Data & Info

Information Systems: 9

An Introduction and Overview

Objective ●

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● ● ● ● ● ● ● ●

Data vs. Information Characteristics of Valuable Information What is a System? What is an Information System? CBIS Components Types of CBIS Different definitions of Information System History of Information System Why Study Information Systems?

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Data vs. Information •Data consists of raw facts (i.e., a list of the numbers)

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•Information is a collection of facts organized (or processed) in such a way that they have additional value (i.e., a list of the class grades based on the exam score –In a way, information is data that has been transformed into a more useful form –Turning data into information is a process performed to achieve a defined outcome and requires knowledge

M1: Managing the Digital Firm

(cont)

Hierarchy of Information

_______________________________________________________

Intelligence 9

_______________________________________________________

Charts

Knowledge

Information

Data & Infor

Information Systems & MIS

Module

A

9

Characteristics of Valuable Information

● Accessible

● Reliable

● Accurate

● Secure

● Complete

● Simple

● Economical

● Timely

● Relevant

● Verifiable

Information as a Key Resource Decentralized Computing and Shared Information 9

Information as a Key Resource ●

9

Personal Dimensions of Information

The three personal dimensions of information include: – Time – Location – Form

Information Systems & MIS

Information: The Good Kind

Module

A

9

and the Other Kind ● Information overload ● Valuable information ● Information reduction Not all information is valuable, and all too often, we’re overwhelmed with more information than we can use.

Information Systems & MIS

Module

A

9

Techniques of Information Reduction

Routing information so that it goes to only those people who really need to see the information Summarizing information so that decision-makers do not drown in the details Enabling selectivity so that people with specific information needs can get that information (and ignore the rest) Eliminating unnecessary information (exclusion) so that it doesn’t take up time

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9

M1: Managing the Digital Firm IS in a Nutshell 9

(cont)

Managing the Digital Firm (cont) 9

O r g a n iz a tio n s

T e c h n o lo g y

In fo r m a tio n S y s te m s

M anagem ent

Organization, Technology and Management dimensions of an IS.

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What is an Information System? ●

Let’s look at some different definitions and then explore the context of an IS in the organizational setting.

●

The contrasting definitions should provide a variety of different perspectives.

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Historical Background ●

●

9 ● ●

The Data Processing Industry grew rapidly in the 1960’s, however, the “quantity” of output, most often, far outstripped the “quality” of output. Basic computing was often looked at as ‘scientific’ vs. ‘business’ contrasting applications built with FORTRAN and COBOL. The growth of the 1960’s and 1970’s saw a shift from “computer” orientation, to “information” orientation. The role of “information resource manager” in the organization offered an opportunity to migrate from the technocratic image of the past, and establish an image as a business manager, a general manager, an information manager. Today this is the role of the CIO - Chief Information Officer.

1979: John Diebold writes: ●

9 ● ● ●

“Information, which in essence is the analysis and synthesis of data, will unquestionably be one of the most vital corporate resources in the 1980’s. It will be structured into models for planning and decision-making. It will be incorporated into measurements of performance and profitability. In other words, information will be recognized and treated as an asset.”

1985: Davis and Olson: ● A management information system is:

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– an integrated user-machine system – for providing information – to support the operations, management, analysis, and decision-making functions in an organization. – The system utilizes: ● computer

hardware and software ● manual procedures ● models for analysis, planning, control, and decision-making ● a database

1985: IFIP/BCS ● An

information system is a system which assembles, stores, processes, and delivers 9 information relevant to an organization (or to society) in such a way that the information is accessible and useful to those who wish to use it, including managers, staff, clients, and citizens. ● An information system is a human activity (social) system which may or may not involve the use of computer systems. ● International Federation for Information Processing /British Computing Society 1985 curriculum for information systems.

1989/99: McNurlin mission for information systems in

● “The

9

organizations is to improve the performance of people in organizations through the use of information technology.” ● The ultimate objective is performance improvement - a goal based on outcomes and results rather than a “go-through-thesteps process” goal. ● The focus is the people who make up the organization. Improving organizational performance is by the people and groups that comprise the organization. ● The resource for this improvement is

1990: Turban ●

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●

A management information system is a formal, computer-based (but need not be) system intended to retrieve, extract, and integrate data from various sources in order to provide timely information necessary for managerial decision-making. An MIS is a business information system designed to provide past, present, and future information appropriate for planning, organizing, and controlling the operations of the organization.

1992: Alter ●

An information system is a combination of – – – –

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●

work practices information people, and information technologies

organized to accomplish goals in an organization.

1992: Zwass ●A

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Management Information System is an organized portfolio of formal systems for obtaining, processing, and delivering information in support of the business operations and management of an organization.

1995: Laudon and Laudon ● Information

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system - (definition) Interrelated components that collect, process, store, and disseminate information to support decisionmaking, control, analysis, and visualization in an organization.

1996: Turban, McLean, Wetherbe ● An

information systems is a collection of components that collects, processes, stores, 9 analyzes, and disseminates information for a specific purpose. ● The major components of a computer-based information system (CBIS) can include (1) hardware, (2) software, (3) a database (4) a network (5 )procedures, and (6) people. ● The system operates in a social context, and the software usually includes application programs which perform specific tasks for users.

1996: Alter ●

9 ●

An information system is a system that uses information technology to capture, transmit, store, retrieve, manipulate, or display information that is used in one or more business processes. A business process is a related group of steps or activities that use people, information, and other resources to create value for internal or external customers. Business Processes consist of steps related in time and place, have a beginning and end, and have inputs and outputs.

1997: Lucas Information systems may be described by 9 five of their key components: ●

– Decisions – transactions and processing – information and its flow – individuals or functions involved – communications and coordination

1998: Zwass Information System - An organized set of 9 components for collecting, transmitting, storing, and processing data in order to deliver information for action. ●

1999: Turban, McLean, Wetherbe An information system is a physical process 9 that supports an organizational system by providing information to achieve organizational goals. ●

1999: Alter ●

A work system is a system that produces products for internal and external customers through a business process performed by human participants with the help of information technology.

●

An information system is a particular type of work system that uses information technology to capture transmit store, retrieve, manipulate, or display information, thereby supporting one or more other work systems.

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Information Systems Today ●

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● ●

●

●

The early focus on IS was for the support of operations, management, analysis and decisionmaking in organizations. A significant emphasis was on models of planning and control. The late 1980’s and early 1990’s saw IS expand from the support not only of decision-making, but but for improved communication support as well. Social impacts began to be recognized. The explosion of the Web has added the important characteristic of providing information access. Today the emphasis in organizations is on the support of business processes.

Terminology ● In

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many older textbooks and contexts, the terms Management Information Systems (or MIS) and Information Systems (IS) are used interchangeably. ● However, in more contemporary contexts, Management Information Systems are considered as a subset of the more general Information Systems. MIS are considered to be information systems which provides information specifically for managing an organization generally at a tactical or middle management level. The are sometimes called Management Reporting Systems as well.

Information Technology Information Technology (IT) sometimes 9 refers to the technology component of an information system. ● However, the concept is often used by many to describe the collection of all information systems in organization. ●

Putting Things in Context - I ●

9 ●

●

Information Technology - the hardware, software, and networks that make Information Systems possible. Information System - a system that uses information technology to capture, transmit, store, retrieve, manipulate, and display information. Business process - a related group of steps or activities that use people, information, and other resources, to create value for internal or external customers.

Putting Things in Context - II ●

9 ●

Firm (or organization) - consists of a large number of interdependent business processes that work together to generate products of services in a business environment. Business environment - includes the firm and everything else that affects its success, such as competitors, suppliers, customers, regulatory agencies, and demographic, social, and economic conditions.

Putting Things in Context – The Picture

9

9

Information Systems & MIS

Characteristics of a CIS A Computerized Information System. . .

Module

A

9

Provides essential services to organizations, including processing transactions and keeping exact records Collects mission-critical data, processes this data, stores the data and the results of processing, and disseminates information throughout the organization Includes data, hardware, software, trained personnel, and procedures

Information Systems & MIS

Understanding Complex Organizations: The Power Pyramid

Module

A

9

● Functional

divisions of an organization ➤finance ➤marketing & sales ➤human resources ➤operation ➤information systems

IS and Organisations The Organisation and its Environment 9

IS and Organisations IT Services within an Organisation 9

9

Types of Information Systems ● Transaction

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Processing Systems (TPS). ● Management Information Systems (MIS). ● Decision Support Systems (DSS). ● Expert Systems (ES). ● Executive Information Systems (EIS). ● Office Automation Systems (including document management systems). ● E-Commerce ● ERP(Enteprise Resourse Managament) ● CRM(Customer Relationship Management) ● M-Commerce ● and much more ….

Decision-Making Levels of an Organization

9

Decision-Making Levels of an Organization ●

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Executive level (top) – Long-term decisions – Unstructured decisions

● Managerial

level (middle)

– Decisions covering weeks and months – Semistructured decisions ● Operational

level (bottom)

– Day-to-day decisions – Structured decisions

9

General Types of Information Systems ●

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Transaction Processing Systems (TPSs) – Transactions – Used at Operational level of the organization – Goal: to automate repetitive information processing activities Increase speed ● Increase accuracy ● Greater efficiency ●

General Types of Information Systems ●

Transaction Processing Systems (TPSs) – Online processing – Batch processing

9 ●

Data input – Manual data entry – Semiautomated data entry – Fully automated data entry

General Types of Information Systems ●

Transaction Processing Systems (TPSs) – Examples: ●

9

● ● ● ●

Payroll Sales and ordering Inventory Purchasing, receiving, shipping Accounts payable and receivable

Information Systems & MIS

Module

A

9

●

Transaction Processing Systems (TPS) ➤batch processing ➤online processing ➤summary reports ➤exception reports

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Transaction Processing Systems (TPS):

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• Basic business systems that serve the operational level • A computerized system that performs and records the daily routine transactions necessary to the conduct of the business • Most Important – initial data entry point needs to insure “data integrity” • Feeds all the other information systems

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Payroll TPS

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Figure 2-3

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of TPS Systems

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Figure 2-4

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS): 9 Management level ● Inputs: High volume data ● Processing: Simple models ● Outputs: Summary reports ● Users: Middle managers Examples: Annual budgeting, variance reports, regional sales reporting

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS)

9

Figure 2-5

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS)

●

Structured and semi-structured decisions

9 ● Report control oriented ●

Past and present data

●

Internal orientation

●

Lengthy design process (but fairly static after the initial design)

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Decision Support System (DSS): 9 Management level ● Inputs: Low volume data ● Processing: Interactive ● Outputs: Decision analysis ● Users: Professionals, staff Example: Contract cost analysis, forecasting, simulation

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Decision Support System (DSS)

9

Figure 2-6

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS): 9 Strategic level ● Inputs: Aggregate data ● Processing: Interactive ● Outputs: Projections ● Users: Senior managers Example: 5-year operating plan

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS)

9

Figure 2-8

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive support system (ESS)

9

●

Top level management

●

Designed to the individual

●

Ties CEO to all levels

●

Very expensive to keep up (customized for each manager)

●

Extensive support staff

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Traditional View of the Systems

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Figure 2-16

Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Enterprise Systems

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Figure 2-17

Systems Analysis and Design Module

B

9

System analysts: Communication counts ● Systems development life cycle (SDLC) ● Phase 1: Identify the problem ● Phase 2: Analyze and document ● Phase 3: Designing the system ● Phase 4: Implementing the system ● Phase 5: Supporting the system ●

Systems analysis & design

Module

B

9

System Analysts:

Communication Counts help organizations determine their information system needs are problem-solving professionals who work with users & management to determine an organization’s information system needs define the requirements needed to modify an existing system, or to develop a new one job involves communication, including listening skills

Systems analysis & design

Identify problems & opportunities

● Five Module

phases of system SDLC

Analyze & document existing system

B

9

Design system

Implement system

Support system

Systems analysis & design

Avoiding Mistakes User involvement is crucial ● A problem-solving approach works best ● Good project management skills are needed ● Documentation is required ● Use checkpoints to make sure the project’s on track ● Design for growth and change ●

Module

B

9

Systems analysis & design

Identify problems & opportunities

● Waterfall Module

B

9

Model The waterfall model builds correction pathways into the model that enable a return to a previous phase. It’s currently the most widely-used way to implement the systems development life cycle.

Analyze & document existing system

Design system

Implement system

Support system

Systems analysis & design

Phase 1: Identifying the Problem & Opportunities

Recognize the need for the system ● Define the problem ● Identify opportunities ● Develop a plan ● Determine feasibility ●

Module

B

9

➤technical, operational, economical ➤tangible, intangible benefits ➤return on investment (ROI) ●

Prepare the project proposal

Systems analysis & design

Phase 1: Identifying the Problem & Opportunities

Module

B

9

To determine the problem, the system analyst talks to as many users as possible to discover what they do, when they do it, how they do it, and why. The analyst then recommends new system features or a new system.

Systems analysis & design

Phase 2: Analyzing &

documenting the existing system Emphasis is on what the system should do

Module

B

9

Analyze the existing system Determine the new system’s requirements

Systems analysis & design

Module

B

9

Phase 3: Designing the

System Concerned with how the new information will work

●

Structural analysis & design tools ➤entity-relationship diagram (ERD) ➤data flow diagram ➤project dictionary ➤data dictionary ➤prototyping also called joint application development (JAD) ➤computer aided software engineering (CASE)

Systems analysis & design

Module

B

9

A Prototyping Tool at Work

Systems analysis & design

Phase 4: Implementing the System

●

➤request for quotation (RFQ) ➤request for proposal (RFP)

Module

B

9

Deciding to buy or build

Developing the software ● Testing ●

➤application testing ➤acceptance testing ●

Training ➤may include computer-based training (CBT)

Systems analysis & design

Phase 4: Implementing the System

Module

B

9

● Converting

the system

➤parallel conversion ➤pilot conversion ➤phased conversion ➤direct conversion

Systems analysis & design

Phase 5: Supporting the System

Module

B

9

In the final phase, the new system receives ongoing assistance to ensure that it has met its intended needs and works correctly

A post-implementation system review determines whether the system has met its goals

Program Development The Need for PDLC ● Phase 1: Defining the problem ● Phase 2: Designing the program ● Phase 3: Coding the program ● Phase 4: Testing & debugging ● Phase 5: Formalizing the solution ● Phase 6: Implementing & maintaining the program ● Module

C

9

Program development

Program Development

Module

C

9

The program development life cycle (PDLC) is an organized method of software development that bears many similarities to the system development life cycle (SDLC)

Program development

The Need for PDLC: Better

Software, Please Module

C

9

x i f d n a e f d o o s e ●C s a h p x ● Si PDLC the

Specifying the problem Designing the program Coding the program Testing & debugging the program Formalizing the solution Maintaining the program

Program development

● Module

C

9

Program Development Life Cycle (PDLC) Phase 1: Defining the problem ➤program specification (“spec”)

●

Phase 2: Designing the program ➤structured programming or top-down program design ➤structured design ➤ control

structures ➤ sequence control structure ➤ selection control structure ➤ case control structure ➤ repetition control structure (looping or iteration)

Program development

Control Structures Sequence control structure

Module

C

9

Go to the phone. Dial the pizza place. Order the pizza. Hang up.

Selection control structure

Open your wallet. IF you have enough money, THEN Go to the phone. Dial the pizza place. Order the pizza. Hang up. Or ELSE Forget the whole thing.

Program development

Module

C

9

Control Structures Repetition control structure Do-while

WHILE there is still more pizza, gobble down pizza

Do-until DO gobble down pizza UNTIL none remains

Program development

Module

C

9

Developing an Algorithm Programmers begin solving a problem by developing an algorithm. An algorithm is a step-by-step description of how to arrive at a solution. You can think of an algorithm as a recipe or a how-to sheet WHILE there is still more pizza Check to see if you’re still hungry IF you are still hungry, THEN Gobble down pizza ELSE Put the rest in the fridge

Program development

Program Design Tools S tr u c tu r e d o r H ie r a r c h y C h a r ts

Module

c o n tro l m o d u le

C

9

p rin t re p o rt h e a d in g

p ro c e s s e a c h s e p a ra tio n

c a lc u la te c o m m is s io n

p rin t to ta l c o m m is s io n s

p rin t s a le s p e rs o n c o m m is s io n

Each box, or module, in a structure chart indicates a task that the program must accomplish

Program development

Program Design Tools Commission program

Module

C

Flowchart

9

print headings get first salesperson

A calculate commission print salesperson

get next salesperson

end of data

print total commission

end

A flowchart is a diagram that shows the logic of a program. Each flowcharting symbol has a meaning

A

Program development

Module

Program Development Life Cycle (PDLC) ●

C

Phase 3: Coding the program ➤syntax and syntax errors

9

●

Phase 4: Testing and debugging the program ➤logic error (bugs)

●

Phase 5: Formalizing the solution ➤documentation ➤manuals