Information Systems: Components & Examples

Information System

• Interrelated components collect, manipulate, and disseminate data and information
• Feedback is provided to meet an objective
• Examples include ATMs, airline, and course reservation systems

Computers and Information Systems in Daily Life

• Computers and information systems are prevalent in daily life
• Examples: online classes, grading, grocery and retail, PDAs, smartphones, Internet
• Information Technology (IT) is a subset of Information Systems (IS)

Key Definitions

• Information Systems (IS): NASA's mission control center, emphasizing effective tool use by astronauts, engineers, and systems.

• Information Technology (IT): Computers, communication devices, and software used by NASA for space mission data collection and processing, providing necessary tools.

• Computer Literacy: Proficiency in using productivity software.

• Information Literacy: Understanding information's role in generating and using business intelligence.

• Business Intelligence (BI): Offers historical, current, and predictive insights into business operations for a competitive advantage.

• Transaction Processing Systems (TPSs): Focus on data collection and processing for cost and human involvement reduction and repetitive operations.

• Management Information System (MIS): Integrates hardware, software, data, processes, and human elements to produce timely, accurate, and relevant information for decision-making.

System Components

• A set of elements interact to achieve goals
• Systems consist of inputs, processing, and outputs
• Feedback from the output is used to modify inputs or processing
• System boundary distinguishes the system from its environment
• Configuration involves the arrangement of system elements

Major Components of an Information System

• Key components include data, database, process, and information
• Data is input to the system from external or internal sources that is time-oriented
• Data collected can be aggregated or disaggregated

Database Characteristics

• Serves as the heart of an information system
• Organizes relevant data into integrated files
• Managed via a Database Management System (DBMS)
• Reduces time to gather, process, and interpret data manually
• Essential for any information's system success

Database Management System (DBMS) Work

• Software that allows users to efficiently store, retrieve, and manage data
• Functions as an intermediary between users/applications and the database

DBMS Functions

• Storing Data: Data stored in tables (relational databases) or documents/collections (NoSQL databases) with rows (records) and columns (fields/attributes)

• Retrieving Data: Query the database using Structured Query Language (SQL) for relational databases

• Managing Data: Ensures accuracy and security through operations like Insert (adding), Update (modifying), and Delete (removing) data

• Ensuring Data Integrity & Security:

  • Access Control: Restricting data access or modification to authorized users only
  • ACID Properties: Ensuring transactions' atomicity, consistency, isolation, and durability, especially in relational DBMS
  • Backups & Recovery: Preventing data loss in case of failure

• Supporting Multi-User Access: DBMS allows simultaneous data access without conflicts

• Process: Generates useful information for decision-making, including transaction-processing reports, decision analysis models, and supports all decision-making levels

Information

• Is the output of an information system, analyzed by the process components

Quality and User Interface

• Information Quality: Includes timeliness, integration, consistency, accuracy, and relevance
• User Interface: Should be flexible, user-friendly, and have graphical user interfaces (GUIs)
• The main goal is to generate business intelligence (BI)

Information Technologies

• Needed to achieve the goals of information systems
• Examples are the Internet, databases, POS systems, and RFID tags.

Information Technologies in Home Depot

• POS systems for faster customer service and improved inventory
• Wireless networks for efficient in-store communication
• Websites to communicate and increase sales with online customers
• RFID tags to better manage inventory

Importance of Information

• Is the second most important resource, after manpower
• Includes machinery, materials, and money

Types of Information Systems

• Personnel information system (PIS) or human resource information system (HRIS): Helps personnel decision-makers and uses Web technologies

• Logistics information system (LIS): Reduces transportation costs while maintaining delivery

• Manufacturing information system (MFIS): Manages manufacturing resources to reduce costs, increase quality, and improve inventory decisions

• Financial information system (FIS): Provides information to financial executives

• Marketing information system (MKIS): Improves marketing decisions with timely and integrated information

Intranets vs, Internet

• Intranets are private whereas the Internet is public

Competitive Advantage

• Michael Porter identified overall cost leadership, differentiation, and focus strategies

• Information systems reduce costs, enable differentiation and focus, and improve bottom/top-line strategies

• Enterprise Systems: Supply chain (SCM), customer relationship (CRM), and enterprise resource planning (ERP) systems, as well as collaboration software

Focus Stratergies

• Concentrate on a specific market segment
• Attempt to achieve a cost or differentiation advantage

Port Five Force Model

• Buyer Power: High with customer choice, limited with few options; can be limited via services that deter customer switching
• Supplier Power: High with limited supplier options; can be reduced leveraging IS to lower product/service costs
• Threat of Substitutes: High when alternatives are available; distinction and added fees can help organization
• Threat of New Entrants: Low with high barriers; focus strategies can maintain this
• Rivalry Among Competitors: High when many exist; low otherwise

IT in boeing

• IT supports intelligent information systems like AI and expert systems across enterprise systems, cybersecurity, cloud computing, AI, and data analytics, also software development, and infrastructure

IT Job Market

• Encompasses operations and help desk, programming, systems design, web/network/database design, and robotics/AI

Key IT Positions

• Chief Technology Officer (CTO)/Chief Information Officer (CIO): Responsible for long-range planning
• Manager of Information Systems Services: Manages hardware, software, and personnel
• Systems Analyst: Designs and implements systems, understanding business operations
• Network Administrator: Manages internal/external networks, ensuring cybersecurity
• Database Administrator (DBA): Manages database design/implementation with data warehouse expertise.
• Computer Programmer: Writes code for specific tasks
• Webmaster: Designs/maintains websites

Future Outlook

• AI's and information processing costs are decreasing
• These enable improving computer literacy and the popularity of internet and computer criminals and will make it more difficult to protect the internet

Computer-Based Information System (CBIS)

• Organized combination of hardware, software, databases, telecommunications, people, and procedures Is designed for business operations and decision-making
• CBIS Components: Hardware (body), Software (brain), Databases (memory), Telecommunications (nervous system), People (heart), Procedures (rules/guidelines)

The Body - Hardware

• Computers: Desktops, Laptops, Servers
• Storage Devices: Hard Drives, SSDs
• Networking Devices: Routers, Modems, Switches
• Input Devices: Keyboards, Scanners, Cameras
• Output Devices: Monitors, Printers, Speakers

The Brain - Software

• System Software: Operating Systems(windows etc)
• Application Software: Microsoft Excel, QuickBooks, SAP
• Utility Software: Antivirus, Backup Systems

The Memory - Databases

• Stores structured information
• Uses Database Management Systems
• Access ensures data integrity, security, and accessibility

The Nervous System

• Telecommunications connects diJerent parts of a business, ensuring seamless data flow

Hearts, Rules and Guidelines

• The "heart" is people

• Technology needs skilled people to operate, manage, and interpret data

• "Rules and Guidelines" is procedures

• the best technology needs clear processes to function correctly

• Standard Operating Procedures, Business Rules and Policies, and Security Protocols

Importance of CBIS

• Boosts EJiciency and Improves Decision-Making
• Automates tasks, saves time/ejort, provides real-time analytics, enhances accuracy, and reduces errors
• Facilitates communication across departments and protects data

Business Information System (BIS)

• A collection of technologies, people and processes
• They collect, store, and analyze data to improves operations
• BIS Key Functions: Automates business processes, supports decision-making, improves efficiency and accuracy, provides real-time data, and enhances communication

Types of BIS

• Transaction Processing System (TPS): Foundation for routine transactions with speed and accuracy (e.g., ATMs, POS systems).

• Management Information System (MIS): Analyzes the collection of data from TPS to aid reporting for operations. (monthly sales batch, Inventory)

• Decision Support System (DSS): Analyzes forecast and risk for the business to give the strategic advice for the business to make complex and non-routine decisions

• Enterprise Resources Planning (ERP): Integrated to ensure real-time data sharing, and improve efficiency

• Customer Relationship Management (CRM): Stores customer details, purchase history, and preferences, tracks customer complaints and service requests

• Artificial Intelligence (AI) & Business Analytics: Smart innovator for the business that analyzes big data, automatic task, and improve decision-making with trends, costumer service and fraud detections

How BIS helps

• Faster Transactions speeds up payments and logistics
• Better Decision-Making for valuable insights
• Stronger Customer Relationships
• Seamless Operations ERP integrates all business processes
• Increased Security AI and fraud detection prevent cyber threats

Benefits of Business investing in CBIS

• Automates Tasks: Speeds up financial transactions and processings
• Enhances Decision Making: By having real-time insights
• Improves efficiency: Reduce errors
• Strengthens Security: Prevents cyber threats via
• Boosts Customer Engagement: By personalizing experiences

CBIS Applications

• CBIS applied to banks
• CBIS applied to health care
• CBIS applied to Transports & Logistics
• CBIS applied to educations

Why Business Invest in CBIS

• Faster Operations reduces manual work
• Accurate Data & Analytics helps make smarter decisions
• Cost Efficiency Saves time, money and labor costs
• Better Customer Experience personalizes services based on user data
• Competitive Advantage to stay ahead of competitors

Understanding Strategic Is Management

• It involves the spectrum associated with information to make sure it supports the broader business strategies and objectives

• To know the affect of technology on business processes.

• Strategic Planning for IS

• IS Implementation and Integration

• Performance Monitoring and Evaluation: Monitor after implementation

• Governance sets the direction

• Management implements these policies

• Administration handels bureaucratic functions

Technology Governance

• It involves the effective and efficient use of IT to achive organazational goals
• Alighnment of IT and businness strategies
• Compliance and Risk Management
• Resource Management

Navigation in Challenges

• Problem-solving in systems
• Identify and Analysis
• Develop and Implementation Solution
• Evaluation and Adaptation

ICC in IS Management and

• Integration is combining different computing systems and softwares
• Compliance adheres to regulations
• Cybersecurity protecting from digital attacks
• Information system management is overseeing the function of technology.
• Information system operations is involved in the system

Management and Operations

• Management focuses on strategic
• Operations tackle tactical
• both have to work together in the organization