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17 views20 pages

demke 3

Uploaded by

yonassetegn016
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CHAPTER THREE

Introduction to Information
Systems
Why study Information Systems and Information Technology?

•Both are vital component of successful businesses

•Helps businesses expand and compete

•Businesses use IS and IT


• To improve efficiency and effectiveness of business
processes
• For managerial decision making

• For workgroup collaboration


Information System (IS) versus Information Technology (IT)

• Information System is all the components and resources necessary to


deliver information and functions to the organization
• IT is hardware, software, networking and data management
• In theory, Information System could be paper based
• But we will focus on Computer-Based Information Systems (CBIS)
What is a system?
• A system
• Is a set of interrelated components
• With a clearly defined boundary
• Working together to achieve a common set of objectives
What is an Information System?
• An organized combination of
• People
• Hardware
• Software
• Communications networks
• Data resources
• Policies and procedures
• That stores, retrieves, transforms, and disseminates
information in an organization
Components of an Information System

• People Resources
• End users: the people who use the IS or the information from the IS
• IS specialists: the people who develop and operate IS

• Hardware Resources
• All physical devices used in information processing
• Machines, data media, peripherals

• Software Resources
• All information processing instructions including programs and
procedures
• System software, application software and procedures
Components of an Information System (cont.)
• Data Resources
– Facts about the business transactions
– Processed and organized information
– Databases of organized data

• Network Resources
– Communications media
– Network infrastructure: hardware and software
– The Internet, intranets and extranets
What is internet, intranet and extranet
• The internet is a global collection of computer networks known as the
world wide web.
• On the other hand, an intranet is an online network only company
employees can access.
• An extranet is an extension of an intranet. It lets approved third parties
(such as vendors or customers) access restricted information.
Activities of Information system
 Input of data resources
– Data entry activities
 Processing of data into information
– E.g., calculate, compare, sort, classify, summarize
 Output of information products
– Messages, reports, forms and graphic images
 Storage of data resources
– Data elements and databases
 Control of system performance
– Monitoring and evaluating feedback
Business Information Systems

1. Electronic and Mobile Commerce


E-Commerce: Any business transaction executed electronically
M-Commerce: Transactions conducted anywhere, anytime
-Relies on wireless communications
2. TPS and ERP
Transaction
• business related exchange
• Evidence of a business event
Transaction Processing System (TPS)
• A system which records completed business transactions
Enterprise Resource Planning (ERP)
• A set of integrated programs for managing the entire business
operations
Specialized Business Information System
Artificial Intelligence (AI): A field in which the computer takes on the
characteristics of human intelligence.
Expert System:
a computer program that uses artificial-intelligence methods to solve
problems within a specialized domain that ordinarily requires human
expertise.
Knowledge Base:
The collection of data, rules, procedures, and relationships that must be
followed to achieve value or the proper outcome.
Virtual Reality:
The simulation of a real or imagined environment that can be
experienced visually in three dimensions.
Front- and Back-Office Information Systems
Front-office information systems support business functions that
reach out to customers (or constituents).
• Marketing
• Sales
• Customer management
 Back-office information systems support internal business
operations and interact with suppliers (of materials, equipment,
supplies, and services).
• Human resources
• Financial management
• Manufacturing
• Inventory control
Classes of Information Systems
• Transaction processing systems

• Management information systems

• Decision support systems

• Expert systems

• Office automation systems

Fundamental Roles of Information System in Business

• Support of business processes and operations.

• Support of decision making by employees and managers.

• Support of strategies for competitive advantage.


Transaction processing systems

Transaction processing systems are information system applications that


capture and process data about business transactions.

• Includes data maintenance, which provides for custodial updates to stored


data.

• Business process redesign (BPR) is the study, analysis, and redesign of


fundamental business (transaction) processes to reduce costs and/or improve
value added to the business.

Management information system (MIS) is an information system application


that provides for management-oriented reporting. These reports are usually
generated on a predetermined schedule and appear in a prearranged format.
A decision support system (DSS) is an information system

application that provides its users with decision-oriented information


whenever a decision-making situation arises. When applied to executive
managers, these systems are sometimes called executive information
systems (EIS).

• A data warehouse is a read-only, informational database that is populated


with detailed, summary, and exception data and information generated by
other transaction and management information systems.

• The data warehouse can then be accessed by end-users and managers


with DSS tools that generate a virtually limitless variety of information in
support of unstructured decisions.
• An expert system is a programmed decision -making information
system that captures and reproduces the knowledge and expertise of an
expert problem solver or decision maker and then simulates the
“thinking” or “actions” of that expert.
 Expert systems are implemented with artificial intelligence technology
that captures, stores, and provides access to the reasoning of the
experts.
 Office automation (OA) systems support the wide range of business
office activities that provide for improved work flow and
communications between workers, regardless of whether or not
those workers are located in the same office.
• Personal information systems are those designed to meet the needs
of a single user. They are designed to boost an individual’s
productivity.

• Work group information systems are those designed to meet


the needs of a work group. They are designed to boost the group’s
productivity.
 Information systems architecture provides a unifying framework
into which various people with different perspectives can organize
and view the fundamental building blocks of information systems.
Building blacks of information system
oSystem owners pay for the system to be built and maintained.
o System users use the system to perform or support the work
to be completed.
o System designers design the system to meet the users’
requirements.
o System builders construct, test, and deliver the system into
operation.
o Systems analysts facilitate the development of information
systems and computer applications by bridging the
communications gap that exists between nontechnical system
owners and users and technical system designers and builders.
o IT vendors and consultants sell hardware, software, and
services to businesses for incorporation into their information
systems.
Focuses for Information Systems

• Data—the raw material used to create useful information.


• Processes—the activities (including management) that carry out the
mission of the business.
• Interfaces—how the system interfaces with its users and other
information systems.
Measuring success of an Information System

• Efficiency
• Minimize cost, time and use of information resources

• Effectiveness
• Support business strategies

• Enable business processes

• Enhance organizational structure and culture

• Increase the customer and business value

• What’s the difference between Efficiency and Effectiveness?


Exercise
1. What are Five classes of information system applications?

2. Name three focuses for information systems?

3. What are Front- and Back-office information systems?

4. List out Components of information system?

5. Explain Activities of information system?

6. What is information system?

7. What are Fundamental Roles of IS in Business?

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