Is Concepts

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Information Systems forManagers

Information System (IS) Concepts

Neha V. Nair


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Topics to be covered

Understanding data and information

What is information system?

Open versus closed systems Classification of IS in organization

Business as a system

Attributes of information quality

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Data and Information

Data is raw material recorded butusually unformatted information.

Data has no meaning in and of itself. Data which is organized, filtered and

presented with context becomesinformation.

Information provides value to the user.

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Knowledge is needed to understandrelationships between differentpieces of information.

Knowledge is set of rules orguidelines to organize or manipulatedata to make it suitable for a given

task.

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What is System?

System is a set of interacting orindependent entities, real or abstract

forming an integrated whole. Membership criteria is provided to

identify which entities belong to the

environment of the system by definingsystem boundary.

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Information Systems

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Informationsystem

Data People

Telecommunications

Software

Hardware


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Information systems are combinationsof hardware, software andtelecommunication networks that peoplebuild and use to collect, create anddistribute useful data.

It usually:

1. Asks for data2. Processes the data into information3. Stores the information

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4. Generates custom reports Computers are the core components of

information systems. Data becomes the root purpose of any

information systems. TPS, MIS, EIS, DSS, Expert system,

CRMS, ECS, ERPS, Office automationsystem are different types of IS usedin various organizations.

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Open versus Closed systems

Open systems are computer systems thatprovide some combination of interoperability,portability, and open software standards.

It can also mean specific installations that areconfigured to allow unrestricted access bypeople and/or other computers .

The term was popularized in the early 1980s,

mainly to describe systems based on Unix,especially in contrast to the more entrenchedmainframes and minicomputers in use at thattime.

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http://en.wikipedia.org/wiki/Computer_systemhttp://en.wikipedia.org/wiki/Interoperabilityhttp://en.wikipedia.org/wiki/Interoperabilityhttp://en.wikipedia.org/wiki/Portinghttp://en.wikipedia.org/wiki/Open_standardhttp://en.wikipedia.org/wiki/Open_standardhttp://en.wikipedia.org/wiki/Interoperabilityhttp://en.wikipedia.org/wiki/Portinghttp://en.wikipedia.org/wiki/Open_standardhttp://en.wikipedia.org/wiki/Unixhttp://en.wikipedia.org/wiki/Unixhttp://en.wikipedia.org/wiki/Mainframe_computerhttp://en.wikipedia.org/wiki/Minicomputerhttp://en.wikipedia.org/wiki/Mainframe_computerhttp://en.wikipedia.org/wiki/Minicomputerhttp://en.wikipedia.org/wiki/Minicomputerhttp://en.wikipedia.org/wiki/Mainframe_computerhttp://en.wikipedia.org/wiki/Unixhttp://en.wikipedia.org/wiki/Open_standardhttp://en.wikipedia.org/wiki/Portinghttp://en.wikipedia.org/wiki/Interoperabilityhttp://en.wikipedia.org/wiki/Computer_system


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A closed system is defined as asystem which resists the inclusionand integration of new ideas.

By not adopting new and feasibleideas a closed system does not servethe environment it lives in.

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Computer based IS

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Technology

Information technology

Computerbased

informationsystem


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Technology is any mechanical orelectrical means to supplement, extendor replace human or manual operations.

Information technology refers to themachine technology that is controlled byor uses information.

Computer based information systems area type of technology which usesinformation.

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Why use information systems?

With an automating perspective IS helps tocomplete a task faster, cheaply and perhapswith greater accuracy or consistency.

The learning mentality builds on theautomating mentality because it recognizesthat IS can be used as a vehicle fororganizational learning.

People use IS to understand businessprocess better and make changes to improvethat process i.e. support TQM.

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The best way to use an InformationSystem is to support the organizationsstrategy in a way that enables the firm

to gain or sustain competitive advantageover rivals.

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Type of system Sample application

Transaction processing system Grocery store checkout cashregister

Management informationsystem Inventory management andplanning system

Executive information system News retrieval and stockupdate IS

Decision support system Product demand forecastingsystem

Expert system Automated system for bankloan applications

Office automation system Word processor

Collaboration system Electronic mail system withautomated shared calendar

Electronic commerce system www.amazon.com

Enterprise resource planningsystem

SAP R/3IS CONCEPTS 16
http://www.amazon.com/http://www.amazon.com/


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Business case for a system

The process of identifying the valueprovided by an information system ismaking the business case.

For a proposed system the business casewill be whether the new system is a goor a no go.

For an existing system the casedetermines whether the company willcontinue to fund the system.

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It is easy to quantify the costs associatedwith developing an information system it isoften difficult to quantify tangibleproductivity gains from the use of an

information system. Problems:1. IS expenditures, salaries and the number of

people on the IS staff.

2. Employees spending excessive amount of timesurfing the web.

3. Less efficient and no communication among

employees.IS CONCEPTS 18

Productivity paradox


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Many business metrics focus on systemefficiency.

Although IS may have real benefits those

benefits may not be detected. For example DSS are designed to improve

the decision making. The problem is how

do we measure their impact? A good example of measurement problems

associated with IS is the use of automaticteller machines.IS CONCEPTS 19

Measurement problems


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Time lags

A significant time lag may occur from whena company makes the IS investment untilthat investment is translated into

improvement. It takes time for people to become

proficient at using new technologies.

It may also take some time before thetangible benefits of a new informationsystem can be felt.

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Redistribution

In competitive situations IS may be usedto redistribute the pieces of pie ratherthan making the whole pie bigger.

Strategic information system may help onefirm to increase its market share howeverthis may be at the expense of anotherfirm.

The result for the economy as a whole is awash the same number of products isbeing sold and the same number of dollars

is being spent.IS CONCEPTS 21


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Mismanagement

IS has not been implemented and managedwell.

If automation has increased the potential

output of a system but part of that systemis reliant on human input. Managers must be sure that they evaluate

the entire process being automated makingchanges as necessary to old processes totruly benefit from IS investment.

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Making a successfulbusiness case

Type ofargument

Description

Faith Beliefs about organizational strategy,competitive advantage, industryforces, customer perceptions and soon

Fear If the system is not implemented thefirm will lose out to the competition orgo out to business

Fact Arguments based on data, quantitative

analysis or indisputable factors.IS CONCEPTS 23

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n ormat on qua tyattributes

Developers need to understand the end usersrequirements properly.

They need to allocate proper resources.

Software quality is the degree to which thesoftware possesses a desired combination ofattributes such as reliability andinteroperability etc.

Performance is the degree to which a systemaccomplishes its desired functions withconstraints such as speed, memory usage oraccuracy.IS CONCEPTS 24


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Dependability is that property of acomputer system such that reliance canbe placed on the service it delivers.

1. Availability2. Reliability

3. Safety

4. Confidentiality

5. Integrity

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Security can be regarded as completefreedom from danger.

Protection of system data against

disclosure, modification or destruction.

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Documents

Is Concepts