Information Systems Eras

Evolution of Information Systems

(Modelling and Tools)

Babak Akhgar

1950-2000 (Time Frame)

Characteristics of today’s business environment:

globalization

global marketplace

global competition

global work groups

global information systems

Characteristics of today’s business environment:

transformation of industrial economies

knowledge and information-based economies

productivity

innovation

time-based competition

shorter product life

turbulent environment

Characteristics of today’s business environment:

transformation of the organization

flatter

decentralized

flexible

collaborative work and teamwork

empowered workforce

lower operating costs

Transformation of the Business Enterprise

traditional business firm -

hierarchical

centralized

standard operating procedures for mass production

new style of business firm -

flatter

decentralized

flexible arrangement of generalists and specialists

Transformation of the Business Enterprise

similar to a symphony

consist of knowledge workers

college educated

members of profession (e.g., engineers, doctors, lawyers, scientists, etc.)

jobs consist primarily of creating new information and knowledge

IT has evolved to enable and support new form of organization

Different kinds of systems

Organizations and info. systems can be divided into four levels:

operational-level

knowledge-level

management-level

strategic-level

©The McGraw-Hill Companies, Inc., 1998

3- 5

Irwin/McGraw-Hill

Era I Data ProcessingEra I Data Processing

Support ofOperations

LargeCompany

Units

SingleDP/IS

DepartmentEfficiency

PrimaryObjective

Justification

Primary“Clients”

Source

©The McGraw-Hill Companies, Inc., 1998

3- 4

Irwin/McGraw-Hill

Era II MISEra II MIS

ManagementSupport

IndividualManagers

andProfessionals

InformationSystems Units

and EndUsers

ManagementEffectiveness

PrimaryObjective

Justification

Primary“Clients”

Source

©The McGraw-Hill Companies, Inc., 1998

3- 3

Irwin/McGraw-Hill

Era III of Organisational Computing: Supportof Business Transformation & Competition

Era III of Organisational Computing: Supportof Business Transformation & Competition

EntrancedCompetitive

Position

Line ofBusiness

Units

CoordinatedOrganizational

End UserComputing

Market Shareand

Profitability

PrimaryObjective

Justification

Primary“Clients”

Source

©The McGraw-Hill Companies, Inc., 1998

3- 1

Irwin/McGraw-Hill

Era IV of Organisational Computing: Era IV of Organisational Computing:

ElectronicIntegration

CollaboratingTeams

Owned andOutsourcedComputing

Infrastructure

Organiza-tional

Effectiveness

PrimaryObjective

Justification

Primary“Clients”

Source

Six Major types of Systems

TPS: Transaction Processing Systems

MRS: Management Reporting Systems

DSS: Decision Support Systems

EIS: Executive information systems

PSS: Professional Support Systems

OIS: Office Information Systems

1.TPS transaction processing systems

operational level

perform and record daily routine transactions necessary to conduct the business

2.MRS Management Reporting Systems

Used by managers responsible for specific

functions or processes in a firm

provide routine summary and exception reports

managers use these reports to help control their

area of responsibility

3.DSS decision support systems

Designed to support individual and collective

decision making

often use information from external sources

more analytical power than other types of systems

4.EIS executive information systems

strategic level of the organization

support long-term, strategic view

used by senior executives

easy access to summarised company data

incorporate external information on industry and

economy

5.PSS Professional Support Systems

Support performance of tasks specific to a given profession

For example

lawyers doing legal research

architects designing buildings

designers modeling a new automobile

student C&P system (cut and paste system) !!

6.OAS office information systems

support and help coordinate knowledge work in an office environment

emphasis on increased productivity

systems include e-mail, scheduling systems, word processing

Program Scope

The Big Picture

People

Process

Technology

Organization

Why Model?

Helps users and developers to communicate Provides traceability from business model through

to final system Central repository for business knowledge Improve overall system quality Reduce long term costs Rapid business and technological change demands

flexibility Large complex systems need to be designed

Model Requirements

Business process

driven

Industry standard

Easy to learn and use

Pragmatic

Integrated

Minimalist

Opportunity Framework

System Analysis FrameworkThe Value Chain

Sup

port

act

iviti

es

Firminfrastructure

Human resource management

Technology development

Primary activities

Margin

Procurement

Inboundlogistics

OperationsOutboundlogistics

Marketingand Sales

serviceSource: Porter & Millar

Three - level IT Strategy

• Division/SBU/function based• Demand oriented• Business focused

IS Strategy

• Organisation based• Relationships oriented• Management focused

IM Strategy

• Activity based• Supply oriented• Technology focused

IT Strategy

What?

How?

Wherefore? Management

Applications

Delivery

Source: Earl

A Multiple Methodology

Business plansand goals Current systems IT opportunities

Application strategic plan

Source: Earl

Topdown

Bottom up

Inside out

Analytical

Methodology

Teamwork

Evaluative

Surveys andaudits

Users andspecialists

Creative

Techniques,processes and environment

Brightsparksand productchampions

Delivery Process Outline

Roll Out Design& Build

UserAcceptance

PlanIncrement

PrototypeAnalysis

Feasibility