Introduction to Information Systems

1. Introduction to Information Systems Class 1

2. Data vs. Information • The eternal question • Data • “Streams of raw fact representing events occurring in organizations or their environments before they have been organized and arranged into a form suitable for human interpretation” • Information • “Data that have been shaped into a form that is meaningful and useful”

3. Data Vs. Information 392: Chocolate Chip Cookies 342: Coffee Powder 341: Red Curry Paste 392: Chocolate Chip Cookies 391: Keebler Fudge Sticks … … Data • Region:Redmond • Store:QFC Store 32 • Item#DescriptionUnits Sold • Choc Chip Ck 2397 • YTD Sales • $6972.78 Information

4. Information? What’s the big deal? • Globalization • Transformation of Industrial Economies • The Changing Organization

5. Emergence of Global Economy • Management and control in a global marketplace • Competition in global markets • Global workgroups • Global delivery systems

6. From Industrial to Post-Industrial Societies • Knowledge- and information-based economies • Productivity • New products and services • Time-based competition • Shorter product life-cycle • Turbulent operating environment • Limited employee knowledge base

7. Transformation of the Organization • Flattening • Decentralization • Flexibility • Location independence • Low transaction and coordination costs • Empowerment • Collaborative work and team activities

8. So, what is an Information System, anyway?

9. What is a System?

10. A System Competitors Customers Process Output Input feedback Suppliers Government

11. What is an Information System? • a set of interrelated components that • collect (or retrieve) • process • store • distribute information in order to support • decisionmaking • coordinationandcontrol

12. Approaches to Information Systems Technical Approaches Computer Science Operations Research Management Science Information Systems Sociology Psychology Economics Behavioral Approaches

13. Information Systems and the Organization • Flattening organizations • Separating work from location • Reorganizing workflows • Increased flexibility • Changing management process • Redefining organizational boundaries

14. Information Architecture • Levels within a firm • Functional Areas • Types of Systems • Foundation of technology

15. Levels within an Organization • Operational • Knowledge • Management • Strategic

16. Functional Areas • Finance • Accounting • Production • Marketing • Human Resources • Public Relations

17. Information Architecture strategic management knowledge oper Finance Marketing Production Personnel Acctg Hardware Software Data and Storage Networks IT Infrastructure

18. Challenges Facing Managers • The Strategic Business Challenge • The Globalization Challenge • The Architecture and Infrastructure Challenge • The Investment Challenge • The Responsibility and Control Challenge

19. Senior management Group Served strategic Kind of IS Middle management management Knowledge and data workers knowledge Operational managers oper Finance Marketing Production Personnel Acctg Functional Area

20. Level of the System • Operational-level systems • Keep track of elementary activities and transactions • Sales, receipts, payroll, etc. • Purpose is to answer routine questions and track flow of transactions • Knowledge-level systems • Integrate new knowledge into the business • Control flow of paperwork

21. Level of the System • Management-level systems • Keep track of monitoring, controlling decision making, and administrative work of middle management • Periodic reports • Some may be used for non-routine decisions • What-if analysis • Typically draws information from operational systems • Strategic-level systems • Assist senior management in making long-term decisions • Typically non-routine, unstructured decision making activities

22. Types of Information Systems • Executive Support Systems (ESS) • Management Information Systems (MIS) • Decision Support Systems (DSS) • Knowledge Work Systems (KWS) • Office Automation Systems (OAS) • Transaction Processing Systems (TPS)

23. Types of Systems • Transaction Processing Systems • serves operational needs • performs/records daily and routine transactions • span boundary of organization and environment • major supplier of information to other IS • examples • airline reservation system • payroll system • plant scheduling

24. Types of Systems (contd.) • Knowledge Work Systems • KWs are those whose job involves creating new information and knowledge (doctors, scientists, engineers, etc.) • Use specialized systems such as workstations • Office Automation Systems • used to process information • eg. document management, scheduling, communication

25. Types of Systems (contd.) • Management Information Systems • serves activities of planning, controllingand decision-making at the management level • usually take form of performance reports (such as exception or summary reports) • limited analytical ability • often (mistakenly) equated with IS

26. Types of Systems (contd.) • Decision Support Systems • focussed on a specific type of problem • more analytical ability than an MIS • more interactive • eg: lease or buy in face of volatile interest rates • Executive Support Systems • used by senior management • used for unstructured problems • heavy graphics base

27. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS KWS & OAS TPS Knowledge Level Operational Level

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