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Information SystemsInformation Systems
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OutlineOutlineDefinitions
Types of Information Systems
Information Systems Vs Information Technology
Expanding Roles of IS
Classification of IS
Information Systems Development
Information systems: Opportunities and Challenges
Conclusion
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DefinitionsDefinitionsData
Raw facts such as an employee’s name and number of hours worked in a week, inventory part numbers or sales orders.
Information
A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves.
Data Information
Rs 35,000 12 Units Rs 12,000 Jayesh Western Region Rs 100,000 100 Units 35 Units
Data Processing
Salesperson: Jayesh Sales Territory: Western Region Current Sales: 147 Units = Rs147,000www.StudsPlanet.com
Information Systems
An information system(IS) is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.
Open System
Close System
Definitions
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Types of Information SystemsTypes of Information Systems
1. Informal Information System
2. Formal Information System
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An Information System is an organized combination of people, hardware, software, communication networks and the data resources that collects, transforms and disseminates information in a organization.
Computer-based Information System
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INFORMATION TECHNOLOGY
Hardware
Software
Databases
Networks
Other related components
are used to buildINFORMATION SYSTEMS
Payroll System
Inventory System
Marketing System
Customer Service System
IS Vs ITIS Vs IT
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Classification of ISClassification of ISInformation Systems
Operations Support System
Management Support System
Transaction processing systems
Process control systems
Office automation systems
Management information systems
Decision support systems
Executive information systems
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1. Operations support systems process data generated by business operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
2. Management Support Systems provide information and support needed for effective decision making by managers
Major categories are
i) Management Information System
ii) Decision Support Systems
iii) Executive Information Systemwww.StudsPlanet.com
1. Operations Support System
i) Transaction processing systems
• Process business exchanges• Maintain records about the exchanges• Handle routine, yet critical, tasks• Perform simple calculations
ii) Process control systems monitor and control industrial processes.
iii) Office automation systems automate office procedures and enhance office communications and productivity.
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2. Management support systems provide information and support needed for effective decision making by managers
Major categories are:
i) Management information systems
Routine information for routine decisions Operational efficiency Use transaction data as main input Databases integrate MIS in different functional areas
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ii) Decision Support System
• Interactive support for non-routine decisions or problems• End-users are more involved in creating a DSS than an MIS
iii) Executive information systems
provide critical information tailored to the information needs of executives
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Other categories
a) Expert systems
b) End user computing systems
c) Business information systems
d) Strategic information systems
a) Expert Systems are knowledge-based systems that provides expert advice and act as expert consultants to the users
b) End user computing systems support the direct, hands on use of computers by end users for operational and managerial applications
c) Business information systems support the operational and managerial applications of the basic business functions of a firm
d) Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage
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Functional Business Functional Business Information SystemsInformation Systems
ProductionOperations
ProductionOperations
MarketingMarketing
Human ResourceManagement
Human ResourceManagement
FinanceFinanceAccountingAccounting
FunctionalBusinessSystems
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Marketing Information Marketing Information SystemsSystems
MarketingInformation
Systems
MarketingInformation
Systems
InteractiveMarketing
Sales ForceAutomation
Sales ForceAutomation
CustomerRelationshipManagement
CustomerRelationshipManagement
SalesManagement
SalesManagement
MarketResearch andForecasting
MarketResearch andForecasting
Advertisingand
Promotions
Advertisingand
Promotions
ProductManagement
ProductManagement
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Interactive marketingInteractive marketing
Interactive marketing:– A customer-focused marketing process– Using the Internet, intranets, and extranets– To establish two-transactions – Between a company and its customers or potential
customersGoal:
– to profitably attract and keep customers– who will become partners with the business – in creating, purchasing and improving products and
services
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Targeted MarketingTargeted Marketing
An advertising and promotion management concept that includes five targeting components
Targeted Marketing Targeted Marketing ComponentsComponents
Community – customize advertising to appeal to people of specific virtual communities
Content – advertising placed on a variety of selected websites aimed at a specific audience
Context – advertising placed on web pages that are relevant to the content of a product or service
Demographic/Psychographic – web marketing efforts aimed at specific types or classes or people
Online Behavior – promotion efforts tailored to each visit to a site by an individual, e.g., using cookies files
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Sales Force AutomationSales Force Automation
Outfit sales force with notebook computers, web browsers and sales contract management software
Connect them to marketing websites and company intranet
Goal:– Increase personal productivity – Speeds up capture and analysis of sales data from the
field to marketing managers– Gain strategic advantage
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Manufacturing Information Manufacturing Information SystemsSystems
Engineering Systems
•CAD•CAE•Computer-AidedProcess Planning
ManufacturingExecutionSystems
•Shop Floor•Scheduling•Machine Control•Process Control•Robotic Control
Computer Integrated ManufacturingManufacturing
ResourcePlanning
•ProductionForecasting•ProductionScheduling•Quality Control
RemoteWorker
Supplier
Extranet
Intranet
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Manufacturing Information Manufacturing Information SystemsSystems
Support the production/operations function Includes all activities concerned with
planning and control of producing goods or services
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Human Resource Human Resource ManagementManagement
•Manpower Planning•Labor Force Tracking
•Labor Cost Analysis•Turnover Analysis
•Recruitment•Workforce Planning
•Skill assessment•Performanceevaluation
•Payroll control•Benefits Administration
•Compensation effectiveness•Benefits Analysis
•Contract costing•Salary forecast
•Succession planning•Performance appraisal plans
•Training effectiveness•Career matching
Staffing Training &Development
CompensationAdministration
StrategicSystems
TacticalSystems
OperationalSystems
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Human Resource Management (HRM)Human Resource Management (HRM)
Information systems designed to support– Planning to meet the personnel needs of the
business– Development of employees to their full
potential– Control of all personnel policies and programs
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HRM and the InternetHRM and the Internet
Recruiting employees using the corporate website and commercial recruiting services
Posting messages in selected Internet newsgroups
Communicating with job applicants via e-mail
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Accounting Information Accounting Information SystemsSystems
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Accounting Information SystemsAccounting Information Systems
Record and report the flow of funds through an organization
Produce financial statementsForecasts of future conditions
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Financial Management Financial Management SystemsSystems
Support business managers and professionals in decisions concerning– The financing of a business– The allocation and control of financial
resources within a business
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Financial Management System ExamplesFinancial Management System Examples
Financial Information
Systems
Financial Information
Systems
FinancialPlanning
FinancialPlanning
CashManagement
InvestmentManagement
InvestmentManagement
CapitalBudgeting
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Information Systems DevelopmentInformation Systems Development
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Systems Development Life Cycle (SDLC) - describes the life of an information system from
conception to retirement.1. System identification, selection, and planning2. System analysis3. System design4. System implementation5. System maintenance
Steps in the Systems Steps in the Systems Development ProcessDevelopment Process
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Phase 1: System Identification, Selection, and Planning– Undertake only those projects critical to mission, goals,
and objectives– Select a development project from all possible projects that
could be performed– Different evaluation criteria used to rank potential projects
Steps in the Systems Development Process
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Phase 1: System Identification, Selection, and Planning– Evaluation criteria
Strategic alignment: The extent to which the project is viewed as helping the organization achieve its strategic objectives an d long-term goal.
Potential benefits: The extent to which the project is viewed as improving profits, customer service, and the duration of the benefits
Potential costs and resource availability: The number and types of resources the project requires and their availability
Project size / duration: The number of individuals and the length of time needed to complete the project
Technical difficulty / risks: The level of technical difficulty involved to complete the project within a given time and resources
Steps in the Systems Development Process
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Phase 2: System Analysis– Collecting System Requirements: Requirement collection is process of
gathering and organizing information from users, managers, business processes, an documents to understand how a proposed system should work
System analysts use a variety of techniques to collect system requirements
– Interviews: analysts interview people
– Questionnaires: analysts design and administer surveys.
– Observations: analysts observe workers at selected times
– Document analysis: analysts study business documents Critical Success Factors (CSF): analysts ask each person to define her
own personal CSFs. Joint Application Design (JAD): Special type of a group meeting
where all users and analysts meet at the same time
Steps in the Systems Development Process
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Phase 2: System Analysis– Modeling Organizational Data: To construct an
information system, systems analysts must understand what data the information system needs in order to accomplish the intended tasks. To do this they use data modeling tools to collect and describe data to users.
Entity Relationship Diagram (ERD)
– Modeling Organizational Processes and Logic Data flows Processing logic
Steps in the Systems Development Process
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Phase 3: System Design– Designing forms and reports– Designing interfaces and dialogues– Designing databases and files– Designing processing and logic
Steps in the Systems Development Process
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Phase 4: System Implementation– Software programming– Software testing
Developmental: Programmers test the correctness of individual modules and the integration of multiple modules
Alpha: Software tester tests whether it meets design specifications
Beta: Actual system users test the capability of the system in the user environment with actual data
Steps in the Systems Development Process
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Phase 4: System Implementation– System conversion
Parallel Direct Phased Pilot
– System documentation, training, and support User and reference guides Training and tutorials Installation procedures and troubleshooting guides
Steps in the Systems Development Process
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Phase 5: System Maintenance– Maintenance process steps:
1. Obtain maintenance request
2. Transform requests into changes
3. Design changes
4. Implement changes
Steps in the Systems Development Process
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Phase 5: System Maintenance– Maintenance types:
1. Corrective maintenance
2. Adaptive maintenance
3. Perfective maintenance
4. Preventive maintenance
Steps in the Systems Development Process
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The basic information systems required by organizations to coordinate worldwide trade and other activities
International Information Systems Architecture International Information Systems Architecture
International information systems architecture:
A force in the environment to which businesses must respond and that influences the direction of the business
Business driver:
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International Information Systems Architecture
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
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The Global Environment: Business Drivers and Challenges The Global Environment: Business Drivers and Challenges
The global business drivers can be divided into two groups:
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Global communication and transportation technologies
Development of global culture
General cultural factors:
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THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Emergence of global social norms
Political stability
Global knowledge base
General Cultural Factors: (Continued)
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THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Global markets
Global production and operations
Global coordination
Global workforce
Global economies of scale
Specific business factors:
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THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Business Challenges
Cultural particularism: Regionalism, nationalism, language differences
Social expectations: Brand-name expectations, work hours
Political laws: Transborder data and privacy laws, commercial regulations
General:
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THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Standards: Different Electronic Data Interchange (EDI), telecommunications standards
Reliability: Phone networks not uniformly reliable
Speed: Different data transfer speeds, many slower than United States
Personnel: Shortages of skilled consultants
Specific:
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ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Three kinds of organizational structure:
Centralized (in the home country)
Decentralized (to local foreign units)
Coordinated (all units participate as equals)
Global Strategies and Business Organization
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ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Heavy centralization of corporate activities in the home country of origin
Domestic exporter strategy:
Centralized financial management and control while decentralizing production, sales, and marketing operations to units in other countries
Multinational strategy:
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ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
The product is financed and initially produced in the home country, but for product-specific reasons rely on foreign personnel for further production, marketing, and human resources.
Franchisers:
The value-adding activities are managed from a global perspective without reference to national borders, optimizing sources of supply and demand wherever they appear, and taking advantage of any local competitive advantages.
Transnational strategy:
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Global Systems to Fit the StrategyGlobal Systems to Fit the StrategyGlobal Strategy and Systems Configurations
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information Systems Chapter 16 Managing International Information Systems
1. Centralized systems: Systems development and operation occur totally at the domestic home base.
2. Duplicated systems: Development occurs at the home base but operations are handed over to autonomous units in foreign locations.
Four types of systems configuration:
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
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3. Decentralized systems: Each foreign unit designs its own unique solutions and systems.
4. Networked systems: Systems development and operations occur in an integrated and coordinated fashion across all units.
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Four types of systems configuration: (Continued)
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ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Organize value-adding activities along lines of comparative advantage
Develop and operate systems units at each level of corporate activity —regional, national, and international
Establish at world headquarters
Reorganizing the Business
To develop a global company and information systems support structure:
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MANAGING GLOBAL SYSTEMS
Agreeing on common user requirements
Introducing changes in business processes
Coordinating applications development
Coordinating software releases
Encouraging local users to support global systems
Management Challenges in Developing Global Systems
Table 16-4www.StudsPlanet.com
MANAGING GLOBAL SYSTEMS
Define the core business processes: Conduct workflow analysis, identify centers of excellence for these processes
Identify the core systems to coordinate centrally: Conquer the core systems and define these systems as truly transnational
Choose an approach: Incremental, Grand Design, Evolutionary
Make the Benefits Clear
Global Systems Strategy
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Local, Regional, and Global SystemsLocal, Regional, and Global Systems
MANAGING GLOBAL SYSTEMS
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TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Computing platforms and systems integration:
Develop global, distributed, and integrated systems to support digital business processes spanning national boundaries
Use of same hardware and operating system does not guarantee integration.
Establish data and technical standards
Technology Challenges of Global Systems
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TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Overcoming disparate national technical standards, data exchange restrictions and service levels
User of Internet technology to create global intranets, extranets, virtual private networks (VPNs)
Connectivity:
Technology Challenges of Global Systems (Continued)
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Internet Population in Selected Countries
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
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TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Cost of new interface designs
Integrating new systems with old
User interface design
Differences in language and conventions
Software:
Unique challenges for application software:
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TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Outsourcing portions of new systems like development work or maintenance of existing systems to external vendors in another country
Offshore software outsourcing:
Managing Global Software Development Managing Global Software Development
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TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Contract cost
Vendor selection costs
Transition management and knowledge transfer costs
Domestic human resources costs
Major cost components of offshore software development:
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TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Costs of improving software development processes
Costs of adjusting to cultural differences
Cost of managing an offshore contract
Major cost components of offshore software development: (Continued)
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Total Cost of Outsourcing
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
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MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Management Opportunities:
Ability to lower costs through global scale economies by building international systems for producing and selling goods and services in different regions of the world
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Finding the right global business strategy
Difficulties of managing change in a multicultural firm
Difficulties of achieving global connectivity and integration
Management Challenges:
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
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Agreeing on common user requirements
Introducing changes in business processes
Coordinating applications development
Coordinating software releases
Encouraging local users to support global systems
Solution Guidelines:
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
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