MIS Prelim Summary
MIS Prelim Summary
INFORMATION
MANAGEMENT
Topics
• Data Induction
• Information
• Intelligence The information management (IM) process is a set of activities associated with the
• Information Technology (IT) collection and management of information from one or more sources and the
distribution of that information to one or more audiences. Information, in its most
Learning Outcome restricted technical sense, is an ordered sequence of symbols that record or transmit a
message. The key idea is that information is a collection of facts that is organized in
• Explain the role of data, such a way that they have additional value beyond the value of the facts themselves.
information, and databases The systems engineer is both the generator and recipient of information products;
in organizations thus, the systems engineer has a vital stake in the success of the development and use
of the IM process and IM systems.
• Discuss the advantages of
using a database over
traditional file processing
1.1 Data
Data is defined as facts or figures, or information that's stored in or used by a computer. An example of data is
information collected for a research paper. the quantities, characters, or symbols on which operations are
performed by a computer, which may be stored and transmitted in the form of electrical signals and recorded on
magnetic, optical, or mechanical recording media.
1.2 Information
Information is a stimulus that has meaning in some context for its receiver. When information is entered into and
stored in a computer, it is generally referred to as data. After processing (such as formatting and printing), output
data can again be perceived as information.
Information (shortened as info or info.) is that which informs, i.e. that from which data can be derived. At its most
fundamental, information is any propagation of cause and effect within a system. Information is conveyed either as
the content of a message or through direct or indirect observation of something. That which is perceived can be
construed as a message in its own right, and in that sense, information is always conveyed as the content of a
message. Information can be encoded into various forms for transmission and interpretation. For example,
information may be encoded into signs, and transmitted via signals.
These are difficult times for all organizations of all sizes and in all sectors. On the one hand, customers have ever-
increasing expectations in terms of the speed and quality of service they expect and, on the other resources are
continually under pressure.
This document sets out how effective information and records management can help any organization to move
forward in this challenging environment through,
1.3 Intelligence
Intelligence has been defined in many different ways such as in terms of one's capacity for logic, abstract thought,
understanding, self-awareness, communication, learning, emotional knowledge,
memory, planning, creativity and problem solving
1.3.1 Knowledge
Importance:
• Learning Better
• Setting Goals As You Learn
• Learn Complex Things Faster
• Knowledge Helps You Solve Problems
• Understanding Yourself
1.4 Information Technology (IT)
Information technology (IT) is the application of computers and telecommunications equipment to store,
retrieve, transmit and manipulate data, often in the context of a business or other enterprise.
1.4.1 Need
• Information explosion is an ever increasing phenomena therefore there is need to get access to this
information
• Education should meet the needs of variety of learners and therefore IT is important in meeting this need
• It is a requirement of the society that the individuals should posses technological literacy
• We need to increase access and bring down the cost of education to meet the challenges of illiteracy and
poverty-IT is the answer
1.4.2 Importance
Information management (IM) concerns a cycle of organizational activity: the acquisition of information from one or
more sources, the custodianship and the distribution of that information to those who need it, and its ultimate disposal
through archiving or deletion.
This cycle of information organization involves a variety of stakeholders, including those who are responsible for
assuring the quality, accessibility, and utility of acquired information; those who are responsible for its safe storage and
disposal; and those who need it for decision making. Stakeholders might have the right to originate, change, distribute
or delete information according to organizational information management policies.
Information management embraces all the generic concepts of management, including the planning, organizing,
structuring, processing, controlling, evaluation, and reporting of information activities, all of which are needed to meet
the needs of those with organizational roles or functions that depend on information. These generic concepts allow the
information to be presented to the audience or the correct group of people. After individuals can put that information
to use, it then gains more value.
References
Books/e-Books
• Mcknight, W. (2013). Information Management: Strategies for Gaining a Competitive Advantage with Data (The
Savvy Manager’s Guides) (1st ed.). Morgan Kaufmann.
Internet
Journal Articles
• Kaur, B. (2013). Information Management. INTERNATIONAL JOURNAL OF COMPUTERS & TECHNOLOGY, 3(3), 424–
427. https://doi.org/10.24297/ijct.v3i3a.2949
INFORMATION
SYSTEMS
Overview
Information:
A collection of facts organized in such a way that they have
additional value beyond the value of the facts themselves.
Knowledge:
An awareness and understanding of a set of information and
ways that information can be made useful to support a specific
task or reach a decision
The Value of Information
Software:
Computer Programs
Databases:
An organized collections of facts
CBIS
Telecommunications:
Electronic transmission of signals for communication
Procedures:
Strategies, policies, methods, and rules for using a CBIS.
Business Information Systems
Electronic and Mobile Commerce
E-Commerce:
Any business transaction executed electronically
M-Commerce:
Transactions conducted anywhere, anytime
Knowledge Base:
The collection of data, rules, procedures,
and relationships that must be followed
to achieve value or the proper outcome.
Virtual Reality:
Control
Feedback
Data:
Raw unorganized facts
Information:
Data organized in a meaningful way for
the user (in consideration of the
environment)
Informal Information System
Sub System:
Component of a larger system
System Boundary:
Interaction with environment (user or other
system) via an interface
Information System Activities
Lower
TPS
Management
Technical
(Operational)
Buy Make Sell Keep
Functions
Structured Track
Introduction Of Information Technology
42
• Data vs. Information
• What Is Technology?
• Defining Information Technology
• Utilizing IT In The Society
• The Functions Of Information Technology
• The Benefits of Information Technology
• What Are The Characteristics Of Good Information?
• Examples on IT Careers
• Conclusion
• Useful Link
43
Data vs. Information
There is different between data and information. In fact, Information is created
from data.
44
Data vs. Information
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What Is Technology
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Defining Information
Technology
IT stands for "Information Technology," and is pronounced "I.T."
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Defining Information Technology
• Information technology is “ anything related to computing
technology, such as networking, hardware, software, the
Internet, or the people that work with these technologies”.
• Success in business is largely determined by the
effectiveness with which information technology is used.
. 48
Utilizing IT In The Society
Information Technology Is All Around Us, Improving Our Lives
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Information Technology Is All Around Us,
Improving Our Lives
• Education
• Training
• Entertainment
• Shipping
• Manufacturing
• Journalism
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Information Technology Is All Around Us,
Improving Our Lives
. 51
Utilizing IT In The Society (people)
• Personal Communication
• Conversations (phone, cell)
• Messaging (E-mail, SMS)
• Video
• Entertainment
• Web surfing
• Downloading video and audio files
• Interactive gaming
• Day-to-Day living
• Buying airline ticket
• Ordering books
• Electronic banking/ stock market
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Utilizing IT In The Society (business)
• Information technology is embedded in many products and services.
• Internal Communication
• Computer network
• Video teleconferencing
• Messaging (SMS, email)
• Electronic Commerce
• Corporate website
• Call Centers
• Electronic transactions
• Online sales
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Classroom Exercise :
Utilizing IT In The Society (university )
. 54
The Functions Of Information Technology
There are six main functions for information technology which are :
1.Capture
2.Process
3.Generate
4.Store and retrieve
5.Transmit
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The Functions Of Information Technology
. 56
The Functions Of Information Technology
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The Functions Of Information Technology
• Generation: The process of organizing information into a useful form, whether as numbers,
text, sound, or visual image.
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The Benefits of Information
Technology
There are four main benefits for Information technology which are :
1.Speed
2.Consistency
3.Precision
4.Reliability
. 59
The Benefits of Information Technology
• Speed
• Users of information technology can use tools like computers to perform
different tasks faster, such as: calculation and filtering .
• Computer can perform multiple functions on the same time which can not be
done by humans.
• Computers have applications which can store data in a systematic way making
it easy to understand and organize important facts.
• Organizations can use internet to interact with their customers in real time
and respond to their needs.
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The Benefits of Information Technology
• Consistency
• The information will be consistent in all departments or branches of the
company.
• Example : you can use your order number to track your order in real time.
• Precision or accuracy
• The information will be accurate.
• Even though information technology is managed by humans, it is more likely to be more
accurate than humans.
• Example : computers never make mistakes in calculation.
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The Benefits of Information Technology
• Reliability
• Information technology systems can run 24hrs 7 days a week.
• These systems can only be interrupted for repairs and maintenance which takes just
a few hours and the system will be up for use.
• This is a win-win process for both organizations and customers who need the
service in time.
• Let’s take a simple example of a Bank.
• This is a financial institution whose services are needed by the end-user on time. Banks use IT
systems to deliver services like remote banking so customers can easily deposit money,
withdraw money or print out bank statements without coming to a physical main branch of that
bank.
• IT experts make sure that these remote ATM machines and other remote banking systems are
running all the time, they can do maintenance in the late hours when users are not active so
that they do not interrupt the service when needed by the user.
. 62
What Are The Characteristics Of Good Information?
• It has to be accurate
• It has to be Timely (should be communicated in time to be used )
• It has to be consistent and reliable
• It has to be Up-to-date
• Easy to understand
. 64
Examples on IT Careers
• Database Administration
• Managing corporate database
• Information Security Jobs
• Address information security
• IT Analyst
• Translate business requirement into technical specification
• Network Administration
• Configure and operate computer network
. 65
Examples on IT Careers
• Management Consulting
• Provide consulting for organizations
• Computer Forensics Expert
• Extracts computer evidence for detecting/preventing /prosecuting crimes
• IT Sales:
• people on frontline to sell products
• Software development:
• develop software solutions
. 66
Conclusion
• There is different between data and information. In fact,
Information is created from data.
• Information Technology Is All Around Us, Improving Our Lives
• Company , organization, university and government must adopt
Information technology to survive in these technical world.
• There are six main functions for information technology which
are capture, process, generate , store ,retrieve and transmit.
• There are four main benefits for Information technology which
are speed, consistency, precision ,reliability .
• new careers have been emerged because of of IT. However,
there are some careers have been vanished
. 67
Useful Link
• What is IT?
https://www.youtube.com/watch?v=cWNEZLbP9Lk
. 68
INFORAMTION
SYSTEM
Information system
1.5 Information system
Despite decades of using various non-paper storage media, the amount of paper in our offices continues to escalate.
An effective records information system addresses both creation control (limits the generation of records or copies
not required to operate the business) and records retention (a system for destroying useless records or retiring
inactive records), thus stabilizing the growth of records in all formats.
Recordkeeping requires administrative dollars for filing equipment, space in offices, and staffing to maintain an
organized filing system (or to search for lost records when there is no organized system).It costs considerably less per
linear foot of records to store inactive records in a Data Records Center versus in the office and there is an
opportunity to effect some cost savings in space and equipment, and an opportunity to utilize staff more
productively - just by implementing a records management program.
3. To improve efficiency and productivity
Time spent searching for missing or misfiled records are non-productive. A good records management program
(e.g. a document system) can help any organization upgrade its recordkeeping systems so that information
retrieval is enhanced, with corresponding improvements in office efficiency and productivity. A well designed and
operated filing system with an effective index can facilitate retrieval and deliver information to users as quickly as
they need it.
Moreover, a well managed information system acting as a corporate asset enables organizations to objectively
evaluate their use of information and accurately lay out a roadmap for improvements that optimize business
returns.
A good records management program provides an organization with the capability to assimilate new technologies
and take advantage of their many benefits. Investments in new computer systems whether this is financial,
business or otherwise, don't solve filing problems unless current manual recordkeeping or bookkeeping systems
are analyzed (and occasionally, overhauled) before automation is applied.
5. To ensure regulatory compliance
In terms of recordkeeping requirements, China is a heavily regulated country. These laws can create major compliance
problems for businesses and government agencies since they can be difficult to locate, interpretand apply. The only way
an organization can be reasonably sure that it is in full compliance with laws and regulations is by operating a good
management information system which takes responsibility for regulatory compliance, while working closely with the
local authorities. Failure to comply with laws and regulations could result in severe fines, penalties or other legal
consequences.
Business organizations implement management information systems and programs in order to reduce the risks
associated with litigation and potential penalties. This can be equally true in Government agencies. For example, a
consistently applied records management program can reduce the liabilities associated with document disposal by
providing for their systematic, routine disposal in the normal course of business.
7. To safeguard vital information
Every organization, public or private, needs a comprehensive program for protecting its vital records and
information from catastrophe or disaster, because every organization is vulnerable to loss. Operated as part of a
good management information system, vital records programs preserve the integrity and confidentiality of the
most important records and safeguard the vital information assets according to a "Plan" to protect the records.
This is especially the case for financial information whereby ERP (Enterprise Resource Planning) systems are being
deployed in large companies.
In today's business environment, the manager that has the relevant data first often wins, either by making the
decision ahead of the competition, or by making a better, more informed
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9. To preserve the corporate memory
An organization's files, records and financial data contain its institutional memory, an irreplaceable asset that is often
overlooked. Every business day, you create the records, which could become background data for future
management decisions and planning.
A business office with files, documents and financial data askew, stacked on top of file cabinets and in boxes
everywhere, creates a poor working environment. The perceptions of customers and the public, and "image" and
"morale" of the staff, though hard to quantify in cost-benefit terms, may be among the best reasons to establish a
good management information system
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1.5.2 Evolution
The first business application of computers (in the mid- 1950s) performed repetitive, high-volume, transaction-
computing tasks. The computers‖ crunched numbers‖ summarizing and organizing transactions and data in the
accounting, finance, and human resources areas. Such systems are generally called transaction processing systems
(TPSs).
Management Information Systems (MISs): these systems access, organize, summarize and display information for
supporting routine decision making in the functional areas.Office Automation Systems (OASs): such as word
processing systems were developed to support office and clerical workers.
Decision Support Systems: were developed to provide computer based support for complex, non routine decision. „
End- user computing: The use or development of information systems
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Intelligent Support System (ISSs): Include expert systems which provide the stored knowledge of experts to non
experts, and a new type of intelligent system with machine- learning capabilities that can learn from historical cases.
„ Knowledge Management Systems: Support the creating, gathering, organizing, integrating and disseminating of
organizational knowledge.
Data Warehousing: A data warehouse is a database designed to support DSS, ESS and other analytical and end-user
activities. „ Mobile Computing: Information systems that support employees who are working with customers or
business partners outside the physical boundaries of their company; can be done over wire or wireless networks.
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Four General Kinds of IS
• Operational-level systems
• Support operational managers by monitoring the day-to-day‘s elementary activities and transactions of
the organization. e.g. TPS.
• Knowledge-level systems
• Support knowledge and data workers in designing products, distributing information, and coping with
paperwork in an organization. e.g. KWS, OAS
• Management-level systems
• Support the monitoring, controlling, decision-making, and administrative activities of middle managers.
e.g. MIS, DSS
• Strategic-level systems
• Support long-range planning activities of senior management. e.g. ESS
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• Executive Support Systems (ESS)
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• Decision Support Systems (DSS)
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• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
• Transaction Processing Systems (TPS)
Transaction Processing Systems (TPS)
Computerized system that performs and records the daily routine transactions necessary to conduct the business;
these systems serve the operational level of the organization.
• TYPE: Operational-level
• INPUTS: transactions, events
• PROCESSING: updating
• OUTPUTS: detailed reports
• USERS: operations personnel, supervisors
• DECISION-MAKING: highly structured
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Office Automation Systems (OAS)
Computer system, such as word processing, electronic mail system, and scheduling system, that is designed to
increase the productivity of data workers in the office.
• TYPE: Knowledge-level
• INPUTS: documents, schedules
• PROCESSING: document management, scheduling, communication
• OUTPUTS: documents; schedules
• USERS: clerical workers
Information system that aids knowledge workers in the creation and integration of new knowledge in the
organization.
• TYPE: Knowledge-level
• INPUTS: design specifications
• PROCESSING: modelling
• OUTPUTS: designs, graphics
• USERS: technical staff; professionals
Information system at the management level of an organization that combines data and sophisticated analytical
models or data analysis tools to support semi-structured and unstructured decision making.
• TYPE: Management-level
• INPUTS: low volume data
• PROCESSING: simulations, analysis
• OUTPUTS: decision analysis
• USERS: professionals, staff managers
• DECISION-MAKING: semi-structured
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Management Information Systems (MIS)
Information system at the management level of an organization that serves the functions of planning,
controlling, and decision making by providing routine summary and exception reports.
TYPE: Management-level
INPUTS: high volume data
PROCESSING: simple models
OUTPUTS: summary reports
USERS: middle managers
DECISION-MAKING: structured to semi-structured
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Executive Support Systems (ESS)
Information system at the strategic level of an organization that address unstructured decision making through
advanced graphics and communications.
Introduction
A system development methodology refers to the framework that is used to structure, plan, and control the
process of developing an information system. A wide variety of such frameworks have evolved over the years,
each with its own recognized strengths and weaknesses. One system development methodology is not necessarily
suitable for use by all projects. Each of the available methodologies is best suited to specific kinds of projects,
based on various technical, organizational, project and team considerations. CMS has considered each of the
major prescribed methodologies in context with CMS‘ business, applications, organization, and technical
environments. As a result, CMS requires the use of any of the following linear and iterative methodologies for
CMS systems development, as appropriate.
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1.5.4.1 Prototyping 1.5.5 Functional Information System (FIS)
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Supports a functional area by increasing its internal effectiveness and efficiency. Typically found for:
• Finance (FIN): provide internal and external professional access to stock, investment and capital spending
information.
• Accounting (ACC): similar to financial MIS more related to invoicing, payroll, receivables.
• Marketing (MKT): pricing, distribution, promotional, and information by customer and salesperson.
• Operations (OPS): regular reports on production, yield, quality, inventory levels. These systems typically deal
with manufacturing, sourcing, and supply chain management.
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• Human Resources Management (HR): employees, benefits, hiring‘s, etc.
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THANK YOU
Information System
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Information System – Primary Purpose
88
Activity 1
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Basic component of ISs:
1. Hardware: it’s a set of devices such as processor, monitor,
keyboard, and printer.
• Together, they accept data and information as an input, process
them, and display them as an output.
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Basic component of ISs:
2. Software: it’s a set of programs that instruct the hardware to
process data.
3. A database: is a collection of related files, tables, relations, and so
on, that stores data and the associations among them.
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Basic component of ISs:
4. A network: is a connecting system that permits the sharing of
resources by different computers. It can be wireless.
5. Policies and Procedures: are the set of instructions about how to
combine the above components in order to process information
and generate the desired output.
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Basic component of ISs:
6. People: are those individuals who work with the system, interface
with it, or use its output.
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IS Activities
• Input of data resources
• Data entry activities
• Processing of data into information
• Calculations, comparisons, sorting, and so on
• Output of information products
• Messages, reports, forms, graphic images
• Storage of data resources
• Data elements and databases
• Control of system performance
• Monitoring and evaluating feedback
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Recognizing Information Systems
• As professional of EMIS, you should be able to look at an information
system and identify…
• The people, hardware, software, data, and network resources they use
• The type of information products they produce
• The way they perform input, processing, output, storage, and control
activities
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Major Capabilities of Information Systems
96
Major Capabilities of Information Systems
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All ISs have a purpose and social
context.
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Purpose
• A typical purpose is to provide solution to a (business) problem.
• Example:
• To coordinate internal units
• To collaborate
• To improve performance
99
Social context
• The social context of the system consists of the values and beliefs
that determine what is admissible and possible within the culture of
the people and groups involved.
100
Foundations of
Information Systems
101
Foundation Concepts
• Why study information systems and information technology?
• Vital component of successful businesses
• Helps businesses expand and compete
• Improves efficiency and effectiveness of
business processes
• Facilitates managerial decision making and workgroup collaboration
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What is a System?
• A group of interrelated or interacting elements forming a unified
whole
103
What is a System?
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives
104
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
• By accepting inputs and producing outputs
• In an organized transformation process
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System Concepts: A Foundation
• System concepts help us understand…
• Technology: hardware, software, data management,
telecommunications networks
• Applications: to support inter-connected information
systems
• Development: developing ways to use information
technology includes designing the basic components
of information systems
• Management: emphasizes the quality, strategic
business value, and security of an organization’s
information systems
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Cybernetic System
• All systems have input, processing, and output
• A cybernetic system, a self-monitoring, self-regulating system, adds
feedback and control:
• Feedback is data about the performance of a system
• Control involves monitoring and evaluating feedback to determine whether a
system is moving toward the achievement of its goal
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Other System Characteristics
• If a system is one of the components of a larger system, it is a subsystem
• The larger system is an environment
• Several systems may share the same environment
• Some may be connected via a shared boundary, or interface
• Types of systems…
• Open
• Adaptive
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What is an Information System?
• An organized combination of…
• People
• Hardware and software
• Communication networks
• Data resources
• Policies and procedures
• This system…
• Stores, retrieves, transforms, and disseminates information in an organization
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Information Technologies
• Information Systems
• All the components and resources necessary to deliver information and
functions to the organization
• Could be paper based
• Information Technologies
• Hardware, software, networking, data management
• Our focus will be on computer-based information systems (CBIS)
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What Should Business
Professionals Know?
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Fundamental Roles of IS in Business
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Trends in InformationO'Brien,
SystemsJames; Marakas, George 2008
113
Types of Information Systems
• Operations Support Systems
• Efficiently process business transactions
• Control industrial processes
• Support communication and collaboration
• Update corporate databases
• Management Support Systems
• Provide information as reports and displays
• Give direct computer support to managers during decision-making
114
Purposes of Information Systems
116
Types of Operations Support Systems
• Transaction
Process Control Systems Systems
Processing
•• Monitor and control
Record and processphysical
businessprocesses
transactions
•• Example:
Examples:using sensors
sales to monitor
processing, chemical
inventory processes
systems, in a petroleum
accounting refinery
systems
• Enterprise Collaboration Systems
• Enhance team and workgroup communication
• Examples: email, video conferencing
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Two Ways to Process Transactions
• Batch Processing
• Accumulate transactions over time and process periodically
• Example: a bank processes all checks received in a batch at night
• Online Processing
• Process transactions immediately
• Example: a bank processes an ATM withdrawal immediately
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Management Support Systems
• What do they do?
• Provide information and support for effective decision making by managers
• Management information systems
• Decision support systems
• Executive information systems
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Types of Management Support Systems
• Management Information Systems (MIS)
• Reports and displays
• Example: daily sales analysis reports
• Decision Support Systems (DSS)
• Interactive and ad hoc support
• Example: a what-if analysis to determine where to spend advertising dollars
• Executive Information Systems (EIS)
• Critical information for executives and managers
• Example: easy access to actions of competitors
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Other Information Systems
• Expert Systems
• Provide expert advice
• Example: credit application advisor
• Knowledge Management Systems
• Support creation, organization, and dissemination of business knowledge
throughout company
• Example: intranet access to best business practices
121
Measuring IT Success
• Efficiency
• Minimize cost, time, and use of information resources
• Effectiveness
• Support business strategies
• Enable business processes
• Enhance organizational structure and culture
• Increase customer and business value
122
Developing IS Solutions
125
Information System Resources
• Data Resources
• Product descriptions, customer records,
employee files, inventory databases
• Network Resources
• Communications media, communications
processors, network access and control software
• Information Resources
• Management reports and business documents
using text and graphics displays, audio responses,
and paper forms
126
ACTIVITY 3
127
System development methodologies
• Structured design
Waterfall development
Parallel development
• Rapid Application development
Phased development
Prototyping
Throwaway prototyping
• Agile Development
Extreme Programming (XP)
Waterfall Development
PLANNING
ANALYSIS
DESIGN
IMPLEMENTATION
SYSTEM
WaterfallAdvantages:
Development Disadvantages:
System requirements
identified long before Design must be completely
programming begins specified on paper before
Large degree of management programming begins
control promotes
documentation and Use of paper specifications can
ensures ability to trace
user requirements thus result in misunderstanding of
minimizing changes to user requirements
requirements
Complex and lengthy – large
amount of time elapses between
analysis and delivery of the
system – user needs may change
Parallel Development
PLANNING
ANALYSIS
OVERALL SUBDESIGN
DESIGN
SUBDESIGN
SUBIMPLEMENT
SUBDESIGN
SUBIMPLEMENT
SUBIMPLEMENT
OVERALL
IMPLEMENTATION
SYSTEM
Parallel Development
Advantages Disadvantages
Same as for waterfall Same as for waterfall plus:
development plus:
Subsystems are not usually
Time is reduced compared to independent so changes in
the waterfall method which one subsystem can affect
decreases the chances that others
user needs will change
before the system is Additional work to coordinate
implemented and integrate subsystems
Phased Development
PLANNING
V1 ANALYSIS
OVERALL
ANALYSIS V1 DESIGN
V1 IMPLEMENT
V2 ANALYSIS
V2 DESIGN
SYSTEM
V2 IMPLEMENT VERSION 1
V3 ANALYSIS
V3 DESIGN
SYSTEM
V3 IMPLEMENT VERSION 2
SYSTEM
VERSION 3
Phased Development Disadvantages
Advantages
User begins to work on a system
Quickly gets a useful version into that is intentionally incomplete
the hands of the users
Problems with success and
System provides business value acceptance of the system can
sooner compared to structured occur if the essential features
methodologies are not identified for the first
version.
Users able to provide feedback
and discover important new Must manage user expectations in
requirements sooner terms of having to wait for
features that will be
implemented in subsequent
versions
Prototyping
PLANNING
ANALYSIS
DESIGN
IMPLEMENTATION
SYSTEM
IMPLEMENTATION
PROTOTYPE
SYSTEM
PrototypingAdvantages Disadvantages
Reassures users that the project is Initial prototype could lead you
indeed progressing towards a down an ineffective path and
finished system once started, it is difficult to go
back to the beginning
Helps to refine requirements more
quickly – users can interact
with the prototype and better
understand what it can and
cannot do easier than if the
system were on paper.
Throwaway Prototyping
PLANNING
ANALYSIS
ANALYSIS
DESIGN
IMPLEMENTATION DESIGN
PROTOTYPE
DESIGN
IMPLEMENTATION
SYSTEM
Throwaway Prototyping
Advantages Disadvantages
• TYPE: Operational-level
• PROCESSING: updating
• TYPE: Knowledge-level
• An example may be the Bank ATM and POS terminal, both of which
have user input which requires immediate feedback.
Characteristics of a transaction processing
system
• Records internal and external transactions that take place in a
company
• Is used mostly by lower-level managers to make operational
decisions
• Stores data that are frequently accessed by other systems
• Is ideal for routine, repetitive tasks
• Records transactions in batch mode or on-line
• Requires six steps to process a transaction—data entry, validation,
data processing, storage, output generation, and query support
TPS payroll system
Management Information Systems
• Serve middle management
• Provide reports on firm’s current performance, based on data from TPS
• Provide answers to routine questions with predefined procedure for
answering them
• Typically have little analytic capability
Management Information Systems
• An MIS provides managers with information and support for effective
decision making, and provides feedback on daily operations.
• MIS provides information to the users in the form of reports
• Output, or reports, are usually generated through accumulation of
transaction processing data.
• Automatically
produced when a
situation is
unusual or
requires
management
action
Drill Down Reports
• Provide
detailed data
about a
situation.
Management
• Management is decision making
• The manager is a decision maker
• Organizations are filled with decision makers at different level.
• Management is considered as art: a talent acquired over years by trial-and-error.
• However decision making today is becoming more complicated:
• Technology / Information/Computers : increasing More alternative to choose
• Structural Complexity / Competition : increasing larger cost of error
• International markets / Consumerism : increasing more uncertainty about future
• Changes, Fluctuations : increasing need for quick decision
Management problems
• Most management problems for which decisions are sought can be represented by three standard
elements – objectives, decision variables, and constraints. These problems can be structured, semi-
structured and unstructured in nature:
• Objective
• Maximize profit
• Provide earliest entry into market
• Minimize employee discomfort/turnover
• Decision variables
• Determine what price to use
• Determine length of time tests should be run on a new product/service
• Determine the responsibilities to assign to each worker
• Constraints
• Can’t charge below cost
• Test enough to meet minimum safety regulations
• Ensure responsibilities are at most shared by two workers
Information Systems to support decisions
Management Decision Support
Information Systems
Systems
Decision Provide information about Provide information and
support the performance of the techniques to analyze
provided organization specific problems
Information Periodic, exception, Interactive inquiries and
form and demand, and push reports responses
frequency and responses
Information Prespecified, fixed format Ad hoc, flexible, and
format adaptable format
Information Information produced by Information produced by
processing extraction and manipulation analytical modeling of
methodology of business data business data
Decision support systems
• A Decision Support System (DSS) is an interactive
computer-based system or subsystem intended to
help decision makers use communications
technologies, data, documents, knowledge and/or
models to identify and solve problems, complete
decision process tasks, and make decisions.
• Decision Support System is a general term for any
computer application that enhances a person or
group’s ability to make decisions; can be as simple as
an excel spread sheet to a complicated system
involving large databases, statictical modelling
techniques and applying A.I. to dervive information.
Question
Employee Payroll
/file
database System
Management
Employee number reports
Address
Pa rate
Gross pay To government
Federal tax agencies
Medicare
State tax
Net pay Employee paychecks
Online
queries
TPS CHARACTERISTICS
• A TPS records internal and external transactions for a company. It is a
repository of data that is frequently accessed by other systems
• A TPS performs routine , repetitive tasks .It is mostly used by lower level
managers to make operational decisions
• Transactions can be recorded in batch mode or online. In batch mode the
files are updated periodically. In online mode , each transaction is
recorded as it occurs
• There are six steps in processing a transaction:
1. data entry ,
2. data validation ,
3. data processing and
4. revalidation ,
5. storage – output generation and
6. query support
Objectives of TPS
• Real time:
• each transaction is unique ; transactions are
standlone; requires master file to be available more
often for updating; fewer errors-transaction data is
validated and entered immediately; infrequent errors
may occur; not practical to shut down the whole system
• Batch:
• each transaction pat of a group; database not
accessible all of the time; more errors; data is organized
and stored before master file is updated -errors can
occur during these steps; easier to maintain than real-
time.
2) MIS
TPS MIS
Order
file Order
Sales
Processing data
system
Production Unit
Materials reports
Master Product
file Resource MIS
Cost data
Planning
system
managers
Product
change
Accounting data
file General
Ledger Expense
system data
3)Decision Support System
• A decision support system (DSS) is a computer program
application that analyzes business data and presents it so that
users can make business decisions more easily.
• It is an "informational application" (to distinguish it from an
"operational application" that collects the data in the course of
normal business operation).
• Typical information that a decision support application might
gather and present would be:
1) Comparative sales figures between one week and the next
2) Projected revenue figures based on new product sales assumptions
3) The consequences of different decision alternatives, given past
experience in a context that is described
4) 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
Characteristics of Decision support system
• Provides rapid access to information
• Handles large amount of data from different
sources
• Provides report and presentation flexibility
• Offer both textual and graphical orientation
• Support drill down analysis
• Perform complex ,sophisticated analysis aqnd
comparisons using advanced s/w
Activities in decision support system
• What if analysis
• Sensitivity analysis
• Goal seeking analysis
• Optimization analysis
VOYAGE-ESTIMATING DECISION SUPPORT
SYSTEM
•
Ship file eg
speed,capacity
PC
Port distance
Restriction file
fuel consumption
cost file
Analytical
Models Port expense
database file
Online
queries
DSS:Example
• Voyage estimating system calculates financial and
technical voyage details. It is based on analytical
models.
• Financial calculations include :
• ship/time costs(fuel, labor, capital) ,freight rates for
various types of cargo and port expenses
• Technical details include factor as:
• ship cargo capacity, speed ,port distances ,fuel and
water consumption and loading patterns ( locations of
cargo for different ports
Continued…
• The system can answer questions such as:
• Menus
• Graphics
ESS • Communications ESS
Workstation/Portal • Digital Dashboards Workstation/Portal
Figure 2-1
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
Figure 2-2
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
Figure 2-9