particular part can be used by a sales representative in I I loosing a sale and by a production manager to determine whether more inventory is needed. I I Reliable I Reliable information can be depended on.
In many cases, the reliability of the information I I the reliability of the data collection method. I depends on I I Relevant I Relevant information to the decision maker. Information that lumber prices might drop may onto I I Simple I be relevant to a computer chip manufacturer. I Information should also be simple, not overly complex. Sophisticated and detailed information I In fact, too much information can cause information overload. I Timely information is delivered when it is needed. I may not be needed. I I Timely Verifiable I Information should be verifiable. This means that you can check it to make sure it is many sources for the same information.
I correct, perhaps by checking I Accessible Information should be easily accessible by authorized users to be obtained in the right I Secure unauthorized users. I format and at the right time to meet their needs. I Information should be secure from access by Information System Activities Focus at each of the basic information processing (or data processing activities that occur in information systems The IS activities are: Input Processing Output Storage Control Input of Data Resources: Data about business transactions and other events must be captured and prepared for processing by the input activity. Input typically takes the form of data entry activities such as recording and editing.
Once entered, data may be transferred onto a machine-readable medium such as magnetic disk or type, until needed for processing. Processing of Data into Information: Data is typically subjected to processing activities such as calculating, impairing, sorting, classifying, and summarizing. These activities organize, analyze, and manipulate data, thus converting them into information for end users. A continual process of correcting and updating activities must maintain quality of data stored in an information system. Output of Information Products: Information in various forms is transmitted to end-users and made available to them in the output activity.
The goal of information systems is the production of appropriate information products for end users. Storage of Data Resources: Storage is a system activity in which data and information are retained in an organized manner or later use. Control of System Performance: An important information system activity is the control of its performance. An information system should produce feedback about its input, processing, output, and storage activities. Feedback must be monitored and evaluated to determine if the system is meeting established performance standards. Feedback is used to make adjustments to system activities to correct deficiencies. What’s in IT for Managers?
For Accounting Information systems capture, organize, analyze, and disseminate data and information throughout modern organizations For Finance Information systems turn financial world on speed, volume, and accuracy of information flow For Marketing The Internet and the World Wide Web have opened an entirely new channel for marketing and provided much closer contact between the consumer and the supplier For Production/Operations Management Every process in a product or service’s value chain can be enhanced by the proper use of computer-based information systems For Human Resource Management Employees can handle much of their personal business themselves, and the Internet makes a tremendous amount of information available to the Job seeker For Management Information Systems (MIS)
The opportunities for those planning a career in MIS grows as fast as the adoption of information technologies into organizations everywhere Section II Foundation Concepts: Business Applications, Development, and Management Trends in Information Systems The roles given to the information systems function have expanded significantly over the years. Sass – sass – Data Processing – Electronic data processing Role: Transaction processing, record keeping, and accounting, and systems other electronic data processing (EDP) applications 0 sass – sass – Management Reporting – Management information systems Role: Providing managerial end users with predefined management reports that would give managers the information they needed for decision-making purposes. Sass – Role: The new role for sass – Decision Support – Decision support systems information systems was to provide managerial end users with ad hoc support of their decision-making process. This support would be tailored to the unique decision-making styles of managers as they confronted specific types of problems in the real world. sass – sass – Strategic and End User Support Role: End users could use their own computing resources to support their Job acquirement instead of waiting for the indirect support of corporate information Role: Direct computing support for end user productivity and work group collaboration. Executive Information Systems (IIS) Role: These information systems attempt to give top executives an easy way to get the critical information they want, when they want it, tailored to the formats they prefer.
Expert Systems (SEES) and other Knowledge-Based Systems Role: Expert systems can serve as consultants to users by providing expert advice in limited subject areas Strategic Information Systems (SIS) Role: Information technology becomes an integral component of business recesses, products, and services that help a company gain a competitive advantage in the global marketplace. sass – 2000 – Electronic business and commerce Role: The rapid growth of the Internet, intranets, extranets, and other interconnected global networks has revolutionaries the operations and management of today’s business enterprises. Types of Information Systems Operations Support Systems Transaction processing systems Batch – transaction data accumulate over time, processed periodically. Real-time – data processed immediately after a transaction occurs. Process Control Systems – monitor & control physical processes.
Example: in a petroleum refinery use sensors to monitor chemical processes Management Support Systems Management Information Systems – pre-specified reports & displays to support decision-making. Decision Support Systems – provide interactive ad hoc support. Executive Information Systems – critical information tailored to the information needs of executives. Other Classifications Expert systems – expert advice Knowledge management systems – support the creation, organization, & dissemination of business knowledge Functional business systems – support the basic business functions Strategic information systems – strategic advantage Managerial challenges of information technology Information systems can be mismanaged and misapplied so that they create both technological and business failure. Pick] Developing IS Solutions to Business Challenges Developing successful information system solutions to business problems is a major challenge for business managers and professionals today. As a business professional, you will be responsible for proposing or developing new or improved use of information systems for your company. As a business manager, you will also frequently manage the development efforts of information systems specialists and there business end users. Most computer-based information systems are conceived, designed, and implemented using some form of systematic development and managed in a complete IS development cycle. The traditional information systems development cycle is based upon the stages in the systems approach to problem solving: Systems Investigation.
This stage may begin with a formal information systems planning process to help sort out choices from many opportunities. Typically, due to the expense associated with information systems development this stage includes a cost/benefit analysis as part f a feasibility study. Systems Analysis. This stage includes an analysis of the information needs of end users, the organizational environment, and any system currently used to develop the functional requirements of a new system. Systems Design. This stage develops specifications for the hardware, software, people, and data resources of the system. The information products the system is expected to produce are also designated Systems Implementation.