INFORMATION SYSTEM MANAGEMENT

Why do People need Information ?

Individual
Entertainment Enlightment

Business
Decision making Problem solving & control

Data versus Information

Data are raw facts about physical phenomena or business transactions Information is data that has been converted into meaningful and useful context for end users Example:
Sales data is names, quantities and dollar amounts Sales information is amount of sales by product type, sales territory or salesperson

Data, Information, and Systems

Data A given, or fact; a number, a statement, or a picture. Represents something in the real world. The raw materials in the production of information. Raw Facts such as employees name and no. of hours worked in a week,sales orders etc.

Information Data that have meaning within a context. Data in relationships. Data after manipulation. Information is processed data which has been placed a meaningful and useful context for an end user.

Transformation of data into information in information system

DATA STORAGE

DATA ( INPUT)

PROCESSING

INFORMATION (OUTPUT)

Characteristics of Information
1) 2) 3) 4) 5) 6) 7) 8) 9) Relevant Complete Accurate Current Conciseness Timeliness Frequency Understandability Economical

Classification of Information
Strategic Information (Top Level Management) Tactical Information (Middle Level Management) Operational Information ( Lower Level Management)

What Is a System?
System A set of components that work together to achieve a common goal. Collection of elements joined together to achieve a common objective. Ex. Educational system,Political system,Computer system, Economic system,Business organization. MODEL OF A SYSTEM INPUT PROCESS OUTPUT

Characteristics of System Organization Interaction Interdependence Integration Central objective

Kinds of system
1)Abstract and Physical system An Abstract System or conceptual system is an
orderly arangement of interdependent ideas or constructs,which may or may not have any counterpart in the real world. Eg. System of theology (orderly arrangement of ideas about God & relationship of humans to God. Physical System are generally concrete operational systems made up of people,materials,machines,energy and other physical things. Eg. Circulatory system,transportation system computer system etc.

2)Deterministic and Probabilistic Systems

A Deterministic System is one in which the occurrence of all events is known with certainty. Eg. Correct Computer program which performs exactly a/c to the instructions

A Probabilistic System is one in which the occurrence of events cannot be perfectly predicted. Eg. Instructions given to a person who may not follow the instruction exactly as given,Stock market .

3)Open And Closed System Open system: System that interacts with its environment and thus exchanges information,material,or energy with the envionment,including random and undefined inputs.Open system are adaptive in nature,self organising Closed system: System which does not interact with its envionment. Eg. Computer program(it accepts and processes previously defined inputs and provides outputs too in a previously defined way)

A business as a system

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 Key to full participation in western society

Information System
An Information System (IS) can be any organized combination of people, ,hardware,softwatre,communications networks, and data resources that stores and retrieves ,transforms and disseminate information in an organization.

 People Resources End users: the people who use the IS or the information from the IS IS specialists: the people who develop and operate IS Hardware Resources All physical devices used in information processing Machines, data media, peripherals Software Resources All information processing instructions including programs and procedures System software, application software and procedures

Components of an IS

Components of an IS (cont.)
Data Resources
Facts about the business transactions Processed and organized information Databases of organized data

Network Resources
Communications media Network infrastructure: hardware and software The Internet, intranets and extranets

IS Activities
Input of data resources Data entry activities Processing of data into information E.g., calculate, compare, sort, classify, summarize Output of information products Messages, reports, forms and graphic images Storage of data resources Data elements and databases Control of system performance Monitoring and evaluating feedback

Role of IS in Business
Support Strategy: Support of its Strategies for

Competitive Advantage
Support Business processes: Support of its

business processes and operations Support Decision Making: Support of decision making by its employees and managers

What does IS do for a business?

Information systems model

The Nature and Types of Information Systems For most businesses, there are a variety of requirements for information. Senior managers need information to help with their business planning. Middle management needs more detailed information to help them monitor and control business activities. Employees with operational roles need information to help them carry out their duties. As a result, businesses tend to have several "information systems" operating at the same time.

Opportunities with IS
Enhanced Global Competitiveness Capture Market Opprtunities Support Corporate Strategy Enhance Worker Productivity Improve Quality of Goods And Services

Types of IS

Operations support systems

What are they?
Efficiently process business transactions Control industrial processes Support communications and collaboration Update corporate databases

Types of Operations Support Systems

Transaction Processing Systems
Record and process data from business transactions Examples: sales processing, inventory systems, accounting systems

Process Control Systems

Monitor and control physical processes Example: in a petroleum refinery use sensors to monitor chemical processes

Enterprise Collaboration Systems

Enhance team and work group communications Examples: e-mail, videoconferencing

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

Management Support Systems

What are they?
Provide information and support for effective decision making by managers

Types of Management Support Systems

Management Information Systems (MIS) Provide reports and displays to managers Example: daily sales analysis reports Decision Support Systems (DSS) Provide interactive ad hoc support for decision making Example: A what-if-analysis to determine where to spend advertising dollars Executive Information Systems (EIS) Provide critical information for executives and managers Example: easy access to actions of competitors

Operational or Management 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