fundamentals_of_information_system-1.pdf

1 Fundamentals of Information System IS101 By. Mr. A.S.Malabanan Program Head BSIS Dept.  2 INTRODUCTION TO THE PROFESSION  Career Opportunities In ICT  The work of an ICT Professionals  People in ICT  Code of Ethics...

1 Fundamentals of Information System IS101 By. Mr. A.S.Malabanan Program Head BSIS Dept.  2 INTRODUCTION TO THE PROFESSION  Career Opportunities In ICT  The work of an ICT Professionals  People in ICT  Code of Ethics of the Filipino IT professionals  3 Career Opportunities In ICT What is in ICT?  4 The work of ICT Professionals Most professional ICT work can be classified into three broad areas: 1. Information Systems 2. Computer System Engineering 3. Computer Science  5 1. Information Systems  The majority of employment opportunities occur in the application of computers to create business information system.  6 2. Computer System Engineering  The second important area is the application of computers in a wide range of industrial control problems.  7 3. Computer Science  The third area of interest is in the field of computer science where graduates may undertake research into the design of specialized hardware and software.  8 PEOPLE IN ICT 1. BUSINESS ANALYSIS CAREERS  JOB TITLES  Business Analyst  Systems analyst  Business Systems planners DUTIES  The role of business analyst is critical in contemporary system development.  Business analyst is a key partner with project managers and systems developers.  9 Business Analysis career  Career Path  Business Analysts come form various fields. Some are form the analyst/programmers area.  Salary packages are above average. Qualifications / Experience The Business analyst is usually a more senior position in organization. Professional qualification vary but a good understanding of ICT is essential. Formal qualifications for business analyst could include studies of computing and management information system.  10 Business Analysis career  Personal qualities  A business outcome approach  Ability to conceptualize and think creatively  Capacity to articulate visions  Very good oral and written communication skills  Interpersonal skills to evoke commitment from the client  Has high standard of ethics and integrity in all dealings  Effective selling, negotiation and customer management skills  Sound administrative skills and good analytical and reporting abilities  Effective time management and personal organization skills  An understanding of user needs  11 PEOPLE IN ICT 2. COMPUTER ENGINEERING CAREERS  JOB TITLES  Computer Engineer Repair / Service Engineer  Electronics Engineer  Hardware Design Engineer  DUTIES  Computer engineers are involved in the design, installation, repair and service of computers and associated equipments.  Senior engineers are responsible for total system performance , which can require the use of project techniques and the supervision of other staff.  Senior engineers can be required to design the more complex hardware equipment required to operate systems.  More…  12 COMPUTER ENGINEERING CAREERS  Career Path  Customer service engineers can progress to training, supervisory and managerial positions within their particular area of expertise. Others move into marketing or programming positions.  A hardware design engineer would typically have a minimum of 3years experience in the design of electronics systems equipment.  Qualifications / Experience  A computer engineer will normally have a degree or diploma in electronics, engineering. A computer repair engineer will normally have a relevant trade certificate or equivalent in electronics.  13 COMPUTER ENGINEERING CAREERS  PERSONAL QUALITIES  Very good oral and written communication skills  Good process management skills  Ability to work within a team  Leadership and management skills  14 PEOPLE IN ICT 3. DATABASE ADMINISTRATION  JOB TITLE  DATABASE ADMINISTRATOR  DUTIES  ICT management is sometimes called information management in recognition that most aspects of computing require the processing and use of information.  The database specialist plays an important role in using the underlying technologies available to give users flexibility in using the large amount of data stored.  Daily administration , including monitoring system performance ensuring successful backup procedures and developing / implementing disaster recovery plans.  15 DATABASE ADMINISTRATION  DUTIES cont…  Managing data to give users the ability to relate information in different ways.  Providing high speed easilty accessibly information  Allowing the sharing of data so that enterprise solutions draw on common reliable information  Ensuring accuracy and reliability of information while providing security to protect data from damage and unauthorized access  Providing portable and distributable facilities.  16 DATABASE ADMINISTRATION  CAREER PATH  Typically senior programmers or systems analysts advance to database administration roles.  QUALIFICATION / EXPERIENCE  Apart from a basic ICT degree, specific training in vendor products will be required.  Usually several years experience in the computing field.  17 DATABASE ADMINISTRATION  PERSONAL QUALITIES  An inclination to keep up with the complexities of database technologies  Well-developed interpersonal and communication skills  An ability to understand data and the uses to which it may be put  An understanding of business decision making and data processing  Able to take responsibility at significant levels  Good process management skills  Ability to work within a team  Leadership and management skills  18 PEOPLE IN ICT 4. INTERNET AND ECOMMERCE CAREER  JOB TITLE  Web programmer  Web Architech  Internet/Intranet Administrator  Ecommerce Project manager  Web Designer / Web Administrator  DUTIES  Ecommerce solutions may vary from tracking parcels to buying shares to simplifying procurement processes, the underlying link being the use of information tech and the internet to revolutionize business processes and customer relationships. As such the rise and rise of the internet and the application of ecommerce has implications for the design, development and administration of all ICT systems.  19 INTERNET AND ECOMMERCE CAREER  DUTIES cont…  Developing custom programs to extend the function of the website  Integrating internal business system with the browser based interface for customers to interact directly with the company’s system  Designing the processes and architecture of the company’s internet presence  Administering the day to day operation of the server software, monitoring the logs and usage statistics, adjusting configuration settings as required, and backing up the system and handling system security  20 INTERNET AND ECOMMERCE CAREER  DUTIES cont…  Aligning the client’s web presence with its business strategy, analyzing and specifying ecommerce application system requirements through consultation with both the client and development team.  CAREER PATH  Web architects / Systems analysts  Need to have a strong grasp on the relevant concepts such as html, xml, java script, the internet, browsers and client/server side processing  21 INTERNET AND ECOMMERCE CAREER  QUALIFICATIONS / EXPERIENCE  An ecommerce architect might be expected to have qualifications in computer science, ICT or engineering , and have at least 5 years experience, 3 years of which might be in systems development,  Expertise in relevant technologies and strong analysis / architecture skills would also be required.  Understanding of web development processes and any relevant technology 1-3 years HTML, Java etc. 2-5 years experience with object oriented programming.  22 INTERNET AND ECOMMERCE CAREER  PERSONAL QUALITIES  A business outcome approach  Ability to conceptualize and think creatively  Capacity to articulate visions.  Very good oral and written communication skills  Interpersonal skills to evoke commitment from the client  Sound administrative skills and good analytical and reporting abilities  Effective time management and personal organization skills  Un understanding of user needs.  23 PEOPLE IN ICT 5. MULTIMEDIA CAREER  JOB TITLE  Writer Multimedia Content Author  Web Programmer Multimedia Graphic Designer  Copywriter Website Designer  Online Producer  DUTIES  Multimedia developers uses personal computer to create and manipulate graphic images, animations, sound, text and video into programs with instructional and graphic strategies.  24 MULTIMEDIA CAREER  DUTIES cont…  Preparing in digital format 2 and 3 dimensional graphic images animations, video/sound production and editing , scanning photographs , retouching and manipulating  Ensuring that the text and graphic elements mesh together as a cohesive , eye catching work.  Creating content for the company’s web site within guidelines established by the web strategist.  25 MULTIMEDIA CAREER  CAREER PATH  This occupation has numerous avenues of entry , for example through studies in graphic design, animation, and sound or music technology.  Multimedia developers work in government agencies, educational institutions, commercial organizations, marketing and advertising firms, and software development companies.  Some are self employed.  26 MULTIMEDIA CAREER  QUALIFICATION / EXPERIENCE  Tertiary qualifications are not generally required as skills in particular authoring tools can be obtained from a range of education and training providers.  A multimedia content author would typically have at least 2-5 years experience in desktop publishing, marketing or journalism with tertiary qualification in design, IT, marketing communications or public relations.  27 MULTIMEDIA CAREER  PERSONAL QUALITIES  Very good oral and written communication skills  Good process management skills  Ability to work within a team  Creative , technical and logic skills  Able to communicate with clients and team members  Commitment to understanding new technology  28 PEOPLE IN ICT 6. SOFTWARE DEVELOPMENT  JOB TITLE  Computer Systems Officer / Programmer  Application Programmer / Systems Programmer  Software engineer / Analyst Programmer  Design Technician specialist (R & D) / Senior Programmer  29 SOFTWARE DEVELOPMENT  PERSONAL QUALITIES  Logical approach to the solution of problems  Self reliant and capable of both independent work and as a member of a team  Ability to understand and communicate with people from many backgrounds  Persistent, accurate and imaginative  Good interpersonal skills  Good conceptual ability and skills in analysis and problem solving  Discipline to document and record results  Good knowledge of company products and software development directions.  30 PEOPLE IN ICT 7. PROJECT MANAGEMENT  JOB TITLE  Project Leader  Project Manager  Project Director  DUTIES  Responsible for assembling the team as well as transitioning of the team to other projects at the end. The “take off” and “the landing” of the project are critical management activities.  31 PROJECT MANAGEMENT  PERSONAL QUALITIES  Must be able to communicate project objectives to a team of people.  Able to take responsibility at significant levels.  Perseverance , leadership and coaching skills are necessary  Capacity to bring the project in on time to specification price and quality regardless of hurdles encountered  Ability to lead and manage professionals staff, contractors and teams  Experience with project management methodology  Ability to meet tight schedules and cost targets witout compromising customer requirements.  32 ICT CAREER LEVEL RANK & FILE MIDDLE LEVEL TOP LEVEL Computer Operation Web Application Computer System Technician Engineer Manager Computer Operator Software Engineer Computer Information System Director Computer Operator Junior Programmer Computer Operations Aide Assistant Manager Data Entry Clerk Network Administrator Computer Operations / LAN Analyst Assistant Supervisor Computer Training Database Data Communication Technician Administrator Assistant Manager  33 ICT CAREER LEVEL cont… RANK & FILE MIDDLE LEVEL TOP LEVEL DATABASE Computer SPECIALIST Programming Manager Computer Engineer/ Computer Support Computer Analysis Specialist Systems Analyst Software Developer Software Applications Developer  34 CODE OF ETHICS OF FILIPINO IT PROFESSIONALS I will promote public knowledge, understanding , and appreciation of information technology. I will consider the general welfare and public welfare and public good in the performance of my work. I will advertise goods or professional services in a clear and truthful manner.  35 CODE OF ETHICS OF FILIPINO IT PROFESSIONALS  I will comply and stricktly abide by the intellectual property laws, patent laws, and other related laws with respect to information technology.  I will accept full responsibility for the work undertaken and utilize my skills with competence and professionalism.  I will make truthfull statements on my areas of competence as well as the capabilities and qualities of my products and services.  36 CODE OF ETHICS OF FILIPINO IT PROFESSIONALS  I will not disclose or use any confidential information obtained in the course of professional duties without the consent of the parties concerned, except when required by law.  I will strive to attain the highest quality in both the products and services that I offer.  I will knowingly participate in the development of the information technology systems and will not engage in the commission of fraud and other unlawful acts.  I will uphold and improve the IT professional standards through continuing education in order to enhance the IT profession.  37 SYSTEM CONCEPT: What is a system?  What is a system? A system can be defined as a group of interrelated or interacting elements forming a unified whole.  According to James A O’Brien, “A system is defined as a set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives by accepting inputs and producing outputs in an organized transformation process”.  INFORMATION SYSTEM 38 “Information System (IS) - A system that creates, processed, stores, and retrieves information”- Gupta The information system receives the inputs of the data and the instructions, processes the data according to the given instructions, and gives the output of the processed results. Information system contains information about significant people, places, and things within the organization or in the environment surrounding it.  39  “An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.  “An information system is an organized combination of people, hardware, software, communication networks, and data resources that collects, transforms and disseminates information in an organization.”-James A. O’Brien  40 When we use the term Information system we will be referring to Computer-based information system-which rely on computer hardware and software technology to process and disseminate information. People have relied on information system to communicate with each other using a variety of physical devices (hardware), information processing instructions (software), communications channels (networks), and stored data (data resources) since the dawn of civilization.  41 A set of components that work together to achieve a common goal. Computer-based Information Systems take data as raw material, process it, and produce information as output.  42  INFORMATION TECHNOLOGY Information Technology (IT) refers to the resources used by an organization to manage information that needs to carry out its mission. IT consists of: Computer hardware Software Database and Telecommunication.  43 DIFFERENCES BETWEEN INFORMATION SYSTEM AND INFORMATION TECHNOLOGY An Information System is a tool that creates, processes, stores, and disseminates information to help managers make decisions. Information Technologies on the other hand, are technologies that support the design and development of information system.  ACTIVITIES OF AN INFORMATION SYSTEM 44  Activities in an information system produce the information organization need for making decisions, controlling operations, analyzing problems, and creating new products and services.  Input of data resources  Processing of data into information  Output of information products  Storage of data resources  Control of system performance  45 Information System Activities  Input. Optical scanning of bar-coded tags on merchandise.  Processing. Calculating employee pay, taxes, and other payroll deductions.  Output. Producing reports and displays about sales performance.  Storage. Maintaining records on customers, employees, and products.  Control. Generating audible signals to indicate proper entry of sales data. Figure 3.1: Business examples of the basic activities of information system  46 INFORMATION SYSTEM RESOURCES Information system consists of five major resources/component:  Hardware  Software  Data  Networks / Process  People  You should be able to recognize these five components at work in any type of information system you encounter in the real world. Figure outlines several examples of typical information system resources and products.  47 Technology Technology can be thought of as the application of scientific knowledge for practical purposes. From the invention of the wheel to the harnessing of electricity for artificial lighting, technology is part of our lives in so many ways, the first three components of information systems – hardware, software, and data – all fall under the category of technology  48 Information System Resources and Products Hardware Resources  Machines- computers, video monitors, magnetic disk drivers, printers, optical scanners.  Media-floppy disks, magnetic tape, optical disks, plastic cards, paper forms. Software Resources  Programs-operating system programs, spreadsheet programs, word processing programs, payroll programs.  Procedures-data entry procedures, error correction procedures, paycheck distribution procedures. Data Resources  Product descriptions, customer records, employee files, inventory database. People Resources  Specialists-system analysts, software developers, system operators.  End Users-anyone else who uses information system. Network Resources  Communications media, communications processors, network access and control software. Examples of information system resources and products.  49 Hardware Information systems hardware is the part of an information system you can touch – the physical components of the technology. Computers, keyboards, disk drives, iPads, and flash drives are all examples of information systems hardware.  50 What is a Computer  It is an electronic device that accepts input and process it accordingly to produce a meaningful information.  51 Software  Software is a set of instructions that tells the hardware what to do. Software is not tangible – it cannot be touched. When programmers create software programs, what they are really doing is simply typing out lists of instructions that tell the hardware what to do. There are several categories of software, with the two main categories being operating-system software, which makes the hardware usable, and application software, which does something useful. Examples of operating systems include Microsoft Windows on a personal computer and Google’s Android on a mobile phone. Examples of application software are Microsoft Excel and Angry Birds.  52 1. Operating system software  Functions of O.S.S  It serves as interface between the user and the computer.  It organize and control files.  It Manages the hardware efficiently.  Plug and Play devices vs. non-plug and play devices  It loads the application programs / software  53 2. Application system software Categories of A.S.S 1, Electronic Spreadsheet 2. Wordprocessing 3. Desktop Publishing 4. DBMS 5. Graphics software  54 Data The third component is data. You can think of data as a collection of facts. For example, your street address, the city you live in, and your phone number are all pieces of data. Like software, data is also intangible. By themselves, pieces of data are not really very useful. But aggregated, indexed, and organized together into a database, data can become a powerful tool for businesses.  55 DATA  Data quality is crucial – it assesses whether information can serve its purpose in a particular context (such as data analysis). So, how do you determine the quality of a given set of information? There are data quality characteristics of which you should be aware.  CHARACTERISTICS OF A VALUABLE DATA 1. Accuracy - this data quality characteristic means that information is correct. To determine whether data is accurate or not, ask yourself if the information reflects a real-world situation. Accuracy is a crucial data quality characteristic because inaccurate information can cause significant problems with severe consequences.  56 CHARACTERISTICS OF A VALUABLE DATA  2. Completeness - “Completeness” refers to how comprehensive the information is. When looking at data completeness, think about whether all of the data you need is available; you might need a customer’s first and last name, but the middle initial may be optional.  Why does completeness matter as a data quality characteristic? If information is incomplete, it might be unusable. Let’s say you’re sending a mailing out. You need a customer’s last name to ensure the mail goes to the right address – without it, the data is incomplete.  57 CHARACTERISTICS OF A VALUABLE DATA 3. Reliability - In the realm of data quality characteristics, reliability means that a piece of information doesn’t contradict another piece of information in a different source or system. We’ll use an example from the healthcare field; if a patient’s birthday is January 1, 1970 in one system, yet it’s June 13, 1973 in another, the information is unreliable.  Reliability is a vital data quality characteristic. When pieces of information contradict themselves, you can’t trust the data. You could make a mistake that could cost your firm money and reputational damage.  58 CHARACTERISTICS OF A VALUABLE DATA  4. Relevance - When you’re looking at data quality characteristics, relevance comes into play because there has to be a good reason as to why you’re collecting this information in the first place. You must consider whether you really need this information, or whether you’re collecting it just for the sake of it.  Why does relevance matter as a data quality characteristic? If you’re gathering irrelevant information, you’re wasting time as well as money. Your analyses won’t be as valuable.  59 CHARACTERISTICS OF A VALUABLE DATA 5. Timeliness - Timeliness, as the name implies, refers to how up to date information is. If it was gathered in the past hour, then it’s timely – unless new information has come in that renders previous information useless.  The timeliness of information is an important data quality characteristic, because information that isn’t timely can lead to people making the wrong decisions. In turn, that costs organizations time, money, and reputational damage.  “Timeliness is an important data quality characteristic – out- of-date information costs companies time and money”  60 REALIZATION: In today’s business environment, data quality characteristics ensure that you get the most out of your information. When your information doesn’t meet these standards, it isn’t valuable. Precisely provides data quality solutions to improve the accuracy, completeness, reliability, relevance, and timeliness of your data.  61 The Hierarchy of Data  Bit (a binary digit):  Circuit that is either on or off  Byte:  Typically made up of eight bits  Character:  Basic building block of information  Field:  Name, number, or combination of characters that describes an aspect of a business object or activity  62 The Hierarchy of Data (continued) Record: Collection of related data fields File: Collection of related records Database: Collection of integrated and related files Hierarchy of data: Bits, characters, fields, records, files, and databases 63  64 Data Entities, Attributes, and Keys Entity: General class of people, places, or things (objects) for which data is collected, stored, and maintained Attribute: Characteristic of an entity Data item: Specific value of an attribute 65  66 Networking Communication:  A Fourth Technology Piece?  Besides the components of hardware, software, and data, which have long been considered the core technology of information systems, it has been suggested that one other component should be added: communication. An information system can exist without the ability to communicate – the first personal computers were stand- alone machines that did not access the Internet. However, in today’s hyper-connected world, it is an extremely rare computer that does not connect to another device or to a network. Technically, the networking communication component is made up of hardware and software, but it is such a core feature of today’s information systems that it has become its own category.  67 Process  A process is a series of steps undertaken to achieve a desired outcome or goal. Information systems are becoming more and more integrated with organizational processes, bringing more productivity and better control to those processes. But simply automating activities using technology is not enough – businesses looking to effectively utilize information systems do more. Using technology to manage and improve processes, both within a company and externally with suppliers and customers, is the ultimate goal. Technology buzzwords such as “business process reengineering,” “business process management,” and “enterprise resource planning” all have to do with the continued improvement of these business procedures and the integration of technology with them. Businesses hoping to gain an advantage over their competitors are highly focused on this component of information systems.  68 People  When thinking about information systems, it is easy to get focused on the technology components and forget that we must look beyond these tools to fully understand how they integrate into an organization. A focus on the people involved in information systems is the next step. From the front-line help-desk workers, to systems analysts, to programmers, all the way up to the chief information officer (CIO), the people involved with information systems are an essential element that must not be overlooked.  69 The Role of Information Systems From our definitions …, we see that these components collect, store, organize, and distribute data throughout the organization. In fact, we might say that one of the roles of information systems is to take data and turn it into information, and then transform that into organizational knowledge. As technology has developed, this role has evolved into the backbone of the organization. To get a full appreciation of the role information systems play, we will review how they have changed over the years.  70 The Mainframe Era  From the late 1950s through the 1960s, computers were seen as a way to more efficiently do calculations. These first business computers were room-sized monsters, with several refrigerator-sized machines linked together. The primary work of these devices was to organize and store large volumes of information that were tedious to manage by hand. Only large businesses, universities, and government agencies could afford them, and they took a crew of specialized personnel and specialized facilities to maintain. These devices served dozens to hundreds of users at a time through a process called time-sharing. Typical functions included scientific calculations and accounting, under the broader umbrella of “data processing.”  71  Registered trademark of International Business Machines  In the late 1960s, the Manufacturing Resources Planning (MRP) systems were introduced. This software, running on a mainframe computer, gave companies the ability to manage the manufacturing process, making it more efficient. From tracking inventory to creating bills of materials to scheduling production, the MRP systems (and later the MRP II systems) gave more businesses a reason to want to integrate computing into their processes. IBM became the dominant mainframe company. Nicknamed “Big Blue,” the company became synonymous with business computing. Continued improvement in software and the availability of cheaper hardware eventually brought mainframe computers (and their little sibling, the minicomputer) into most large businesses.  72 The PC Revolution  In 1975, the first microcomputer was announced on the cover of Popular Mechanics: the Altair 8800. Its immediate popularity sparked the imagination of entrepreneurs everywhere, and there were quickly dozens of companies making these “personal computers.” Though at first just a niche product for computer hobbyists, improvements in usability and the availability of practical software led to growing sales. The most prominent of these early personal computer makers was a little company known as Apple Computer, headed by Steve Jobs and Steve Wozniak, with the hugely successful “Apple II.” Not wanting to be left out of the revolution, in 1981 IBM (teaming with a little company called Microsoft for their operating-system software) hurriedly released their own version of the personal computer, simply called the “PC.” Businesses, who had used IBM mainframes for years to run their businesses, finally had the permission they needed to bring personal computers into their companies, and the IBM PC took off. The IBM PC was named Time magazine’s “Man of the Year” for 1982.  73  Because of the IBM PC’s open architecture, it was easy for other companies to copy, or “clone” it. During the 1980s, many new computer companies sprang up, offering less expensive versions of the PC. This drove prices down and spurred innovation. Microsoft developed its Windows operating system and made the PC even easier to use. Common uses for the PC during this period included word processing, spreadsheets, and databases. These early PCs were not connected to any sort of network; for the most part they stood alone as islands of innovation within the larger organization.  74 Client-Server  In the mid-1980s, businesses began to see the need to connect their computers together as a way to collaborate and share resources. This networking architecture was referred to as “client-server” because users would log in to the local area network (LAN) from their PC (the “client”) by connecting to a powerful computer called a “server,” which would then grant them rights to different resources on the network (such as shared file areas and a printer). Software companies began developing applications that allowed multiple users to access the same data at the same time. This evolved into software applications for communicating, with the first real popular use of electronic mail appearing at this time. The World Wide Web and E-Commerce 75 First invented in 1969, the Internet was confined to use by universities, government agencies, and researchers for many years. Its rather arcane commands and user applications made it unsuitable for mainstream use in business. One exception to this was the ability to expand electronic mail outside the confines of a single organization. While the first e-mail messages on the Internet were sent in the early 1970s, companies who wanted to expand their LAN-based e-mail started hooking up to the Internet in the 1980s. Companies began connecting their internal networks to the Internet in order to allow communication between their employees and employees at other companies. It was with these early Internet connections that the computer truly began to evolve from a computational device to a communications device. In 1989, Tim Berners-Lee developed a 76 simpler way for researchers to share information over the network at CERN laboratories, a concept he called the World Wide Web.This invention became the launching point of the growth of the Internet as a way for businesses to share information about themselves. As web browsers and Internet connections became the norm, companies rushed to grab domain names and create websites.  77 In 1991, the National Science Foundation, which governed how the Internet was used, lifted restrictions on its commercial use. The year 1994 saw the establishment of both eBay and Amazon.com, two true pioneers in the use of the new digital marketplace. A mad rush of investment in Internet-based businesses led to the dot-com boom through the late 1990s, and then the dot-com bust in 2000. While much can be learned from the speculation and crazy economic theories espoused during that bubble, one important outcome for businesses was that thousands of miles of Internet connections were laid around the world during that time. The world became truly “wired” heading into the new millenium, ushering in the era of globalization  78  Organization: INFORMATION is an organized SYSTEM body AND of people with a particular purpose, especially a business, society, ORGANIZATIONAL association, etc. STRUCTURE  An organization, or organisation, is an entity – such as a company, an institution, or an association – comprising one or more people and having a particular purpose.  Managerial decisions are made within the structure of an organization.  According to Uma G.Gupta, “Organizational structure identifies the level of responsibility, authority, management, and scope of control of employees in the organization.”  There are two types of organizational structure: 1. Pyramid or Hierarchical structure. 2. Task-based structure.  79  Pyramid or Hierarchical Structure  One of the most popular organizational structures is the traditional pyramid, or hierarchical, structure.  According to Gupta, “The pyramid structure is an organizational hierarchy with the chief executive officer (CEO) at the top and non-managerial employees (staff) at the bottom. Middle managers are somewhere between top management and non-managerial employees.”  The Pyramid Structure divides management into three layers:  Top level or Top management  Middle level or Middle management  Lower level or Lower management  80  Top Level or Top Management  “Top executive develop overall organizational goals, strategies, policies, and objectives through long-range strategic planning. They also monitor the strategic performance of the organization and its overall direction.”- James A. O’Brien  Middle Level or Middle Management  “Middle managers develop short-and medium-range plans and budgets and specify the policies, procedures, and objectives for sub units of the organization. They also acquire and allocate resources and monitor the performance of organizational sub units, such as departments, divisions, and other work groups.” – James A. O’Brien  81  Lower Level or Lower Management  Lower-level managers are responsible for the day-to-day operations, activities, and transactions of an organization, which include inventory control, payroll, processing sales transactions, and keeping track of employee hours.  “Supervisory managers develop short-range planning devices such as production schedules. They direct the use of resources and the performance of tasks according to established procedures and within budgets and schedules established for the work groups of the organization.” James A. O’Brien  Task-based structure is a structure in which a group of people required to accomplish a given task are brought together based on their skills rather than on their places in the organizational hierarchy.... Task based organizations work well for companies that operate in highly dynamic business environment like Intel.  82 Lower-level Management  The Task-Based Structure 83  Another type of organizational structure is called task- based organization.  “A Structure in which a group of people required to accomplish a given task is brought together based on their skills rather than on their places in the organizational hierarchy.”- Gupta  A good example of a task-based team is one that is assembled to perform surgery. A group of medical specialist and physicians comes together to accomplish the task, regardless of their levels within the structure of the hospital.  84  Accordingly, different types of information system are designed to meet the various information needs of managers.  Information system performs important operational and managerial support roles in business and other organizations.  Therefore, several types of information system can be classified conceptually as either operations or management support system.  Figure 3-4 illustrates this classification of information system. 85  OPERATION SUPPORT SYSTEM 86  Information system has always been needed to process data generated by and used in business operations. Such operations support system (OSS) produces a variety of information products for internal and external use.  The role of a business firm’s operations support system is to -  Efficiently process business transactions  Control industrial process  Support office communications and productivity, and  Update corporate database 87  88 Transaction Processing System A transaction processing system is a computerized system that performs, records and processes the daily routine internal and external transaction in an organization. According to Laudon and Laudon, “Transaction processing system is a computerized system that performs and records the daily routine transaction necessary to conduct the business; they serve the operational level of the organization.” Example: McDonald’s, which sells a large 89 number of hamburgers every day, orders raw materials from its suppliers. Each time the company places an order with a supplier, a transaction occurs and a transaction system records relevant information, such as the supplier’s name, address, and credit rating, the kind of quantity of items purchased, and the invoice amount. Transaction processing system processes these data and the result of such processing are used to update customer, inventory, and other organizational databases.  90 Process Control System Operation support system makes routine decisions that control operational processes. For example, petroleum refineries and the assembly lines of automated factories use such system. They monitor a physical process, capture and process data detected by sensors, and make real time adjustments to a process.  91  Office Automation System  Office automation system (OAS) collects, process, store, and transmit information in the form of electronic office communications. These automated systems rely on text processing, telecommunications and other information system technologies to enhance office communications and productivity. - James O’Brien  For Example, a business may use word processing for office correspondence, electronic mail to send and receive electronic messages, desktop publishing to produce a company newsletter, and teleconferencing to hold electronic meeting  92 MANAGEMENT SUPPORT SYSTEM When information system focuses on providing information and support for effective decision making by managers, they can be called management support system (MSS). Conceptually, several major types of information system are needed to support a variety of managerial end user responsibilities: Management Information system Decision Support System Executive Information system  Management Information system 93  Management Information system (MIS) is the most common form of management support system. They provide managerial end users with information products that support much of their day-to-day decision-making needs.  MIS provide a variety of reports and displays to management. Information products provided to managers include displays and reports that can be furnished  (1) on demand  (2) periodically, according to a predetermined schedule, or  (3) whenever exceptional conditions occur.  94 Applications of Management Information Systems (MIS): Financial, Marketing, Manufacturing & Human Resources  Financial MIS  A financial MIS provides financial information for managers to make daily decisions on operations within the organization. Most systems provide these functions:  Integrate financial information from multiple sources  Provide easy access to financial information in summarized form  Enable financial analysis using easy-to-use tools  Compare historic and current financial activity  A financial MIS often has a number of subsystems, depending on the type of organization. These include systems to analyze revenues, costs and profits, auditing systems for both internal and external purposes and systems to manage funds. A financial MIS can also be used to prepare reports for third parties, such as external auditors or shareholders.  95 Marketing MIS  A marketing MIS supports activities throughout the many activities of marketing departments. Some of the typical subsystems of a marketing MIS are marketing research, product development and delivery, promotion and advertising, product pricing and sales analysis.  One of the most common uses of a marketing MIS is to produce sales reports. These are typically produced on a regular schedule, such as by week, month and quarter. Reports can be organized by sales representative, product, customer or geographic area. Such reports allow managers to see which aspects of sales are doing well and which ones need attention.  96 Manufacturing MIS  Manufacturing is one of the areas where information systems have made a major impact. A typical manufacturing MIS is used to monitor the flow of materials and products throughout the organization. In a manufacturing process, raw materials or parts are transformed to finished products, and a manufacturing MIS is used at every stage. Some of the common subsystems in a manufacturing MIS include: design and engineering, production scheduling, inventory control, process control and quality control.  97 Decision Support System Decision support system (DSS) is computerized system that provides managers with internal and external data and decision-making models that facilitate semi-structured decision-making. – Gupta Decision support system is interactive, computer-based information system that uses decision models and specialized databases to assist the decision-making process of managerial end users. – O’Brien  98 Decision support systems may provide businesses with more accurate projections, better inventory management and data analysis.  Decision support systems collect, organize and analyze massive amounts of data.  DSS helps businesses manage inventory, project sales and much more.  DSS is used in a variety of fields, including medical, mapping and directions, education and real estate  99 Specific uses for DSS in business  DSS is getting a lot of attention from many businesses as a way to promote better projections, management and analysis within a company or business.  DSS comes in many forms, and the term basically refers to a computer- aided system that helps managers and planners make decisions. There are a lot of different ways managers can use DSS software to their advantage if they are open to exploring DSS applications and uses. Typically, business planners will build a DSS system according to their needs and use it to evaluate specific operations, including  A large stock of inventory, where DSS applications can provide guidance on establishing supply chain movement that works for a business.  A sales process, where DSS software is a "crystal ball" that helps managers theorize how changes will affect results.  Other specialized processes related to a field or industry.  100 Examples of DSS  DSS operates on several levels and there are many examples of common day-to-day use for decision support systems. For instance, GPS is used to determine the best and quickest route between two points. This task is completed by comparing and analyzing the option for multiple possibilities. GPS systems may also include features such as traffic avoidance, which monitors the traffic conditions between the two points, allowing you to avoid traffic congestion.  101 Examples of DSS  One of the easiest ways to understand how DSS works is to consider your computer use; every time you log on and use a search engine, you've used a DSS to organize a massive amount of information and transform it into images, videos, and text files in order to choose the information that best suits your search. Other ways DDS is used may include:  Farmers that use tools for crop-planning to help determine the best planting time, when to fertilize and when harvest.  When DSS is used in medicine it is known as clinical DSS. The functions of clinical DDS may be used to manage details and complex information for a wide range of things, such as maintaining research information about chemotherapy protocols, preventative care, tracking orders and follow-up care. The system is often used for cost control, avoiding duplicate tests and monitoring medication orders. DSS is also used with medical diagnosis software, which provides medical personnel with the ability to diagnose illnesses.  102 Examples of DSS  Some states have used DSS to provide information about potential hazards, such as floods. The system includes real-time weather conditions and may include information (current and historical) about floodplain boundaries and county flood data.  Real estate companies often use DSS for information about properties, including current data such as neighborhood comparison prices, acreage and future planning.  Universities and colleges rely on DSS to know how many students are currently enrolled, which allows them to predict how many additional students are needed in particular courses or overall population to ensure there are enough students enrolled to meet the university costs.  103 Decision Support System  104  Executive Information system  Senior managers use a category of information system called executive information system (ESS) to make decision.  “Information system at the strategic level of an organization designed to address unstructured decision making through advanced graphics and communication.” –Laudon and Laudon  Top executives get the information they need from many sources, including letters, memos, periodicals, and reports produced manually as well as by computer system. Other sources of executive information are meetings, telephone calls, and social activities. Thus, much of a top executive’s information comes from non-computer sources  105 Executive Information system  To assist marketing executives in making effective marketing decisions, an EIS can be applied. EIS provides sales forecasting, which can allow the market executive to compare sales forecast with past sales. EIS also offers an approach to product price, which is found in venture analysis.  106 Executive Information system  The grocery industry calls supply-chain management efficient consumer response (ECR). ECR software breaks barriers between trading partners, such as retailers and manufacturers, and between internal functions such as category management and product replenishment (see Figure 4.6). Companies such as Land O’ Lakes Inc. and Kellogg Company have begun to implement integrated ECR packages to improve internal processes, gain greater efficiency in distribution, and globalize their operations. Oracle and SAP have moved into the ECR market to respond to the growing demand with software derived from their manufacturing packages.  107 Executive Information system  Enterprise-resource-planning (ERP) software products, such as those developed specifically for each industry by SAP, Oracle, Baan, and PeopleSoft, provide seamless support for the supply-chain, value-chain, and administrative processes of a company. They integrate diverse activities internal and external to the company, support many languages and many currencies, and help companies integrate their operations at multiple sites and business units.  108 WHY ORGANIZATION NEED INFORMATION SYSTEM?  Meeting Global Challenges 109  Capturing Opportunities in the Marketplace  Supporting Corporate Strategy  Companies use three basic strategies to compete successfully in the marketplace:  They stay ahead of the competition by providing goods services at the lower price than their competitors.  They produce high specialized or unique goods and services that allow them to stand apart from their competitors.  They find a market niche and focus on meeting the needs of this special group.  Linking Departments whose Functions are Different  Enhancing Worker Productivity  Enhance Decision Making  Improve Team Collaboration  Create Business Partnership and Alliances  Enable Global Reach  Increasing the Quality of Goods and Services  110 Meeting Global Challenges Through globalization can bring many benefits, such as increased profits and markets share, the challenges of running a global company are also significant. If the company is to be successful, it must effectively coordinates and control products, people, and procedures around the world. This requires a great deal of timely, accurate, and reliable information.  111 Capturing Opportunities in the Marketplace Successful companies are those that can identify and take advantage of opportunities in the marketplace and can continue to do so over the long run. These system have catapulted some companies to the top of their industries, leaving their competitors far behind. Supporting Corporate Strategy 112 Companies use three basic strategies to compete successfully in the marketplace: They stay ahead of the competition by providing goods services at the lower price than their competitors. They produce high specialized or unique goods and services that allow them to stand apart from their competitors. They find a market niche and focus on meeting the needs of this special group.  Linking Departments whose Functions are Different 113  Some years ago, departments or units with different functions in a business, such as accounting, finance, manufacturing, and human resources, were viewed as separate business entities.  Often the efforts of these departments were not coordinated; this resulted in inefficiencies and lost opportunities for the company.  Today, most companies treat these apparently different departments as parts of a cohesive unit whose members must work together to achieve the overall goals of the business.  This is not always an easy task, because the goals of some units may conflict with those of others. However, information system can bring different functioning units together by coordinating their tasks and functions. Enhancing Worker Productivity 114 The pervasiveness of computers and information system in business has made them essential tools in many tasks, such as manufacturing the shop floor, evaluating the performance of employees, tracking customers, recording items, and generating the payroll. Computers and information system can therefore have a significant impact on a company’s bottom line. Enhance Decision Making 115 Managers make their decision based on the information available and the experience they have achieved over time. If the information is well processed and well analyzed, it facilitates managers to make proper decisions. MIS, DSS, ESS supports managers to make enhanced decisions.  116 Improve Team Collaboration Team working is characterized as a best business practice today. A team comprises more than two people who are responsible for similar work. They may be geographically spread and need to exchange information. Networking, Internet and Groupware software facilitates the process of information sharing among group members. Create Business Partnership and Alliances117 No business in the world works standalone. They need to communicate and make transactions with suppliers, customers, banks, insurance companies etc. Information system facilitates the process and help to make amity among different parties. Electronic Data Interchange (EDI) transferred structured information such as invoice, orders between business organizations. Internet along with firewalls can also establish business-to-business transaction which is known as B2B e-commerce.  118 Enable Global Reach We embraced globalization and our operating environment is a global economy. Because of the Internet we now have the ability to market our products and services in countries all over the world and develop partnerships and alliances with other businesses throughout the globe.  119  Increasing the Quality of Goods and Services  Quality is a leading concern for top and middle managers around the world, regardless of the products or services that their companies produce.  Total quality management (TQM) is one of the most popular and most widely used approaches for enhancing quality in an organization.  Quality-oriented efforts and decisions are highly information-intensive, so computers help a company achieve its quality goals by providing the right information to the right people at the right time.  An enterprise-wide effort is required to improve quality; this often involves coordinating the tasks and decisions of many departments and units, sometimes located all over the world. POTENTIAL RISKS OF 120 INFORMATION SYSTEM “Deskilling” of Workers Many industries, such as the automobile, defense, and insurance industries, have gone through periods of massive layoffs because of intense automation efforts. Information Overload 121 excessive amounts of information can overwhelm managers who must digest it and use it to make decisions, a phenomenon called information overload. Employee Mistrust When organizations introduce information system, employees sometimes fear that computers will eventually replace them.  122  Increased Competitive Pressure A few years ago, when computers were expensive, many companies (small business in particular) that could not afford to invest in these machines found themselves slowly and steadily being pushed out of the marketplace by large companies that invested heavily in computers and information system  Disenchantment ( Dissatisfaction )with Information System  In recent years, the CEO of many corporations has become disappointed with computers and information system because of poor returns from investments in this system.  123  Challenges in Developing Information System Although there are many successful information system, building these system is one of the most difficult and challenging tasks facing IS personnel.  POTENTIAL RISKS OF INFORMATION SYSTEM  Security Breaches When companies introduce new and sophisticated technologies, they must also find new ways to protect these assets from theft, pilferage, and security breaches.  124 Questions?