Gr 1: History of Information Systems and its Importance

What is Information
System (IS)?
Means a system for generating, sending, receiving,
storing or otherwise processing electronic
communications;
A combination of hardware, software, infrastructure and
trained personnel organized to facilitate planning,
control, coordination, and decision making in an
organization.

Historical Perspective
 Information Systems have
been around a long time.
 People have always been
the backbone of an IS

 Previous to computers,
telephones were probably the
biggest innovation that
improved information systems.
 Previous to telephones, Paper
was the big innovation.
 What will be the next big
thing?

Year
Activity
 Mainframe
computers were
used
 Computers and data
were centralized
 Systems were tied to
a few business
functions: payroll,
inventory, billing
 1970
 Programming in
COBOL
(completely
absolute
business
oriented
language)

Year
Activity
 Main focus was to automate
existing processes
 PCs and LANs are installed
 Departments set up own
computer systems
 End-user computing with
Word Processors and
Spreadsheets makes
departments less dependent
on the IT department
 1980
 PC support,
basic networking

Year
Activity
 Main focus is automating
existing processes
 Wide Area Networks (WANs)
become corporate standards
 Senior management looks
for system integration and
data integration. No more
stand-alone systems
 1990
 Network
support,
systems
integration,
database
administration

Year
Activity
 Main focus is central control
and corporate learning
 Wide Area Networks expand
via the Internet to include
global enterprises and
business partners – supply
chain and distribution
 Senior management looks
for data sharing across
systems
 2000
 Network
support,
systems
integration

Year
Activity
 Main focus is efficiencies and
speed in inventory,
manufacturing, distribution,
Transaction processing
system, Decision support
system etc.
 Current situation
after 2000
 Network
support,
systems
integration
 Team work

Importance of Information
Systems in an Organization
 Communication:
 An information systems can make communication process more efficient
by allowing managers to communicate rapidly. Email is quick and
effective, but managers can use information systems even more efficiently
by storing documents in folders that they share with the employees who
need the information.
 Operations:
 You can use information systems to gain a cost advantage over
competitors or to differentiate yourself by offering better customer service.
Sales data give you insights about what customers are buying and let you
stock or produce items that are selling well.

Importance of Information
Systems in an Organization
 Decisions:
 The company information system can help you make better
decisions by delivering all the information you need and by modeling
the results of your decisions. If more than one choice looks
appealing, you can use the information system to run different
scenarios. For each possibility, the system can calculate key
indicators such as sales, costs and profits to help you determine
which alternative gives the most beneficial result. AIMMS
 Records:
 The information system stores documents and revision histories,
communication records and operational data. You can use such
information to prepare cost estimates and forecasts and to analyze
how your actions affected the key company indicators.

AIMMS (Advanced Interactive Multidimensional Modeling System)

Components of an Information
System

Computer Hardware Technologies
 Examples
 Dell PowerEdge 2600 File Server
 Apple PowerBook G4
 Sony LCD Flat Panel Monitor
 iPod
 IDAutomation USB Barcode Scanner
 RFID Chip

Computer Software Technology
 Examples
 Windows XP
 Graphics Card Driver Software
 PowerPoint
 mySAP Customer Relationship Management
 Peachtree Accounting
 iTunes Software

Telecommunications Network
Technologies
 Examples
 Ethernet
 Netgear Wireless Router
 Cable Modem
 Cell Phone
 WiFi, WiMax
 Bluetooth

Data Resource Management
Technologies
 Examples
 IBM DB2 8.2
 Microsoft SQL Server 2000
 Oracle Database 10g
 MySQL
 Data Mining Software

People Technology 
 People are the 5th component of an
Information System
 Everyone forgets the importance of people
in an information system.
 Example: End User, Data Entry Person,
Manager, Programmer, DB Administrator,
Cashier, Secretary, Professor.

Transaction Processing System (TPS)
 Supports Operations
 Updates Operational Databases
 Examples:
 ATM Machine System – Banking Transactions
 Cash Register System – Point of Sale Transactions
 Accounting System – Checking Account Transactions
 Even Pay-per-view or OnDemand is a TPS

Management Information System (MIS)
 Supports Management (duh?)
 Analysis & Reporting
 Charts, Graphs, Summary Tools
 Examples:
 SCT Banner – Managing College Information (Siena
uses it)
 Spreadsheet (Excel) – One of the first and most basic
 Oracle's Corporate Performance Management

Decision Support System (DSS)
 Support Management
 What-if Analysis, Decision Modeling, Scenario
Building, Highly interactive, ad hoc.
 Examples
 Enterprise Decision Manager 2.0 Fair Isaac
Corporation
 AIMMS 3.6
 Most DSS’s are custom developed for specific
companies; very few out-of-the-box products.

References
 http://www.dvdbinders.co.uk/terms.asp
 http://www.businessdictionary.com/definition/information-system.html#ixzz2zmTDrwkE
 http://smallbusiness.chron.com/importance-information-systems-organization-69529.html
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 https://answers.yahoo.com/question/index?qid=20110511214635AA0HdDb
 http://www.tutor2u.net/business/ict/intro_information_system_types.htm
 https://answers.yahoo.com/question/index?qid=20090708035610AA8sVGh
 http://www.britannica.com/EBchecked/topic/287895/information-system
 http://www.britannica.com/EBchecked/media/55237/Structure-of-organizational-information-
systems-Information-systems-consist-of-three?topicId=287895

Gr 1: History of Information Systems and its Importance

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