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:
– accurate
– reliable
– relevant
– verifiable
– valuable
Information Systems Fundamentals (cont’d)
• System: a collection of 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
Information Systems Fundamentals (cont’d)
• Organizations may be classified according to the systems they
employ:
– Simple vs. complex
– Open vs. closed
– Stable vs. dynamic
– Adaptive vs. nonadaptive
– 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, mock-ups
– 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
 Information Systems Components
• 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
– Can flag for incorrect processing
– Cue for managerial interventions
– Supply estimates of future input values (forecasting)
 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
 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