HUANG Lihua, Fudan University

Session 2 Concept of Information Systems

PART I Foundations of Information Systems in Business

HUANG Lihua, Fudan UniversityFeb., - July., 2005

What is a SYSTEM?

• A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.– Components and their attribution

• Systems structure: relationship between components

• Subsystems

– Environment and Boundary

– Input and Output S1S2

S3S4

Systems structure

Subsystems

Systems Boundary

Environment

Systems Input Output

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Abstract Concept of a Systems

INPUT OUTPUTPROCESS

FEEDBACK

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Example: a manufacturing system

INPUTof raw materials

OUTPUT of finished products

Manufacturing

PROCESS

Control byManagement

Control signals

Control signals

Feedback signals

Feedback signals

System Boundary

Environment

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Pottery Company Organization Systems

INPUT OUTPUTPROCESS

Control byManagement

Control signals

Control signals

Feedback signals

Feedback signals

System Boundary

Environment

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Systems Category in Pottery Company Systems

• Organization System

• Function Systems– Manufacturing System

– Sell System

– Procurement System

– HR System

– Finance System

– Product design System

– …….

• Infrastructure System– Plant system

– Machine system

– ……

• Information system– Informal IS, formal IS, for

mal computer-based IS

• Logistics System,

• Capital system

HUANG Lihua, Fudan UniversityFeb., - July., 2005

What is an Information Systems?

• An information system can be any organized combination of people, hardware, software, communications network, and data resources that collects, transforms, and disseminates information in an organization

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Components of an Information System

Control

Input Process

Memory

Output

DataPeople

Software

network

computer

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Information Systems In Pottery Company

• System:

• Information Product:

People resources

hardware resources

Software resources

Data

resources

Network resources

Specialists

End users

Machines

Media

Programs

ProcedureData entities and attribution

Communication hardware

Communication software

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Information Systems Activities

• Input of Data– Manual input by key, scanning, sound, image,…

• Processing of Data into Information– Calculate, sort, find, report, disseminate……

• Output of Information Products– Report, display, suggestion, ……

• Storage of Data Resource– Database, data file, maintenance, …..

• Control of System Performance– Audit, ……

HUANG Lihua, Fudan UniversityFeb., - July., 2005

DATA & INFORMATION & KWONLEDGE

• DATA: – Streams of raw facts representing events such

as business transactions, simple observations of the state of the world

• Easily structured

• Easily captured on machines

• Often quantified

• Easily transferred

HUANG Lihua, Fudan UniversityFeb., - July., 2005

DATA & INFORMATION & KWONLEDGE

• INFORMATION: – Data endowed with relevance and purpose, or,

Clusters of facts meaningful & useful to human beings in processes such as making decisions.

• Requires unit of analysis

• Need consensus on the meaning

• Human mediation necessary

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Data & Information

HUANG Lihua, Fudan UniversityFeb., - July., 2005

DATA & INFORMATION & KWONLEDGE

• KNOWLEDGE– Information from the human mind (includes

reflection, synthesis, context ), which guide human behavior in correct way.

– Information synthesized and contextualized to provide value.

• Hard to structure • Difficult to capture on machining • Hard to transfer

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Wrap Up

• Concepts– A System– An information system– 5 resource components in an information

systems– A activities in an information System– Data, information and knowledge

HUANG Lihua, Fudan UniversityFeb., - July., 2005

Assignment for Session 2

• P. 33: Review Quiz – Write down in your book, not submit

• Preparation for session 3– Reading Materials

• Textbook: chapter 1– Group Case study: Cisco Systems Architecture

• What is the legacy system problem at Cisco? How big a problem is it?

• How important is the ERP to solution of the problem and to the overall architecture? Do you see the ERP component as something that will be undertaken by some, most or all companies at they build their information age IT architecture?

• What are the essential components of Cisco’s Strategic I-Net? What is the role of Cisco’s Strategic I-Net?