Chapter 11 Information Systems

1. Chapter 11Information Systems Dr. Anita Goel University of Delhi

2. Contents • Data, Information, Knowledge • Characteristics of Information • What is a System • Information System (IS) - Components, Characteristics • Computer-Based Information Systems • Need for Efficient IS • Categories of IS • Operation Support System: TPS, OAS • Management Support System: MIS, DSS, EIS • Specialized System: Expert system, ERP, E-commerce • Careers in IS Chapter-11: Information Systems

3. Olympics in China from 8th Aug 2008 Data, Information, Knowledge • Data - raw facts, isolated values • Numbers, letters, characters, image, audio, video • Not organized. Does not convey meaning • Information - processed, manipulated, interpreted data • Created by defining, organizing relationship among data • Can be used for different purposes • Knowledge – inference, conclusion from information I should plan trip to China around 8th August Chapter-11: Information Systems

4. Characteristics of Information We all need information to make decisions and take actions, when needed. Chapter-11: Information Systems

5. System • Set of components that work together to achieve common goal • Accepts input, processes it, produces output • Composed of one or more subsystems • Two types • Closed system: Stand-alone system. Does not interact with other systems • Open system: Interacts with other systems Chapter-11: Information Systems

6. Information System • Set of interrelated components • Collect, manipulate, disseminate data & information, provide feedback to meet an objective • Uses resources: People, hardware, software, data, networks to perform input, processing, output, storage and control activities • E.g. ATM, railway reservation system, movie ticket reservation system • Needed both by people, business organizations • People: For entertainment and enlightenment • Organizations: To support decision making, coordination, problem solving, control Chapter-11: Information Systems

7. Components of IS Feedback • Output that makes changes to input, processing activities Chapter-11: Information Systems

8. Characteristics of IS Chapter-11: Information Systems

9. Characteristics of IS Environment Interrelationships Boundary Component C Component A Inputs Outputs Information is a dynamic resource, it is constantly changing! Component B Component D Interface Chapter-11: Information Systems

10. Computer-Based Information System (CBIS) • Use computer, telecommunication technology • Uses hardware, software, database, people, telecommunication, procedures for collection, manipulation, storage, processing of data into information • Take raw data as input, process it, produce information as output Chapter-11: Information Systems

11. Components of CBIS • Hardware: computer devices - keyboard, monitor, processor, printer • Software: computer programs • Database: organized collection of data, consisting of related data files • People: Work with CBIS • Procedures: Strategies, policies, methods, rules • Telecommunication, Network and Internet: To connect computers, computer devices • E.g. e-commerce, e-banking, e-governance, e-learning, Internet advertising Chapter-11: Information Systems

12. Need for Efficient IS • Provides opportunity to do business in new way, gain huge profits, market shares • Facilitate acquisition, transformation, distribution of information. Improves decision making, enhances organizational performance, increases profitability • For strategic planning in competitive world. Allows changing structure, creating new services, improving existing services • Helps to better manage and secure critical data • Improves integration and work processes • For managing, controlling operations of organization located in different countries Chapter-11: Information Systems

13. Categories of IS • IS provide support at all levels of organization, in different functional areas • A pyramid divided both horizontally and vertically • Vertical divisions: Functional areas of organization • E.g. sales, marketing, accounting, human resource, manufacturing • Horizontal divisions: Operational level of organization, hierarchically from base of pyramid to top • E.g. low level, middle level, top level Chapter-11: Information Systems

14. Categories of IS (contd..) EIS MIS DSS TIS Sales Marketing Accounting HR Chapter-11: Information Systems

15. Categories of IS (contd..) • Operations Support System • Transaction Processing System (TPS) • Office Automation System (OAS) • Management Support System • Management Information System (MIS) • Decision Support System (DSS) • Executive Information System (EIS) • Specialized information systems • Expert Systems, • Enterprise Resource Planning (ERP) • E-commerce system Chapter-11: Information Systems

16. Operations Support System • Main function: Transaction processing • Provides information about day-to-day activities of organization • Support operations of organization, keeps track of resources, transactions • E.g. • Bank: keeps track of current balance of customer • Manufacturing unit: keeps track of inventory of items • Sales unit: keeps track of number of units of each item sold • Kinds: TPS, OAS Chapter-11: Information Systems

17. Transaction Processing System (TPS) • Transaction: basic activity performed during business operation • E.g. withdrawal of money from bank, booking ticket for airline, selling of goods to customer • Organized collection of people, procedure, software, database, devices for recording business transaction • Records business transactions, generates documents related to transaction, automates data handling • Increases transaction processing speed, enhances productivity, simplifies processes • For different areas: Payroll TPS, Sales TPS, Marketing TPS Chapter-11: Information Systems

18. Office Automation System (OAS) • Supports automation of tasks in office. Facilitates communication, both within office, between office & environment - managing documents, sending messages, arranging meetings, scheduling projects • Uses word processors, desktop publishing system, spreadsheets, presentation packages, personal database systems, note-taking systems • Includes communication systems for transmitting messages, documents, images, video, voice. • Uses network, Internet for e-mail, voice mail, web sites, teleconferencing Chapter-11: Information Systems

19. Management Support System • Assists managers at different levels in organization, in controlling, management of business • Provide reports • summary report, sales report, customer balance report • Assist managers in decision making process • generates projected reports like projected sales report • Provides information to executives • about operations, growth, profits, performance • Provides detailed report specifying internal details • Kinds: MIS, DSS, EIS Chapter-11: Information Systems

20. Management Information System (MIS) • Collection of people, procedures, software, databases, devices that provides information to managers & decision makers • Generates reports • Summary report: statistical information to managers • Exception report: about activities different from normal functioning • Detailed report: operational level reports • Reports • scheduled (periodic: weekly, monthly, quarterly) • ad-hoc (on-demand, whenever required by managers) • Focus: Operational efficiency Chapter-11: Information Systems

21. Decision Support System (DSS) • Collection of people, procedures, software, databases, devices that support problem-specific decision making • Support middle level managers. Applies logical, mathematical models, interactions to solve problems • User-friendly, interactive • Uses data from TPS, MIS, external sources • Provides comparison of alternatives, recommendation of preferred option • Provide models, tools for simulation, optimization to managers, to evaluate from alternatives before decision making Chapter-11: Information Systems

22. Executive Information System (EIS) • Provides generalized computing & communication environment to senior managers to support decisions • Provides summarized information in convenient form • Designed to facilitate access to information quickly, effectively, for senior managers • Used for identifying problem, trends, opportunity • Uses data from TPS, MIS, external sources • Has menu driven user friendly interfaces, interactive graphics to help visualization, telecommunication links to connect to external information Chapter-11: Information Systems

23. Specialized Information System • Are both for organizational and individual use • Help organizations and individuals achieve goals • Different kinds • Expert Systems • Enterprise Resource Planning (ERP) • E-commerce Chapter-11: Information Systems

24. Expert Systems • AI: people, procedures, hardware, software, data, knowledge needed to develop computer systems that display characteristics of intelligence • An applied area of AI. Knowledge-based system • Two components: knowledge base, inference engine • knowledge base stores information, data, rules, cases, relationships • inference engine gets information and relationships from knowledge base, provides answers & predictions the way human expert does Chapter-11: Information Systems

25. Expert System: Applications • Used in areas where need to • capture, preserve irreplaceable human expertise • provide expertise that is expensive or rare • share wisdom of human experts with large number of people • Used to explore new business possibilities, increase overall profitability, reduce costs • Provide information related to classification, diagnosis, process control, scheduling, planning • E.g. antilock braking system, television, plant layout, manufacturing, credit granting, stock picking Chapter-11: Information Systems

26. Enterprise Resource Planning (ERP) • Computer software that manages, coordinates resources, information, functions of business from shared data stores • E.g. coordinate planning, inventory control, production, ordering • Integrate functions like human resources, supply chain management, customer relations management, financial, manufacturing functions • Helps to streamline processes, workflows, allow data sharing, improve efficiency & productivity levels, improves customer service • E.g. SAP (Systems, Applications and Products) Chapter-11: Information Systems

27. E-Commerce • Involves business transaction executed electronically between parties • Uses Internet & Web for doing business • e-mail, workflow software tools, Intranet, e-payment services • Involves buying, selling of products, services electronically • Parties involved - B2B, B2C, C2C • Web sites like on-line market places - sell & buy items, advertise product, establish newsgroups & blogs, post job-oriented resumes Chapter-11: Information Systems

28. Career in IS • IS department controls, coordinates, manages information system of organization • Career opportunities • Chief Information officer (CIO) • LAN administrators, System & Network operators • System analyst and Programmers • Network Analysts, Application Analysts • Database Administrator, Systems Administrators • Application Designers, Management Analysts • Business Systems Analyst, Designer • Information Systems Auditor, Database Architect • ERP Analyst, Web Content Designer Chapter-11: Information Systems

29. Thank You Chapter-11: Information Systems