CSE 441 Information Technology

Saturday 12:00 PM Monday 9:00 AM

Md. Shahrear IqbalLecturerDepartment of CSEBUET

Foundations of Information Systems in Business

Information system vs Information Technology Information Systems 

is a large umbrella referring to systems designed to create, store, manipulate, or disseminate information.

Information technology technology dealing with information processing,

storage, and transmission. This includes in particular computer technology

and the different communication technologies (electronic, radiowave, optical etc.).

Information system vs Information Technology Information technology can be considered as a subset

of information systems. It deals with the technology part of any information system, and as such deals with hardware, servers, operating systems and software etc.

A system is always a combination of people, machines, processes and technology. And IT is just a part of the system. Since a part can never be identical to whole, information systems is never going to be identical to information technology. Designing of a system takes much more than technology as people and processes are also involved.

Information system vs Information Technology ‘Information systems’

is in essence bridging the gap between business and the ever growing field of computers.

On the other hand, information technology is all about managing technology and making use of it for the betterment of business.

Foundation Concepts Fundamental behavioral, technical,

business, and managerial concepts about the components and roles of information systems.

Example: Basic information systems concepts derived from general systems theory

Business Applications The major uses of information systems

for the operations, management, and competitive advantage of the E-Business enterprise

Includes electronic business, commerce, collaboration, and decision making using the Internet, intranets, and extranets

Development Processes How business professionals and

information specialists plan, develop, and implement information systems to meet E-Business opportunities using several strategic planning and application development approaches

Management Challenges The challenges of effectively and

ethically managing E-business technologies, strategies, and security at the end user, enterprise, and global levels of a business

Information Technologies Major concepts, developments, and

management issues in information techology

Hardware, software, networks, data resource management, and Internet based technologies

Our main focus

What is an Information System?

Simple Definition:It can be any organized combination of people, hardware, software, communications networks and data resources that collects, transforms, and communicates information in an organization.

What is a System? Generic Def’n:

A group of interrelated or interacting elements forming an unified whole

IS Def’nA group of interrelated components working together toward a common goal by accepting inputs and accepting outputs in an organized transformation process

Basic System Components Input

Capturing and assembling elements that enter the system to be processed. Ex: raw materials, energy, data

ProcessingInvolves transformation processes that convert input into output. Ex. Manufacturing processes, mathematical calculations

OutputInvolves transferring elements that have been produced by a transformation process to their ultimate destination. Ex: finished products to their human users

Additional Components Feedback

Data about the performance of a system. Ex: Data about sales performance is feedback to a sales manager

ControlMonitoring and evaluating feedback and control components to determine whether a system is moving toward the achievement of its goal. Ex. Reassigning salespeople after evaluating their performance

Other Characteristics Environment

Other systems that the system interacts with Subsystem

A system that is a component in a larger system Interface

Means in which a system is connected to another Open system

A system that interacts with other systems in its environment

Adaptive SystemA system that has the ability to change itself or its environment in order to survive

Diagram of a System

ManufacturingProcess

Input ofRaw Materials

Output ofFinished Products

Environment

Other Systems

Control byManagement

ControlSignals

ControlSignals

FeedbackSignals

FeedbackSignals

System Boundary

Components of an IS Four major concepts

People, hardware, software, data and networks are the five basic resources of information systems

People resources include end users, IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and networks include communications media and networks

Components of an IS Four major concepts continued…

Data resources are transformed by information processing activities into a variety of information products for end users

Information processing consists of input, processing, output, storage, and control activities

Information System Resources

Information System Resources People Resources

End Users – the people who use an information system or the information it produces. Ex: Accountants, salespeople, customers

IS Specialists – the people who develop and operate information systems based on the requirements of end users. Ex: programmers, analysts, system operators

Information System Resources Hardware Resources

Machines, such as computers and other devices, and media, such as paper, disks

Computer Systems such as the personal computer (desktop), mainframe, or laptop

Computer peripherals such as keyboard, mouse, monitor, scanner, printer, disks

Information System Resources Software Resources

Programs – sets of operating instructions that direct and control computer hardware

Procedures – sets of information processing instructions that people need

Information System Resources Software Resources continued

System Software – such as operating system that supports the operations of a computer system. Ex. Windows 98

Application Software – programs that direct processing for a particular use of computers by end users. Ex. Excel

Procedures – operating instructions for people who will use an IS. Ex. Instructions for filling out a form.

Information System Resources Data Resources

Types of data Text data Image data Audio data

Data Storage Databases – hold processed and organized data Knowledge bases – hold knowledge in a variety of

forms such as facts, rules, and case examples of successful business practices

Information System Resources Data Resources continued…

Data Vs. Information Data – raw facts or observations,

objective measurements of the characteristics of entities such as people, places, things and events

Information – data that has been converted to a meaningful and useful context for specific end users.

Information System Resources Data Resources continued…

Data is subjected to a value-added process

1. Its form is aggregated, manipulated and organized

2. Its content is analyzed and evaluated3. It is placed in a proper context for a

human user Called data processing or

information processing

Information System Resources Data Resources continued…

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WestCharles Mann

79154 TM Shoes

Monthly Sales Report for West Region

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

Information System Resources Network Resources

Communication media – Twisted pair wire, coaxial cable, fiber-optic cable and microwave, cellular, and satellite technologies

Network support – people and all of the hardware, software, and data technologies that directly support the operation and use of a communication network.

Information System Activities Input of Data Resources

Data about business transactions and other events must be captured and prepared for processing

Input typically takes the form of data entry activities such as recording and editing

End users typically enter data directly into a computer system or record it on some physical media such as a paper form

Information System Activities Processing of Data into Information

Data is subjected to processing activities such as calculating, comparing, sorting, classifying and summarizing

This organizes, analyzes, and manipulated data, turning it into information

The quality of data stored in an information system must be maintained by a continual process of correcting and updating activities

Information System Activities Output of Information Products

The goal of information systems is the production of appropriate information products for end users

Examples are messages, reports, forms and graphic images which may be provided by video displays, audio responses, paper products, and multimedia

Information System Activities Information Quality

Information that is outdated, inaccurate, or hard to understand is not meaningful, useful, or valuable to end users

Information products should have characteristics, attributes, and qualities that make the information more valuable to the end users

Information has three dimensions of time, form, and content

Information System Activities Information Quality continued..

Storage of Data Resources Data and information

are retained in an organized manner for later use

Stored data is commonly organized into fields, records, files, and databases

Information System Activities

NameFieldNameField

PayrollRecordPayrollRecord

PayrollFile

PayrollFile

PersonnelDatabase

Information System Activities Control of System Performance

An IS should produce feedback about its input, processing, output, and usage activities

This feedback must be monitored and evaluated to determine if the system is meeting performance standards

Activities must be adjusted so that proper information products are produced for end users

Roles of IS in Business

Support of Strategic

Advantage

Support of Business

Decision Making

Support of Business Processes and Operations

History of Information Systems

Data Processing

ManagementReporting

DecisionSupport

Strategic &End User

Electronic Commerce

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

ElectronicData Processing- TPS

ManagementInformationSystems

DecisionSupportSystems- Ad hoc Reports

End UserComputingExec Info SysExpert SystemsSIS

ElectronicBusiness & Commerce-InternetworkedE-Business &Commerce

The E-Business Enterprise E-Business

The use of Internet technologies to inter-network and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.

The E-Business Enterprise E-Business enterprises rely on

information technologies such as the Internet to: Reengineer and revitalize internal business

processes Implement electronic commerce systems

among businesses and their customers and suppliers

Promote enterprise collaboration among business teams and workgroup

The E-Business Enterprise Enterprise collaboration systems

Involve the use of groupware tools to support communication, coordination, and collaboration among members of networked teams and workgroups

Electronic Commerce The buying and selling, marketing and

servicing of products, services and information over a variety of computer networks

The E-Business Enterprise Types of networks

The Internet Intranets – the network existing inside

an enterprise Extranets – networks existing

between enterprises

The Internetworked Business

Manufacturingand

Production

Engineering &Research

Accounting,Finance, andManagement

Suppliers and Other Business Partners

Procurement, Distribution, and Logistics

Advertising Sales Customer Service

Consumer and Business Customers

Company

Boundary

Intranets

The Internet

Extranets

Ext

ran

ets

Types of Information Systems

Transaction

Processing

Systems

Process

Control

Systems

Enterprise

Collaboration

Systems

Operations

Support

Systems

Management

Information

Systems

Decision

Support

Systems

Executive

Information

Systems

Management

Support

Systems

Information Systems

Operations Support Systems Role is to efficiently process business

transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases

Examples Transaction Processing Systems – record and process

data from business transactions in one of two ways – batch process and real-time process

Process Control Systems – monitor and control physical processes such petroleum refining

Enterprise Collaboration Systems – enhance team and workgroup communications and productivity

Management Support Systems Focus on providing information and support

for effective decision making by management Examples

Management Information Systems – provide information in forms of reports and displays to managers and other professionals

Decision Support Systems – giver direct computer support during the decision making process

Executive Information Systems – provide critical information from a wide variety of internal and external sources in an easy to use displays

Other Classifications Expert Systems – provide expert advice for

operational chores like equipment diagnostics Knowledge Management Systems – support the

creation, organization, and distribution of business knowledge to employees and managers

Functional Information Systems – focus on operational and managerial applications in support of basic business functions such as accounting

Strategic Information Systems – apply information technology to a firm’s products, services, or business practices to gain a competitive advantage

Developing Information Systems

Development Cycle

Managerial Challenges of IT Information systems and their

technologies must be managed to support the business strategies, business processes, and organizational structures and culture of an enterprise to increase its customer and business value

Managerial Challenges of IT

•Business Strategies•Business Processes•Business Needs

•Customer Relationships•Business Partners•Suppliers•Business Customers

Ethical ConsiderationsPotential Risks?Potential Laws? Possible Responses?

•IS Human Resources•IS Development

•IT Infrastructure•IS Performance

•Organization Structure•and Culture•User Acceptance

Ethics and IT Ethical Responsibilies

What use of IT may be considered improper, irresponsible, or harmful to other individuals or society?

How to protect yourself from computer crime?

Use of Internet in the business environment?

The IS Function A major functional area of business that is as

important to business success as the functions of accounting, finance, operations management, marketing, and human resource management

An important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction

A major source of information and support needed to promote effective decision making by managers and business professionals

The IS Function A vital ingredient in developing competitive

products and services that give an organization a strategic advantage in the global marketplace

A dynamic, rewarding, and challenging career opportunity for millions of men and women

A key component of the resources, infrastructure, and capabilities of today’s e-business enterprises

Questions

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