01-Foundations of ISs in Business

8/2/2019 01-Foundations of ISs in Business

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Foundations of ISin Business

Chapter 1


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ISs in Business


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What is Information System ?

Definition of IS Combinations of hardware, software, and

telecommunication networks

which people build and use

to collect, manipulate, create, and distributeuseful data,

typically in organisational settings


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What is an Information System?

Input ofDataResources

ProcessingData

Output ofInformationProducts

Control of System Performance

Storage of Data Resources


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Information System Components

Hardware

Software

Stored data

Personnel

Procedures


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Data

Definition Raw facts, inputs to system, unprocessed, not useful for

decision making

Examples : employees name and number of hours worked ina week, inventory part numbers, or sales order.

Types of DataData Represented by

Alphanumeric Data Numbers, letters, and other characters

Image Data Graphic images or pictures

Audio Data Sound, noise, or tones

Video Data Moving images or pictures


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Information

Organised facts, outputs from system,processed data, useful for decisionmaking

Examples : sales analysis, trends,payment summary reports


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Data versus Information

Monthly Sales Reportfor West Region

Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100


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Data Vs Information

Differences Data Information


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Fundamental Roles of IS in Business

Support of Business Processes andOperations

Support of Business Decision Making

Support of Strategies for CompetitiveAdvantage


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Trends in ISs

DP (1950s 1960s)

Management Report (1960s 1970s)

Decision Support (1970s 1980s)

Strategic and End-User Support (1980s1990s)

E-Business and E-Commerce (1990s2000s)

Enterprise Resource Planning andBusiness Intelligence (2000s 2010s)


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Definition of E-Commerce

EC is a process of buying, selling, orexchanging products, services, orinformation via computer networks (eg.Internet).


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Exercise for Students

Identify 3 main components of thedefinition of EC


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Differences Between EC & EB


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Comparison Between EC & EB

Difference E-Commerce E-BusinessActivities Buying, selling &

exchangingAlso includes :servicing customers,collaborating withpartners, conduct

transactions within theorganisation

Part ofBusiness

Focus on front-end

Front- and Back-end

Scope Small EC is a sub-set of EB

Financial Involve financialtransactions(front-end)

Involve both financial& non-financialtransactions (back-

end)


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Role of e-Business Applications inBusiness

Reengineer internal business processes

Implement e-commerce systems withcustomers and suppliers

Promote enterprise collaboration amongbusiness teams and workgroups


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Main Types of ISs

Operations Support Systems

Role : process transactions, control industrialprocesses, support enterprisecommunications and collaborations, updatedatabases

Examples :

Transaction Process Systems record andprocess data (batch or real-time)

Process Control Systems monitor and controlphysical processes eg. use sensors

Enterprise Collaboration Systems enhanceteam and workgroup communications andproductivity eg. OAS


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Main Types of ISs (cont..)

Management Support Systems Role : provide information and support

decision making

Examples :

Management Information Systems provideinformation to managers

Decision Support Systems provide

information during decision-making process Executive Information Systems provide

critical information (internal & external) in easy-to-use displays for top executives


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Other Classifications of ISs

Expert Systems provide expert advice fordecisions eg. credit evaluation, equipmentdiagnosis

Knowledge Management Systems supportcreation, organisation, and dissemination ofbusiness knowledge eg use of intranet

Strategic ISsapply IT to firms products,services, or business processes to help gainadvantage eg. online stock trading, shipment

tracking Functional Business Systems support a variety

of operational and managerial applications of thebasic business functions eg. A/C, marketing


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Roles and Goals of IT

1. Increase employee productivity

2. Enhance decision making

3. Improve team collaboration

4. Create business partnerships andalliances

5. Enable global reach

6. Facilitate organisational transformation


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1. Increase Employee Productivity

Online Transaction Processing (OLTP)the gathering of input information,processing that information, and updatingexisting information to reflect thegathered and processed information.

Transaction Processing System (TPS)processes transactions that occur withinan organisation


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Transaction Processing System


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2. Enhance Decision Making Online Analytical Processing (OLAP) the

manipulation of information to supportdecision making


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OLAP


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Enhance Decision Making (cont..)

Artificial Intelligence the science of makingmachines imitate human thinking andbehaviour.

Executive Information System (EIS) a highlyinteractive IT system that allows you to firstview highly summarised information and thenchoose how you would like to see greater

detail, which may alert you to potentialproblems or opportunities


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Executive

InformationSystem


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3. Improve Team Collaboration

Collaboration systems designedspecially to improve the performance ofteams by supporting the sharing and flowof information

Groupware software components thatsupports the collaborative efforts of ateam. Groupware contains support for :


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4. Create Business Partnershipsand Alliances

Interorganisational System (IOS) automatesthe flow of information between organisations(eg. customers, distributors, or suppliers) tosupport the planning, design, development,

production, and delivery of products andservices.

Electronic Data Interchange (EDI) the directcomputer-to-computer transfer of transaction

information contained in standard businessdocuments, such as invoices and purchaseorders, in a standard format


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5. Enable Global Reach

Business today is global business

Culture the collective personality of anation or society, encompassing

language, traditions, currency, religion,history, music, and acceptable behaviour,among other things


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6. Facilitate OrganisationalTransformation

Organisational transformation isnecessary to respond to the ever-

changing needs (and wants) of todaysmarketplace.

Blockbuster now provides movies on apay-per-view rental basis through cable.


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Managerial

Challenges of IT


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The Challenges of IS Success and Failure with IT

how to managed and apply IS success. Success shouldbe measured by effectiveness and not efficiency alone

Developing IS Solutions

How to propose or develop new or improved use of IT by

managing the development efforts of IT/IS specialists andusers.

Strategic Business

how can business use IT to become competitive,

effective, and digitally enabled

Globalisation

how can firms understand the business and systemrequirements of a global economic environment


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The Challenges of IS (cont)

Information Architecture and Infrastructure

how can organisations develop an informationarchitecture and infrastructure that can support theirgoals when business conditions and technologies arechanging so rapidly.

IS Investment

how can organisations determine the business valueof IS

Responsibility and Control

how can organisations ensure that their informationsystems are used in an ethical and sociallyresponsible manner.

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01-Foundations of ISs in Business