INTRODUCTION TO
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INFORMATION SYSTEM
What is a System?
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A system is a group of elements that are integrated with the common
purpose of achieving an objective. An organization such as a firm or a
business area fits this definition.
Input resources are transformed into output resources. The resources flow
from the input element, through the transformation element, and to the
output element.
A control mechanism monitors the transformation process to ensure
that the system meets its objectives.
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Feedback helps you determine if the system is achieving its
goal. Feedback is information about how the system is performing.
Feedback can help you identify problems with the system
A system exists within an environment
A boundary separates a system from its environment
System Components
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Objectives
Control Feedback
mechanism
Input Transformation Output
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5 System Components
Systems
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Can Be Composed of Subsystems or Elemental Parts
System
Subsystem A Subsystem B Elemental
Part C
Subsystem A-1 Subsystem B-1
Subsystem A-2 Subsystem B-2
Elemental
Subsystem A-3
part B1 1-6
Physical
7 and Conceptual Systems
Physical system
The business firm
Composed of physical resources
Conceptual system
Represents a physical system
Uses conceptual resources
Information
Data
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What is Information System (IS)?
In a general sense , the term Information System
(IS) refers to a system of people, data records
and activities that process the data and
information in an organization, and it includes
the organization's manual and automated
processes.
In a narrow sense, the term information system (or
computer-based information system) refers to
the specific application software that is used to
store data records in a computer system and
automates some of the information-processing
activities of the organization.
9 Basic Concepts
Information systems in organizations
thus, provide information support for
decision makers. Information systems
encompass transaction processing
system, decision support system, and
strategic information system.
Information Systems
Crucial to success of modern business organizations
Constantly being developed to make business more competitive
Impact productivity and profits
Keys to successful systems development
Thorough systems analysis and design
Understanding what business requires
Systems Analysis and
Design in a Changing 10
World, 3rd Edition
Overview
Systems analysis – what system should do
Systems design – how components of information system should
be physically implemented
Systems analyst – uses analysis and design techniques to solve
business problems with information technology
Systems Analysis and
Design in a Changing 11
World, 3rd Edition
12Generating Information:
Computer-based ISs take data as raw material,
process it, and produce information as output.
Other Components of
13
Information System
14 Information Systems
Why Do People Need Information?
Individuals - Entertainment and enlightenment
Businesses - Decision making, problem solving
and control
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Information in Context
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Fig.1 Characteristics of useful information
21 Data, Information,
and Systems
The Four Stages of Data Processing
◦ Input: Data is collected and entered into computer.
◦ Data processing: Data is manipulated into information
using mathematical, statistical, and other tools.
◦ Output: Information is displayed or presented.
◦ Storage: Data and information are maintained for later
use.
22 Why Study IS?
Information Systems Careers
Systems analyst, specialist in enterprise resource
planning (ERP), database administrator,
telecommunications specialist, consulting, etc.
Knowledge Workers
Managers and non-managers
Employers seek computer-literate professionals
who know how to use information technology.
Computer Literacy Replacing Traditional Literacy
Benefits of Information System
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Faster and more accurate transactions
Better managerial decision making
Improves inventory and asset management
Ease of expansion/growth and increase flexibility
Fewer physical resources and improves
logistics/transportation
Cycle time reduction
Improves customer service and retention
Head count reduction/personnel reduction
Increase revenue
Productivity improvement
Expanding Roles of IS
1. Data Processing: 1950s-1960s
2. Management Reporting: 1960s-1970s
3. Decision support: 1970s-1980s
4. Strategic and End User Support: 1980s-1990s
5. Global Internetworking: 1990s-2000s
Expanding Role of IS
Information Systems are being used in more
areas, especial at the strategic level.
At the same time, Information Systems are
expanding participation of
End Users (The Grunts)
Biggest advantages of IS:
Information can flow up
the pyramid faster and
more effectively.
Types of Information Systems
Transaction Processing System (TPS)
Supports Operations
Updates Operational Databases
Examples:
ATM Machine System – Banking
Transactions
Cash Register System – Point of Sale
Transactions
Accounting System – Checking Account
Transactions
Even Pay-per-view or OnDemand is a TPS
Process Control Systems
(PCS)
Supports Operations
Monitor and Control Industrial/Manufacturing Process
Examples:
Petroleum Refining
Power Generation
Automobile Manufacturing
Enterprise Collaboration Systems (ECS)
Supports Operations (Surprised?)
Teamwork, communication, and collaboration
Examples:
E-mail
Chat
Video Conferencing
Calendaring
Journaling
Workflow
File Sharing (Kazaa, Morpheus, Limework, Napster)
Management Information System (MIS)
Supports Management
Analysis & Reporting
Charts, Graphs, Summary Tools
Examples:
Spreadsheet (Excel) – One of the first
and most basic
Oracle's Corporate Performance
Management
Decision Support System
(DSS)
Support Management
What-if Analysis, Decision Modeling,
Scenario Building, Highly interactive,
ad hoc.
Examples
Enterprise Decision Manager 2.0 Fair
Isaac Corporation
AIMMS 3.6
Most DSS’s are custom developed for
specific companies; very few out-of-
the-box products.
Executive Information Systems (EIS)
Supports high-level strategic management
Provides critical info from other systems (MIS
and DSS).
Portal Concept: one place with links to all
information
EIS’s integrate external information such as
economic developments and news about
related markets and competitors. Helps
strategic decision making, not necessarily
tactical.
Tactical – doing things the right way right
Strategic – doing the right things
Management Information Systems
for Competitive Advantage
Provides support to managers as they work to achieve corporate
goals
Enables managers to compare results to established company
goals and identify problem areas and opportunities for
improvement
Internet An Organization’s
MIS
Financial
MIS
Business
transactions
Drill down reports
Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports
Business
transactions
Databases Human
of
Resources Etc.
external
data MIS
Extranet
Etc.
Figure 9.3
Financial MIS
Provides financial information to all financial managers
within an organization.
Schematic
Inputs to the Financial Information
System
Strategic plan or corporate policies
Contains major financial objectives and
often projects financial needs.
Transaction processing system (TPS)
Important financial information collected
from almost every TPS - payroll, inventory
control, order processing, accounts
payable, accounts receivable, general
ledger.
External sources
Annual reports and financial statements
of competitors and general news items.
Financial MIS Subsystems and
Outputs
Financial subsystems
Profit/loss and cost systems
Auditing
Internal auditing
External auditing
Uses and management of funds
Manufacturing MIS
Schematic
Inputs to the Manufacturing
MIS
Strategic plan or corporate policies.
The TPS:
Order processing
Inventory data
Receiving and inspecting data
Personnel data
Production process
External sources
Manufacturing MIS Subsystems
and Outputs
Design and engineering
Master production scheduling
Inventory control
Manufacturing resource planning
Just-in-time inventory and manufacturing
Process control
Computer-integrated manufacturing (CIM)
Quality control and testing
Marketing MIS
Supports managerial activities in product
development, distribution, pricing decisions, and
promotional effectiveness
Schematic
Inputs to Marketing MIS
Strategic plan and corporate policies
The TPS
External sources:
The competition
The market
Marketing MIS Subsystems and
Outputs
Marketing research
Product development
Promotion and advertising
Product pricing
Human Resource MIS
Concerned with all of the activities related to
employees and potential employees of the
organization
Inputs to the Human Resource MIS
Strategic plan or corporate policies
The TPS:
Payroll data
Order processing data
Personnel data
External sources
Human Resource MIS Subsystems
and Outputs
Human resource planning
Personnel selection and recruiting
Training and skills inventory
Scheduling and job placement
Wage and salary administration
Other MISs
Accounting MISs
Provides aggregated information on accounts payable, accounts
receivable, payroll, and other applications.
Outputs of a
Management Information
System
Scheduled reports
Produced periodically, or on a schedule (daily,
weekly, monthly)
Key-indicator report
Summarizes the previous day’s critical activities
Typically available at the beginning of each day
Demand report
Gives certain information at a manager’s request
Exception report
Automatically produced when a situation is
unusual or requires management action
Scheduled Report Example
Daily Sales Detail Report
Prepared: 08/10/xx
Order Customer Sales Ship
# ID Rep ID Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720
Key Indicator Report
Example
Daily Sales Key Indicator Report
This Last Last
Month Month Year
Total Orders Month to Date $1,808 $1,694 $1,014
Forecasted Sales for the Month $2,406 $2,224 $2,608
Demand Report Example
Daily Sales by Sales Rep Summary Report
Prepared: 08/10/xx
Sales Rep ID Amount
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350
52 The Analyst as a Business
Problem Solver
Understands business problems
Uses logical methods for solving
problems
Has fundamental curiosity
Wants to make things better
Is more of a business problem solver than
technical programmer
53 Technical Knowledge and
Skills
Analyst uses tools:
Software productivity packages (MS Office)
Integrated development environments (IDEs) for programming languages
CASE tools / coding, testing, and documentation support packages
Analyst understands SDLC phase techniques:
Project planning
Systems analysis, systems design
Construction, implementation, systems support
54 Business Knowledge and
Skills
Analyst must understand:
Business functions performed by organization
Organizational structure
Organization management techniques
Functional work processes
55 People Knowledge and Skills
Systems analysts need to understand how people:
Think
Learn
React to change
Communicate
Work (in a variety of jobs and levels)
56 People Knowledge and Skills
(continued)
Interpersonal and communication skills are crucial to:
Obtaining information
Motivating people
Getting cooperation
Understanding the complexity and workings of an
organization in order to provide necessary support
57 Integrity and Ethics
Analyst has access to confidential information such as
salary, an organization’s planned projects, security
systems, etc.
Must keep information private
Any impropriety can ruin an analyst’s career
Analyst plans security in systems to protect confidential
information
Required Skills of the Systems
Analyst
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