Information Systems

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Information Systems

Information System (IS): A Process that collects, processes, stores, analyzes, and disseminates information for a specific purpose.

Computer Based information system (CBIS): an information system that uses computer technology to perform some or all of its intended tasks.

Information System

An information system (IS) collects, processes, stores, analyzes, and disseminates information for a specific purpose Application. An information system consists of Hardware, Software, Data, Network, Procedures, People. The basic functions of an information system are input, processing, output, feedback.

Major Capabilities of Information System Perform high-speed, high-volume, numerical computation. Provide fast, accurate, and inexpensive communication within and

between organizations. Automate both semi-automatic business processes and manual

tasks. Store huge amounts of information in an easy-to-access, yet

small space. Allow quick and inexpensive access to vast amount of

information, worldwide. Facilitate the interpretation of vast amounts of data Enable communication and collaboration anywhere, any time. Increase the effectiveness and efficiency of people working in

groups in one place or in several locations, anywhere. Facilitate work in complex environment.

IT creates a Competitive Advantage

Past decade: social networking - Facebook, LinkedIn, Twitter and blogs became extensions of businesses to reach customers, prospects, and business partners.

Today: companies want to grab the attention of potential and current customers on their mobiles. Home automation, Smart cities, Internet of Things

Information Systems and IT: Core Concepts

Information System (IS) value is determined by the relationships among ISs, people, and business processes -

all of which are influenced by organizational culture

Information System Primary Purpose

Data Elementary description of things, events, activities, and

transactions that are recorded, classified, and stored, but not organized to convey any specific meaning.

Information Data that has been organized so that they have meaning

and value to the recipient.

Knowledge Information that has been organized and processed to

convey understanding, experience, and expertise as they apply to a current problem or activity.

Collects data, processes it into information then converts information into knowledge for a specific purpose.

Evolution of IS

Transaction Processing Systems (TPS): The computers summarizing and organizing transactions and data in the accounting, finance, and human resources areas.

Management Information Systems (MIS): these systems access, organize, summarize and display information for supporting routine decision making in the functional areas.

Evolution of IS (contd)

Office Automation Systems (OAS): such as word processing systems were developed to support office and clerical workers.

Decision Support Systems (DSS): were developed to provide computer based support for complex, business intelligence and decision making process.

Evolution of IS (contd)

Intelligent Support System (ISS): include expert systems which provide the stored knowledge of experts to nonexperts, and a new type of intelligent systems with machine-learning capabilities that can learn from historical cases.

Knowledge Management Systems (KMS): support the creating, gathering, organizing, integrating and disseminating of an organization knowledge.

Cloud computing , mobile computing,

Classification of IS

The classifications are: Classification by breath of support.

Classification by organizational level .

Classification by Breath of Support

Typical information systems that follow the hierarchical organization structure are functional (departmental), enterprise-wide and interorganizational.

Functional information systems are organized around the traditional departments.

Enterprise information systems serve several department or the entire enterprise.

Interorganizational systems connect two or more organizations.

An organizations supply-chain describe the flow of materials, information money and service from raw material suppliers through factories and warehouses to the end customers. IT provide two major types of software solution for managing supply chain

activities - Enterprise Resource Planning ( ERP) and Supply Chain Management (SCM)

Departmental, enterprise, and interorganizational IS

Classification by Organization Level

The typical enterprise is organized hierarchically, from the clerical and office worker layer, to the operational layer, the managerial layer, the knowledge worker layer and finally the strategic layer.

Information and Knowledge Society

The term information society is derived from Manuell Castells usage of information age in 1990. The idea of the information society is based on technological breakthroughs.

Information is a knowledge-generating tool, but it is not knowledge itself.

The term Knowledge society is first used by Peter Druker in 1969.

Information is in many cases a commodity, in which case it is bought or sold, whereas knowledge, despite certain restrictions (e.g. defence secrets, intellectual property), belongs of right to any reasonable mind.

Knowledge societies are about capabilities to identify, produce, process, transform, disseminate and use of information to build and apply knowledge for human development.

The magnitude of technological change in past decades has affected the means of knowledge creation, transmission and processing, have brought a number of experts to hypothesize that we stand on the threshold of a new era of knowledge.

The use of electronic word-processing or search engines

are recent trends, yet they are already so deeply rooted in our everyday practices that cognitive activities are beginning to look more and more like computer-assisted processes.

Information and Knowledge Society

Knowledge Discovery

Data mining used to find patterns in data Identification of data Preprocessing Transformation to common format Data mining through algorithms Evaluation

Life-cycle of Data Processing

Collection of data Organizing data Storing data Processing data Updating data Analyzing data Deleting data Destroying data

Technologies supporting visualization and interpretation of Data are: Digital imaging, GIS, GUI, graphs, animation Identify relationships and trends

Organizational Asset

People Data Hardware Software Files Machines Furniture Building

Organizational Structure

People in Organization

A set of long range goals that describe the IT infrastructure and major IS initiatives needed to achieve the goals of the organization.

The IT plan must meet three objectives: It must be aligned with the organizations

strategic plan It must provide for an IT architecture It must efficiently allocate IS development

resources among competing projects

The IT Strategic Plan

Strategic Planning and Competitive Model

Strategy defines the plan for how a business will achieve its mission, goals, and objectives.

Strategy planning is critical for all organizations, including for-profits, nonprofits, government agencies, healthcare, education, military, and social services.

Strategic analysis is the scanning and review of the political, social, economic and technical environment of the organization. SWOT analysis involves the evaluation of

strengths and weaknesses, which are internal factors; and opportunities and threats, which are external factors.

Basis of Porters Competitive Forces Model

Before examining the competitive forces model, its helpful to understand that it is based on the concept of profitability and profit margin.

PROFIT = TOTAL REVENUES - TOTAL COSTS PROFIT MARGIN = SELLING PRICE - COST OF THE ITEM

profit margin measures the amount of profit per unit of sales, and does not take into account all costs of doing business.

Porters 5 competitive forces model

1. Threat of entry of new competitors 2. Bargaining power of suppliers 3. Bargaining power of customers or buyers 4. Threat of substitute products or services 5. Competitive rivalry among existing firms in the

industry

The firms value chain, with arrows illustrating the flow of goods and services

Inter-Organizational Systems (IOS)

One of the pioneers IT system that was developed in the 1980s to improve communications with business partners was electronic data interchange (EDI), which involved computer-to-computer direct communication of standard business documents (such as purchase orders and order confirmations) between business partners. These systems became the basis for electronic markets, which later developed into electronic commerce.

IOS are systems that connect two or more organizations. These systems are common among business partners and play a major role in e-commerce as well as in supply chain management.

Managing Information Systems

Information Systems (IS) have enormous strategic value. The Life Cycle Costs (acquisition, operation, security, and maintenance) of these systems are to be considered. Therefore, it is essential to manage them properly.

The responsibility for the management of information resources is divided between two organizational entities: The information systems department, which is a

corporate entity the end users, who are scattered throughout the

organization.

Role of IT in IS Failures

Some IT projects are doomed from the start because of inadequate budgeting and/or other necessary resources.

If mail server downs for 5 minutes then ?

If public cloud server is blocked by a powerful denial-of-service attack ?

Acknowledgement

Substantial portion of the Lecture slides is taken from the course materials of following book: Information Technology for Management, 8/e -- Turban, Volonino. [John Wiley & Sons] Introduction to Information Technology, 3/e -- Turban, Rainer, Potter. [John Wiley & Sons] Management Information Systems in the Knowledge Economy -- Joseph, Mohapatra. [PHI]

Test your knowledge

The basic functions of an IS (information system) are _____. (a) input, processing, output, feedback (b) input, processing, output, people (c) input, software, hardware, applications (d) operation system, application programs, people

Test your knowledge

The basic functions of an IS (information system) are _____. (a) input, processing, output, feedback (b) input, processing, output, people (c) input, software, hardware, applications (d) operation system, application programs, people

Answer. (a) input, processing, output, feedback

SWOT is an acronym for _____. (a) Silence, Winner, Opportunities, Thrills (b) Saturation, Weakness, Over kill, Think tank (c) Strengths, Weaknesses, Opportunities, Threats (d) Safe, Wealthy, Opportunities, Thanks

Test your knowledge

SWOT is an acronym for _____. (a) Silence, Winner, Opportunities, Thrills (b) Saturation, Weakness, Over kill, Think tank (c) Strengths, Weaknesses, Opportunities, Threats (d) Safe, Wealthy, Opportunities, Thanks

Test your knowledge

Answer. (c) Strengths, Weaknesses, Opportunities, Threats

Which of the following is NOT part of Porters competitive model forces?

(a) Threat of entry of new competitors (b) Threat of information security (c) Bargaining power of customers or buyers (d)Threat of substitute products or services

Test your knowledge

Which of the following is NOT part of Porters competitive model forces?

(a) Threat of entry of new competitors (b) Threat of information security (c) Bargaining power of customers or buyers (d)Threat of substitute products or services

Answer. (b) Threat of information security

Test your knowledge

The ________ evaluates the newest and most innovative technologies and determines how they can be applied for the completive advantage.

(a) Chief Executive Officer (b) Chief Security Officer (c) Chief Technology Officer (d) Chief Financial Officer

Test your knowledge

The ________ evaluates the newest and most innovative technologies and determines how they can be applied for the completive advantage.

(a) Chief Executive Officer (b) Chief Security Officer (c) Chief Technology Officer (d) Chief Financial Officer

Answer. (c) Chief Technology Officer

Test your knowledge

Information SystemsDisclaimerInformation SystemsInformation SystemMajor Capabilities of Information SystemIT creates a Competitive AdvantageInformation Systems and IT: Core ConceptsInformation System (IS) value is determined by the relationships among ISs, people, and business processes - all of which are influenced by organizational cultureInformation System Primary PurposeEvolution of IS Evolution of IS (contd)Evolution of IS (contd)Classification of ISClassification by Breath of SupportDepartmental, enterprise, and interorganizational ISClassification by Organization LevelInformation and Knowledge SocietyInformation and Knowledge SocietyKnowledge DiscoveryLife-cycle of Data Processing Organizational AssetOrganizational StructurePeople in OrganizationThe IT Strategic PlanStrategic Planning and Competitive ModelBasis of Porters Competitive Forces ModelSlide Number 27Slide Number 28Inter-Organizational Systems (IOS)Managing Information SystemsRole of IT in IS FailuresAcknowledgementTest your knowledgeTest your knowledgeTest your knowledgeTest your knowledgeTest your knowledgeTest your knowledgeTest your knowledgeTest your knowledge