Introduction to Information Systems

• Introduction to IS (Information Systems)
• Chapter 1 introduces systems and information systems, including system concepts, information concepts and analysis tools.

Objectives

• Understand the concept of Information Systems (IS).
• Discover the necessary components of an IS.
• Understand the variety of IS.
• Understand how information systems work.

Content Overview

• Definitions of Information Systems
• Components of IS
• Applications of IS
• Activities of IS
• The role of IS in organizations are explored.

IS Definitions

• Information System: An organized set of resources including hardware, software, personnel, data and procedures. It enables the acquisition, processing, storage, and communication of information within organizations (R.Reix, 1998).
• Function of Information System: Produces and records (stores) information representations of the activity of the operating system to make available, as interactively as possible, to the decision-making system (JI Le Moigne, 1987).

Components of an Information System

• People Resources: End users and IS specialists.
• Hardware Resources: Machines and media.
• Software Resources: Programs and procedures.
• Data Resources: Data knowledge bases.
• It involves the input of data resources, processing data into information, and the output of information products, that is all controlled by System Performances

IS Users

• End-users: People who use the information system or the information it produces, potentially customers, salespeople, engineers, accountants, or managers at all levels.
• IS specialists: People who develop and operate information systems. Including systems analysts, software developers, and system operators.

Hardware

• Refers to computer equipment, including all spare parts.
• Encompasses information carriers, networks, and their components.

Computer Systems Types

• Microcomputer Systems: Personal computers, network computers, technical workstations, personal digital assistants, and information appliances.
• Midrange Systems: Network servers, minicomputers, Web servers, and multi-user systems.
• Mainframe Systems: Enterprise systems, superservers, transaction processors, and supercomputers.

Computer Servers

• Offer various services: file sharing, access to business applications, Internet access, e-mail, printer sharing, and database storage.
• Handle multiple users simultaneously and require more computing power, housed in ventilated and secure premises.

Main Frame

• High-power computer with significant processing power.
• Often used in large companies like banks, insurance companies, airlines, and service companies.

Data Centre

• A physical site that contains the equipment for the company's information system: mainframes, servers, storage bays, network, and telecommunications equipment. It can be internal or external, operated with support of service providers.

Computer Networks

• A collection of equipment linked together for information exchange including printers, telephone networks, internet modems, and desktops.

Applications of IS

• Includes specialized processing systems, transaction processing systems, and process control systems to name a few.

Software as a Service (SaaS)

• Software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet.
• SaaS applications can be used by many users simultaneously, stored in the Cloud.

Activities of IS

• Input of Data Resources
• Process Data into Information
• Output of Information

Input

• Data entry
• Editing
• Machine readable
• Source documents
• User interface

Process

• Calculate
• Compare
• Sort
• Classify
• Summarize
• Regular updates are required to maintain quality

Output

• Transmit information to users (display, paper, audio).
• Storage of data in an organized manner (fields, records, files, data bases).
• System performance must be monitored and evaluated against established standards, through feedback.

Information Systems in Organizations

• An organization is a group of people that is structured and managed to meet its mission or a set of group goals.

OID Model

• Organization operates as a system.
• Objectives achieved through Operating System (OS), Decision System (DS), and Information System (IS).
• OS: production processes, daily operations, and resource management
• DS: strategic planning, decision making, and market analysis.
• IS: data collection, data processing, and communication flow.
• Systems theory: support for steering a system is the purpose of the information system.

Production Company Example

• Flow of information and materials between suppliers, the company (Direction, Usine, Vente/Stock/Comptabilité), and clients.

Main Purposes of an IS

• Decision-making support: provides decision-makers with necessary information for decision-making.
• Example: sales and turnover forecasts used to assess the results of sales decisions.
• Controlling evolution: detects internal malfunctions and abnormal situations to act as the organization's "collective memory".
• Example: accounting documents describe the company's situation in relation to its past.
• Coordination: to achieve this objective, the IS provides information about the present.

Types of Information Systems

• Transaction processing systems (TPS) at the operational level.
• Office automation systems (OAS) and knowledge work systems (KWS) at the knowledge level.
• Management information systems (MIS) and decision support systems (DSS) at the management level.
• Executive support systems (ESS) at the strategic level.

Transaction Processing System (TPS)

• Essential for helping businesses perform daily operations; transactions are any activity or event affecting the company.
• Example: point-of-sale (POS) systems in retail immediately record and process each sale, updating inventory levels and generating customer receipts.

Office Automation System (OAS)

• Includes computers, communication Technology, and personnel to perform official tasks.
• Supports office transactions at every level.
• Example: Microsoft Office Suite helps employees automate tasks such as document creation, data analysis and email communication, improving productivity.

Knowledge Work System (KWS)

• Expedites knowledge creation and ensures technical skills/knowledge are correctly applied.
• Aids workers in creating and disseminating new information using graphics, communication and document management tools.
• Example: CAD (Computer-Aided Design) software helps engineers and architects design and test structures, enabling detailed models + simulations.

Management Information System (MIS)

• A valuable tool for middle managers to handle administrative tasks, routines, and monitor performance in alignment with the organization's needs. It is designed to help managers and supervisors make decisions, plan, and control workflow.
• Example: Sales management systems and human resource management systems.

Decision Support System (DSS)

• It enables managers to analyze and summarise large amounts of data into user friendly formats.
• It makes informed, intelligent decisions.
• Example: Financial planning systems and bank loan management systems.

Executive Support System (ESS)

• Supports executive-level decision-making, and involve company-wide decisions.
• Provides greater telecommunication, computing, and display options than DSS.
• Executives use ESS to make decisions based on internal data from DSS/MIS and external sources.
• Track competitors, spot opportunities, and forecast future trends.
• Example: A dashboard system providing CEOs a real-time overview of key performance indicators (KPIs). E.g. sales revenue, market share, customer satisfaction.