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Lesson-8 Information System

Building Blocks Describe the difference between data and information.

Define the product called an information system, and describe therole of information technology in information systems.

Differentiate between front- and back-office information systems.

Describe five classes of information system applications(transaction processing, management information, decisionsupport, expert, and office automation systems) and how theyinteroperate.

Describe the role of information systems architecture in systemdevelopment.

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C

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Map

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Data and Information

Data are raw facts about the organization and

its business transactions. Most data items havelittle 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.

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Information Systems & 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 decisionmaking 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).

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Front- and Back-Office Information Systems

Front-officeinformation systems support business

functions that reach out to customers (or constituents). Marketing

Sales

Customer management

Back-officeinformation systems support internal

business operations and interact with suppliers (of

materials, equipment, supplies, and services).

Human resources Financial management

Manufacturing

Inventory control

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ystems

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Classes of Information Systems

Transaction processing systems

Management information systems Decision support systems

Expert systems

Office automation systems

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Transaction Processing

Transaction processing systems are information system

applications that capture and process data about businesstransactions.

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.

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Management Information

Systems

A management information system (MIS) is

an information system application thatprovides for management-oriented reporting.

These reports are usually generated on a

predetermined schedule and appear in a

prearranged format.

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Decision Support Systems

A decision support system (DSS) is an information systemapplication that provides its users with decision-orientedinformation whenever a decision-making situation arises. Whenapplied to executive managers, these systems are sometimes calledexecutive information systems (EIS).

A data warehouse is a read-only, informational database that ispopulated with detailed, summary, and exception data and informationgenerated 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 informationin support of unstructured decisions.

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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.

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Office Automation Systems

Office automation (OA) systems support the widerange 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

individuals productivity.

Work group information systems are those designed to

meet the needs of a work group. They are designed to boost

the groups productivity.

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Information Systems Applications

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Information Systems

Architecture

Information systems architecture provides a unifying

framework into which various people with differentperspectives can organize and view the fundamental building

blocks of information systems.