unit i-systems concepts
TRANSCRIPT
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MANAGEMENT INFORMATION SYSTEM
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What IS a system?
A group of interrelated or interacting elements
forming a unified whole, OR
A group of interrelated components working
together toward a common goal by accepting
inputs and producing outputs in an organized
transformation process (dynamic system).
Three basic interacting components:
Input
Processing (transformation process)
Output
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OTHER SYSTEM CHARACTERISTICS
A system exists and functions in an environment
containing other systems.
Subsystema component of a larger system.
Systems that share the same environment may be
connected to one another through a shared boundary, or
interface.
Open versus closed system.
Adaptive system
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COMPONENTS OF AN INFORMATION SYSTEM
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COMPONENTS OF AN INFORMATION SYSTEM
People Resources
End UsersIS Specialists
Hardware Resources
Computer systemsPeripherals
Software Resources
System softwareApplication software
Procedures
Data Resources
Data versusInformation
Network Resources
Communicationmedia
Network support
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COMPONENTS OF AN INFORMATION SYSTEM
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INFORMATION SYSTEMS FRAMEWORK
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INFORMATION SYSTEMS CONCEPTS
Foundation Concepts
Fundamental concepts about the components and roles of
information systems.
Information Technologies
Major concepts, developments, and management issues
in information technology.
Business Applications
The major uses of information systems for operations,management, and competitive advantage.
Development Processes
How business professionals and information specialistsplan, develop, and implement information systems.
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Management Challenges
The challenge of managing ethically and effectively.
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ADD FEEDBACK AND CONTROL LOOPS..
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MAJOR ROLES OF IS
SupportCompetitiveAdvantage
SupportBusiness
Decision Making
Support ofBusiness Processes and Operations
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Support business process: eg-computer based information
system in retail stores helps them to record customer
purchases, track of inventory, pay employees, buy new
merchandise and evaluate sales trends. Support decision making: Helps store managers and other
business professionals in the lines of merchandise to be
added, kind of investment they require.
Support competitive advantage: gaining strategic advantage
over competitors. Eg- installing touch screen kiosks (asmall permanent or temporary structure on a sidewalk that sells items
such as newspapers and candy)in the stores with links to theire-commerce website for online shopping. Attract new
customers, build customer loyalty.
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TRENDS IN INFORMATION SYSTEMS
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TYPES OF INFORMATION SYSTEMS
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MANAGERIAL CHALLENGES OF INFORMATION
TECHNOLOGY
Information systems can be mismanaged and misapplied so
that they create both technological and business failure.
Top Five Reasons for Success Top Five Reasons for Failure
User involvement Lack of user input
Executive management support Incomplete requirements and
specifications
Clear statement of requirements Changing requirements andspecifications
Proper planning Lack of executive support
Realistic expectations Technological incompetence
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DEVELOPING IS SOLUTIONS TO BUSINESS
CHALLENGES
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ETHICAL CHALLENGES
Just because we can, should we?Where do we draw the line between customer
privacy and collecting business information?
Do we owe it to society to use this technologywisely and responsibly? Why? Isnt our job to
make a profit?
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IN SUMMARY, THE IS FUNCTION
Is a major functional area of business.
Is an important contributor to operational efficiency,
employee productivity and morale, and customer
service & satisfaction.
Is a major source of information and support for
decision making.
Provides a strategic advantage in developing
competitive products & services.
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SYSTEMS CONCEPTS
A system is a set of inter-dependent components (some of which may
be systems in their own right), which collectively accomplish certainobjectives.
Systems have characteristics such as boundaries, outputs and inputs,methods of converting inputs into outputs, and system interfaces.
Systems are composed of interrelated and interdependent sub-systems.
System Boundaries
Systems and Sub-systems
Outputs and Inputs
Sub-system Interface
Interface Problems
System and its Environment
System Feedback
System Maintenance
System Stress and Change
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System Boundaries : Every system has a boundary
that defines its scope of activities .
Systems and Sub-systems :
Systems may consist of numerous sub-systems, each
of which has elements, interactions, and objectives.
Sub-systems perform specialized tasks related to theoverall objectives of the total system.
Outputs and Inputs :
The inner workings of a system or sub-system areorganized to produce outputs from inputs.
The outputs of one sub-system usually become
inputs into the next.
S f
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Sub-system Interface :
An interface is a connection at system or sub-system
boundaries.
An interface serves as a medium to convey the output from
one system to the input of another system.
Interface Problems :
The output of one sub-system is not sufficient toaccommodate the needs of the next sub-system .
For example, the production sub-system may not be able to
produce enough stock to meet sales demands during certainpeak periods. One way of handling this interface problem is
through the use ofslack resources.
S d i E i
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System and its Environment :
The system's environment consists of people, organizations,
and other systems that supply data to or that receive data
from the system.
System Feedback
A system needs feedback to do its job.
Feedback is an indicator of current performance rates whencompared to a set of standards.
System Maintenance
Systems can run down if they are not maintained. Systemsentropy corresponds roughly to chaos or disorder - a state
that occurs without maintenance
S S d Ch
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System Stress and Change
Systems change over time. Some of these changes occur
because of identified problems, new business opportunities,
and new management directives.
Systems may also change as a result of stresses.
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ROLE OF INFORMATION SYSTEMS
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ROLE OF INFORMATION SYSTEMS:
Functional Areas in Business
O ti l E ll
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Operational Excellence:
New Products, Services and Business Models: A business
model describes how a company produces, delivers, and
sells a product or service to create wealth. Customer and Supplier Intimacy: Information systems can
help a business know its customers and serves them well,
the way they want to be served
Improved Decision Making.
Competitive Advantage: doing thins better than its
competitors, charging less for superior products, and
responding to customers and suppliers in real time. Survival: Firm turn to information systems and technologies
to provide the capability to respond to these information
retention and reporting requirements.
M t i ti i t i iti h hi f
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Most organizations maintain positions such as chief
executive officer (CEO), chief financial officer (CFO),
and chief operations officer (COO) at the strategic level.
Recently there are more IT-related strategic positions suchas
chief information officer (CIO),
chief technology officer (CTO),
chief security officer (CSO),
chief privacy officer (CPO), and
chief knowledge officer (CKO).
The CIO is responsible for overseeing all uses of
information technology and ensuring the strategic alignment
of IT with business goals and objectives.
S j f t th t ff t t d ' b i
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Seven major factors that affect today's business
environment
Growing interdependence between businesses and information
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Growing interdependence between businesses and information
systems
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4 LEVELS OF INFORMATION SYSTEM
Operational-level Systems
Support operational managers by keeping track of the
elementary activities and transactions of the organization.
The principle purpose of systems at this level is to
answer routine questions and track the flow of
transactions through the organization. Covers things such
as sales, receipts, cash deposits, payroll, credit decisions,
flow of materials.
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Knowledge-level Systems
The purpose of these systems is to help the organisation
discover, organise and integrate new and existing
knowledge in to the business, and to help control the
flow of paperwork.
These systems, specially in the form of collaboration
tools, workstations, and office systems, are the fastest
growing applications in business today.
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Management-level Systems
Designed to serve the monitoring, controlling, decision-
making, and administrative activities of middlemanagers.
These typically provide periodic reports rather than
instant information on operations. Some of these systems support non-routine decision-
making, focusing on less-structured decisions for which
information requirements are not always clear.
This will often require information from outside the
organisation, as well as from normal operational-level
data.
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Strategic-level Systems
Help senior management tackle and address strategic
issues and long-term trends, both within the organisation
and in the external environment.
Principal concern is matching organisational capability to
changes, and opportunities, occurring in the medium to
long term (i.e. 5 - 10 years) in the external environment.
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OPERATIONAL-LEVEL SYSTEMS
TRANSACTION-PROCESSING SYSTEMS (TPS)
Basic business systems
Perform daily routine transactions necessary for business
functions
At the operational level, tasks, resources and goals are
predefined and highly structured
Generally, five functional categories are identified, as
shown in the diagram.
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KNOWLEDGE-LEVEL SYSTEMS
OFFICE AUTOMATION SYSTEMS (OAS)
Targeted at meeting the knowledge needs of data workers
within the organisation.
Data workers tend to process rather than create
information. Primarily involved in information use,
manipulation or dissemination.
Typical OAS handle and manage documents, scheduling
and communication.
KNOWLEDGE WORK SYSTEMS (KWS)
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KNOWLEDGE WORK SYSTEMS (KWS)
Targeted at meeting the knowledge needs of knowledge
workers within the organisation
In general, knowledge workers hold degree-level
professional qualifications (e.g. engineers, scientists,
lawyers), their jobs consist primarily in creating new
information and knowledge
KWS, such as scientific or engineering design
workstations, promote the creation of new knowledge,
and its dissemination and integration throughout the
organisation.
MANAGEMENT-LEVEL SYSTEMS
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MANAGEMENT-LEVEL SYSTEMS
MANAGEMENT INFORMATION SYSTEMS (MIS)
MIS provide managers with reports and, in some cases,
on-line access to the organisations current performance
and historical records.
Typically these systems focus entirely on internal events,
providing the information for short-term planning and
decision making.
MIS summarise and report on the basic operations of the
organisation, dependent on the underlying TPS for their
data.
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DECISION-SUPPORT SYSTEMS (DSS)
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DECISION SUPPORT SYSTEMS (DSS)
Focus on helping managers make decisions that are semi-
structured, unique, or rapidly changing, and not easily
specified in advance
Use internal information from TPS and MIS, but also
information from external sources
Greater analytical power than other systems, incorporate
modelling tools, aggregation and analysis tools, and
support what-if scenarios.
Voyage-estimating Decision Support System
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y g g pp y
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STRATEGIC-LEVEL SYSTEMS
EXECUTIVE SUPPORT/INFORMATION SYSTEMS (ESS/EIS)
ESS/EIS address unstructured decisions and create a
generalised computing and communications
environment, rather than providing any fixed application
or specific capability.
These systems are not designed to solve specific
problems, but to tackle a changing array of problems
ESS/EIS are designed to incorporate data about external
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ESS/EIS are designed to incorporate data about external
events, such as new tax laws or competitors, and also
draw summarised information from internal MIS and
DSS
These systems filter, compress, and track critical data,
emphasising the reduction of time and effort required to
obtain information useful to executive management
ESS/EIS employ advanced graphics software to provide
highly visual and easy-to-use representations of complexinformation and current trends, but they tend not to
provide analytical models
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Inter-relationships and inter-dependencies between IS types
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p p yp
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COMPONENTS OF INFORMATION SYSTEMS
Formal vs. Informal Specifications
Components of Specifications
FORMAL VS. INFORMAL SPECIFICATIONS
In the development of information systems in business,
informal specifications through graphical modeling havebeen used at least since late 70s.
Formal specification languages (such as Larch, VDM, Z,
FOOPS and OBJ) have been developed. (expected to play
an important role in the future)
These formal specification techniques attempt to
mathematically specify structure, function, and behavior of
information systems.
COMPONENTS OF SPECIFICATIONS
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COMPONENTS OF SPECIFICATIONS
Specifications of an information system is given by their:
Structure: How it is organized.
Function: What it does.
Behaviour: How it responds to events and stimuli.
Data: Its meaning and organization.
CLASSIFICATION OF INFORMATION SYSTEMS
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CLASSIFICATION OF INFORMATION SYSTEMS
CLASSIFICATION BY MODE OF DATA PROCESSING:
Batch Processing Systems: On-line Batch Systems:
On-line Real-time Systems:
CLASSIFICATION BY SYSTEM OBJECTIVES
Transaction Processing Systems (TPS)
Process Control System (PCS)
Decision Support Systems (DSS)
Expert Systems
Executive Information System (EIS)
Business Information Systems (BIS)
CLASSIFICATION BASED ON THE NATURE OF
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INTERACTION WITH ENVIRONMENT
Transformational Systems: These are systems that transforminputs received from the environment in order to generate
reports (output).
Reactive Systems: These are systems characterized by
being, to a large extent, event-driven, continuously havingto react to external and internal stimuli.
ORGANISATION AS A SYSTEM
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ORGANISATION AS A SYSTEM
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WHAT IS AN ORGANISATION?
An organization is very similar to the Information System.
Both require inputs and some sort of processing, both have
outputs, and both then depend on feedback for successful
completion of the loop.
Information Systems use data as their main ingredient.
Organizations rely on people.
They are both a structured method of turning raw products
(data/people) into useful entities (information/producers).
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SALIENT FEATURES OF ORGANISATIONS
Clear Division of Labor
Hierarchy
Explicit rules and procedures
Impartial judgments
Technical Qualifications for Positions
Maximum Organizational Efficiency
ORGANISATIONS AFFECT INFORMATION
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SYSTEMS
Change is the only constant in the relationship between
information systems and organizations. You need to
consider:
How have organizations actually used information systems?
How has the organizational role of information systemschanged?
Who operates information systems?
Why do organizations adopt information systems in the firstplace?
WHY ORGANIZATIONS BUILD INFORMATION
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WHY ORGANIZATIONS BUILD INFORMATION
SYSTEMS