SlideShare uma empresa Scribd logo
1 de 25
Baixar para ler offline
Foundations of Information Systems in Business
Foundation Concepts: Foundations of Information in Business presents an overview of the
five basic areas of information systems knowledge needed by business professionals, including
the conceptual system, components of system and major types of information systems.
Information Systems are Important for Business – An understanding of the effective and
responsible use and management of information systems and technologies is important
for managers, business professionals, and other knowledge workers in today’s
internetworked enterprises. Information systems play a vital role in the e-business and
e-commerce operations, enterprise collaboration and management, and strategic
success of businesses that must operate in an internetworked global environment.
Thus, the field of information systems has become a major functional area of business
administration.
An IS Framework for Business Professionals – The IS knowledge that a business manager or
professional needs to know is illustrated in Figure 1.2 and covered in this chapter and text.
This included (1) foundation concepts: fundamental behavior, technical, business, and
managerial concepts like system components and functions, or competitive strategies;
(2) information technologies: concepts, developments, or management issues regarding
hardware, software, data management, networks, and other technologies; (3) business
applications: major uses of IT for business processes, operations, decision making, and
strategic/competitive advantage; (4) development processes: how end users and IS
specialists develop and implement business/IT solutions to problems and opportunities
arising in business; and (5) management challenges: how to effectively and ethically
manage the IS function and IT resources to achieve top performance and business
value in support of the business strategies of the enterprise.
System Concepts – A system is a group of interrelated components working toward the
attainment of a common goal by accepting inputs and producing outputs in an organized
transformation process. Feedback is data about the performance of a system. Control is
the component that monitors and evaluates feedback and makes any necessary
adjustments to the input and processing components to ensure that proper output is
produced.
An Information System Model – An information system uses the resources of people,
hardware, software, data, and networks to perform input, processing, output, storage, and
control activities that convert data resources into information products. Data are first
collected and converted to a form that is suitable for processing (input). Then
the data are manipulated and converted into information (processing), stored for future
use (storage), or communicated to their ultimate user (output) according to correct
processing procedures (control).
IS Resources and Products - Hardware resources include machines and media used in
information processing.
Software resources include computerized instructions (programs) and instruction for
people (procedures). People resources include information systems specialists and
users. Data resources include alphanumeric, text, image, video, audio, and other forms
of data. Network resources include communications media and network support.
Information products produced by an information system can take a variety of forms,
including paper reports, visual displays, multimedia documents, electronic messages,
graphics images, and audio responses.
Business Applications of Information Systems - Information systems perform three vital roles
in business firms. Business applications of IS support an organization’s business
processes and operations, business decision-making, and strategic competitive
advantage. Major application categories of information systems include operations
support systems, such as transaction processing systems, process control systems,
and enterprise collaboration systems, and management support systems, such as
management information systems, decision support systems, and executive information
systems.
Other major categories are expert systems, knowledge management systems,
strategic information systems, and functional business systems. However, in the real
world most application categories are combined into cross-functional information
systems that provide information and support for decision-making and also perform
operational information processing activities.
III: LECTURE NOTES
Section I: Foundation Concepts: Information Systems and Technologies
WHY INFORMATION SYSTEMS ARE IMPORTANT
An understanding of the effective and responsible use and management of information
systems is important for managers and other business knowledge workers in today’s
global information society. Information systems and technologies have become a vital
component of successful businesses and organizations. Information systems constitute
an essential field of study in business administration and management, as they are
considered a major functional area in business operations.
THE REAL WORLD OF INFORMATION SYSTEMS
Analysing BellSouth Corp.
We can learn a lot about the importance of information technology and information
systems from this case. Take a
few minutes to read it, and we will discuss it (See BellSouth Corporation: The Business
Payback of Information Technology.
WHAT YOU NEED TO KNOW
Managerial end users need to know how information systems can be employed
successfully in a business
environment. The important question for any business end user or manager is: What do
you need to know in order
to help manage the hardware, software, data, and network resources of your business,
so they are used for the
strategic success of your company?

Managers or business professionals are not required to know the complex technologies,
abstract behavioral
concepts, or the specialized applications involved in the field of information systems.
Figure 1.2 illustrates a useful
conceptual framework that outlines what a manager or business professional needs to
know about information
systems. It emphasizes five areas of knowledge:
•
Foundation Concepts
•
Information Technologies
•
Business Applications
•
Development Processes
•
Management Challenges
What is an Information System? [Figure 1.3]
An information system(IS) can be any organized combination of people, hardware, software,
communications networks, and data resources that collect, transforms, and disseminate
information in an organization.
Information Technologies:
Business professionals rely on many types of information systems that use a variety of
information technologies
For example:
Types of IS
- Manual (paper-and-pencil) information systems
- Informal (word-of-mouth) information systems
- Formal (written procedures) information systems
- Computer-based information systems
Computer-based information systems (IS) use hardware, software, the Internet, and other
telecommunications networks, computer-based data resource management techniques, and other
forms of information technologies
(IT) to transform data resources into a variety of information products for consumers and
business professionals.
SYSTEM CONCEPTS - A FOUNDATION
System concepts underlie the field of information systems. Understanding system
concepts will help you understand many other concepts in the technology, applications,
development, and management of information systems. System concepts help you
understand:
•
Technology. That computer networks are systems of information processing components that
uses a variety of
hardware, software, data and telecommunication technologies.
•
Applications. That electronic business and commerce involves interconnected business
information systems.
•
Development. That developing ways to use information technology n business includes
designing the basic
components of information systems.
•
Management. That managing information technology emphasizes the quality, strategic
business value, and
security of an organization’s information systems.
What is a System?
Question:
What is a system as it applies to the concept of an information system?
Answer:
Asyst e m is a group of interrelated components working together toward a common goal by
accepting inputs and producing outputs in an organized transformation process.
A system (sometimes called ad y na mi c system) has three basic interacting components or
functions. These include:
Input involves capturing and assembling elements that enter the system to be processed.
Processing involves transformation processes that convert input into output.
Output involves transferring elements that have been produced by a transformation process to
their ultimate destination.
Feedback and Control:
Two additional components of the system concept include feedback and control. A system with
feedback and control components is sometimes called ac yb er n eti c system, that is, a self-
monitoring, self-regulating system.
Feedback is data about the performance of a system.
Control involves monitoring and evaluating feedback to determine whether a system is moving
toward the achievement of its goals. The control function then makes necessary adjustments to a
system's input and processing components to ensure that it produces proper output.
System Characteristics:
A system does not exist in a vacuum; rather, it exists and functions in containing other systems.
Subsystem:
A system that is a component of a larger system, where the larger system is its
environment.
System Boundary:
A system is separated from its environment and other systems by its system boundary.
Interface:
Several systems may share the same environment. Some of these systems may be
connected to one another by means of a shared boundary, or interface.
Open System:
A system that interacts with other systems in its environment is called an open system
(connected to its environment by exchanges of inputs and outputs).


COMPONENTS OF AN INFORMATION SYSTEM
An information system model expresses a fundamental conceptual framework for the
major components and activities of information systems. An information system
depends on the resources of people, hardware, software, data, and networks to perform
input, processing, output, storage, and control activities that convert data resources
into information products.
The information systems model outlined in the text emphasizes four major concepts that can be
applied to all types of information systems:
•
People, hardware, software, data, and networks, are the five basic resources of information
systems.
People resources include end users and IS specialists, hardware resources consist of
machines and media, software resources include both programs and procedures, data
resources can include data and knowledge bases, and network resources include
communications media and networks.
Data resources are transformed by information processing activities into a variety of information
products for
end users.
Information processing consists of input, processing, output, storage, and control activities.




INFORMATION SYSTEM RESOURCES
The basic IS model shows that an information system consists of five major resources:
•
People resources
•
Hardware resources
•
Software resources
•
Data resources
•
Network resources
People Resources:
People are required for the operation of all information systems. These people resources include
end users and IS
specialists
End Users
(also called users or clients) are people who use an information system or the information it
produces. Most of us are information system end users. And most end users in business areknow
l e dg e
workers, that is, people who spend most of their time communicating and collaborating in teams
of
workgroups and creating, using, and distributing information.
•
IS Specialists are people who develop and operate information systems. They include system
analysts,
software developers, system operators, and other managerial, technical, and clerical IS personnel.
Systems analysts – design information systems based on the information requirements
of end users.
Software developers – create computer programs based on the specifications of
systems analysts.
System operators – monitor and operate large computer systems and networks.
Hardware Resources:
Hardware resources include all physical devices and materials used in information processing.
•
Machines- physical devices (computers, peripherals, telecommunications networks, etc.)
•
Media
- all tangible objects on which data are recorded (paper, magnetic disks etc.)
Examples of hardware in computer-based information systems are:
•
Computer Systems – which consist of central processing units containing microprocessors, and a
variety of interconnected peripheral devices.
•
Computer peripherals – which are devices such as a keyboard or electronic mouse for input of
data and commands, a video screen or printer for output of information, and magnetic or optical
disks for storage of data resources.
Software Resources:
Software resources include all sets of information processing instructions.
•
Program - a set of instructions that causes a computer to perform a particular task.
•
Procedures - set of instructions used by people to complete a task.
Examples of software resources are:
•
System software – such as an operating system program, that controls and supports the
operations of a
computer system.
•
Application software– are programs that direct processing for a particular use of computers by
end users.
•
Procedures– are operating instructions for the people who will use an information system.
Data Resources:
Data constitutes a valuable organizational resource. Thus, data resources must be managed
effectively to benefit
all end users in an organization. The data resources of information systems are typically
organized into:
•
Databases - a collection of logically related records or files. A database consolidates many
records previously
stored in separate files so that a common pool of data records serves many applications.
•
Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules of
inference about
various subjects.
Data versus Information. The word data is the plural ofd at um, thoughda ta is commonly used
to represent both
singular and plural forms. The term’sda ta andi nf ormat i on are often used interchangeably.
However, you should
make the following distinction:
Data: - are raw facts or observations, typically about physical phenomena or business
transactions. More
specifically, data are objective measurements of thea ttr ib ut e s (characteristics) ofe n ti t i es,
such as people, places,
things, and events.
Information: - is processed data, which has been placed in a meaningful and useful context for
an end user. Data
is subjected to a “value-added” process (data processing or information processing) where:
•
Its form is aggregated, manipulated, and organized.
•
Its content is analyzed and evaluated
•
It is placed in a proper context for a human user
Network Resources:
Telecommunications networks like the Internet, intranets, and extranets have become
essential to the successful electronic business and commerce operations of all types of
organizations and their computer-based information systems. Telecommunications
networks consist of computers, communications processors, and other devices
interconnected by communications media and controlled by communications software.
The concept ofn et work
resources emphasizes that communications networks are a fundamental resource component of
all information
systems. Network resources include:
•
Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and microwave,
cellular, and
satellite wireless systems.
•
Network support (people, hardware, software, and data resources that directly support the
operation and use of
a communications network).
INFORMATION SYSTEM ACTIVITIES
Information processing (or data processing) activities that occur in information system include
the following:
•
Input of data resources
•
Processing of data into information
•
Output of information products
•
Storage of data resources
•
Control of system performance
Input of Data Resources:
•
Data about business transactions and other events must be captured and prepared for processing
by theinput
activity. Input typically takes the form of data entry activities such as recording and editing.
•
Once entered, data may be transferred onto a machine-readable medium such as magnetic disk
or type, until
needed for processing.
Processing of Data into Information:
•
Data is typically subjected topro c essing activities such as calculating, comparing,
sorting, classifying, and
summarizing. These activities organize, analyze, and manipulate data, thus converting
them into information
for end users.
•
A continual process of correcting and updating activities must maintain quality of data stored
in an
information system.
Output of Information Products:
•
Information in various forms is transmitted to end-users and made available to them in theou
tput activity.
The goal of information systems is the production of appropriate information products for end
users.
Storage of Data Resources:
Storage is a basic system component of information systems.
•
Storage is the information system activity in which data and information are retained in an
organized manner
for later use.
Control of System Performance:
An important information system activity is thec on trol of its performance.
•
An information system should produce feedback about its input, processing, output, and storage
activities.
•
Feedback must be monitored and evaluated to determine if the system is meeting established
performance
standards.
•
Feedback is used to make adjustments to system activities to correct deficiencies.
RECOGNIZING INFORMATION SYSTEMS
As a business professional, you should be able to recognize the fundamental components of
information systems
you encounter in the real world. This means that you should be able to identify:
•
The people, hardware, software, data, and network resources they use.
•
The types of information products they produce
The way they perform input, processing, output, storage, and control activities.
Analysing BellSouth’s Information System
From the Real World Case of BellSouth Corporation, we will try to recognize or visualize the
resources used,
activities performed, and information products produced by their information systems.
IS Resources:
•
People resources include end users like BellSouth’s online customers and employees, and IS
specialists like
CIO Fran Dramis and project leader Lori Groves.
Hardware Resources:
•
Thousands of PC server
•
Other computers that BellSouth and its customers must be using
Software Resources:
•
Web browsers
•
Operating systems
•
e-commerce websites software
•
Oracle’s customer relationship management system
•
Other proprietary BellSouth business software.
Network Resources:
•
Communications media and network support components that are part of the network resources
that BellSouth
would need to support the e-business and e-commerce activities of such a large
telecommunications company.
Data Resources:
•
Computer-accessible databases of data about their customers, employees, services, and other
necessary
business information.
Information Products:
•
Displays on customer and employee networked PCs that provide information about and support
the provision
of BellSouth’s services, such as you would find by visiting their Websites atwww.be l l sou t h .
co m and
www.bellsouthcorp.com.
IS Activities:
•
Input activities include the input of Web site navigation clicks and e-commerce and e-business
data entries
and selections, and online collaboration queries and responses made by customers, suppliers, and
employees.
Processing Activities:
•
Processing activities are accomplished whenever any of BellSouth’s computers executes the
programs that
are part of their e-business and e-commerce software resources.
Output Activities:
•
Output activities primarily involve the display or printing of information products mentioned
earlier.
Storage Activities:
•
Storage activities take place whenever business data is stored and managed in the files and
databases on
the disk drives and other storage media of BellSouth’s computer systems.
Control Activities:
•
Control activities include the use of passwords and other security codes by customers,
suppliers, and
employees for entry into BellSouth’s e-business and e-commerce websites, and access
of their databases
and knowledge bases.
Section II: Foundation Concepts: Business Applications, Development, and
Management
8




Prof. Anatoly Sachenko
THE FUNDAMENTAL ROLES OF IS APPLICATIONS IN BUSINESS
Information systems perform three vital roles in any type of organization. That is, they support
an organization’s:
•
Business processes and operations
•
Decision making by employees and managers
•
Strategies for competitive advantage
Analysing Royal Caribbean International
We can learn a lot about the challenges of revitalizing and redirecting information
technology in a company from the Real World Case of Royal Caribbean International.
Take a few minutes to read it, and we will discuss it (See Royal Caribbean International:
Renewing and Realigning IT with Business in Section IX).
The Major Roles of IS: Examples [Figure 1.9]
Three major roles of the business applications of information systems include:
•
Support Business Processes – involves dealing with information systems that support the
business processes
and operations in a business.
•
Support Decision Making – help decision makers to make better decisions and attempt to gain a
competitive
advantage.
•
Support Competitive Advantage – help decision makers to gain a strategic advantage over
competitors requires
innovative use of information technology.




e-BUSINESS IN BUSINESS - [Figure 1.10]
The explosive growth of the Internet and related technologies and applications is
revolutionizing the way
businesses are operated and people work, and how information technology supports
business operations and end
user work activities.
Businesses are becoming e-business enterprises. The Internet and Internet-like networks
– inside the enterprise (intranets), and between an enterprise and its trading partners
(extranets) – have become the primary information technology infrastructure that
supports the business operations of many companies. e-business enterprises rely on
such technologies to:
•
Reengineer and revitalize internal business processes.
•
Implement electronic commerce systems among businesses and their customers and suppliers.
•
Promote enterprise collaboration among business teams and workgroups.
e-business is defined as the use of Internet technologies to internetwork and empower business
processes,
electronic commerce, and enterprise communication and collaboration within a company and
with its customers,
suppliers, and other business stakeholders.
Enterprise collaboration systems involve the use of groupware tools to support communication,
coordination, and
collaboration among the members of networked teams and workgroups. An internetworked e-
business enterprise
depends on intranets, the Internet, extranets, and other networks to implement such systems.
Electronic commerce is the buying and selling, and marketing and servicing of products,
services, and
information over a variety of computer networks. An internetworked e-business enterprise uses
the Internet,
intranets, extranets, and other networks to support every step of the commercial process
TRENDS IN INFORMATION SYSTEMS - [Figure 1.11]
10
Prof. Anatoly Sachenko
The roles given to the information systems function have expanded significantly over the years.
1950s - 1960s - Data Processing - Electronic data processing systems
Role: Transaction processing, record keeping, and accounting, and other electronic data
processing (EDP)
applications
1960s - 1970s - Management Reporting – Management information systems
Role: Providing managerial end users with predefined management reports that would
give managers the
information they needed for decision-making purposes.
1970s - 1980s - Decision Support - Decision support systems
Role: The new role for information systems was to provide managerial end users with
ad hoc support of their
decision-making process. This support would be tailored to the unique decision-making
styles of managers as they
confronted specific types of problems in the real world.
1980s - 1990s - Strategic and End User Support
Role: End users could use their own computing resources to support their job
requirements instead of waiting for
the indirect support of corporate information services departments.
•
End User Computing Systems
Role: Direct computing support for end user productivity and work group collaboration.
•
Executive Information Systems (EIS) -
Role: These information systems attempt to give top executives an easy way to get the critical
information they
want, when they want it, tailored to the formats they prefer.
•
Expert Systems (ES) and other Knowledge-Based Systems
Role: Expert systems can serve as consultants to users by providing expert advice in limited
subject areas.
Strategic Information Systems (SIS)
Role: Information technology becomes an integral component of business processes, products,
and services that
help a company gain a competitive advantage in the global marketplace.
1990s - 2000 – Electronic business and commerce systems
Role: The rapid growth of the Internet, intranets, extranets, and other interconnected
global networks has
revolutionising the operations and management of today’s business enterprises.
TYPES OF INFORMATION SYSTEMS - [Figure 1.12]




Information Systems perform important operational and managerial support roles in businesses
and other
organizations. Therefore, several types of information systems can be classified conceptually as
either:
•
Operations Support Systems
•
Management Support Systems
Operations Support Systems
Information systems are needed to process data generated by and used in business operations.
Sucho p erat i ons
support systems (OSS) produce a variety of information products for internal and external use.
However, they do
not emphasize producing the specific information products that can best be used by
managers. Further processing by management information systems is usually required.
The role of a business firm’s operations support systems is to:
•
Effectively process business transactions
•
Control industrial processes
•
Support enterprise communications and collaboration
•
Update corporate databases
Transaction Processing Systems (TPS)
Focus on processing the data generated by business transactions and
operations.Transaction processing systems
record and process data resulting from business transactions (sales, purchases,
inventory changes). TPS also
produce a variety of information products for internal or external use (customer
statements, employee paychecks,
sales receipts etc.).
TPS process transactions in two basic ways:
•
Batch Processing
- transactions data is accumulated over a period of time and processed periodically.
•
Real-time (or online) processing - data is processed immediately after a transaction occurs.
Process Control Systems (PCS) - Process control systems are systems, which make use of
computers to control
ongoing physical processes. These computers are designed to automatically make decisions,
which adjust the
physical production process. Examples include petroleum refineries and the assembly lines of
automated factories.
Enterprise Collaboration Systems - Enterprise collaboration systems are information systems
that use a variety of information technologies to help people work together. Enterprise
collaboration systems help us:
12
Collaborate- to communicate ideas
•
Share resources
•
Co-ordinate our cooperative work efforts as members of the many formal and informal process
and project teams
The goal of enterprise collaboration systems is to use information technology to enhance the
productivity and creativity of teams and workgroups in the modern business enterprise.
Management Support Systems (MSS) -
Management support systems focus on providing information and support for effective decision
making by
managers. They support the decision-making needs of strategic (top) management,
tactical (middle) management,
and operating (supervisory) management. Conceptually, several major types of
information systems support a
variety of decision-making responsibilities:
•
Management Information Systems (MIS)
•
Decision Support Systems (DSS)
•
Executive Information Systems (EIS)
Management information systems are the most common form of management support systems.
They provide
managerial end users with information products that support much of their day-to-day
decision-making needs. MIS provide a variety of prespecified information (reports) and
displays to management that can be used to help them make more effective, structured
types of day-to-day decisions. Information products provided to managers include
displays and reports that can be furnished:
•
On demand
•
Periodically, according to a predetermined schedule
•
Whenever exceptional conditions occur
Decision support systems provide managerial end users with information in an interactive
session on an ad hoc (as
needed) basis. Managers generate the information they need for more unstructured
types of decisions in an
interactive, computer-based information system that uses decision models and
specialized databases to assist the
decision-making processes of managerial end users.
Executive information systems provide top and middle management with immediate and easy
access to selective
information about key factors that are critical to accomplishing a firm’s strategic objectives. EIS
are easy to
operate and understand.
 Classifications of Information Systems:
Several other categories of information systems that support either operations or management
applications include:
•
Expert Systems
•
Knowledge Management Systems
•
Functional Business Information Systems
•
Strategic Information Systems
•
Cross-functional Information Systems
MANAGERIAL CHALLENGES OF INFORMATION TECHNOLOGY
For managerial end users, the information systems function represents:
•
A major functional area of business that is important to a business’ success
•
An important factor affecting operational efficiency, employee productivity and morale, and
customer service
and satisfaction.
•
A major source of information and support needed to promote effective decision making by
managers.
•
An important ingredient in developing competitive products and services that give an
organization a strategic
advantage in the marketplace.
•
A major part of the resources of an organization and its cost of doing business
•
A vital, dynamic, and challenging career opportunity for many men and women.
Success and Failure with IT:
Is important that students realize that information technology and information systems can be
mismanaged and
misapplied so that they create both technological and business failure
Developing successful information system solutions to business problems is a major
challenge for business
managers and professionals today. As a business professional, you will be responsible
for proposing or developing
new or improved use of information systems for your company. As a business manager,
you will also frequently
manage the development efforts of information systems specialists and other business
end users.
Most computer-based information systems are conceived, designed, and implemented using
some form of
systematic development process. Figure 1.20 shows that:
•
Several major activities must be accomplished and managed in a complete IS development cycle.
•
In the development process, end users and information specialistsd es ig n information system
applications
based on ana nal y sis of the business requirements of an organization.
•
Investigating the economic or technical feasibility of a proposed application.
•
Acquiring and learning how to use the software required toi mpl e m e n t the new system, and
make
improvements tomai nt ai n the business value of a system.
Challenges of Ethics and IT:
As a prospective managerial end user and knowledge worker in a global society, you should also
become aware of
the ethical responsibilities generated by the use of information technology. For example:
•
What uses of information technology might be considered improper, irresponsible, or harmful to
other
individuals or to society?
•
What is the proper use of an organization’s information resources?
•
What does it take to be a responsible end user of information technology?
•
How can you protect yourself from computer crime and other risks of information technology?
Ethical dimensions of information systems deal with ensuring that information technology and
information
systems are not used in an improper or irresponsible manner against other individuals or to
society

A major challenge for our global information society is to manage its information
resources to benefit all members of society while at the same time meeting the strategic
goals of organizations and nations. For example, we must use information systems to
find more efficient, profitable and socially responsible ways of using the world’s limited
supplies of material, energy, and other resources.
Challenges of IT Careers:
•
Information technology and its uses in information systems have created interesting, highly paid,
and
challenging career opportunities.
•
Employment opportunities in the field of information systems are excellent, as organizations
continue to
expand their use of information technology.
•
Employment surveys continually forecast shortages of qualified information systems personnel
in a variety of
job categories.
•
Job requirements in information systems are continually changing due to dynamic developments
in business
and information technology.
The IS Function:
The information systems function represents:
•
A major functional area of business that is as important to business success as the functions of
accounting, finance, operations management, marketing, and human resource management.
•
An important contributor to operational efficiency, employee productivity and morale, and
customer service and satisfaction.
•
A major source of information and support needed to promote effective decision making by
managers and business professionals.
•
A vital ingredient in developing competitive products and services that gives an organization a
strategic advantage in the global marketplace.
•
A dynamic, rewarding, and challenging career opportunity for millions of men and women.
•
A key component of the resources, infrastructure, and capabilities of today’s internetworked e-
business
enterprise.
IV. KEY TERMS AND CONCEPTS - DEFINED
Computer-Based Information System:
An information system that uses computer hardware and software to perform its information
processing activities.
Control:
The systems component that evaluates feedback to determine whether the system is
moving toward the
achievement of its goal and then makes any necessary adjustments to the input and
processing components of the
system to ensure that proper output is produced.
Data:
Facts or observations about physical phenomena or business transactions. More specifically, data
are objective
measurements of theat tri bu t es (characteristics) ofe n t i ti es, such as people, places, things,
and events.
Data or Information Processing:
The act of converting data into information.
Data Resources:
Data, model, and knowledge bases
Developing Business/IT Solutions:
End users and IS specialists develop and implement business/IT solutions to problems and
opportunities arising in
businesses.
Electronic Business:
Using the Internet, intranets, and extranets as the IT platform for internal business operations,
electronic
commerce, and enterprise collaboration.
E-Business in Business:
Businesses today are using Internet technologies to web-enable business processes and create
innovative e-business
applications.


Electronic Commerce:
The buying and selling, marketing and servicing, and delivery and payment of products,
services, and information over the Internet, intranets, extranets, and other networks,
between an internetworked enterprise and its prospects, customers, suppliers, and
other business partners.
End User:
Anyone who uses an information system or the information it produces.
Enterprise Collaboration System:
The use of groupware tools and the Internet, intranets, extranets, and other computer
networks to support and enhance communication, coordination, collaboration, and
resource sharing among teams and workgroups in an internetworked enterprise.
Extranet:
Interorganizational Internet-like networks among trading partners.
Feedback:
Data or information concerning the components and operations of a systems performance.
Hardware Resources:
Includes all physical devices and materials used in information processing (Machines and
media).
Information - Products:
The degree to which information has the appropriate information that is useful for users.
Information products
include messages, reports, forms, and graphic images.
Information - Quality:
The degree to which information has content, form, and time characteristics that gives it value to
specific end
users.
Information System:
A system that uses the resources of hardware, software, and people to perform input, processing,
output, storage,
and control activities that transform data resources into information products.
Information System Activities:
Input, processing, output, storage, and control
Information System Model:
An information system uses people, hardware, software, network, and data resources to perform
input, processing,
output, storage, and control activities that transform data resources into information products.
Information Technology:
Hardware, software, telecommunications, database management, and other information
processing technologies
used in computer-based information systems.
Intranet:
Internet-like networks and websites inside a company.
IS Knowledge Needed by Business Professionals:
Fundamental concepts about information systems, their technology, development, applications,
and management.
Knowledge Workers:
People whose primary work activities include creating, using, and distributing information.
Management Challenges of IS:
Managing the IT resources of a company effectively and ethically to improve its business
performance and value.
Network Resources:
Network resources include communications media and network support.
People Resources:
IS Specialists and end users
Roles of IS Applications in Business:
Information systems perform three vital roles in any type of organization:
1. Support of business operations
2. Support of managerial decision-making
3. Support of strategic competitive advantage
Software Resources - Programs:
A set of instructions that cause a computer to perform a particular task.
Software Resources - Procedures:
Set of instructions used by people to complete a task.
System:
A system is a group of interrelated components working together toward a common goal by
accepting inputs and
producing outputs in an organized transformation process.
Trends in Information Systems:
See Figure 1.11
Types of Information Systems - Cross-Functional Systems:
Information systems that cross the boundaries of functional business areas in order to support
business processes
across the organization.
Types of Information Systems - Management Support Systems:
Include executive information systems, decision support systems, and management information
systems.
Types of Information Systems - Operations Support Systems:
Include office automation systems, transaction processing systems, and process control systems.
What is Business Process Re-engineering. Explain in detail the focus of BPR on the
current issues in Business.
Answer:

The existing system in the organization is totally reexamined and radically modified for incorporating the latest
technology. This process of change for the betterment of the organization is called as Business process
reengineering.
With Business process being reengineered, the organizations have to change the workflow and business
procedures for efficiency in the organization. Latest software are used and accordingly the business
procedures are modified, so that documents are worked upon more easily and efficiently. This is called as
workflow management.
Business process reengineering is a major innovation changing the way organizations conduct their
business. Such changes are often necessary for profitability or even survival. BPR is employed when
major IT projects such as ERP are undertaken. Reengineering involves changes in structure,
organizational culture and processes. Many concepts of BPR changes organizational structure. Team
based organization, mass customization, empowerment and telecommuting are some of the examples.
The support system in any organization plays a important role in BPR. ES, DSS, AI (discussed later)
allows business to be conducted in different locations, provides flexibility in manufacturing permits quicker
delivery to customers and supports rapid paperless transactions among suppliers, manufacturers and
retailers. Expert systems can enable organizational changes by providing expertise to non experts. It is
difficult to carry out BPR calculations using ordinary programs like spreadsheets etc. Experts make use of
applications with simulations tools for BPR.

Reengineering is basically done to achieve cost reduction, increase in quality, improvement in speed and
service. BPR enable a company to become more competitive in the market. Employees work in team
comprising of managers and engineers to develop a product. This leads to the formation of
interdisciplinary teams which can work better than mere functional teams. The coordination becomes
easier and faster results can be achieved. The entire business process of developing a product gets a
new dimension. This has led to reengineering of many old functional processes in organizations.
BPR – the current focus
Apart from the usual ways of managing a process in any business information system, it is necessary to
enhance the value of the process and also the methods used in improving the process. Some of the
concepts of information management for effective information systems are the traditional concept of
database, the emerging concepts of data mining and data warehousing

Concept of Database – Database is a data structure used to store organized information.
A database is typically made up of many linked tables of rows and columns. For example, a company
might use a database to store information about their products, their employees, and financial information.
Databases are now also used in nearly all ecommerce sites to store product inventory and customer
information. Database software, such as Microsoft Access, FileMaker Pro, and MySQL is designed to
help companies and individuals organize large amounts of information in a way where the data can be
easily searched, sorted, and updated.
Data Mining - Data mining is primarily used as a part of information system today, by
companies with a strong consumer focus retail, financial, communication, and marketing
organizations. It enables these companies to determine relationships among "internal" factors


impact on sales, customer satisfaction, and corporate profits. Finally, it enables them to "drill down" into

summary information to view detail transactional data. With data mining, a retailer could use point of sale

records of customer purchases to send targeted promotions based on an individual's purchase history. By

mining demographic data from comment or warranty cards, the retailer could develop products and

promotions to appeal to specific customer segments.
Data Warehousing – A data warehouse is a copy of transaction data specifically structured for

querying and reporting. The main output from data warehouse systems are either tabular listings (queries)

with minimal formatting or highly formatted "formal" reports on business activities. This becomes a

convenient way to handle the information being generated by various processes. Data warehouse is an

archive of information collected from wide multiple sources, stored under a unified scheme, at a single

site. This data is stored for a long time permitting the user an access to archived data for years. The data

stored and the subsequent report generated out of a querying process enables decision making quickly.

This concept is useful for big companies having plenty of data on their business processes. Big

companies have bigger problems and complex problems. Decision makers require access to information

from all sources. Setting up queries on individual processes may be tedious and inefficient. Data

warehouse may be considered under such situations.
3. Explain the various role of a Systems Analyst. What is meant by Feasibility of systems ?
What are the various types of Feasibility study? (10)
Answer: The system analyst is the person (or persons) who guides through the development of
an information system. In performing these tasks the analyst must always match the information
system objectives with the goals of the organization.
Role of System Analyst differs from organization to organization. Most common responsibilities
of System Analyst are following

Mais conteúdo relacionado

Mais procurados

management information systems-an introduction
management information systems-an introductionmanagement information systems-an introduction
management information systems-an introductionAbhilash kk
 
Management information system (MIS)
Management information system (MIS)Management information system (MIS)
Management information system (MIS)Bhupen Meena
 
Management information system
Management information systemManagement information system
Management information systemArslan Khalid
 
Management information systems
Management information systemsManagement information systems
Management information systemsnavin1
 
Management Information System: Information, Information System, Management In...
Management Information System: Information, Information System, Management In...Management Information System: Information, Information System, Management In...
Management Information System: Information, Information System, Management In...Ashish Hande
 
Management information system ( MIS )
Management information system ( MIS )Management information system ( MIS )
Management information system ( MIS )QualitativeIn
 
Management Information System
Management Information SystemManagement Information System
Management Information SystemChoudhry Asad
 
MANAGEMENT INFORMATION SYSTEM ppt
MANAGEMENT INFORMATION SYSTEM pptMANAGEMENT INFORMATION SYSTEM ppt
MANAGEMENT INFORMATION SYSTEM pptSuyash Sinha
 
Management Information System
Management Information SystemManagement Information System
Management Information SystemLone Ranger
 
Unit 3 Management Information System
Unit 3 Management Information SystemUnit 3 Management Information System
Unit 3 Management Information SystemAbhishek Iyer
 
management information system
management information systemmanagement information system
management information systemBipin Gupta
 
Introduction to management information system
Introduction to management information systemIntroduction to management information system
Introduction to management information systemOnline
 

Mais procurados (18)

Management information system Unit 1
Management information system Unit 1Management information system Unit 1
Management information system Unit 1
 
management information systems-an introduction
management information systems-an introductionmanagement information systems-an introduction
management information systems-an introduction
 
Management information system (MIS)
Management information system (MIS)Management information system (MIS)
Management information system (MIS)
 
Management information system
Management information systemManagement information system
Management information system
 
Management information systems
Management information systemsManagement information systems
Management information systems
 
Gr 5 problem solving approach and solution efforts
Gr 5   problem solving approach and solution effortsGr 5   problem solving approach and solution efforts
Gr 5 problem solving approach and solution efforts
 
Management Information System: Information, Information System, Management In...
Management Information System: Information, Information System, Management In...Management Information System: Information, Information System, Management In...
Management Information System: Information, Information System, Management In...
 
MIS concepts
MIS conceptsMIS concepts
MIS concepts
 
Management information system
Management information systemManagement information system
Management information system
 
Management information system ( MIS )
Management information system ( MIS )Management information system ( MIS )
Management information system ( MIS )
 
Management Information System
Management Information SystemManagement Information System
Management Information System
 
Information Systems (Lecture 1)
Information Systems (Lecture 1)Information Systems (Lecture 1)
Information Systems (Lecture 1)
 
Mis introduction
Mis introductionMis introduction
Mis introduction
 
MANAGEMENT INFORMATION SYSTEM ppt
MANAGEMENT INFORMATION SYSTEM pptMANAGEMENT INFORMATION SYSTEM ppt
MANAGEMENT INFORMATION SYSTEM ppt
 
Management Information System
Management Information SystemManagement Information System
Management Information System
 
Unit 3 Management Information System
Unit 3 Management Information SystemUnit 3 Management Information System
Unit 3 Management Information System
 
management information system
management information systemmanagement information system
management information system
 
Introduction to management information system
Introduction to management information systemIntroduction to management information system
Introduction to management information system
 

Semelhante a Mis

Mis 1st chapter notes foundation of is in business
Mis 1st chapter notes foundation of is in businessMis 1st chapter notes foundation of is in business
Mis 1st chapter notes foundation of is in businessHassan Samoon
 
Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)Chandan Kumar
 
MIS assignment for share
MIS assignment for shareMIS assignment for share
MIS assignment for sharehoneyshah
 
Mis for share
Mis for shareMis for share
Mis for sharehoneyshah
 
System Analysis and Design chap 1 to 8.docx
System Analysis and Design chap 1 to 8.docxSystem Analysis and Design chap 1 to 8.docx
System Analysis and Design chap 1 to 8.docxAmdework Belay
 
Information System & Business applications
Information System & Business applicationsInformation System & Business applications
Information System & Business applicationsShubham Upadhyay
 
MIS CHAPTER ONE.pptx
MIS CHAPTER ONE.pptxMIS CHAPTER ONE.pptx
MIS CHAPTER ONE.pptxAynetuTerefe2
 
Foundations of Information System in Business - Mark John Lado
Foundations of Information System in Business - Mark John LadoFoundations of Information System in Business - Mark John Lado
Foundations of Information System in Business - Mark John LadoMark John Lado, MIT
 
MIS concepts
MIS conceptsMIS concepts
MIS conceptssajappy
 
MIS practical file
MIS practical fileMIS practical file
MIS practical fileAnkit Dixit
 
Article mis, hapzi ali, nur rizqiana, nanda suharti, nurul, anisa dwi, vin...
Article mis, hapzi ali, nur    rizqiana, nanda suharti, nurul, anisa dwi, vin...Article mis, hapzi ali, nur    rizqiana, nanda suharti, nurul, anisa dwi, vin...
Article mis, hapzi ali, nur rizqiana, nanda suharti, nurul, anisa dwi, vin...Heru Ramadhon
 

Semelhante a Mis (20)

Mis 1st chapter notes foundation of is in business
Mis 1st chapter notes foundation of is in businessMis 1st chapter notes foundation of is in business
Mis 1st chapter notes foundation of is in business
 
MIS
MISMIS
MIS
 
Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)
 
MIS - UNIT I.pptx
MIS - UNIT I.pptxMIS - UNIT I.pptx
MIS - UNIT I.pptx
 
MIS assignment for share
MIS assignment for shareMIS assignment for share
MIS assignment for share
 
Mis for share
Mis for shareMis for share
Mis for share
 
MIS Concept Final Term
MIS Concept Final TermMIS Concept Final Term
MIS Concept Final Term
 
Mis lecture 3
Mis lecture 3Mis lecture 3
Mis lecture 3
 
System Analysis and Design chap 1 to 8.docx
System Analysis and Design chap 1 to 8.docxSystem Analysis and Design chap 1 to 8.docx
System Analysis and Design chap 1 to 8.docx
 
Information System & Business applications
Information System & Business applicationsInformation System & Business applications
Information System & Business applications
 
MIS Chapter 1.ppt
MIS Chapter 1.pptMIS Chapter 1.ppt
MIS Chapter 1.ppt
 
MIS CHAPTER ONE.pptx
MIS CHAPTER ONE.pptxMIS CHAPTER ONE.pptx
MIS CHAPTER ONE.pptx
 
Mis1.ppt
Mis1.pptMis1.ppt
Mis1.ppt
 
Foundations of Information System in Business - Mark John Lado
Foundations of Information System in Business - Mark John LadoFoundations of Information System in Business - Mark John Lado
Foundations of Information System in Business - Mark John Lado
 
MIS concepts
MIS conceptsMIS concepts
MIS concepts
 
Unit i
Unit iUnit i
Unit i
 
MIS practical file
MIS practical fileMIS practical file
MIS practical file
 
p22252ppt1.pptx
p22252ppt1.pptxp22252ppt1.pptx
p22252ppt1.pptx
 
Itm 1
Itm 1Itm 1
Itm 1
 
Article mis, hapzi ali, nur rizqiana, nanda suharti, nurul, anisa dwi, vin...
Article mis, hapzi ali, nur    rizqiana, nanda suharti, nurul, anisa dwi, vin...Article mis, hapzi ali, nur    rizqiana, nanda suharti, nurul, anisa dwi, vin...
Article mis, hapzi ali, nur rizqiana, nanda suharti, nurul, anisa dwi, vin...
 

Último

SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSyedNadeemGillANi
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfMohonDas
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?TechSoup
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17Celine George
 
Work Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashaWork Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashasashalaycock03
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxraviapr7
 
Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxvidhisharma994099
 
3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptx3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptxmary850239
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...CaraSkikne1
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
A gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceA gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceApostolos Syropoulos
 
Vani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational TrustVani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational TrustSavipriya Raghavendra
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeCeline George
 

Último (20)

SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdf
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17
 
Work Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashaWork Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sasha
 
Finals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quizFinals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quiz
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptx
 
Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptx
 
3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptx3.26.24 Race, the Draft, and the Vietnam War.pptx
3.26.24 Race, the Draft, and the Vietnam War.pptx
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
A gentle introduction to Artificial Intelligence
A gentle introduction to Artificial IntelligenceA gentle introduction to Artificial Intelligence
A gentle introduction to Artificial Intelligence
 
Vani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational TrustVani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
Vani Magazine - Quarterly Magazine of Seshadripuram Educational Trust
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using Code
 

Mis

  • 1. Foundations of Information Systems in Business Foundation Concepts: Foundations of Information in Business presents an overview of the five basic areas of information systems knowledge needed by business professionals, including the conceptual system, components of system and major types of information systems. Information Systems are Important for Business – An understanding of the effective and responsible use and management of information systems and technologies is important for managers, business professionals, and other knowledge workers in today’s internetworked enterprises. Information systems play a vital role in the e-business and e-commerce operations, enterprise collaboration and management, and strategic success of businesses that must operate in an internetworked global environment. Thus, the field of information systems has become a major functional area of business administration. An IS Framework for Business Professionals – The IS knowledge that a business manager or professional needs to know is illustrated in Figure 1.2 and covered in this chapter and text. This included (1) foundation concepts: fundamental behavior, technical, business, and managerial concepts like system components and functions, or competitive strategies; (2) information technologies: concepts, developments, or management issues regarding hardware, software, data management, networks, and other technologies; (3) business applications: major uses of IT for business processes, operations, decision making, and strategic/competitive advantage; (4) development processes: how end users and IS specialists develop and implement business/IT solutions to problems and opportunities arising in business; and (5) management challenges: how to effectively and ethically manage the IS function and IT resources to achieve top performance and business value in support of the business strategies of the enterprise. System Concepts – A system is a group of interrelated components working toward the attainment of a common goal by accepting inputs and producing outputs in an organized transformation process. Feedback is data about the performance of a system. Control is the component that monitors and evaluates feedback and makes any necessary adjustments to the input and processing components to ensure that proper output is produced. An Information System Model – An information system uses the resources of people, hardware, software, data, and networks to perform input, processing, output, storage, and control activities that convert data resources into information products. Data are first collected and converted to a form that is suitable for processing (input). Then the data are manipulated and converted into information (processing), stored for future use (storage), or communicated to their ultimate user (output) according to correct processing procedures (control). IS Resources and Products - Hardware resources include machines and media used in information processing. Software resources include computerized instructions (programs) and instruction for people (procedures). People resources include information systems specialists and users. Data resources include alphanumeric, text, image, video, audio, and other forms of data. Network resources include communications media and network support. Information products produced by an information system can take a variety of forms, including paper reports, visual displays, multimedia documents, electronic messages, graphics images, and audio responses.
  • 2. Business Applications of Information Systems - Information systems perform three vital roles in business firms. Business applications of IS support an organization’s business processes and operations, business decision-making, and strategic competitive advantage. Major application categories of information systems include operations support systems, such as transaction processing systems, process control systems, and enterprise collaboration systems, and management support systems, such as management information systems, decision support systems, and executive information systems. Other major categories are expert systems, knowledge management systems, strategic information systems, and functional business systems. However, in the real world most application categories are combined into cross-functional information systems that provide information and support for decision-making and also perform operational information processing activities. III: LECTURE NOTES Section I: Foundation Concepts: Information Systems and Technologies WHY INFORMATION SYSTEMS ARE IMPORTANT An understanding of the effective and responsible use and management of information systems is important for managers and other business knowledge workers in today’s global information society. Information systems and technologies have become a vital component of successful businesses and organizations. Information systems constitute an essential field of study in business administration and management, as they are considered a major functional area in business operations. THE REAL WORLD OF INFORMATION SYSTEMS Analysing BellSouth Corp. We can learn a lot about the importance of information technology and information systems from this case. Take a few minutes to read it, and we will discuss it (See BellSouth Corporation: The Business Payback of Information Technology. WHAT YOU NEED TO KNOW Managerial end users need to know how information systems can be employed successfully in a business environment. The important question for any business end user or manager is: What do you need to know in order to help manage the hardware, software, data, and network resources of your business, so they are used for the strategic success of your company? Managers or business professionals are not required to know the complex technologies, abstract behavioral concepts, or the specialized applications involved in the field of information systems. Figure 1.2 illustrates a useful conceptual framework that outlines what a manager or business professional needs to know about information systems. It emphasizes five areas of knowledge: •
  • 3. Foundation Concepts • Information Technologies • Business Applications • Development Processes • Management Challenges What is an Information System? [Figure 1.3] An information system(IS) can be any organized combination of people, hardware, software, communications networks, and data resources that collect, transforms, and disseminate information in an organization. Information Technologies: Business professionals rely on many types of information systems that use a variety of information technologies For example: Types of IS - Manual (paper-and-pencil) information systems - Informal (word-of-mouth) information systems - Formal (written procedures) information systems - Computer-based information systems Computer-based information systems (IS) use hardware, software, the Internet, and other telecommunications networks, computer-based data resource management techniques, and other forms of information technologies (IT) to transform data resources into a variety of information products for consumers and business professionals. SYSTEM CONCEPTS - A FOUNDATION System concepts underlie the field of information systems. Understanding system concepts will help you understand many other concepts in the technology, applications, development, and management of information systems. System concepts help you understand: • Technology. That computer networks are systems of information processing components that uses a variety of hardware, software, data and telecommunication technologies. • Applications. That electronic business and commerce involves interconnected business information systems. • Development. That developing ways to use information technology n business includes designing the basic components of information systems. •
  • 4. Management. That managing information technology emphasizes the quality, strategic business value, and security of an organization’s information systems. What is a System? Question: What is a system as it applies to the concept of an information system? Answer: Asyst e m is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. A system (sometimes called ad y na mi c system) has three basic interacting components or functions. These include: Input involves capturing and assembling elements that enter the system to be processed. Processing involves transformation processes that convert input into output. Output involves transferring elements that have been produced by a transformation process to their ultimate destination. Feedback and Control: Two additional components of the system concept include feedback and control. A system with feedback and control components is sometimes called ac yb er n eti c system, that is, a self- monitoring, self-regulating system. Feedback is data about the performance of a system. Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goals. The control function then makes necessary adjustments to a system's input and processing components to ensure that it produces proper output. System Characteristics: A system does not exist in a vacuum; rather, it exists and functions in containing other systems. Subsystem: A system that is a component of a larger system, where the larger system is its environment. System Boundary: A system is separated from its environment and other systems by its system boundary. Interface: Several systems may share the same environment. Some of these systems may be connected to one another by means of a shared boundary, or interface. Open System: A system that interacts with other systems in its environment is called an open system (connected to its environment by exchanges of inputs and outputs). COMPONENTS OF AN INFORMATION SYSTEM An information system model expresses a fundamental conceptual framework for the major components and activities of information systems. An information system depends on the resources of people, hardware, software, data, and networks to perform input, processing, output, storage, and control activities that convert data resources into information products. The information systems model outlined in the text emphasizes four major concepts that can be applied to all types of information systems:
  • 5. • People, hardware, software, data, and networks, are the five basic resources of information systems. People resources include end users and IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and network resources include communications media and networks. Data resources are transformed by information processing activities into a variety of information products for end users. Information processing consists of input, processing, output, storage, and control activities. INFORMATION SYSTEM RESOURCES The basic IS model shows that an information system consists of five major resources: • People resources • Hardware resources • Software resources • Data resources • Network resources People Resources: People are required for the operation of all information systems. These people resources include end users and IS specialists End Users
  • 6. (also called users or clients) are people who use an information system or the information it produces. Most of us are information system end users. And most end users in business areknow l e dg e workers, that is, people who spend most of their time communicating and collaborating in teams of workgroups and creating, using, and distributing information. • IS Specialists are people who develop and operate information systems. They include system analysts, software developers, system operators, and other managerial, technical, and clerical IS personnel. Systems analysts – design information systems based on the information requirements of end users. Software developers – create computer programs based on the specifications of systems analysts. System operators – monitor and operate large computer systems and networks. Hardware Resources: Hardware resources include all physical devices and materials used in information processing. • Machines- physical devices (computers, peripherals, telecommunications networks, etc.) • Media - all tangible objects on which data are recorded (paper, magnetic disks etc.) Examples of hardware in computer-based information systems are: • Computer Systems – which consist of central processing units containing microprocessors, and a variety of interconnected peripheral devices. • Computer peripherals – which are devices such as a keyboard or electronic mouse for input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources. Software Resources: Software resources include all sets of information processing instructions. • Program - a set of instructions that causes a computer to perform a particular task. • Procedures - set of instructions used by people to complete a task. Examples of software resources are: • System software – such as an operating system program, that controls and supports the operations of a computer system. • Application software– are programs that direct processing for a particular use of computers by end users. • Procedures– are operating instructions for the people who will use an information system.
  • 7. Data Resources: Data constitutes a valuable organizational resource. Thus, data resources must be managed effectively to benefit all end users in an organization. The data resources of information systems are typically organized into: • Databases - a collection of logically related records or files. A database consolidates many records previously stored in separate files so that a common pool of data records serves many applications. • Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules of inference about various subjects. Data versus Information. The word data is the plural ofd at um, thoughda ta is commonly used to represent both singular and plural forms. The term’sda ta andi nf ormat i on are often used interchangeably. However, you should make the following distinction: Data: - are raw facts or observations, typically about physical phenomena or business transactions. More specifically, data are objective measurements of thea ttr ib ut e s (characteristics) ofe n ti t i es, such as people, places, things, and events. Information: - is processed data, which has been placed in a meaningful and useful context for an end user. Data is subjected to a “value-added” process (data processing or information processing) where: • Its form is aggregated, manipulated, and organized. • Its content is analyzed and evaluated • It is placed in a proper context for a human user Network Resources: Telecommunications networks like the Internet, intranets, and extranets have become essential to the successful electronic business and commerce operations of all types of organizations and their computer-based information systems. Telecommunications networks consist of computers, communications processors, and other devices interconnected by communications media and controlled by communications software. The concept ofn et work resources emphasizes that communications networks are a fundamental resource component of all information systems. Network resources include: • Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and microwave, cellular, and
  • 8. satellite wireless systems. • Network support (people, hardware, software, and data resources that directly support the operation and use of a communications network). INFORMATION SYSTEM ACTIVITIES Information processing (or data processing) activities that occur in information system include the following: • Input of data resources • Processing of data into information • Output of information products • Storage of data resources • Control of system performance Input of Data Resources: • Data about business transactions and other events must be captured and prepared for processing by theinput activity. Input typically takes the form of data entry activities such as recording and editing. • Once entered, data may be transferred onto a machine-readable medium such as magnetic disk or type, until needed for processing. Processing of Data into Information: • Data is typically subjected topro c essing activities such as calculating, comparing, sorting, classifying, and summarizing. These activities organize, analyze, and manipulate data, thus converting them into information for end users. • A continual process of correcting and updating activities must maintain quality of data stored in an information system. Output of Information Products: • Information in various forms is transmitted to end-users and made available to them in theou tput activity. The goal of information systems is the production of appropriate information products for end users. Storage of Data Resources: Storage is a basic system component of information systems.
  • 9. • Storage is the information system activity in which data and information are retained in an organized manner for later use. Control of System Performance: An important information system activity is thec on trol of its performance. • An information system should produce feedback about its input, processing, output, and storage activities. • Feedback must be monitored and evaluated to determine if the system is meeting established performance standards. • Feedback is used to make adjustments to system activities to correct deficiencies. RECOGNIZING INFORMATION SYSTEMS As a business professional, you should be able to recognize the fundamental components of information systems you encounter in the real world. This means that you should be able to identify: • The people, hardware, software, data, and network resources they use. • The types of information products they produce The way they perform input, processing, output, storage, and control activities. Analysing BellSouth’s Information System From the Real World Case of BellSouth Corporation, we will try to recognize or visualize the resources used, activities performed, and information products produced by their information systems. IS Resources: • People resources include end users like BellSouth’s online customers and employees, and IS specialists like CIO Fran Dramis and project leader Lori Groves. Hardware Resources: • Thousands of PC server • Other computers that BellSouth and its customers must be using Software Resources: • Web browsers • Operating systems • e-commerce websites software •
  • 10. Oracle’s customer relationship management system • Other proprietary BellSouth business software. Network Resources: • Communications media and network support components that are part of the network resources that BellSouth would need to support the e-business and e-commerce activities of such a large telecommunications company. Data Resources: • Computer-accessible databases of data about their customers, employees, services, and other necessary business information. Information Products: • Displays on customer and employee networked PCs that provide information about and support the provision of BellSouth’s services, such as you would find by visiting their Websites atwww.be l l sou t h . co m and www.bellsouthcorp.com. IS Activities: • Input activities include the input of Web site navigation clicks and e-commerce and e-business data entries and selections, and online collaboration queries and responses made by customers, suppliers, and employees. Processing Activities: • Processing activities are accomplished whenever any of BellSouth’s computers executes the programs that are part of their e-business and e-commerce software resources. Output Activities: • Output activities primarily involve the display or printing of information products mentioned earlier. Storage Activities: • Storage activities take place whenever business data is stored and managed in the files and databases on the disk drives and other storage media of BellSouth’s computer systems. Control Activities: • Control activities include the use of passwords and other security codes by customers, suppliers, and employees for entry into BellSouth’s e-business and e-commerce websites, and access
  • 11. of their databases and knowledge bases. Section II: Foundation Concepts: Business Applications, Development, and Management 8 Prof. Anatoly Sachenko THE FUNDAMENTAL ROLES OF IS APPLICATIONS IN BUSINESS Information systems perform three vital roles in any type of organization. That is, they support an organization’s: • Business processes and operations • Decision making by employees and managers • Strategies for competitive advantage Analysing Royal Caribbean International We can learn a lot about the challenges of revitalizing and redirecting information technology in a company from the Real World Case of Royal Caribbean International. Take a few minutes to read it, and we will discuss it (See Royal Caribbean International: Renewing and Realigning IT with Business in Section IX). The Major Roles of IS: Examples [Figure 1.9] Three major roles of the business applications of information systems include: • Support Business Processes – involves dealing with information systems that support the business processes and operations in a business. • Support Decision Making – help decision makers to make better decisions and attempt to gain a competitive
  • 12. advantage. • Support Competitive Advantage – help decision makers to gain a strategic advantage over competitors requires innovative use of information technology. e-BUSINESS IN BUSINESS - [Figure 1.10] The explosive growth of the Internet and related technologies and applications is revolutionizing the way businesses are operated and people work, and how information technology supports business operations and end user work activities. Businesses are becoming e-business enterprises. The Internet and Internet-like networks – inside the enterprise (intranets), and between an enterprise and its trading partners (extranets) – have become the primary information technology infrastructure that supports the business operations of many companies. e-business enterprises rely on such technologies to: • Reengineer and revitalize internal business processes. • Implement electronic commerce systems among businesses and their customers and suppliers.
  • 13. • Promote enterprise collaboration among business teams and workgroups. e-business is defined as the use of Internet technologies to internetwork and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders. Enterprise collaboration systems involve the use of groupware tools to support communication, coordination, and collaboration among the members of networked teams and workgroups. An internetworked e- business enterprise depends on intranets, the Internet, extranets, and other networks to implement such systems. Electronic commerce is the buying and selling, and marketing and servicing of products, services, and information over a variety of computer networks. An internetworked e-business enterprise uses the Internet, intranets, extranets, and other networks to support every step of the commercial process TRENDS IN INFORMATION SYSTEMS - [Figure 1.11] 10
  • 14. Prof. Anatoly Sachenko The roles given to the information systems function have expanded significantly over the years. 1950s - 1960s - Data Processing - Electronic data processing systems Role: Transaction processing, record keeping, and accounting, and other electronic data processing (EDP) applications 1960s - 1970s - Management Reporting – Management information systems Role: Providing managerial end users with predefined management reports that would give managers the information they needed for decision-making purposes. 1970s - 1980s - Decision Support - Decision support systems Role: The new role for information systems was to provide managerial end users with ad hoc support of their decision-making process. This support would be tailored to the unique decision-making styles of managers as they confronted specific types of problems in the real world.
  • 15. 1980s - 1990s - Strategic and End User Support Role: End users could use their own computing resources to support their job requirements instead of waiting for the indirect support of corporate information services departments. • End User Computing Systems Role: Direct computing support for end user productivity and work group collaboration. • Executive Information Systems (EIS) - Role: These information systems attempt to give top executives an easy way to get the critical information they want, when they want it, tailored to the formats they prefer. • Expert Systems (ES) and other Knowledge-Based Systems Role: Expert systems can serve as consultants to users by providing expert advice in limited subject areas. Strategic Information Systems (SIS) Role: Information technology becomes an integral component of business processes, products, and services that help a company gain a competitive advantage in the global marketplace. 1990s - 2000 – Electronic business and commerce systems Role: The rapid growth of the Internet, intranets, extranets, and other interconnected global networks has revolutionising the operations and management of today’s business enterprises. TYPES OF INFORMATION SYSTEMS - [Figure 1.12] Information Systems perform important operational and managerial support roles in businesses and other organizations. Therefore, several types of information systems can be classified conceptually as either: •
  • 16. Operations Support Systems • Management Support Systems Operations Support Systems Information systems are needed to process data generated by and used in business operations. Sucho p erat i ons support systems (OSS) produce a variety of information products for internal and external use. However, they do not emphasize producing the specific information products that can best be used by managers. Further processing by management information systems is usually required. The role of a business firm’s operations support systems is to: • Effectively process business transactions • Control industrial processes • Support enterprise communications and collaboration • Update corporate databases Transaction Processing Systems (TPS) Focus on processing the data generated by business transactions and operations.Transaction processing systems record and process data resulting from business transactions (sales, purchases, inventory changes). TPS also produce a variety of information products for internal or external use (customer statements, employee paychecks, sales receipts etc.). TPS process transactions in two basic ways: • Batch Processing - transactions data is accumulated over a period of time and processed periodically. • Real-time (or online) processing - data is processed immediately after a transaction occurs. Process Control Systems (PCS) - Process control systems are systems, which make use of computers to control ongoing physical processes. These computers are designed to automatically make decisions, which adjust the physical production process. Examples include petroleum refineries and the assembly lines of automated factories. Enterprise Collaboration Systems - Enterprise collaboration systems are information systems that use a variety of information technologies to help people work together. Enterprise collaboration systems help us: 12 Collaborate- to communicate ideas •
  • 17. Share resources • Co-ordinate our cooperative work efforts as members of the many formal and informal process and project teams The goal of enterprise collaboration systems is to use information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise. Management Support Systems (MSS) - Management support systems focus on providing information and support for effective decision making by managers. They support the decision-making needs of strategic (top) management, tactical (middle) management, and operating (supervisory) management. Conceptually, several major types of information systems support a variety of decision-making responsibilities: • Management Information Systems (MIS) • Decision Support Systems (DSS) • Executive Information Systems (EIS) Management information systems are the most common form of management support systems. They provide managerial end users with information products that support much of their day-to-day decision-making needs. MIS provide a variety of prespecified information (reports) and displays to management that can be used to help them make more effective, structured types of day-to-day decisions. Information products provided to managers include displays and reports that can be furnished: • On demand • Periodically, according to a predetermined schedule • Whenever exceptional conditions occur Decision support systems provide managerial end users with information in an interactive session on an ad hoc (as needed) basis. Managers generate the information they need for more unstructured types of decisions in an interactive, computer-based information system that uses decision models and specialized databases to assist the decision-making processes of managerial end users. Executive information systems provide top and middle management with immediate and easy access to selective information about key factors that are critical to accomplishing a firm’s strategic objectives. EIS are easy to operate and understand. Classifications of Information Systems:
  • 18. Several other categories of information systems that support either operations or management applications include: • Expert Systems • Knowledge Management Systems • Functional Business Information Systems • Strategic Information Systems • Cross-functional Information Systems MANAGERIAL CHALLENGES OF INFORMATION TECHNOLOGY For managerial end users, the information systems function represents: • A major functional area of business that is important to a business’ success • An important factor affecting operational efficiency, employee productivity and morale, and customer service and satisfaction. • A major source of information and support needed to promote effective decision making by managers. • An important ingredient in developing competitive products and services that give an organization a strategic advantage in the marketplace. • A major part of the resources of an organization and its cost of doing business • A vital, dynamic, and challenging career opportunity for many men and women. Success and Failure with IT: Is important that students realize that information technology and information systems can be mismanaged and misapplied so that they create both technological and business failure
  • 19. Developing successful information system solutions to business problems is a major challenge for business managers and professionals today. As a business professional, you will be responsible for proposing or developing new or improved use of information systems for your company. As a business manager, you will also frequently manage the development efforts of information systems specialists and other business end users. Most computer-based information systems are conceived, designed, and implemented using some form of systematic development process. Figure 1.20 shows that: • Several major activities must be accomplished and managed in a complete IS development cycle. • In the development process, end users and information specialistsd es ig n information system applications based on ana nal y sis of the business requirements of an organization. • Investigating the economic or technical feasibility of a proposed application. • Acquiring and learning how to use the software required toi mpl e m e n t the new system, and make improvements tomai nt ai n the business value of a system. Challenges of Ethics and IT: As a prospective managerial end user and knowledge worker in a global society, you should also become aware of the ethical responsibilities generated by the use of information technology. For example: • What uses of information technology might be considered improper, irresponsible, or harmful to other individuals or to society? • What is the proper use of an organization’s information resources?
  • 20. • What does it take to be a responsible end user of information technology? • How can you protect yourself from computer crime and other risks of information technology? Ethical dimensions of information systems deal with ensuring that information technology and information systems are not used in an improper or irresponsible manner against other individuals or to society A major challenge for our global information society is to manage its information resources to benefit all members of society while at the same time meeting the strategic goals of organizations and nations. For example, we must use information systems to find more efficient, profitable and socially responsible ways of using the world’s limited supplies of material, energy, and other resources. Challenges of IT Careers: • Information technology and its uses in information systems have created interesting, highly paid, and challenging career opportunities. • Employment opportunities in the field of information systems are excellent, as organizations continue to expand their use of information technology. • Employment surveys continually forecast shortages of qualified information systems personnel in a variety of job categories. • Job requirements in information systems are continually changing due to dynamic developments in business and information technology. The IS Function: The information systems function represents: • A major functional area of business that is as important to business success as the functions of accounting, finance, operations management, marketing, and human resource management. • An important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction. • A major source of information and support needed to promote effective decision making by managers and business professionals. • A vital ingredient in developing competitive products and services that gives an organization a strategic advantage in the global marketplace. •
  • 21. A dynamic, rewarding, and challenging career opportunity for millions of men and women. • A key component of the resources, infrastructure, and capabilities of today’s internetworked e- business enterprise. IV. KEY TERMS AND CONCEPTS - DEFINED Computer-Based Information System: An information system that uses computer hardware and software to perform its information processing activities. Control: The systems component that evaluates feedback to determine whether the system is moving toward the achievement of its goal and then makes any necessary adjustments to the input and processing components of the system to ensure that proper output is produced. Data: Facts or observations about physical phenomena or business transactions. More specifically, data are objective measurements of theat tri bu t es (characteristics) ofe n t i ti es, such as people, places, things, and events. Data or Information Processing: The act of converting data into information. Data Resources: Data, model, and knowledge bases Developing Business/IT Solutions: End users and IS specialists develop and implement business/IT solutions to problems and opportunities arising in businesses. Electronic Business: Using the Internet, intranets, and extranets as the IT platform for internal business operations, electronic commerce, and enterprise collaboration. E-Business in Business: Businesses today are using Internet technologies to web-enable business processes and create innovative e-business applications. Electronic Commerce: The buying and selling, marketing and servicing, and delivery and payment of products, services, and information over the Internet, intranets, extranets, and other networks, between an internetworked enterprise and its prospects, customers, suppliers, and other business partners. End User: Anyone who uses an information system or the information it produces. Enterprise Collaboration System:
  • 22. The use of groupware tools and the Internet, intranets, extranets, and other computer networks to support and enhance communication, coordination, collaboration, and resource sharing among teams and workgroups in an internetworked enterprise. Extranet: Interorganizational Internet-like networks among trading partners. Feedback: Data or information concerning the components and operations of a systems performance. Hardware Resources: Includes all physical devices and materials used in information processing (Machines and media). Information - Products: The degree to which information has the appropriate information that is useful for users. Information products include messages, reports, forms, and graphic images. Information - Quality: The degree to which information has content, form, and time characteristics that gives it value to specific end users. Information System: A system that uses the resources of hardware, software, and people to perform input, processing, output, storage, and control activities that transform data resources into information products. Information System Activities: Input, processing, output, storage, and control Information System Model: An information system uses people, hardware, software, network, and data resources to perform input, processing, output, storage, and control activities that transform data resources into information products. Information Technology: Hardware, software, telecommunications, database management, and other information processing technologies used in computer-based information systems. Intranet: Internet-like networks and websites inside a company. IS Knowledge Needed by Business Professionals: Fundamental concepts about information systems, their technology, development, applications, and management. Knowledge Workers: People whose primary work activities include creating, using, and distributing information. Management Challenges of IS: Managing the IT resources of a company effectively and ethically to improve its business performance and value. Network Resources: Network resources include communications media and network support. People Resources: IS Specialists and end users
  • 23. Roles of IS Applications in Business: Information systems perform three vital roles in any type of organization: 1. Support of business operations 2. Support of managerial decision-making 3. Support of strategic competitive advantage Software Resources - Programs: A set of instructions that cause a computer to perform a particular task. Software Resources - Procedures: Set of instructions used by people to complete a task. System: A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. Trends in Information Systems: See Figure 1.11 Types of Information Systems - Cross-Functional Systems: Information systems that cross the boundaries of functional business areas in order to support business processes across the organization. Types of Information Systems - Management Support Systems: Include executive information systems, decision support systems, and management information systems. Types of Information Systems - Operations Support Systems: Include office automation systems, transaction processing systems, and process control systems.
  • 24. What is Business Process Re-engineering. Explain in detail the focus of BPR on the current issues in Business. Answer: The existing system in the organization is totally reexamined and radically modified for incorporating the latest technology. This process of change for the betterment of the organization is called as Business process reengineering. With Business process being reengineered, the organizations have to change the workflow and business procedures for efficiency in the organization. Latest software are used and accordingly the business procedures are modified, so that documents are worked upon more easily and efficiently. This is called as workflow management. Business process reengineering is a major innovation changing the way organizations conduct their business. Such changes are often necessary for profitability or even survival. BPR is employed when major IT projects such as ERP are undertaken. Reengineering involves changes in structure, organizational culture and processes. Many concepts of BPR changes organizational structure. Team based organization, mass customization, empowerment and telecommuting are some of the examples. The support system in any organization plays a important role in BPR. ES, DSS, AI (discussed later) allows business to be conducted in different locations, provides flexibility in manufacturing permits quicker delivery to customers and supports rapid paperless transactions among suppliers, manufacturers and retailers. Expert systems can enable organizational changes by providing expertise to non experts. It is difficult to carry out BPR calculations using ordinary programs like spreadsheets etc. Experts make use of applications with simulations tools for BPR. Reengineering is basically done to achieve cost reduction, increase in quality, improvement in speed and service. BPR enable a company to become more competitive in the market. Employees work in team comprising of managers and engineers to develop a product. This leads to the formation of interdisciplinary teams which can work better than mere functional teams. The coordination becomes easier and faster results can be achieved. The entire business process of developing a product gets a new dimension. This has led to reengineering of many old functional processes in organizations. BPR – the current focus Apart from the usual ways of managing a process in any business information system, it is necessary to enhance the value of the process and also the methods used in improving the process. Some of the concepts of information management for effective information systems are the traditional concept of database, the emerging concepts of data mining and data warehousing Concept of Database – Database is a data structure used to store organized information. A database is typically made up of many linked tables of rows and columns. For example, a company might use a database to store information about their products, their employees, and financial information. Databases are now also used in nearly all ecommerce sites to store product inventory and customer information. Database software, such as Microsoft Access, FileMaker Pro, and MySQL is designed to help companies and individuals organize large amounts of information in a way where the data can be easily searched, sorted, and updated. Data Mining - Data mining is primarily used as a part of information system today, by companies with a strong consumer focus retail, financial, communication, and marketing organizations. It enables these companies to determine relationships among "internal" factors impact on sales, customer satisfaction, and corporate profits. Finally, it enables them to "drill down" into summary information to view detail transactional data. With data mining, a retailer could use point of sale records of customer purchases to send targeted promotions based on an individual's purchase history. By mining demographic data from comment or warranty cards, the retailer could develop products and promotions to appeal to specific customer segments.
  • 25. Data Warehousing – A data warehouse is a copy of transaction data specifically structured for querying and reporting. The main output from data warehouse systems are either tabular listings (queries) with minimal formatting or highly formatted "formal" reports on business activities. This becomes a convenient way to handle the information being generated by various processes. Data warehouse is an archive of information collected from wide multiple sources, stored under a unified scheme, at a single site. This data is stored for a long time permitting the user an access to archived data for years. The data stored and the subsequent report generated out of a querying process enables decision making quickly. This concept is useful for big companies having plenty of data on their business processes. Big companies have bigger problems and complex problems. Decision makers require access to information from all sources. Setting up queries on individual processes may be tedious and inefficient. Data warehouse may be considered under such situations. 3. Explain the various role of a Systems Analyst. What is meant by Feasibility of systems ? What are the various types of Feasibility study? (10) Answer: The system analyst is the person (or persons) who guides through the development of an information system. In performing these tasks the analyst must always match the information system objectives with the goals of the organization. Role of System Analyst differs from organization to organization. Most common responsibilities of System Analyst are following