An Introduction to Information Systems

in Organizations

Defining an Information System

What is a system?
A system is a set of elements or components

that interact to accomplish goals.

Systems have inputs, processing mechanisms,
outputs, and feedback.

Defining an Information System

What is information?
Information is a collection of facts
It can take many forms text, numbers,

images, audio clips and video clips are all

examples
A closely related term is data
These two terms can be used interchangeably

Defining an Information System

Therefore

an information system (IS) is a set of

interrelated
components that collect (input), manipulate &
store
(process), and disseminate (output) information,
and
provide a feedback mechanism to meet an
objective

Information System

Information System
the term is used to refer not only
to theinformation and
communication technologythat
an organization uses, but also to
the way in which people interact
with this technology in support
of business processes

An Information System is
A [software intensive] system which
assembles, stores, processes, and
delivers information relevant to an
organization (or to society), in such a
way that the information is accessible
and useful to those who wish to use it.
[Buckingham et al., 1987]

Concisely
Information Technology in Use
[Paul, 2010]

Information System

http://commons.wikimedia.org/wiki/File:Four-LevelPyramid-model.png

Information System

Manual and Computerised Information Systems

An information system can be manual, for

example paper-based, or computerised

A computer-based information system

(CBIS) is a single set of hardware, software,

databases, telecommunications, people, and
procedures that are configured to collect,
manipulate, store, and process data into
information

People
People are the most important element in

most computer-based information systems

The people involved include users of the

system and information systems personnel,

including all the people who manage, run,
program, and maintain the system

Procedures
Procedures include the strategies, policies,

methods, and rules for using the CBIS, including

the operation, maintenance, and security of the
computer

Reasons why information systems are so

important for business today
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival

Operational excellence
Improvement of efficiency to attain higher

profitability
Example

- Wal-Marts RetailLink system links suppliers

to stores for superior replenishment system

Improved decision making

Managers must use forecasts, best guesses,

luck
Example

- Verizons Web-based digital dashboard to

provide
managers
with real-time data on customer complaints,
network performance, line outages, etc.

New products, services.

New business models!
Business model: describes how company

produces, delivers, and sells product or

service to create wealth
Examples

- Apples iPod, iTunes, and iPhone, Netflixs

Internet-based DVD rentals

Customer and supplier intimacy

Serving customers well leads to customers

returning, which raises revenues and profits

Example

- High-end hotels that use computers to

track customer preferences and use to
monitor and customize environment

Competitive advantage
Delivering better performance
Charging less for superior products
Example

- Toyota and TPS (Toyota Production

System) enjoy a considerable advantage
over competitors

Survival- Necessity
Industry-level changes,
Example: Citibanks introduction of ATMs

Governmental regulations requiring record-

keeping
Example: Toxic Substances Control Act

IS Opportunities

IS Challenges

Increase worker productivity

Enhance decision making
Improve team collaboration
Create business partnerships Workforce downsizing
and alliances
Information overload
Enhance global
Employee mistrust
competitiveness
Difficult to build
Support corporate strategy
Security breaches
Improve quality of goods and
Rapidly changing

services
Rapidly changing technology

technology

Types of Information Systems

Transaction Processing Systems

A transaction processing system (TPS) is an

organized collection of people, procedures,

software, databases, and devices used to record
completed business transactions

A transaction is any business-related exchange

such as payments to employees, sales to

customers, or payments to suppliers

Management Information Systems

A management information system (MIS) is an

organized collection of people, procedures,

software, databases, and devices that provides
routine information to managers and decision
makers
An MIS focuses on operational efficiency
The output of a TPS is the input to a MIS
MIS typically provide standard reports generated

with data and information from the TPS

Decision Support System

A decision support system (DSS) is an

organized collection of people, procedures,

software, databases, and devices that support
problem-specific decision making
Decision support systems are used when the

problem is complex and the information needed to

make the best decision is difficult to obtain and
use
Typically a company will have either separate TPS,

MIS and DSS, or one integrated ERP system, which

does the work of the other three

Type of System

Information
Inputs

Transaction
Processing Systems
(TPS)

Transactions; daily
events

Information
Outputs

Users

Detailed reports; lists; Operations personnel;

summaries
first-line supervisors

Management
Summary transaction
Information Systems data; high-volume
(MIS)
data; simple models

Summary and
exception reports

Middle managers

Decision Support
Systems (DSS)

Optimized for data

analysis, analytic
models and data
analysis tools.

Interactive;
simulations; analysis

Professionals, staff
managers

Executive Support
Systems (ESS)

Aggregate data;
external, internal

Projections; responses Senior managers

to queries

Types of Information Systems

Systems interrelationships

2-13

Another types of Information Systems

E-business
Use of digital technology and Internet to drive
major business processes
E-commerce
Subset of e-business
Buying and selling goods and services through
Internet
E-government:
Using Internet technology to deliver information
and services to citizens, employees, and
businesses

Systems for Collaboration and Teamwork

Building a collaborative culture and

business processes
Command and control organizations
No

value placed on teamwork or lower-level

participation in decisions
Collaborative business culture
Senior managers rely on teams of employees.
Policies, products, designs, processes, and
systems rely on teams.
The managers purpose is to build teams.

Collaboration Tools
E-mail and instant messaging
Collaborative writing
Collaborative reviewing/editing
Event scheduling
File sharing
Screen sharing
Audio conferencing
Video conferencing
White boarding
Web presenting
Work scheduling

Time/Space collaboration tool matrix

IS DEPARTMENT
Programmers
highly trained technical specialists who write the software

instructions for computers.

Systems analysts
constitute the principal liaisons between the information

systems groups and the rest of the organization.

Chief Information Officer (CIO).

A senior manager who oversees the use of information

technology in the firm

Chief Security Officer (CSO)

in charge of information systems security

IS DEPARTMENT
Chief Privacy Officer (CPO)
responsible for ensuring that the company complies with

existing data privacy laws

Chief Knowledge Officer (CKO)

responsible for the firms knowledge management

program.

End users
representatives of departments outside of the

information systems group for whom applications are

developed.

Careers in Information Systems

Chief Information Officer
LAN Administrators
Internet Careers - Web operations, Web

development, and Web administration

System developers
Technical writing
User interface design
Database administration

Thank You
for
Your Attention