Introduction%20to%20Information%20Systems

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Introduction to Information Systems
BUS 782 David Chao
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What Is an Information System?

• Information system is a collection of components
  that work together to process data and provide
  information to help in the operation and
  management of an organization.
• Information system is an organizational and
  management solution, based on information
  technology, to a challenge posed by the
  environment.

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The Fundamental Roles of Information Systems

• Support of business operations
• Support of managerial decision making
• Support of strategic competitive advantage
• Information systems that give a company a
  competitive advantage in the market place.

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Fundamental Roles of IS in Business
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Types of Information Systems

• Operations Support Systems
• Management Support Systems

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Operations Support Systems

• What do they do?
• Efficiently process business transactions
• Control industrial processes
• Support communications and collaboration

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Types of Operations Support Systems

• Transaction Processing Systems
• Record and process business transactions
• Large amount of data, high processing speed, high
  reliability, accuracy, and security (fault
  tolerant)
• Data internal, historical, detailed
• Examples sales processing, accounting systems
• Process Control Systems
• Monitor and control physical processes
• Example using sensors to monitor chemical
  processes in a petroleum refinery
• Enterprise Collaboration Systems
• Enhance team and workgroup communication
• Examples email, video conferencing

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Two Ways to Process Transactions

• Batch Processing
• Accumulate transactions over time and process
  periodically
• Example a bank processes all checks received in
  a batch at night
• Online Processing
• Process transactions immediately
• Example a bank processes an ATM withdrawal
  immediately

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Management Support Systems

• What do they do?
• Provide information and support for effective
  decision making by managers
• Management information systems
• Decision support systems
• Executive information systems

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Types of Management Support Systems

• Management Information Systems (MIS)
• Reports and displays
• Example daily sales analysis reports
• Decision Support Systems (DSS)
• Interactive and ad hoc support
• Example a what-if analysis to determine where to
  spend advertising dollars
• Executive Information Systems (EIS)
• Critical information for executives and managers
• Example easy access to actions of competitors

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Management Information Systems(Information
Reporting Systems)

• Facilitate management control by producing
  summarized reports that compare actual
  performance against planned performance on a
  regular and recurring basis.
• Management control Ensuring that performance
  meets established standards.

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MIS Report Example
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Information and Management Decisions

• A decision is a selection between several courses
  of action
• Penalty for bad decision
• Information helps reduce uncertainty
• Incomplete information
• Information systems improve decision-making
  effectiveness by providing decision makers with
  information related to the decisions for which
  they are responsible.

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Decision Support Systems

• Facilities for assisting decision making.
• Structured decision
• The information requirements are known precisely.
• The criteria for making decision are known.
• The quality of a decision can be measured
  precisely.
• Internal and external data

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The DSS Focuses on Semistructured Problems
Manager Computer (DSS) Solution
Computer Solution
Manager Solution
Structured Semistructured
Unstructured
DEGREE OF PROBLEM STRUCTURE
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Using Decision Support Systems

• What-IF AnalysisObserving how changes to
  selected variables affect other variables.
• Sensitivity Analysis Observing how repeated
  changes to a single variable affect other
  variables.
• Goal-Seeking AnalysisSet a target value for a
  variable, and then repeatedly changes other
  variables until the target is achieved.
• Example Benefit.Xls
• Optimization Analysis
• Simulation

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Other Information Systems

• Expert Systems
• Provide expert advice
• Example credit application advisor
• Knowledge Management Systems
• Support creation, organization, and dissemination
  of business knowledge throughout company
• Example intranet access to best business
  practices

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Other Information Systems

• Functional Business Systems
• Focus on operational and managerial applications
  of basic business functions
• Examples accounting, finance, or marketing

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Components of an Information System

• Information technology
• people
• Database
• Procedure

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People

• Information specialists
• programmer, system analyst, database
  administrator, etc.
• End-user
• Menu-level end users
• Command-level end users
• End-user programmer
• End-user computing

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Ethical Responsibilities

• What uses of IT might be considered improper or
  harmful to other individuals or society?
• What is the proper business use of the Internet
  or a companys IT resources?
• How can you protect yourself from computer crime?

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Do you think it is wrong to

• Copy companys software for use at home?
• 35 say no.
• Use company equipment like computers to search
  for a new job?
• 34 say no.
• Blame your own personal errors on technological
  glitches?
• 39 say no.
• Use office computers to do personal shopping on
  the Internet?
• 46 say no.

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Workplace PCs May Not Be Very Private

• Dont be fooled It may be personal, but it is
  not private.
• Cyber-surveillance The person most likely to be
  spying on you is your boss. 27 of businesses
  surveyed by the American Management Association
  said they review employee email.
• Reasons
• Productivity
• Liability
• Network performance

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Database

• A group of related files
• Support business operations
• Provide information

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An example of database application
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Major Functions of Database Management

• Creating a database
• Analysis Entity-Relationship Diagram
• Design Design file structure
• Implementation
• Accessing a database
• Updating a database

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Database Security

• Logical protection
• Illegal access
• Illegal update
• Virus
• Physical protection

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Internet firms flocks to store data in
blast-proof bunker

• Some biggest companies are running their Internet
  operations on systems installed in a
  300-foot-deep nuclear blast-proof bunker.

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Procedures

• Procedure A step-by-step process or a set of
  instructions for accomplishing specific results.
• Operations
• Backup and Recovery
• Security
• Development

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• Operations Procedure A procedure that describes
  how a computer system or application is used, how
  often it can be used, who is authorized to use
  it, and where the results of processing should
  go.
• Backup Procedure A procedure that describes how
  and when to make extra copies of information or
  software to protect against losses.
• Recovery Procedure An action taken when
  information or software must be restored.
• Security Procedure A procedure designed to
  safeguard data centers, communications networks,
  computers, and other IT components from
  accidental intrusion or intentional damage.
• Development Procedure A procedure that explains
  how IT professionals should describe user needs
  and develop applications to meet those needs.

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Components of an IS
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Measuring IT Success

• Efficiency
• Minimize cost, time, and use of information
  resources
• Effectiveness
• Support business strategies
• Enable business processes
• Enhance organizational structure and culture
• Increase customer and business value