lesson 5: information systems presentation
TRANSCRIPT
Knowing the potential impact of information
systems and having the ability to put this knowledge
to work can result in success in organizations
reaching their goals…
System users, business managers, and
information systems professionals must work
together to build a successful information
system
Levels of Management in Organizations:(Information Needs & Decision Making)
Source: Essentials of Management Information SystemsSource: Essentials of Management Information Systems
Need information to make strategic (long term) decisions
Need information to make tactical(short term) decisions
Need information to make operational (daily) decisions
What is an Information System?
1. …a set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective…Businesses can use information systems to increase revenues and reduce costs. (Star & Reynolds, 2011)
2. …an organized combination of people, hardware, software, communication networks, data and procedures that stores, retrieves, transforms, and disseminate information in an organization.
Roles of Information Systems in Business Support business processes and operations for lower level management Support decision making for middle management Support strategies for competitive advantage for top level management
Categories of Information Systems
Manual Information System Computer-based Information System
Example:Using filing cabinets in
hospitals to store records of patients is a manual information system
Example: Using a school
management system to register university students and follow their progress throughout each term would be an example of a computerized information system
Computer-Based Information Systems-Technology Infrastructure
…all hardware, software, databases, telecommunications,
people, and procedures configured to collect, manipulate, store, and
process data into information
Source: Principles of Information Systems, Tenth Edition
Components of a Computer-Based Information Systems
Computer-Based Information Systems (CBIS) Hardware:
Consists of computer equipment used to perform input, processing, and output activities
Software: Consists of the computer
programs that govern the operation of the computer
Database: Organized collection of
facts and information, typically consisting of two or more related data files
• Telecommunications networks and the Internet
• The electronic transmission of signals for communications
People: The most important element
in most computer-based information systems
Procedures: Include strategies, policies,
methods, and rules for using the CBIS
Types of Information Systems in BusinessTransaction Processing SystemsManagement Information Systems Decision Support SystemsOffice Automation Systems
Information Systems at Different Levels of Management
• ESS: ESS: Helps address strategic issues and long-term trends, both in firm and in external environment.
• MIS & DSS: MIS & DSS: Helps with monitoring, controlling, decision making, and administrative activities.
• TPS: TPS: Keeps track of basic activities and transactions of organization (e.g., sales, receipts, deposits, withdrawals, payroll, flow of materials in a factory).).
Transaction Processing Systems :
– Transaction:Any business-related
exchange, such as payments to employees and sales to customers
– Transaction Processing System (TPS): Organized collection of people, procedures, software, databases, and devices used to record completed business transactions
– Serve operational managers.– Principal purpose is to answer routine
questions and to track the flow of transactions through the organization.
– Example: inventory questions, granting credit to customer, performing deposits & withdrawals
– Monitor status of internal operations and firm’s relationship with external environment.
– Major producers of information for other systems.
– Highly central to business operations and functioning.
Two types of Transaction Processing Systems (TPS)Batch TPS:
Batch processing involves processing several transactions at the same time, and the results are not immediately available when the transaction is being entered. There is a time delay. Transactions are accumulated over a period and processed in groups at a date in the future. For example, IS used in payroll systems
Online TPS (OLTP):Processes data as soon as it becomes available. There is no time
delay. It processes transactions in real time. This is used for systems in which time is critical. For example, IS used in an airline reservation system
Management information system (MIS):
Organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers
• Provide middle managers with reports on firm’s performance to monitor firm and help predict future performance.
• Produces summaries and reports on basic operations using data collected from a TPS.
• Provide weekly, monthly, annual results, but may enable drilling down into daily or hourly data.
• Typically not very flexible systems with little analytic capability.
Decision Support System (DSS):
Used to support problem-specific decision makingUsed when problem is complex and information
needed to determine appropriate action is difficult to obtain
For example, an IS that is used daily by managers to develop bids contracts
This relies on both internal and external data to make decisions.
It does not make the final decision but will operate more as a guide to managers
Exper t systems:
Give computer ability to make suggestions and function like an expert in a particular field
Virtual reality: Simulation of a real or
imagined environment that can be experienced visually in three dimensions
• Tools that capture the expertise of knowledge workers and provide advice to non-experts in a given field.
Executive Suppor t Systems (ESS):
• Serve senior managers information to make strategic decisions.
• Address strategic issues and long-term trends.
E.g., Five years plan for product diversification?
• handles non-routine informational problems.
• Provide generalized computing capacity that can be applied to changing array of problems.
• Draw summarized information from MIS, DSS, and data from external events.
• Typically use portal with Web interface to present content.
Table 1.5: Showing major components of an ESS
Source: Principles of Information Systems, Tenth Edition
Implications: Information Systems (IS) in Society, Business, and Industry
Have been developed to meet the needs of all types of organizations and people
Speed and widespread use opens users to a variety of threats from unethical people
Security, Privacy, and Ethical Issues in Information Systems and the InternetDrawbacks of information systems:
Personal data, including Social Security and credit card numbers, can be lost or stolen
To protect against threats to your privacy and data: Install security and control measures
Use of information systems: Raises work concerns, including job loss through increased
efficiency
Enterprise Systems for Functional Areas in Organizations
Enterprise systems are used at all levels of management and work across several functional areas in the organization.
Functional areas and operating divisions of business:Finance and accountingSales and marketingManufacturingHuman resource managementLegal information systemsDistribution and Logistics
Sales and MarketingMajor Function: Sales management, market research,
promotion, pricing, new productsMajor Applications:
1. Point of Sale Terminals in supermarkets2. Inventory systems for stock control3. Sales Ordering systems4. Marketing research system5. Pricing System
Accounting and Finance Major Function: Accounts Receivable (Credit Sales), Accounts
Payable (Credit Purchases), Budgeting, General Ledger, Billing, Payroll
Major Applications:General LedgerAccounts ReceivableAccounts PayableBudgeting
Human ResourceMajor Function: Personnel records, Employee Benefits,
Compensation, Labor Relations, Professional Development Training
Major Application:Payroll, Employee RecordsEmployee Benefit SystemsPersonnel Training Systems
Information Systems in IndustryBelow is a list of industries in which IS can be used:
Airline industryInvestment firmsBanksTransportation industryPublishing companiesHealthcare maintenance organizationsRetail companiesPower management and utility companiesProfessional servicesManagement consulting firms