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Lesson-8 Information System
Building Blocks Describe the difference between data and information.
Define the product called an information system, and describe therole of information technology in information systems.
Differentiate between front- and back-office information systems.
Describe five classes of information system applications(transaction processing, management information, decisionsupport, expert, and office automation systems) and how theyinteroperate.
Describe the role of information systems architecture in systemdevelopment.
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C
ha
pter
Map
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Data and Information
Data are raw facts about the organization and
its business transactions. Most data items havelittle meaning and use by themselves.
Information is data that has been refined and
organized by processing and purposeful
intelligence. The latter, purposeful
intelligence, is crucial to the definition People provide the purpose and the intelligence that
produces true information.
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Information Systems & Technology
An information system (IS) is an arrangement of people, data,
processes, communications, and information technology that
interact to support and improve day-to-day operations in a
business as well as support the problem-solving and decisionmaking needs of management and users.
Information technology is a contemporary term that describes
the combination of computer technology (hardware and software)
with telecommunications technology (data, image, and voice
networks).
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Front- and Back-Office Information Systems
Front-officeinformation systems support business
functions that reach out to customers (or constituents). Marketing
Sales
Customer management
Back-officeinformation systems support internal
business operations and interact with suppliers (of
materials, equipment, supplies, and services).
Human resources Financial management
Manufacturing
Inventory control
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AFed
erationo
fInfo
rma
tion S
ystems
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Classes of Information Systems
Transaction processing systems
Management information systems Decision support systems
Expert systems
Office automation systems
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Transaction Processing
Transaction processing systems are information system
applications that capture and process data about businesstransactions.
Includes data maintenance, which provides for custodial
updates to stored data.
Business process redesign (BPR) is the study, analysis, and
redesign of fundamental business (transaction) processes to
reduce costs and/or improve value added to the business.
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Management Information
Systems
A management information system (MIS) is
an information system application thatprovides for management-oriented reporting.
These reports are usually generated on a
predetermined schedule and appear in a
prearranged format.
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Decision Support Systems
A decision support system (DSS) is an information systemapplication that provides its users with decision-orientedinformation whenever a decision-making situation arises. Whenapplied to executive managers, these systems are sometimes calledexecutive information systems (EIS).
A data warehouse is a read-only, informational database that ispopulated with detailed, summary, and exception data and informationgenerated by other transaction and management information systems.The data warehouse can then be accessed by end-users and managers
with DSS tools that generate a virtually limitless variety of informationin support of unstructured decisions.
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Expert Systems
An expert system is a programmed decision-making
information system that captures and reproduces the
knowledge and expertise of an expert problem solver or
decision maker and then simulates the thinking or
actions of that expert.
Expert systems are implemented with artificial intelligence
technology that captures, stores, and provides access to the
reasoning of the experts.
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Office Automation Systems
Office automation (OA) systems support the widerange of business office activities that provide for
improved work flow and communications between
workers, regardless of whether or not those workers are
located in the same office.
Personal information systems are those designed to meet
the needs of a single user. They are designed to boost an
individuals productivity.
Work group information systems are those designed to
meet the needs of a work group. They are designed to boost
the groups productivity.
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Information Systems Applications
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Information Systems
Architecture
Information systems architecture provides a unifying
framework into which various people with differentperspectives can organize and view the fundamental building
blocks of information systems.