Foundations of Information

Systems in Business
What is an Information System?
Control
Controlof
of System
System Performance
Performance

Input
Inputof
of Output
Outputof
of
Processing
Processing
Data
Data Information
Information
Data
Data
Resources
Resources Products
Products

Storage
Storageof
of Data
DataResources
Resources
Components of an Information System
Components Of IS
Hardware is a device such as a processor, monitor,
keyboard or printer
Software is a program or collection of programs that
enable hardware to process data.

Chapter 1 4
…Continued
Network is a connecting system (wire line or
wireless) that permits different computers to share
resources.
Data are the facts used by programs to produce
useful information.
People are those individuals who use the
hardware and software, interface with it, or uses its
output.

Chapter 1 5
Major Roles of Information Systems
Support
Strategies for
Competitive Advantage

Support
Business Decision Making

Support
Business Processes and Operations
Categories of Information Systems
Expert
Expert Systems
Systems

Knowledge
KnowledgeManagement
Management Systems
Systems

Functional
FunctionalBusiness
BusinessSystems
Systems

Strategic
StrategicInformation
InformationSystems
Systems

Cross-Functional
Cross-FunctionalInformation
InformationSystems
Systems
Expert Systems:
Knowledge-based systems that provide expert advice and act as
expert consultants to users.

Examples: credit application advisor, process monitor, and

diagnostic maintenance systems.

Knowledge Management Systems:

knowledge-based information systems that support the creation,

organization, and dissemination of business knowledge to
employees and managers throughout a company.

Examples: intranet access to best business practices, sales

proposal strategies, and customer problem resolution systems.
Functional Business Systems: Support a variety of operational and
managerial applications in support of basic business functions of a
company.
Examples: information systems that support applications in
accounting, finance, marketing, operations management, and human
resource management.

Strategic Information Systems: are information systems that

support operations or management processes that provide a firm with
strategic products, services, and capabilities for competitive
advantage.
Examples: online stock trading, shipment tracking, and e-commerce
Web systems.

Cross-Functional Information Systems: are information systems that

are integrated combinations of business information systems, thus
sharing information resources across the functional units of an
organization
Take any organization of your choice
( from the fortune 500 companies)
1. Draw the structure of the
organization.
2. Depict how IS can be in cooperated
in to each functional departments?
3. Define the level of impact of IS
implementation by an year forecast
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What is IoT?
The Internet of Things (IoT) is the network of physical

objects—devices, vehicles, buildings and other items

embedded with electronics, software, sensors, and
network connectivity—that enables these objects to
collect and exchange data.
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Various Names, One Concept

M2M (Machine to Machine)

“Internet of Everything” (Cisco Systems)

“World Size Web” (Bruce Schneier)

“Skynet” (Terminator movie)

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Smart Appliances

Wearable
Tech

Healthcare
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Where is IoT?

On your campus…
Information Security
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The IoT Market

As of 2013, 9.1 billion IoT units

Expected to grow to 28.1 billion IoT devices by 2020

Revenue growth from $1.9 trillion in 2013 to $7.1 trillion

in 2020
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Why be concerned about IoT?

 It’s just another computer, right?
 All of the same issues we have with

access control, vulnerability

management, patching, monitoring, etc.
 Imagine your network with 1Million

more devices
 Any compromised device is a foothold

on the network
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Attacking IoT
Default, weak, and hardcoded credentials
Difficult to update firmware and OS
Lack of vendor support for repairing vulnerabilities
Coding errors
Physical theft and tampering
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Threat vs. Opportunity

If misunderstood and misconfigured, IoT poses risk to our
data, privacy, and safety

If understood and secured, IoT will enhance

communications, lifestyle, and delivery of services
common types of information system in an organization
 Executive Information Systems
They help executives and senior managers analyze the
environment in which the organization operates, to
identify long-term trends, and to plan appropriate courses
of action. Executive Information System are designed to be
operated directly by executives without the need for
intermediaries and easily tailored to the preferences of the
individual using them.
Some examples of EIS
Executive Information Systems tend to be highly
individualized and are often custom made for a particular
client group;
Decision Support Systems
Decision Support System can be seen as a knowledge based
system, used by senior managers, which facilitates the
creation of knowledge and allow its integration into the
organization. These systems are often used to analyze
existing structured information and allow managers to
project the potential effects of their decisions into the
future.

Some examples of DSS

Group Decision Support Systems (GDSS)
Computer Supported Co-operative work (CSCW)
Logistics systems
Financial Planning systems
Management Information Systems
Management Information Systems are management-level
systems that are used by middle managers to help ensure the
smooth running of the organization in the short to medium
term. The highly structured information provided by these
systems allows managers to evaluate an organization's
performance by comparing current with previous outputs.
Some examples of MIS
Sales management systems
Inventory control systems
Budgeting systems
Management Reporting Systems (MRS)
Personnel (HRM) systems
Transaction Processing Systems
Transaction Processing System are operational-level systems at
the bottom of the pyramid. They are usually operated directly
by shop floor workers or front line staff, which provide the key
data required to support the management of operations. This
data is usually obtained through the automated or semi-
automated tracking of low-level activities and basic
transactions.
Some examples of TPS
• Payroll systems
• Order processing systems
• Reservation systems
• Stock control systems
• Systems for payments and funds transfers
DSS
Decision Support Systems (DSS) are a class of
computerized information system that support decision-
making activities.
DSS are interactive computer-based systems and subsystems
intended to help decision makers use communications
technologies, data, documents, knowledge and/or models
to complete decision process tasks.
A decision support system may present information
graphically and may include an expert system or artificial
intelligence (AI). It may be aimed at business executives
or some other group of knowledge workers.
Types of DSS
Communication-driven DSS
Data-driven DSS
Document-driven DSS
Knowledge-driven DSS:
Model-driven DSS
Communication-driven DSS
Most communications-driven DSSs are targeted at
internal teams, including partners. Its purpose are to
help conduct a meeting, or for users to collaborate.
The most common technology used to deploy the DSS
is a web or client server.
Examples: chats and instant messaging software's,
online collaboration and net-meeting systems.
Data-driven DSS

Most data-driven DSSs are targeted at managers, staff and

also product/service suppliers. It is used to query a
database or data warehouse to seek specific answers for
specific purposes. It is deployed via a main frame system,
client/server link, or via the web.
Examples: computer-based databases that have a query
system to check (including the incorporation of data to
add value to existing databases.
Document-driven DSS
Document-driven DSSs are more common, targeted at a
broad base of user groups.
The purpose of such a DSS is to search web pages and find
documents on a specific set of keywords or search terms.
Knowledge-driven DSS:
Knowledge-driven DSSs or 'knowledgebase' are a catch-all
category covering a broad range of systems covering users
within the organization setting it up, but may also include
others interacting with the organization.
Example:- consumers of a business.

It is essentially used to provide management advice or to

choose products/services.
Model-driven DSS
Model-driven DSSs are complex systems that help
analyze decisions or choose between different options.

These are used by managers and staff members of a

business, or people who interact with the organization
The Information Systems Development Process