2. What is Information
System (IS)?
Means a system for generating, sending, receiving,
storing or otherwise processing electronic
communications;
A combination of hardware, software, infrastructure and
trained personnel organized to facilitate planning,
control, coordination, and decision making in an
organization.
4. Historical Perspective
Previous to computers,
telephones were probably the
biggest innovation that
improved information systems.
Previous to telephones, Paper
was the big innovation.
What will be the next big
thing?
5. Historical Perspective
Year
Activity
Mainframe
computers were
used
Computers and data
were centralized
Systems were tied to
a few business
functions: payroll,
inventory, billing
1970
Programming in
COBOL
(completely
absolute
business
oriented
language)
6. Historical Perspective
Year
Activity
Main focus was to automate
existing processes
PCs and LANs are installed
Departments set up own
computer systems
End-user computing with
Word Processors and
Spreadsheets makes
departments less dependent
on the IT department
1980
PC support,
basic networking
7. Historical Perspective
Year
Activity
Main focus is automating
existing processes
Wide Area Networks (WANs)
become corporate standards
Senior management looks
for system integration and
data integration. No more
stand-alone systems
1990
Network
support,
systems
integration,
database
administration
8. Historical Perspective
Year
Activity
Main focus is central control
and corporate learning
Wide Area Networks expand
via the Internet to include
global enterprises and
business partners – supply
chain and distribution
Senior management looks
for data sharing across
systems
2000
Network
support,
systems
integration
9. Historical Perspective
Year
Activity
Main focus is efficiencies and
speed in inventory,
manufacturing, distribution,
Transaction processing
system, Decision support
system etc.
Current situation
after 2000
Network
support,
systems
integration
Team work
10. Importance of Information
Systems in an Organization
Communication:
An information systems can make communication process more efficient
by allowing managers to communicate rapidly. Email is quick and
effective, but managers can use information systems even more efficiently
by storing documents in folders that they share with the employees who
need the information.
Operations:
You can use information systems to gain a cost advantage over
competitors or to differentiate yourself by offering better customer service.
Sales data give you insights about what customers are buying and let you
stock or produce items that are selling well.
11. Importance of Information
Systems in an Organization
Decisions:
The company information system can help you make better
decisions by delivering all the information you need and by modeling
the results of your decisions. If more than one choice looks
appealing, you can use the information system to run different
scenarios. For each possibility, the system can calculate key
indicators such as sales, costs and profits to help you determine
which alternative gives the most beneficial result. AIMMS
Records:
The information system stores documents and revision histories,
communication records and operational data. You can use such
information to prepare cost estimates and forecasts and to analyze
how your actions affected the key company indicators.
18. People Technology
People are the 5th component of an
Information System
Everyone forgets the importance of people
in an information system.
Example: End User, Data Entry Person,
Manager, Programmer, DB Administrator,
Cashier, Secretary, Professor.
20. Transaction Processing System (TPS)
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
21. Management Information System (MIS)
Supports Management (duh?)
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
23. 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.