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Introduction to Information Systems. Class 1. 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
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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”
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
Information? What’s the big deal? • Globalization • Transformation of Industrial Economies • The Changing Organization
Emergence of Global Economy • Management and control in a global marketplace • Competition in global markets • Global workgroups • Global delivery systems
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
Transformation of the Organization • Flattening • Decentralization • Flexibility • Location independence • Low transaction and coordination costs • Empowerment • Collaborative work and team activities
A System Input
A System Process Input
A System Process Output Input
A System Process Output Input feedback
A System Competitors Customers Process Output Input feedback Suppliers Government
What is an Information System? • a set of interrelated components that • collect (or retrieve) • process • store • distribute information in order to support • decisionmaking • coordinationandcontrol
Approaches to Information Systems Technical Approaches Computer Science Operations Research Management Science Information Systems Sociology Psychology Economics Behavioral Approaches
Information Systems and the Organization • Flattening organizations • Separating work from location • Reorganizing workflows • Increased flexibility • Changing management process • Redefining organizational boundaries
Information Architecture • Levels within a firm • Functional Areas • Types of Systems • Foundation of technology
Levels within an Organization • Operational • Knowledge • Management • Strategic
Functional Areas • Finance • Accounting • Production • Marketing • Human Resources • Public Relations
Organization structure strategic management knowledge oper Finance Marketing Production Personnel Acctg
Organization structure strategic management knowledge oper Finance Marketing Production Personnel Acctg Hardware Software Data and Storage Networks
Information Architecture strategic management knowledge oper Finance Marketing Production Personnel Acctg Hardware Software Data and Storage Networks IT Infrastructure
Challenges Facing Managers • The Strategic Business Challenge • The Globalization Challenge • The Architecture and Infrastructure Challenge • The Investment Challenge • The Responsibility and Control Challenge
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
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
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
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)
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
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
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
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
Information System Integration Strategic Level Management Level Management Level KWS & OAS Knowledge Level Operational Level
Information System Integration Strategic Level Management Level Management Level KWS & OAS TPS Knowledge Level Operational Level
Information System Integration Strategic Level Management Level Management Level DSS MIS KWS & OAS TPS Knowledge Level Operational Level
Information System Integration Strategic Level ESS Management Level Management Level DSS MIS KWS & OAS TPS Knowledge Level Operational Level
Information System Integration Strategic Level ESS Management Level Management Level DSS MIS KWS & OAS TPS Knowledge Level Operational Level
Information System Integration Strategic Level ESS Management Level Management Level DSS MIS KWS & OAS TPS Knowledge Level Operational Level
Information System Integration Strategic Level ESS Management Level Management Level DSS MIS KWS & OAS TPS Knowledge Level Operational Level
Information System Integration Strategic Level ESS Management Level Management Level DSS MIS KWS & OAS TPS Knowledge Level Operational Level
Next Class • Topic: IT Infrastructure • Weekly Technology Report • Research the Atanasoff Controversy Remember to complete a biosketch by Wednesday • Do readings • Be ready to debate the Carr article