Information Systems

Chapter 10 – Computers: Understanding Technology, 3rd

edition

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Information System

• Definition: combination of people, hardware, software, computer networks, and data that organizations use to manage daily and long-term operations

• Examples in daily life: ATMs, gas pumps which take credit cards, bar scanners in grocery stores

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Information Systems Classified by Function

• Distribution Management – reduction in cost of inventory overhead– Traditional distribution management – inventory

maintained in bulk storage at place of production, transported to wholesalers, and finally delivered to retail outlets

– just-in-time - delivery just before used in manufacturing process, production to meet market demand

– Stockless inventory – daily delivery from factory or distribution center; print-on-demand where bookstores can print a paperback book

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Information Systems Classified by Function (cont.)

• Office Information System– Maintaining standard operating procedures (manual

and computerized)– Connectivity to other programs and devices– Electronic data processing – often batch processing,

more efficient than updating the database every time a change takes place

• Management Information System – typically integrates information from different departments or functions into one database, provides reports either on periodic or on-demand basis

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Information Systems Classified by Function (cont.)

• Decision support systems – custom built for each application– Spreadsheets - spreadsheet as “killer application” for

early PC sales, performing “what-if” analyses involving data modeling (simulation of real world situation) –

– Expert systems – attempt to model an expert’s knowledge of a topic

– Online analytical processing – defines and clarifies methods of handling what-if questions posed to large databases, to produce business intelligence

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Information Systems Classified by Function (cont.)

• Executive Support Systems – upper management tool bringing together information from an entire organization

• Factory Automation– Computer Aided Manufacturing (CAM) – factory

robots– Computer-Integrated Manufacturing (CIM) – broader

coverage than CAM, connecting the factory to other parts of the organization

– Statistical Quality Control

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Impact of a New Information System

• Expanded technical staff – programmers, trainers

• Increased Information Technology Costs

• Increased Profit Margins

• Enhanced Product Quality

• Reduced Clerical Staff

• Temporary Disruption

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Factors in Choosing a New Information System

• User interface design• Open (using company can modify) vs

closed (serviced and supported by original vendor)

• Niche information system– Because it is customized to the application,

can be used without a lot of training– Small market may lead to high price– May lag technologically

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Factors in Choosing a New Information System (cont.)

• Turnkey solutions – simply turn the key to get the system running; because of customization, often expensive and difficult to upgrade

• System support

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Developing a New Information System

• Project team – project manager, system analysts, software engineers, technicians (hardware issues)

• System development life cycle – Planning – needs analysis, feasibility study, request

for proposal (RFP)– Design – functional specification (what the system

must accomplish, design specification (how the goals laid out in the functional specification will be achieved)

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System Development Lifecycle (cont.)

• Implementation – Prototype (you won’t always have one)– Development– Hardware and software purchasing– Installation and testing– User training– Approval

• Support

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