Introduction to Information Systems PDF

Introduction to Information Systems Assoc. Prof. Dalia Magdi Fundamental Roles of IS in Business  Support of business processes and operations.  Support of decision making by employees and managers.  Support of strategies for competitive advantage. THE EVOLUTION IN COMPUTER APPLICATIONS  Aninf...

Introduction to Information Systems Assoc. Prof. Dalia Magdi Fundamental Roles of IS in Business  Support of business processes and operations.  Support of decision making by employees and managers.  Support of strategies for competitive advantage. THE EVOLUTION IN COMPUTER APPLICATIONS  Aninformation system is a conceptual system that enables managers to control and monitor a firm’s physical systems used to transform input resources into output resources Decision-Making Levels of an Organization  Executive level (top)  Long-term decisions  Unstructured decisions  Managerial level (middle)  Decisions covering weeks and months  Semistructured decisions  Operational level (bottom)  Day-to-day decisions  Structured decisions Types of Information Systems Operations support systems  What are they?  Efficiently process business transactions  Control industrial processes  Support communications and collaboration  Update corporate databases Types of Operations Support Systems  Transaction Processing Systems  Record and process data from business transactions  Examples: sales processing, inventory systems, accounting systems  Process Control Systems  Monitor and control physical processes  Example: in a petroleum refinery use sensors to monitor chemical processes  Enterprise Collaboration Systems  Enhance team and work group communications  Examples: e-mail, videoconferencing Two ways to process transactions  Batch Processing:  Accumulate transactions over time and process periodically  Example: a bank processes all checks received in a batch at night  Online Processing:  Process transactions immediately  Example: a bank processes an ATM withdrawal immediately Management Support Systems  What are they?  Provide information and support for effective decision making by managers Types of Management Support Systems  Management Information Systems (MIS)  Provide reports and displays to managers  Example: daily sales analysis reports  Decision Support Systems (DSS)  Provide interactive ad hoc support for decision making  Example: A what-if-analysis to determine where to spend advertising dollars  Executive Information Systems (EIS)  Provide critical information for executives and managers  Example: easy access to actions of competitors Operational or Management Systems  Expert Systems  Provide expert advice  Example: credit application advisor  Knowledge Management Systems  Support creation, organization and dissemination of business knowledge throughout company  Example: Intranet access to best business practices Transaction Processing Systems  It gathers data from the firm’s physical system and environment and enters it into its database  The software also transforms the data into information for the firm’s managers and other individuals in the firm’s environment  Supports Operations  Updates Operational Databases  Examples:  ATM Machine System – Banking Transactions  Cash Register System – Point of Sale Transactions  Accounting System – Checking Account Transactions  Even Pay-per-view or OnDemand is a TPS Process Control Systems (PCS)  Supports Operations  Monitor and Control Industrial/Manufacturing Process  Examples:  Petroleum Refining  Power Generation  Automobile Manufacturing  Enterprise Collaboration Systems (ECS)  Supports Operations (Surprised?)  Teamwork, communication, and collaboration  Examples:  E-mail  Chat  Video Conferencing  Calendaring  Journaling  Workflow  File Sharing (Kazaa, Morpheus, Limework, Napster) Management Information Systems  Management information systems (MIS) transform the data in frontline systems, such as transaction processing systems into information useful to managers  Typical MIS modules are report-writing software, and models that can simulate firm operations  Information from the MIS is then used by organizational problem solvers as an aid in decision-making, as illustrated.  Firms can also interact with suppliers or others to form inter organizational information systems (IOS), in which the MIS supplies information to the other members of the IOS as well as the firm's users Management Information System (MIS)  Supports Management  Analysis & Reporting  Charts, Graphs, Summary Tools  Examples:  SCT Banner – Managing College Information (Siena uses it)  Spreadsheet (Excel) – One of the first and most basic  Oracle's Corporate Performance Management Decision Support System (DSS)  Support Management  What-if Analysis, Decision Modeling, Scenario Building, Highly interactive, ad hoc.  Examples  Enterprise Decision Manager 2.0 Fair Isaac Corporation  AIMMS 3.6  Most DSS’s are custom developed for specific companies; very few out-of-the-box products. Decision Support Systems (DSS) A DSS is a system used to assist managers in making decisions to help solve a specific problem  Figure 1.10 shows the 3 sources for the information to be delivered to users: a relational database, a knowledge base, and a multidimensional database  Two additional types of DSS-related software are:  group decision support systems: used in aiding a group of managers work out decisions, and  artificial intelligence: in which a program is created for a computer to logically analyze a problem on its own  Executive Information Systems (EIS)  Supports high-level strategic management  Provides critical info from other systems (MIS and DSS).  Portal Concept: one place with links to all information  EIS’s integrate external information such as economic developments and news about related markets and competitors. Helps strategic decision making, not necessarily tactical.  Tactical – doing things the right way right  Strategic – doing the right things Classifications of IS by scope  Functional business systems  Focus on operational and managerial applications of basic business functions  Examples: support accounting, finance or marketing  Strategic information systems  Help get a strategic advantage over its customers  Examples: shipment tracking, e-commerce web systems  Cross-functional information systems  Systems that are combinations of several types of information systems  Provide support for many functions Enterprise Resource Planning Systems (ERP)  Over time, firms began to use many different kinds of information systems throughout the firm  During the 1990s firms began to see the value in integrating all of these systems so that they could function as a coordinated unit  ERP systems are computer-based systems aimed at meeting this need that enable the management of all of a firm’s resources on an organization-wide basis THE ROLE OF INFORMATION IN MANAGEMENT PROBLEM SOLVING  While a problem can be harmful or potentially harmful to a firm in a negative way, it can also be beneficial or potentially beneficial in a positive way  The outcome of the problem-solving activity is a solution  A decision is a particular selected course of action  Simon described problem-solving as being made up of four phases:  Intelligence activity  Design activity  Choice activity  Review activity 26 Measuring success of an IS  Efficiency  Minimize cost, time and use of information resources  Effectiveness  Support business strategies  Enable business processes  Enhance organizational structure and culture  Increase the customer and business value  What’s the difference between Efficiency and Effectiveness?