business information systems building blocks

Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman

Business Information SystemsBusiness Information Systems

Building BlocksBuilding Blocks

Dr Sherif Kamel

The American University in Cairo


Outline

Role of information systems.

Types of information systems.

Data and information.

Classes of information systems.

Information systems architecture.

Information systems applications.

Information systems building blocks.

5 Ps in systems development.

The life cycle.


An integrated view of the role of IS in the organization


Types of information systems


MIS obtaining data from multiple TPS


Interrelationships among systems


Transaction processing systems

A customer placing an order for products or services with a company.

Making a holiday booking

Buying an air line ticket

Buying a car

Withdrawing money from the ATMa customer ringing a call centre to pay his/her bills

Payment for goods and services

Placing order with a supplier


A transaction is…

Any business related exchange.

An event to which the business must respond.


Input-processing-output cycle


Transaction processing system functions

Transaction processing systems consist of 4 main functions to accomplish their purposes

The functions include:Input function

Storage function

Processing function

Output function


Example: TPS payroll system


Types of TPS by function

Major Functionsof system

Major Application

systems


Concepts of transaction processing systems

On-Line Input

Transaction filesfrom other

systems

Data for othersystems

Keypunched cards Scanning devicesand sensors

Audioinput

Audiooutput A displayed

message

Transaction Processing

Record Merge

Perform Sort

List Update

Documents


TPS characteristics

Provide fast and efficient processing

Perform rigorous data editing

Audited

Involves a high potential for security-related problems.

Support the work processes of a large number of people


TPS cycle

A cycle through which business data goes…

Data collection

Data editing

Data correction

Data manipulation

Data storage

Document production


Transaction processing activities

Data collectionThe process of capturing and gathering all data necessary to complete transactions.– Begins with a transaction

– Should be captured at the source

– Timely

– With minimum manual effort

– Suitable format

Data editingChecks data for validity and completeness

Data correctionRe-entry of wrongly keyed or scanned data


Transaction processing activities (Cont’d)

Data manipulationPerforming data transformations

Data storageUpdating databases with new transactions

Document ProductionGenerating output records and reports


Reports produced

Detailed reports

Summary reports

Exception reports


Methods of transaction processing

Batch processing systems.

Online transaction processing (OLTP).Interactive/ Real-time.

Online entry with delayed processing.


Transaction processing objectives

Process data generated by and about transactions

Maintain a high degree of accuracy

Ensure data and information integrity

Produce timely documents and reports

Increase labour efficiency

Help provide increased and enhanced service

Help build and maintain customer loyalty


Transaction processing applications

1. Accounting and financial information systems

2. Sales and marketing information systems

3. Production information systems

4. Human resources information systems


1. Accounting and financial IS

Systems that are first computerised by organisations.

Outputs include:pay cheques

cheques to vendors

customer invoices

stock reports

many other forms and reports– Accounts receivable– Payroll systems


2. Sales and marketing IS

System’s basic goal is to satisfy the needs of customers.Help the firm identify customers for the firm’s products or services,

Develop products and services to meet customer needs,

Promote products and services,

Sell the products and services

Provide ongoing customer support.


Sales and marketing IS types

Sales order

Market research

Sales commission

Point-of-sale systems

Electronic shopping and advertising systems

Telemarketing systems.

Direct mail advertising systems.


3. Production IS

These systems support the production of goods and services (to meet marketing system projections)

Support decision-making for the operation, allocation, and planning of production resources.

Produce reports about production data.


Production IS types

Purchasing systems

Quality control systems

Shipping systems

Inventory control systems

Automated Material handling systems

Computer aided design/manufacturing


Example – order processing system

Order entry, sales configuration, shipment planning and shipment execution.

Inventory control (finished product), invoicing, customer interaction and routing and scheduling.


Example – purchasing systems

Inventory controlRaw materials

Packing materials

Spare parts

Supplies

Purchase order processing

Receiving

Accounts payable


4. Human Resource IS

Support acquiring and managing human resources including:

recruiting, assessment, selection, placement, training, performance appraisal, compensation and benefit management, promotion, termination, occupational health and safety, and other activities.

Integrates with other systems like payroll.


Data and information

Data are raw facts about the organization and its business transactions. Most data items have little meaning and use by themselves.

Information is data that has been refined and organized by processing and purposeful intelligence. The latter, purposeful intelligence, is crucial to the definition—People provide the purpose and the intelligence that produces true information.


Information systems and technology

An information system (IS) is an arrangement of people, data, processes, communications, and information technology that interact to support and improve day-to-day operations in a business as well as support the problem-solving and decision making needs of management and users.

Information technology is a contemporary term that describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks).


Front and back office information systems

Front-office information systems support business functions that reach out to customers (or constituents).

Marketing

Sales

Customer management

Back-office information systems support internal business operations and interact with suppliers (of materials, equipment, supplies, and services).

Human resources

Financial management

Manufacturing

Inventory control


Federation of information systems


Classes of information systems

1. Transaction processing systems

2. Management information systems

3. Decision support systems

4. Expert systems

5. Office automation systems


1. Transaction processing

Transaction processing systems are information system applications that capture and process data about business transactions.

Includes data maintenance, which provides for custodial updates to stored data.Business process redesign (BPR) is the study, analysis, and redesign of fundamental business (transaction) processes to reduce costs and/or improve value added to the business.


2. Management information systems

A management information system (MIS) is an information system application that provides for management-oriented reporting. These reports are usually generated on a predetermined schedule and appear in a prearranged format.


3. Decision support systems

A decision support system (DSS) is an information system application that provides its users with decision-oriented information whenever a decision-making situation arises. When applied to executive managers, these systems are sometimes called executive information systems (EIS).

A data warehouse is a read-only, informational database that is populated with detailed, summary, and exception data and information generated by other transaction and management information systems. The data warehouse can then be accessed by end-users and managers with DSS tools that generate a virtually limitless variety of information in support of unstructured decisions.


4. Expert systems

An expert system is a programmed decision-making information system that captures and reproduces the knowledge and expertise of an expert problem solver or decision maker and then simulates the “thinking” or “actions” of that expert.

Expert systems are implemented with artificial intelligence technology that captures, stores, and provides access to the reasoning of the experts.


5. Office automation systems

Office automation (OA) systems support the wide range of business office activities that provide for improved work flow and communications between workers, regardless of whether or not those workers are located in the same office.

Personal information systems are those designed to meet the needs of a single user. They are designed to boost an individual’s productivity.

Work group information systems are those designed to meet the needs of a work group. They are designed to boost the group’s productivity.


Information systems applications


Information systems architecture

Information systems architecture provides a unifying framework into which various people with different perspectives can organize and view the fundamental building blocks of information systems.


Perspectives or stakeholders

System owners pay for the system to be built and maintained.

System users use the system to perform or support the work to be completed.

System designers design the system to meet the users’ requirements.

System builders construct, test, and deliver the system into operation.

Systems analysts facilitate the development of information systems and computer applications by bridging the communications gap that exists between non-technical system owners and users and technical system designers and builders.

IT vendors and consultants sell hardware, software, and services to businesses for incorporation into their information systems.


Focuses for information systems

Data—the raw material used to create useful information.Processes—the activities (including management) that carry out the mission of the business.

Interfaces—how the system interfaces with its users and other information systems.


Information system building blocks


Data focus


Data focus

System owners’ perspectiveBusiness knowledge is the insight that is gained from timely, accurate, and relevant information. (Recall that information is a product of raw data.)

System users’ perspectiveData requirements are a representation of users’ data in terms of entities, attributes, relationships, and rules. Data requirements should be expressed in a format that is independent of the technology that can or will be used to store the data.

System designers’ perspectiveDatabase schema

System builders’ perspectiveDatabase management system


Process focus


Process focus

System owners’ perspectiveBusiness functions are ongoing activities that support the business. Functions can be decomposed into other subfunctions and eventually into processes that do specific tasks.

A cross-functional information system supports relevant business processes from several business functions without regard to traditional organizational boundaries such as divisions, departments, centers, and offices.


Process focus (Cont’d)

System users’ perspectivesBusiness processes are activities that respond to business events. Business processes are the “work” performed by the system.

Process requirements are a representation of the users’ business processes in terms of activities, data flows, or work flow.

A policy is a set of rules that govern a business process.

A procedure is a step-by-step set of instructions and logic for accomplishing a business process.


Process focus (Cont’d

System designers’ perspectivesAn application schema is a model that communicates how selected business processes are, or will be, implemented using the software and hardware.Software specifications represent the technical design of business processes to be automated or supported by computer programs to be written by system builders.

System builders’ perspectivesApplication programs are language-based, machine-readable representations of what a software process is supposed to do, or how a software process is supposed to accomplish its task.Prototyping is a technique for quickly building a functioning, but incomplete model of the information system using rapid application development tools.


Interface focus


Interface focus

System owners’ perspective

System users’ perspectivesInterface requirements are a representation of the users’ inputs and outputs.

System designers’ perspectiveUser dialogues describe how the user moves from window-to-window, interacting with the application programs to perform useful work.

System builders’ perspectiveMiddleware is a layer of utility software that sits in between application software and systems software to transparently integrate differing technologies so that they can interoperate.


Information system building blocks


The role of the network in IS

DataBuildingBlocks

ProcessBuildingBlocks

InterfaceBuildingBlocks

The network


Communications focus in IS


5 Ps of information systems development

Process - how we do it

Project - the structures we use to manage it

Product - the things we produce

People - lots of them in various roles

Problem - why we started in the first place


Process

a set of activities inter linked and interdependent in time

choice as to what we accentuate, what we ignore

choice as to sequence and degree of linearity


It is important to note....

Committing resources to activities; Committing to some change

Analysing organisational problems, work processes, user needs and business opportunities

Designing the future activities of information use and restructuring work processes (the future information system)

Designing and producing software

Acquiring and configuring hardware

Introducing the system to the organisation and to the people within it

Sustaining the new ways of working through time, and making further adjustments

Managing and controlling all the above activities


The life cycle

problem identification

feasibility study

project set up and planning

requirements specification

systems analysis

design

programming


Project

To initiate the process

The unit the organisation recognises

Goals and resources

Framework for management


Project activities

Organising

Coordinating

ControllingAn activity view (how)

A resource view (who and with what)

A product view (what)

An outcomes view (with consequences)


Project manager

Achieve and sustain commitment

Plan activities and achieve a work breakdown

Estimate effort and cost

Allocate resources to tasks

Monitor milestones and deliverables

Manage risk, sustain quality, respond

Communicate and evaluate progress, problems and results


Product (deliverables)

Concrete products, things to be made and delivered along the way

Things left behind when the project is over

Programs, a data base, a new order form

A training course

New jobs and new tasks

A viable and feasible information system


Product in IS terms

hardware and software

documentation and training materials

data resources

formalised 'knowledge'

informational transformations and outputs

new jobs and new roles for people


Qualities looked for in product

address the real problem

be cost effective

be user friendly…?

be reliable and secure

be sustainable


Away from computing

cost

convenience

security

maintainability

politics


People

Need people for an information systems

Information systems perspective only makes sense if people are there

Various ways of naming themUsers or participants

Customers and clients

Actors and members


What do people want?

Knowledge contract

Psychological contract

Efficiency contract

Task structure contract

Value contract


Problem

Why did we start to talk about information systems?

To achieve something new, better, different, but what?

What is a problem?‘A situation upon which someone may wish to act

Different problems, different people, different process etc.…

For the same problem we can choose to address it in different terms, different process, different project, different people, different product