Information Systems Fundamentals

An Information System is a set of (primarily) electronic

components that collect, analyze and disseminate data and
information to meet an objective.
 Data: raw facts, e.g. text, image, audio, video. By itself, data

cannot help us make decisions

 Information: aggregation, analysis and selection of data that

enables organizations to meet objectives. Some characteristics

of information:
 timely
 accurate
 reliable
 appropriate
 complete
 secure
 Information Systems Fundamentals
(cont’d)
 System: a collection of related elements or components that
interact to accomplish goals. Composed of:
 Inputs
 Processing mechanisms
 Outputs
 Feedback/assessment
 Many processes, whether or not they have a significant IS
component, can be viewed as systems:
 Personnel management
 University admissions
 Production and inventory management
 Criminal justice system
 Definitions
 Information system is a system of communication among people
and it is involve in gathering, processing, distributing and use of
information.

 An information system consists of hardware, software, data,

people and procedures.

 The system that deliver information and communication services.

 The organization function that plans, develops and manages the

information systems.

 An information system is defined technically as a set of

interrelated components that collect, process, store and
distribute information to support decision making and control in
an organization.
 Information Systems Fundamentals
(cont’d)
 Organizations may be classified according to the systems they
employ:
 Simple vs. complex
 Open vs. closed
 Natural vs. man-made
 Adaptive vs. non adaptive
 Permanent vs. temporary

 System performance can be measured along three dimensions:

 Efficiency
 Effectiveness
 Equity (fairness)
 Information Systems Fundamentals
(cont’d)
 Systems are designed, implemented and managed using models:
abstractions of reality that allow us to apply principles assumed
to hold true for many different systems
 Model types:
 Narrative model, e.g. verbal descriptions of model features, goals,
resources
 Physical model, e.g. prototypes
 Schematic model, e.g. graphs and flowcharts
 Mathematical, e.g. equations and relations
 All models are based on assumptions, e.g. market conditions,
legal restrictions, physical performance limitations. Assumptions
must be well-known and consistent
 Changing Face of Business
Environment
 Can business survive without an information system?
 1970s – IS were TPS enabling an org. to carry out its
routine transactions such as payroll, accounting, inventory
management etc.
 1980s- DSS became the popular inf. Sys. Application as it
could support structured and uncertain decision situations.
 1990s- Inf. Sys. brought about business transformation
with the emergence of BPR. Eg. BPCL, HLL, ICICI,
Indian railways, ITC, Tisco & Godrej were implementing
the inf. Sys. for business transformation.
 2000 onwards, inf. Sys. have been the cause of strategic
transformation in industry due to widespread use of
Internet. Eg. Dell, FedEx and CISCO.
Impact of Information System
a

Information
System for
Organization

•Better Software
•Lower Hardware Costs
•Customer •Easier to use software
Satisfaction Business •Reliable hardware
•Productivity Value •Reduced cost
•Profitability

Impact
 Changing Role of Inf. Sys.
 Traditional Major IS Functions:
 Managing system development and system project management
 Managing computer operations, including the computer center
 Staffing, training and developing IS skills
 Providing technical skills
 New (Additional) Major IS Functions:
 Initiating & designing specific strategic inf. Sys.
 Infrastructure planning, development & control
 Incorporating the internet & e-commerce into the business
 Managing systems integration including the internet, intranet & extranet
 Educating the non-IS managers about IT
 Educating the IS staff about business
 Supporting end-user computing
 Actively participating in BPR
 Proactively using business & technical knowledge to “speed” the mangers
with innovative ideas
 Creating business alliances with vendors and IS departments in other
organization
 Information Systems Activities
 Inputs: raw data
 May be physical, electronic or conceptual
 May use a manual or automated process
 Processing: conversion of inputs to outputs
 May be comprised of computations, data storage, choosing alternatives
 May be a manual or automated process
 Outputs: information used to make decisions
 May be delivered in paper form or electronically
 Outputs of one system may be inputs to another system
 Feedback/assessment: outputs used to improve system
performance
 Indication for managerial interventions
 Can flag for incorrect processing
 Supply estimates of future input values (forecasting)
 Components of an Information
System
 `
Software Resources
People Resource Programs and
End Users and IS Procedures
Specialists System Activities

Control of System Performance

Processing Output of
Input of Data
Data into Information
Resources
Information Products
Data Resources
Hardware Resources
Data & Knowledge
Bases Machine and Media
Storage of Data Resources

Network Resources
Communication Media and Network Support
 Computer-Based IS Components
 Hardware, computer equipment used for
 input
 processing
 outputs
 Software, computer programs that run on hardware:
 systems software
 applications software
 Databases: specialized applications software designed to
organize data and information on an organization’s operations
 Infrastructure: equipment designed to link hardware across
space:
 telecommunications
 networks
 Internet
 People: IS personnel and users
 Procedures: rules for developing and using the IS
 Information System Resources and
Products
 People Resources
- Specialists- system analysts, software developers, system operators
- End Users- anyone else who uses information systems
 Hardware Resources
- Machines- computers, video monitors, magnetic disk drives, printers, scanners.
- Media- floppy disks, magnetic tape, optical disk, plastic cards.
 Software Resources
- Programs- operating system programs, spreadsheet programs, word processing, payroll
programs
- Procedures- data entry procedures, error correction procedures, paycheck distribution
procedures.
 Data Resources
- Product descriptions, customers records, employee files, inventory databases
 Network Resources
- Communications media, communications processors, network access and control software
 Information Products
- Management reports and business documents using text and graphics displays, audio
responses and paper forms
 Business Information Systems
 Transaction processing: automation of routine, labor-intensive
processes
 payroll
 customer purchases
 accounts payable
Transaction processing systems have historically been mainframe-
based, often run in batch, using older, less flexible technology.
 E-commerce: commercial transactions conducted electronically
 business-to-business
 business-to-consumer
 public sector-to-business
 public sector-to-customer
Value of E-commerce is estimated at $434 billion, with about 20%
of total devoted to business-to-customer transactions
 Business Information Systems (cont’d)
 Management information systems: collection of people,
procedures, software, hardware and databases designed to
generate information for management decisions about
organization strategy. MISs may comprise:
 Marketing MIS
 Financial management MIS
 Operations MIS
 Transaction processing systems
 Decision support systems: an MIS intended to address specific,
complex decision problems requiring interaction of managerial
and machine expertise. Composed of:
 Database
 Models
 User interface
 Reporting
 MIS Demo: Workforce Training
Information System (Fall 1998)
 Policy context
 Increase in spending on local constuction
 Need to remedy lack of minority participation in construction
 Increased gov’t funding for organizations that can show positive
results from job training programs
 Desired features
 Registration information on all program participants
 Assignment of participants to training program classes
 Recording personal and class outcomes
 Implementation
 Relational database application using Microsoft Access97
 Web pages describing project teams, problem and solution using
Microsoft FrontPage98 (http://pirate.heinz.cmu.edu)
 Information System Development
 Analysis and Design
 problem definition
 justification of solution approach
 system requirements
 project team
 conceptual application model
 Implementation
 Prototyping
 Large-scale development
 Testing
 Deployment
 Maintenance and Review
 Evaluation of delivered product
 Customer support
 Upgrades
 Careers in Information
Systems/Information Technology
 Operations
 systems maintenance
 LAN operations
 data entry
 Systems Development
 systems analysis
 hardware/software development
 Support
 data administration
 Web development/maintenance
 Interface
 IS analysis in functional areas: engineering, planning and management
 Participation in multi-disciplinary teams bridging policy and IS
 Maximizing Returns from IT
Investments
 Step1:
- identify the need
- the type of IT investment and the IT metric will depend
on strategic moves, improvements in
productivity and performance, value addition to the
product, and gaining leverage
 Step2:
- identify the type of application
- find out whether the application focuses on the
infrastructure, process, user (employee), or customer
- metrics will change depending upon the type of
application
 Maximizing Returns from IT
Investments
 Step 3:
- identify the user
- find out if the application will be used by a single
function, multiple functions , or all over the
organization
 Step 4:
- identify the approach to measure returns
- if part of a strategic move then the options approach is
the most suitable
- if IT investment is made to the improve performance of
the organization then the scenario, business value, and
performance approaches would be more suitable