Introduction to Information Systems

1. Introduction to Information Systems Lecture 16

2. Summary of Previous Lecture • In previous lecture we have been learnt about, • Web Advertisement • Web Advertisement Terminologies • Ad views • Banner • Clicks (or ad clicks) • Click Ratio • Cookie • CPM

3. Summary of Previous Lecture • Effective Frequency • Hit • Impressions • Reach • Visit • Pros of Internet Advertisement • Double Click Approach • Advertisement Methods • Banners and Banner Exchanges • Banner Swapping

4. Summary of Previous Lecture • Advertisement Strategy • Internet Based Ad Design • Passive Pull Strategy • Active Push Strategy • Ad as a Commodity • Push Technology • Implementing Strategy • Intelligent Agents

5. Summary of Today’s Lecture • What is information? • System components and concepts • Characteristics of information • What is information system? • Why need information system? • Historical background of information system • Information system today. • Terminology related to MIS and IS

6. Summary of Today’s Lecture • Types of Information Systems • Early history of IS with other disciplines • Information system versus computer science • Information technology • Context and definitions • Capabilities of information system • Summary

7. What is Information? • Information is created by defining and organizing relationships among data. • Defining different relationships results in different information. Example: Different Designs of wood depicting different shapes of information!

8. System Components and Concepts • Input Capturing and gathering raw data • Processing Converting or transforming data into useful outputs • Output Useful information, usually in the form of documents, reports, and transaction data • Feedback Output that is used to make changes to input or processing activities

9. System components and concepts

10. Characteristics of a Valuable information • Information should posses following characteristics, • Accurate • Complete • Economical • Flexible • Reliable • Relevant • Simple • Timely • Verifiable • Accessible • Secure

11. What is an Information System? • A set of interrelated elements or components that collect (input), manipulate and store (process), disseminate (output) data and information, and provide a feedback mechanism to meet an objective. • Computer based information system Composed of hardware, software, data, telecommunications, people, and procedures to collect, manipulate, store, and process data into information

12. Why Need an Information System? Here are some reasons for the need of an information system, • Global Competition for Market and for Labor • Need for Real-time Operations • Managing Work Force • Customer-Oriented Operations • Technological Innovation and Obsolescence • Information Overload • Social Responsibility of Organizations • Government Regulation and Deregulation • Organizational Responses to Business Pressures in the Information Age

13. Lets look at some historical definitions of information systems by famous writers.

14. Historical Background • The Data Processing Industry grew rapidly in the 1960’s, however, the “quantity” of output, most often, far overshadow the “quality” of output.

15. Historical Background • The growth of the 1960’s and 1970’s saw a shift from “computer” orientation, to “information” orientation. Shift from Data storage to organized information systems

16. John Diebold (1979) wrote: • “Information, which in essence is the analysis and synthesis of data, will unquestionably be one of the most vital corporate resources in the 1980’s. It will be structured into models for planning and decision-making. It will be incorporated into measurements of performance and profitability. It will be integrated into product design and marketing methods. In other words, information will be recognized and treated as an asset.” John Theurer Diebold (June 8, 1926 – December 26, 2005) was an early champion of widespread use of computing and automated technology.

17. IFIP/BCS (1985) • An information system is a system which assembles, stores, processes, and delivers information relevant to an organization (or to society) in such a way that the information is accessible and useful to those who wish to use it, including managers, staff, clients, and citizens. An information system is a human activity (social) system which may or may not involve the use of computer systems. • International Federation for Information Processing/British Computing Society 1985 curriculum for information systems. International Federation for Information Processing/ British Computer Society: Founded 1957

18. McNurlin and Sprague (1989 & 1999) • “The mission for information systems in organizations is to improve the performance of people in organizations through the use of information technology.” • The ultimate objective is performance improvement - a goal based on outcomes and results rather than a “go-through-the-steps process” goal. • The focus is the people who make up the organization. Improving organizational performance is by the people and groups that comprise the organization. • The resource for this improvement is information technology.

19. Turban (1990) • A management information system is a formal, computer-based (but need not be) system intended to retrieve, extract, and integrate data from various sources in order to provide timely information necessary for managerial decision-making. • An MIS is a business information system designed to provide past, present, and future information appropriate for planning, organizing, and controlling the operations of the organization.

20. Steven Alter (1992) • An information system is a combination of • work practices • information • people, and • information technologies • organized to accomplish goals in an organization.

21. Vladimir Zwass (1992) • A Management Information System is an organized portfolio of formal systems for obtaining, processing, and delivering information in support of the business operations and management of an organization.

22. Ken Laudon and Jane Laudon (1995) • Information system - (definition) Interrelated components that collect, process, store, and disseminate information to support decision-making, control, analysis, and visualization in an organization.

23. Turban, McLean, Wetherbe (1996) • An information systems is a collection of components that collects, processes, stores, analyzes, and disseminates information for a specific purpose. • The major components of a computer-based information system (CBIS) can include (1) hardware, (2) software, (3) a database (4) a network (5 )procedures, and (6) people. • The system operates in a social context, and the software usually includes application programs which perform specific tasks for users.

24. Components of Information System as Defined by Turban, McLean, Wetherbe (1996)

25. Henry C. Lucas (1997) • Information systems may be described by five of their key components: • Decisions • transactions and processing • information and its flow • individuals or functions involved • communications and coordination

26. Where is the difference? • Outcome of different definitions depicts • Trend and technological effects at that time • Information system definition evolved with respect to time. • People worked on data processing until they realized the need of information systems.

27. Information Systems Today • The early focus on IS was for the support of operations, management, analysis and decision-making in organizations.

28. Information System Today • A significant emphasis was on models of planning and control. • The late 1980’s and early 1990’s saw IS expand from the support not only of decision-making, but for improved communication support as well. Social impacts began to be recognized. • The explosion of the Web has added the important characteristic of providing information access. • Today the emphasis in organizations is on the support of business processes.

29. Social Media Information System Today

30. Terminology • In many textbooks and contexts, the terms Management Information Systems (or MIS) and Information Systems (IS) are used interchangeably. • However, in other contexts, Management Information Systems are considered as a subset of the more general Information Systems. • MIS are considered to be information systems which provides information specifically for managing an organization generally at a tactical or middle management level. Information Systemswould be a more general term that can include other systems (e.g. group communication systems). We will generally follow this convention.

31. Types of Information Systems • Transaction Processing Systems (TPS). • Management Information Systems (MIS). • Decision Support Systems (DSS). • Expert Systems (ES). • Executive Information Systems (EIS). • Office Automation Systems (including document management systems). • GroupWare, Computer-Supported Cooperative Work (CSCW), and other communication systems. • and much more ….

32. Types of Information Systems

33. Transaction Processing Systems (TPS) • It is an information system designed to process day-to-day business event data at the operational level of the organization. • A transaction is an elementary activity conducted during business operations (e.g. merchandise sale). • Support the monitoring, collection, storage, processing, and dissemination of the organization’s basic business transactions. • Provides backbone for many other applications involving other support systems.

34. Different Examples of Transaction Processing Systems

35. TPS Data Entry Screen

36. Types of Transaction Processing Systems • Batch processing • Batch processing is a form of transaction processing. • Batch processing involves processing several transactions at the same time, and the results of each transaction are not immediately available when the transaction is being entered; there is a time delay. • Online transaction processing is the form of transaction processing that processes data as it becomes available.

37. Management Information Systems • A management information system (MIS) provides information that is needed to manage organizations efficiently and effectively. • Management information systems involve three primary resources: • people, • technology, and • information or decision making.

38. Management Information System • Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization. • Different applications of MIS are, Human Resource Management System, Financial Management System etc.

39. HR Management Software Example

40. Financial Management Software Example

41. Decision Support System • A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. • DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.

42. Decision Support Systems • DSS include knowledge-based systems. • Knowledge base is the set of rules that group together to build knowledge. • Fundamental components of DSS model are, • The database (or Knowledge base) • the model (i.e., the decision context and user criteria), and • The user interface • The users themselves are also important components of the architecture.

43. Decision Support System

44. Expert System • An expert system is a computer system that emulates the decision-making ability of a human expert. • Expert systems are designed to facilitate tasks in the fields of accounting, medicine, process control, financial service, production, human resources, among others.

45. Executive Information System • They are intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. • It is commonly considered as a specialized form of decision support system (DSS)

46. Office Automation System • Office automation systems helps in optimizing or automating existing office procedures. • Office workflows of information and other documentation procedures are automated using office automation system.

47. Groupware information systems • Collaborative software (or groupware) is a type of information system, designed to help people involved in a common task achieve goals. • One of the earliest definitions of “collaborative software” is, "intentional group processes plus software to support them."

48. Collaboration software Example

49. The Early History of IS with other disciplines Information systems have been used with variety of different subject areas, including • IS and Managerial Accounting • IS and Operations Research • IS and Management and Organization Theory • IS and Computer Science • IS and Cognitive Psychology

50. Information Systems vs. Computer Science • Computer Science has its concentration in the study of algorithms, computation, software, and data structures. • Information Systems is an extension of management and organization theory that applies technical capabilities and solutions initially developed by computer science, to tasks in organizations. • For example, web development using HTML, XML, scripting may be a computer scientist job, but integrating all these to develop business portal is an Information Systems job.