INTODUCTION TO INFORMATION SYSTEMS

Part 1: INFORMATION SYSTEM

• Data
  • Raw facts
  • Derived through different modes of inquiry
  • Happening now and have happened in the past
• Information
  • Basic resource
  • Processed data
  • Organized, has use, provide meaning
  • Data that have a particular meaning within a specific context
  • Meaningful and useful data
  • Information Socitety:
    • System with useful data
    • Knowledge Workers
      • Use, create, and distribute information
    • Data Workers
  • Qualities of Information:
    • Time dimension
    • Content dimension
    • Form dimension
  • Qualities of VALUABLE information:
    • Accurate
    • Verifiable
    • Timely
    • Organized
    • Accessible
    • Useful
    • Cost-effective
• Knowledge
  • Convert data into useful information
  • Relatingm understanding, and analyzing several pieces of valuable information
  • Composed of set of rules
  • Knowledge-Based
    • Composed of set of rules
• Database
  • Persistent, organized, structured and shared storage of collected interrelated data that has purpose
  • Generate meaningful information
  • Records only data that has purpose
  • Relationship and connections between its data to make them more meaningful
  • Well organized and structured so that it can be easily shared and retrievable
  • The need for database:
    • Man has the desire to record everything
      • More record = to a need of storage space
    • The records are desired to be shared and re-used
• Issues in Electronic File Processing
  • Separation and isolation of Data
  • Duplication of Data
  • Data dependence
  • Incompatible file formats
  • Fixed queries

Part 1.2: COMPUTER LITERACY, IS LITERACY, IS

• Computer Literacy
  • Know how to use IT (Information Technology)
  • Information Techonology
    • Hardware
    • Software
    • Telecommunications
    • Storage techniques
      • store , retrieve, and manipulate
• Infomation System (IS) Literacy
  • Understands and knows the importance of information
  • Understanding the nature of business
  • IS Literate
    • Computer + Business
  • 3 Elements or Skill
    • IT Skills
    • Anaylsis and problemen solving skills
    • Organizational and behavioral skills
• Information System
  • Technical
    • Set of interrelated components that collects, process, store, distribute information to support the operation of an organization
  • Management
    • Organizational and management solution to business problems (manual, computerized)
  • Application that allows people to maximize the tons of recorded data
  • Example:
    • People
    • Information Processing Theory
  • Components:
    • Hardware
    • Software
    • Data
    • People
    • Procedur
  • Activities involved
    • Input
    • Process
    • Output
    • Feedback
  • Why IS
    • Changing business environment starting 1990s
    • Transformation of industrial economies and societies into knowledge and information based service economics
  • Classification
    • Formal IS
      • Fixed
      • Accepted definition of data and procedures for collecting the information
      • Ex: Computer Based Information System (CBIS)
        • Processing, storing, and distribution of information
    • Informal IS
      • Implicit agreements and unstated rules of behavior
      • EX:
        • Grapevines
        • Office Gossip Network

PART 2: MANAGEMENT INFORMATION SYSTEM

• Management Information Systems (MIS)
  • Developments and use of information systems
  • Help businesses achieve goals and objectives
  • Key Elements:
    • Development and use
    • Information Systems
    • Business goals and objectives
  • MIS Manager
    • Runs the MIS department
    • Should know computer technology and the organization’s business
• Development and use of IS
  • Business Professionals
    • Active rule in IS to ensure that systems meet their needs
    • Understand how IT systems are constructed
    • Consider users need during development
    • Learn how to use IT system
    • Take into account ancillary IT functions
  • 5 Component Framework of IS
    • Hardware (Computer side)
    • Software (Computer side)
    • Data (Computer side)
    • Produceres (Human Side)
    • People (Human Side)
  • Contemporary Approach:
    • Technical
      • Computer science
      • Management science
      • Operational research
    • Behavioral
      • System utilization
      • Implementation
      • Creative design
      • Discipline
        • Sociology
        • Psychology
        • Economics
  • Conceptual Framework
    • Management Challenges
    • Information Techonolgies
    • Foundation Concepts
    • Development Processes
    • Business Applications
  • Role of IS in Business
    • Support strategies for competitive advantage
    • Suppor business decision making
    • Support business processes and operations
• IT vs IS
  • IT:
    • Includes:
      • Hardware
      • Software
      • Data components
    • Refers to:
      • Methods
      • Inventions
      • Standards
      • Products
    • Could be though of as information tools
    • This alone will not help an organization to achieve its goals
  • IS:
    • It is equal (=) to IT plus (+) people and procedures
    • IS makes IT useful
  • How do successful business professionals
    • Think creatively about problems, challenges, and opportunities and find ways to apply IT and IS
    • Create innovative applications using emerging (new) technologies
    • Find ways to gain a competitive advantage with information systems
• Classic Management Function
  • Planning
    • Short-range and long-range plans
    • Set goals to achieve those plans
  • Organizing
    • Decide how to use resources (people and materials)
  • Staffing
    • Hire and train workers
  • Directing
    • Guide employees to perform their work
  • Controlling
    • Monitor the organization’s progress toward reaching its goals
• Classic Management Pyramid
  • Top-Level Managers (Strategic)
    • Senior Managers
      • Make long range strategic decisions
    • Focuses on the planning functions of the organizations
  • Middle-level managers (Tactical)
    • Middle Managers
      • Carry out programs and plans of senior managers
    • Focuses on organizing and staffing
    • Carry out the visions of top level managers
  • Low-level managers (Operational)
    • Operational Managers
      • Monitor the firm’s daily activities
    • Directing and controllingworkers to perform the planned activities
• New Management Model
  • Industries are finding that they can fo w/out middle managers. They have been replaced by computer networks.
  • Flattened Management Pyramid
    • Top level managers (strategic)
    • Low and Middle level managers (tactical)
      • Using computers in this level
    • Workers (operational)
• Evolution of IS
  • 50s: Electronic Data Processing (EDP)
  • 60s: Management Information System (MIS)
  • 70s: Decision Support System (DSS) & Office Automation System (OAS)
  • 80s: End User Computing (EUC)
  • 90s: Integration
• Impact of IS:
  • Organizations
    • People and cultural influence IS
  • Technology
    • Appropriate use of machine and technologies
  • Management
    • Solve business problems
• New options for organizational design
  • Flattening organizations
  • Separation work from location
  • Reorganizing work flows
  • Increasing flexibility
  • Redefining organizational boundaries
• Challengers of IS:
  • Technology Challenge
    • HW and SW gap
    • HW and SW business races
  • Productivity Challenge
    • Increase productivity and growth in computing power
  • Strategic Business Challenge
    • Fast responses or change quickly
    • How can we stay on top?
    • Aware of what’s new and what’s hot in the business
  • People Challange
    • Interrelationship between human and technology
    • Ethical issues
    • Human Computer Interaction (HCI)
  • IS Investment Challenge

Part 3: MAJOR TYPES OF INFORMATION SYSTEM

• Information
  • Organizational resource
  • Must be manage as carefully as other resources
  • Information Processing
    • Cost are associated with information processing
    • Must be managed to take full advantage of its potential
• Role of Information System in Organizations
  • Provide early warning signals of problems that originate both externally and internally
  • Automate routine clerical operations
  • Assist all levels of managers in making routine (programmed) decisions
  • Provide the information necessary for management to make strategic (non-programmed) decisions
  • IS are developed for different purposes depending on the needs of the business
    • System Analysis
      • May be involved with any or all of these systems
  • Support of its business processes and operations
  • Support of decision making by its managers
  • Support of its strategies for competitive advantage
• Major Types of IS
  • Transaction Processing System (TPS)
  • Office Automation System (OAS)
  • Knowledge System (KWS)
  • Management Information System (MIS)
  • Decision Support System (DSS)
  • Expert System (ES) & Artificial Intelligence (AI)
  • Group Decision Support System (GDSS) & Computer Supported Collaborative Work System (CSCWS)
  • Executive Support System (ESS)
• Types of IS
  • IS that supports Business Operations
    • Transaction Process System (TPS)
    • Process Control System (PCS)
    • Office Automation System (OAS) / Office Information System (OIS)
    • Knowledge System (KWS)
  • IS that supports Management Making
    • Management Information System (MIS)
    • Decision Support System (DSS)
    • Executive Information System (EIS) / Executive Support System (ESS)
    • Expert System (ES)
  • IS that support of Strategic Competitive Advantage
    • Strategic Information System (SIS)
    • Computer Supported Collaborative Work System (CSCWS) / Group Decision Support System (GDSS)
    • Executive Information System (EIS) / Executive Support System (ESS)

Part 3.2: ROLE OF IS IN ORGANIZATIONS

• Business decision Processes and Operations
  • TPS: Transaction Processing System
    • Day to day operations of business
      • Daily sales and marketing / inventory
      • Accounting (AR, AP)
      • Purchasing and receiving
      • Human Resources Management / Personnel
      • Production / Manufacturing
    • These system function smoothly and without interruption
    • Computerized information
    • Systems that were developed to process large amounts of data for routine business transactions
    • Boundary spanning system
      • To interact with the external environment
    • Allow sorting, listing, merging, and updating of data and information
    • Handle and produce data and information in the form of:
      • Transaction
      • Events
      • Detailed Reports
      • Lists
      • Summaries
    • Types of TPS System:
      • Sales and Marketing System
        • Sales ordr information system
        • Marketing research System
        • Pricing SYstem
        • Order tracking and processing
      • Manufacturing and Production System
        • MAterials resource planning system
        • Purchase order control system
        • Engineering system
        • Quality control system
      • Accounting and Finance System
        • General Ledge System
        • Accountes Payable / Receivable System
        • Budgeting System
        • Funds Managemenr System
      • Human Resource Systems
        • Payroll System
        • Employee Records System
        • Benefit System
        • Career Path System
        • Training and development system
    • Used by:
      • Operational Management
      • Non-management Employees
  • PCS: Process Control System
    • Only includes manufacturing under TPS
    • Used by:
      • Operation Management
      • Production Manager
  • OAS / OIS: Office Automation Systems / Office Information Systems
    • Support data workers that analyze the information
    • Do not create new knowledge
    • Transform data or manipulate it before disseminating it throughout the organization
    • Suppot the storage of information within organization
    • Ex:
      • Fax machine
      • Telephone
      • Email
      • Desktop Publishing (DTP)
      • Word processing
      • Spreadsheet
      • Electronic scheduling
      • Video conferencing
      • Image processing voice mail
    • Goal
      • To have a paperless office
    • Make use of tolls like
      • Word processing
      • Electronic mail
      • Calendaring features
      • Reminder files
    • Handle
      • Document management
      • Scheduling
      • Communications
    • Support Data workers
    • Used by:
      • Non-management Employees
  • KWS: Knowledge System
    • Creation, organization, and dissemination of business knowledge to employees and managers throughout the organization
    • Knowledge workers
    • Ex:
      • Computer Aided Design
      • Computer Aided Manufacturing
      • E-learning SYstems
      • Scientific Computing Systems
      • Engineering
      • Graphics
      • Managerial Workstations
    • Used by:
      • Operational Management
• Management Decision Making / Decision Making
  • MIS: Management Information System
    • A collection of data to create a summary report
    • TPS (Transaction Processing System) + RGS (Report Generating System)
    • Do not replace TPS
    • All MIS include transaction processing
    • Computerized informating systems that work because of the purposeful interaction between people and computers
    • Support a broader spectrum of organizational task than TPS
      • Include: Decision analysis and Decision Making
    • Share a common database
      • Store both: data & models
      • Help user interpret and apply all the data
    • Used in decision making
    • Planning for development, management, and use of information technology tools
    • Help people in the organization perform all task related to information processing and management
    • Information in the form of:
      • Reports
      • Display information
    • Provide access to organization’s:
      • Current performance
      • Historical records
    • Focus on INTERNAL events
    • SHORT TERM planning and decision making
    • Ex:
      • Sales management
      • Inventory Control
      • Annual Budgeting
      • Capital Investment Analysis
    • Used by:
      • Tactical Management
      • Operational Management
    • Types / element (ewan) :
      • Structured and semi-structured decisions
      • Report control oriented
      • Past and Present data
      • Internal Orientation
      • Lengthy design process
  • DSS: Decision Support System
    • Support managerial decision making
    • Focus on helping managers make decisions:
      • semi -structured
      • Unique
      • Rapidly changing
      • Not easily specified in advance
    • Higher level class of computerized information system
    • Similar to traditional MIS
      • Both depend on a Database (DB) as a source of data
    • Emphasizes the support of decision making in all its phases
    • Focus on business intelligence
    • Greater analytical power that other:
      • System
      • Incorporate modeling tools
      • Aggregation and analysis tools
      • Support what-if scenarios
    • Ex:
      • Sales region analysis
      • Production scheduling
      • Cost analysis
      • Pricing / Profitability analysis
      • Contract cost analysis
    • Used by:
      • Tactical Management
      • Operational Management
  • ES: Expert Systems
    • Also known as Knowledge Base System
    • Application of AI (Artificial Intelligence)
    • Mimic the performance of human experts
    • Effectively capture and use the knowledge of an expert for solving a particular problem experience in an organization
    • Ex:
      • Training SYstem
      • Equipment Diagnostics
      • Portfolio Management
      • Troubleshooting Systems
    • Artificial Intelligence (AI)
      • Develop machines that behave intelligently
      • 2 Avenues of AI research:
        • Understanding natural language
        • Analyzing the ability to reason through a problem to its logical conclusion
    • Used by:
      • Tactical Management
      • Operational Management
  • ESS / EIS: Executive Support System / Executive Information System
    • Internal and external sources
    • Use of senior executives
    • Help executives organize their interaction with the external environment and looking ways to help them make decisions on the strategic level
    • Rely on the information generated by TPS and MIS
    • Address unstructed decisions and create a generalizes computing and communication environment
    • Creating an environment that is conductive to thinking about strategic problems in an informed way
    • Incorporate data about external events
      • New tax laws
      • Competitors
    • Draw summarize information form
      • MIS (Management Information System)
      • DSS (Decision support system)
    • These systems:
      • Filter
      • Compress
      • Tract critical data
    • Ex:
      • Sales trend forecasting
      • Operations planning
      • Budget forecasting
      • Profit planning
      • Manpower planning
    • Used by:
      • Executive Management

THE MODERN ORGANIZATION

PART 4: THE FUNCTIONING IN A GLOBAL ENVIRONMENT

• Information Systems: Concepts and Definitions
  • Data Items
    • Elementary descriptions of:
      • Things
      • Events
      • Activities
      • Transactions
    • Recorded, classified, and stored
    • Not organize to convey any specific meaning
  • Information
    • Data that have been organized
    • Have meaning and value
  • Knowledge
    • Consists of data and/or information
    • Organized and processed to conver:
      • Understanding
      • Experience
      • Accumulated learning
      • Expertise
    • Apply to a current business problem
• Information Technology (IT) Architecture
  • High level map
  • Plan of the information assets in an organization
  • Guide for current operations
  • Blueprint for future directions
  • Integrates the entire organization’s business needs
    • For information
    • IT infrastructure
    • All applications
  • Describes how the house is to be constructed including the varius components
  • Shows how all aspects of IT in an organization fit together
• Information Technology (IT) Infrastructure
  • Consists of the (things) that support the entire organization:
    • Physical facilities
    • IT Components
    • IT services
    • IT personnel
• The Global, Web-Based Platfrom
  • Represented by the Internet & the World Wide Web (WWW)
  • Enables us to (list) everywhere and anytime:
    • Connect
    • Compute
    • Collaborate
    • Compete
  • Operates without regard to geography, time, distance, and language
  • Globalization
    • Integration and interdependence of:
      • Social
      • Cultural
      • Ecological facets of life
    • Enabled by rapid advances in information technology
  • Stages of Globalization:
    • Globalization 1
      • 1492 - 1800
      • Christopher Columbus
      • Amount of muscle, horse power, wind power, or stream power a country had and could deploy
    • Globalization 2
      • 1800 - 2000
      • Multinational companies
      • Headquarters in a one country
      • Operated in several countries
      • 1st half
        • Driven by falling transportation costs
        • Stream engine, railroads
      • 2nd half
        • Falling telecommunication cost
        • Satellites, Apple Mac Pro, Fiber Optics, Open Source Smart Phone
    • Globalization 3
      • Emergence of a global, web-based platform
      • Flatteners
        • Thomas Friedman
        • The convergence of 10 forces

Part 4.2: TEN FLATTERNERS

• Thomas Friedman’s Ten Flatteners
  • Fall of the Berlin Wall
    • Collapse of the Sovient Union and the communist government of Eastern Europe
    • Move toward free market economies
    • People begin thinking about the world as a single market or single community
  • Netscape goes public
    • Navigating the web or browser
  • Development of Work-flow software
    • Enables computer apps to interoperate or communicate and work with one another without humas intervention
  • Uploading
    • Open source software
      • An essential ingredient of uploading
      • Linux, OpenOffice, Apache Web Server, Mozilla (Firefox and Thunderbird), SeaMonkey Project
    • Community developed software
    • Wikipedia, YouTube, Blogger
  • Outsourcing
    • Taking a specific function that your company was doing itself
      • Having another company perform that same function for you
      • Intergrating their work back into your operation
    • Year 2000 (Y2K) problem
  • Offshoring
    • Company moves an entire operation or task to another company
    • Call center
  • Supply Chaining
    • When companies, their suppliers, and their customers collaborate and share information
    • Each segment of the chain can interface with the next
    • Walmart
  • Insourcing
    • Delegates operation or jobs within a business to another company
    • Specialized in those operation
    • Ex:
      • Dell hire FedEx to analyze Dell’s shipping process and take over that process
      • FedEx employees work inside Dell but remain employed by FedEx.
  • Informing
    • Ability to search for information
    • Search engineer
  • The Steroids
    • Amplify the other flatteners
    • Enable all forms of computing and collaborations to be:
      • Digital
      • Mobile
      • Virtual
      • Personal
    • 1st Steroid:
      • Computing
      • Storage
    • 2nd Steroid:
      • Instant Massaging
      • File Sharing
    • 3rd Steroid:
      • Voice over internet protocol
    • 4th Steroid:
      • Videoconferencing
        • Telepresence system in a conference room
        • Individual telepresence system
      • Medicine
    • 5th Steroid
      • Computer Graphics
    • 6th Steroid
      • Wireless technology
      • Cellphone
      • Bluethooth
      • Geostationary satallite

Part 5:

• The Great Convergence
  • 3 powerful technological forces
    • Cheap and ubiquitous computing devices
    • Low cost, high bandwidth
    • Open Standards
  • We have computing everywhere and anywhere, anytime and all the time
  • Access to limitless amounts of information, services, and entertainment
  • Creation of a global, web enabled playing field
    • Multiple forms of collaboration
    • Sharing of knowledge and work in real time
    • Without regard to geography, distance, language in the near future
• Information Age
  • Innovative ideas
  • Clever use of information
  • Business must compete in challenging market place
    • Changing
    • Complex
    • Global
    • Hyper competitive
    • Customer focused
  • Business Environment
    • External
    • Combination of social
    • Legal economics and physical factors that affected business activities
    • Ex:
      • Many companies restructured their organizations
        • Restructured

Reorganized

Reengineering

Redesign

• • Business Pressures
    • Info age places many pressures or companies
    • Firm may respond
      • Reactively to pressure already in existence
        • Nangyare na
      • Proactively to an anticipated pressure
        • Plan a head
• Companies are typically facilitated to IT
  • Information Technology
    • HW and SW that performs data processing task
      • Capturing
      • Transmitting
      • Storing
      • Retrieving
      • Manipulating
      • Displating data
  • Info Tech
    • Only solution to business pressures

Part 5.2: Business Pressures, Organizational Responses, and IT Support

• Business Environment Pressures
  • Outer pressures
  • Market Pressures
    • Global economy and strong competition
      • Better telecommunication system
      • Increase competition for market share and labor resources
      • Intensified when governments are involved
        • Subsidies
        • Tax policies
        • import/export regulations and incentives
    • Need for Real time operations
      • No longer have the luxury of information float
      • High performance telecommunication technology
      • Reduce time lag
      • Fully automated and real time
    • Changing nature of the workforce
      • Becoming more diverse
      • Organization are becoming transnational
      • Small Office and Home Office (SOHO)
    • Powerful customer
      • Customer Orientation
      • “Free, perfect, and now”
      • Demanding even more detailed information about products and services
      • High quality and low cost
  • Technological Pressures
    • Pressures related to technology
    • Technological Innovations and Obsolenscence
      • Continuing innovation with computer technologies
      • Faster obsolescence of
        • Products
        • Shorter life cycles
        • Increasing quality standards
    • Information Overload
      • Infromation and knowledge that is generated and stored inside organizations are also increasing exponentially
      • Increase the amount of info available to organizations and individual
        • Analysis Paralysis

Managers are at a risk of this

Bombarded with so much useful information

Compelled to consider vast amounts of information before taking actions

• • • • Too much of a good thing
  • Societal Pressures
    • Societal, political, and legal aspects
    • Social Responsibility
      • Societal issues affecting corporation
      • Ex:
        • Companies are taking active measures to respond to social issues and contribute toward social improverments
    • Government Regulation and Deregulation
      • Compliance with government regulations costsx
      • Deregulation
        • Blessing to one company or a curse toanother
    • Ethical Issues
      • Standards and values
    • Protection Against Terrorist Attacks
      • Protect themselves against terrorist attacks
      • IT can help protect businesses by providing security systems and identifying patters of behavior
      • Cyberattacks
• Organizational Responses
  • Inner
  • IT solutions
  • Response of the company
  • Components:
    • Strategic System
      • Sysbusi
      • Strategic advantage in meeting organizational objectives
      • Enable them to increase their market share
      • Prevent competitors from entering their market
    • Customer Focus and Service
      • More attention to customer and their preferences
    • Continuous improvement efforts to their products and quality
      • Organizational improvement tools:
        • (JIT): Just in time inventory approach

Attempts to reduce costs and improve work flow

Scheduling materials and parts

IT makes it easier to implement large and complex JIT system

• • • • • TQM: Total quality management

Improve quality wherever and whenever possible

IT can enhance this by:

Improving data

Monitoring

Collection

Analysis and reporting

Increase the speed of inspection

Raise the quality of testing

Reduce the cost of performing various quality control activities

• • • Business Process Reengineering (BPR)
      • Process of introducing a major innovation in an organization’s structure / process
      • Overhaul of the organizations:
        • Technological
        • Human
        • Organization dimension
      • IT provides:
        • Automation
        • Flexibility in management
        • support s rapid and paperless transaction
    • Team Based Structure
      • Uses flexible and temporary organizational structures focused on specific project
      • Make use of GDSS (Group Decision Support System)
      • Ex:
        • CBCSS (Computer Base Communication Support System)
    • Business Alliances
      • Alliances with other firms, even competitors, can be very beneficial
      • Types:
        • Sharing resources
        • Establishing permanent suppliers - company relationships
        • Joint research efforts
      • Supported by IT ranging from:
        • EDI, Electronic Data Interchange to
        • Electronic transmission of maps and drawing
      • Can result from careful supply chain management
        • Examines every steps of the logistics process
        • In supplying a manufacturing firm
      • Enterprise Resource Planning (ERP)
        • Integrated process of planning and managing all major business processes with a single client / server architecture in real time
        • Contact with

Business partners and with customers

• • • Electronic Commerce
      • Multifaceted concept
        • Electronic transfer of funds between buyers and sellers
        • Internet-based marketing
        • Intranet and extranet based information networks for both inter&intra organizational support
• Why are Information System Important to you?
  • IS is interesting
  • Integral to out lives
  • Offer career opportunities
  • Used by all functional areas
• Misinformation about IS career opportunities
  • No computing jobs
  • No IT jobs when I graduate
  • All IT related jobs are moving offshore
  • IT salaries are lower due to cheap overseas labor