Unit I-systems Concepts

8/3/2019 Unit I-systems Concepts

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MANAGEMENT INFORMATION SYSTEM


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What IS a system?

A group of interrelated or interacting elements

forming a unified whole, OR

A group of interrelated components working

together toward a common goal by accepting

inputs and producing outputs in an organized

transformation process (dynamic system).

Three basic interacting components:

Input

Processing (transformation process)

Output


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OTHER SYSTEM CHARACTERISTICS

A system exists and functions in an environment

containing other systems.

Subsystema component of a larger system.

Systems that share the same environment may be

connected to one another through a shared boundary, or

interface.

Open versus closed system.

Adaptive system


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COMPONENTS OF AN INFORMATION SYSTEM


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People Resources

End UsersIS Specialists

Hardware Resources

Computer systemsPeripherals

Software Resources

System softwareApplication software

Procedures

Data Resources

Data versusInformation

Network Resources

Communicationmedia

Network support


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INFORMATION SYSTEMS FRAMEWORK


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INFORMATION SYSTEMS CONCEPTS

Foundation Concepts

Fundamental concepts about the components and roles of

information systems.

Information Technologies

Major concepts, developments, and management issues

in information technology.

Business Applications

The major uses of information systems for operations,management, and competitive advantage.

Development Processes

How business professionals and information specialistsplan, develop, and implement information systems.


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Management Challenges

The challenge of managing ethically and effectively.


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ADD FEEDBACK AND CONTROL LOOPS..


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MAJOR ROLES OF IS

SupportCompetitiveAdvantage

SupportBusiness

Decision Making

Support ofBusiness Processes and Operations


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Support business process: eg-computer based information

system in retail stores helps them to record customer

purchases, track of inventory, pay employees, buy new

merchandise and evaluate sales trends. Support decision making: Helps store managers and other

business professionals in the lines of merchandise to be

added, kind of investment they require.

Support competitive advantage: gaining strategic advantage

over competitors. Eg- installing touch screen kiosks (asmall permanent or temporary structure on a sidewalk that sells items

such as newspapers and candy)in the stores with links to theire-commerce website for online shopping. Attract new

customers, build customer loyalty.


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TRENDS IN INFORMATION SYSTEMS


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TYPES OF INFORMATION SYSTEMS


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MANAGERIAL CHALLENGES OF INFORMATION

TECHNOLOGY

Information systems can be mismanaged and misapplied so

that they create both technological and business failure.

Top Five Reasons for Success Top Five Reasons for Failure

User involvement Lack of user input

Executive management support Incomplete requirements and

specifications

Clear statement of requirements Changing requirements andspecifications

Proper planning Lack of executive support

Realistic expectations Technological incompetence


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DEVELOPING IS SOLUTIONS TO BUSINESS

CHALLENGES


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ETHICAL CHALLENGES

Just because we can, should we?Where do we draw the line between customer

privacy and collecting business information?

Do we owe it to society to use this technologywisely and responsibly? Why? Isnt our job to

make a profit?


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IN SUMMARY, THE IS FUNCTION

Is a major functional area of business.

Is an important contributor to operational efficiency,

employee productivity and morale, and customer

service & satisfaction.

Is a major source of information and support for

decision making.

Provides a strategic advantage in developing

competitive products & services.


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SYSTEMS CONCEPTS

A system is a set of inter-dependent components (some of which may

be systems in their own right), which collectively accomplish certainobjectives.

Systems have characteristics such as boundaries, outputs and inputs,methods of converting inputs into outputs, and system interfaces.

Systems are composed of interrelated and interdependent sub-systems.

System Boundaries

Systems and Sub-systems

Outputs and Inputs

Sub-system Interface

Interface Problems

System and its Environment

System Feedback

System Maintenance

System Stress and Change


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System Boundaries : Every system has a boundary

that defines its scope of activities .

Systems and Sub-systems :

Systems may consist of numerous sub-systems, each

of which has elements, interactions, and objectives.

Sub-systems perform specialized tasks related to theoverall objectives of the total system.

Outputs and Inputs :

The inner workings of a system or sub-system areorganized to produce outputs from inputs.

The outputs of one sub-system usually become

inputs into the next.

S f


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Sub-system Interface :

An interface is a connection at system or sub-system

boundaries.

An interface serves as a medium to convey the output from

one system to the input of another system.

Interface Problems :

The output of one sub-system is not sufficient toaccommodate the needs of the next sub-system .

For example, the production sub-system may not be able to

produce enough stock to meet sales demands during certainpeak periods. One way of handling this interface problem is

through the use ofslack resources.

S d i E i


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System and its Environment :

The system's environment consists of people, organizations,

and other systems that supply data to or that receive data

from the system.

System Feedback

A system needs feedback to do its job.

Feedback is an indicator of current performance rates whencompared to a set of standards.

System Maintenance

Systems can run down if they are not maintained. Systemsentropy corresponds roughly to chaos or disorder - a state

that occurs without maintenance

S S d Ch


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System Stress and Change

Systems change over time. Some of these changes occur

because of identified problems, new business opportunities,

and new management directives.

Systems may also change as a result of stresses.


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ROLE OF INFORMATION SYSTEMS


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ROLE OF INFORMATION SYSTEMS:

Functional Areas in Business

O ti l E ll


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Operational Excellence:

New Products, Services and Business Models: A business

model describes how a company produces, delivers, and

sells a product or service to create wealth. Customer and Supplier Intimacy: Information systems can

help a business know its customers and serves them well,

the way they want to be served

Improved Decision Making.

Competitive Advantage: doing thins better than its

competitors, charging less for superior products, and

responding to customers and suppliers in real time. Survival: Firm turn to information systems and technologies

to provide the capability to respond to these information

retention and reporting requirements.

M t i ti i t i iti h hi f


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Most organizations maintain positions such as chief

executive officer (CEO), chief financial officer (CFO),

and chief operations officer (COO) at the strategic level.

Recently there are more IT-related strategic positions suchas

chief information officer (CIO),

chief technology officer (CTO),

chief security officer (CSO),

chief privacy officer (CPO), and

chief knowledge officer (CKO).

The CIO is responsible for overseeing all uses of

information technology and ensuring the strategic alignment

of IT with business goals and objectives.

S j f t th t ff t t d ' b i


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Seven major factors that affect today's business

environment

Growing interdependence between businesses and information


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Growing interdependence between businesses and information

systems


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4 LEVELS OF INFORMATION SYSTEM

Operational-level Systems

Support operational managers by keeping track of the

elementary activities and transactions of the organization.

The principle purpose of systems at this level is to

answer routine questions and track the flow of

transactions through the organization. Covers things such

as sales, receipts, cash deposits, payroll, credit decisions,

flow of materials.


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Knowledge-level Systems

The purpose of these systems is to help the organisation

discover, organise and integrate new and existing

knowledge in to the business, and to help control the

flow of paperwork.

These systems, specially in the form of collaboration

tools, workstations, and office systems, are the fastest

growing applications in business today.


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Management-level Systems

Designed to serve the monitoring, controlling, decision-

making, and administrative activities of middlemanagers.

These typically provide periodic reports rather than

instant information on operations. Some of these systems support non-routine decision-

making, focusing on less-structured decisions for which

information requirements are not always clear.

This will often require information from outside the

organisation, as well as from normal operational-level

data.


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Strategic-level Systems

Help senior management tackle and address strategic

issues and long-term trends, both within the organisation

and in the external environment.

Principal concern is matching organisational capability to

changes, and opportunities, occurring in the medium to

long term (i.e. 5 - 10 years) in the external environment.


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OPERATIONAL-LEVEL SYSTEMS

TRANSACTION-PROCESSING SYSTEMS (TPS)

Basic business systems

Perform daily routine transactions necessary for business

functions

At the operational level, tasks, resources and goals are

predefined and highly structured

Generally, five functional categories are identified, as

shown in the diagram.


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KNOWLEDGE-LEVEL SYSTEMS

OFFICE AUTOMATION SYSTEMS (OAS)

Targeted at meeting the knowledge needs of data workers

within the organisation.

Data workers tend to process rather than create

information. Primarily involved in information use,

manipulation or dissemination.

Typical OAS handle and manage documents, scheduling

and communication.

KNOWLEDGE WORK SYSTEMS (KWS)


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KNOWLEDGE WORK SYSTEMS (KWS)

Targeted at meeting the knowledge needs of knowledge

workers within the organisation

In general, knowledge workers hold degree-level

professional qualifications (e.g. engineers, scientists,

lawyers), their jobs consist primarily in creating new

information and knowledge

KWS, such as scientific or engineering design

workstations, promote the creation of new knowledge,

and its dissemination and integration throughout the

organisation.

MANAGEMENT-LEVEL SYSTEMS


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MANAGEMENT-LEVEL SYSTEMS

MANAGEMENT INFORMATION SYSTEMS (MIS)

MIS provide managers with reports and, in some cases,

on-line access to the organisations current performance

and historical records.

Typically these systems focus entirely on internal events,

providing the information for short-term planning and

decision making.

MIS summarise and report on the basic operations of the

organisation, dependent on the underlying TPS for their

data.


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DECISION-SUPPORT SYSTEMS (DSS)


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DECISION SUPPORT SYSTEMS (DSS)

Focus on helping managers make decisions that are semi-

structured, unique, or rapidly changing, and not easily

specified in advance

Use internal information from TPS and MIS, but also

information from external sources

Greater analytical power than other systems, incorporate

modelling tools, aggregation and analysis tools, and

support what-if scenarios.

Voyage-estimating Decision Support System


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y g g pp y


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STRATEGIC-LEVEL SYSTEMS

EXECUTIVE SUPPORT/INFORMATION SYSTEMS (ESS/EIS)

ESS/EIS address unstructured decisions and create a

generalised computing and communications

environment, rather than providing any fixed application

or specific capability.

These systems are not designed to solve specific

problems, but to tackle a changing array of problems

ESS/EIS are designed to incorporate data about external


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ESS/EIS are designed to incorporate data about external

events, such as new tax laws or competitors, and also

draw summarised information from internal MIS and

DSS

These systems filter, compress, and track critical data,

emphasising the reduction of time and effort required to

obtain information useful to executive management

ESS/EIS employ advanced graphics software to provide

highly visual and easy-to-use representations of complexinformation and current trends, but they tend not to

provide analytical models


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Inter-relationships and inter-dependencies between IS types


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p p yp


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COMPONENTS OF INFORMATION SYSTEMS

Formal vs. Informal Specifications

Components of Specifications

FORMAL VS. INFORMAL SPECIFICATIONS

In the development of information systems in business,

informal specifications through graphical modeling havebeen used at least since late 70s.

Formal specification languages (such as Larch, VDM, Z,

FOOPS and OBJ) have been developed. (expected to play

an important role in the future)

These formal specification techniques attempt to

mathematically specify structure, function, and behavior of

information systems.

COMPONENTS OF SPECIFICATIONS


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COMPONENTS OF SPECIFICATIONS

Specifications of an information system is given by their:

Structure: How it is organized.

Function: What it does.

Behaviour: How it responds to events and stimuli.

Data: Its meaning and organization.

CLASSIFICATION OF INFORMATION SYSTEMS


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CLASSIFICATION OF INFORMATION SYSTEMS

CLASSIFICATION BY MODE OF DATA PROCESSING:

Batch Processing Systems: On-line Batch Systems:

On-line Real-time Systems:

CLASSIFICATION BY SYSTEM OBJECTIVES

Transaction Processing Systems (TPS)

Process Control System (PCS)

Decision Support Systems (DSS)

Expert Systems

Executive Information System (EIS)

Business Information Systems (BIS)

CLASSIFICATION BASED ON THE NATURE OF


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INTERACTION WITH ENVIRONMENT

Transformational Systems: These are systems that transforminputs received from the environment in order to generate

reports (output).

Reactive Systems: These are systems characterized by

being, to a large extent, event-driven, continuously havingto react to external and internal stimuli.

ORGANISATION AS A SYSTEM


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ORGANISATION AS A SYSTEM


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WHAT IS AN ORGANISATION?

An organization is very similar to the Information System.

Both require inputs and some sort of processing, both have

outputs, and both then depend on feedback for successful

completion of the loop.

Information Systems use data as their main ingredient.

Organizations rely on people.

They are both a structured method of turning raw products

(data/people) into useful entities (information/producers).


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SALIENT FEATURES OF ORGANISATIONS

Clear Division of Labor

Hierarchy

Explicit rules and procedures

Impartial judgments

Technical Qualifications for Positions

Maximum Organizational Efficiency

ORGANISATIONS AFFECT INFORMATION


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SYSTEMS

Change is the only constant in the relationship between

information systems and organizations. You need to

consider:

How have organizations actually used information systems?

How has the organizational role of information systemschanged?

Who operates information systems?

Why do organizations adopt information systems in the firstplace?

WHY ORGANIZATIONS BUILD INFORMATION


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WHY ORGANIZATIONS BUILD INFORMATION

SYSTEMS

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Unit I-systems Concepts

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