Information Systems:

9
An Introduction and
Overview
 Objective
● Data vs. Information
● Characteristics of Valuable Information
9
● What is a System?
● What is an Information System?
● CBIS Components
● Types of CBIS
● Different definitions of Information System
● History of Information System
● Why Study Information Systems?
9
 Data vs. Information
•Data consists of raw facts (i.e., a list of the numbers)
•Information is a collection of facts organized (or processed)
9 in such a way that they have additional value (i.e., a list of the
class grades based on the exam score
–In a way, information is data that has been transformed
into a more useful form
–Turning data into information is a process performed to
achieve a defined outcome and requires knowledge
 M1: Managing the Digital Firm (cont)

Hierarchy of Information

_______________________________________________________

Intelligence
9
_______________________________________________________ Charts

Knowledge

Information

Data & Infor

Information
Systems & MIS
Characteristics of
Valuable Information
Module ● Accessible ● Reliable
A
9 ● Accurate ● Secure

● Complete ● Simple

● Economical ● Timely

● Relevant ● Verifiable
 Information as a Key Resource
Decentralized Computing and Shared
Information

9
 Information as a Key
Resource
Personal Dimensions of Information
● The three personal
dimensions of
9
information include:
– Time
– Location
– Form
Information
Systems & MIS
Information: The Good Kind
and the Other Kind
● Information
Module

9
A overload
● Valuable
information
● Information
reduction
Not all information is valuable, and all
too often, we’re overwhelmed with more
information than we can use.
Information
Systems & MIS Techniques of Information
Reduction
Routing information so that it goes to only those people
Module who really need to see the information
A
9 Summarizing information so that decision-makers
do not drown in the details

Enabling selectivity so that people with specific

information needs can get that information (and
ignore the rest)

Eliminating unnecessary information (exclusion) so

that it doesn’t take up time
9
9
 M1: Managing the Digital Firm (cont)

IS in a Nutshell

9
 Managing the Digital Firm (cont)

9 O r g a n iz a tio n s T e c h n o lo g y

In fo r m a tio n
S y s te m s

M anagem ent

Organization, Technology and Management dimensions of an IS.

9
 What is an Information
System?
● Let’s look at some different definitions
9 and then explore the context of an IS
in the organizational setting.

● The contrasting definitions should

provide a variety of different
perspectives.
 Historical Background
● The Data Processing Industry grew rapidly in the 1960’s,
however, the “quantity” of output, most often, far
outstripped the “quality” of output.
● Basic computing was often looked at as ‘scientific’ vs.
‘business’ contrasting applications built with FORTRAN
9 and COBOL.
● The growth of the 1960’s and 1970’s saw a shift from
“computer” orientation, to “information” orientation.
● The role of “information resource manager” in the
organization offered an opportunity to migrate from the
technocratic image of the past, and establish an image as a
business manager, a general manager, an information
manager. Today this is the role of the CIO - Chief
Information Officer.
 1979: John Diebold writes:
● “Information, which in essence is the analysis
and synthesis of data, will unquestionably be
one of the most vital corporate resources in
9 the 1980’s.
● It will be structured into models for planning
and decision-making.
● It will be incorporated into measurements of
performance and profitability.
● In other words, information will be
recognized and treated as an asset.”
 1985: Davis and Olson:
● A management information system is:
– an integrated user-machine system
– for providing information
9 – to support the operations, management,
analysis, and decision-making functions
in an organization.
– The system utilizes:
● computer hardware and software
● manual procedures

● models for analysis, planning, control, and

decision-making
● a database
 1985: IFIP/BCS
● An information system is a system which
assembles, stores, processes, and delivers
9 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,
including managers, staff, clients, and citizens.
● An information system is a human activity (social)
system which may or may not involve the use of
computer systems.
● International Federation for Information
Processing /British Computing Society 1985
curriculum for information systems.
 1989/99:
● “The McNurlin
mission for information systems in
organizations is to improve the
performance of people in organizations
through the use of information
technology.”
9 ● The ultimate objective is performance
improvement - a goal based on outcomes
and results rather than a “go-through-the-
steps process” goal.
● The focus is the people who make up the
organization. Improving organizational
performance is by the people and groups
that comprise the organization.
● The resource for this improvement is
 1990: Turban
● A management information system is a formal,
computer-based (but need not be) system intended
9 to retrieve, extract, and integrate data from various
sources in order to provide timely information
necessary for managerial decision-making.
● An MIS is a business information system designed
to provide past, present, and future information
appropriate for planning, organizing, and
controlling the operations of the organization.
 1992: Alter
● An information system is a combination of
9 – work practices
– information
– people, and
– information technologies
● organized to accomplish goals in an
organization.
 1992: Zwass
●A Management Information System is
9 an organized portfolio of formal
systems for obtaining, processing,
and delivering information in
support of the business operations
and management of an organization.
 1995: Laudon and Laudon
● Information system - (definition)
9 Interrelated components that collect,
process, store, and disseminate
information to support decision-
making, control, analysis, and
visualization in an organization.
 1996: Turban, McLean,
Wetherbe
● An information systems is a collection of
components that collects, processes, stores,
9 analyzes, and disseminates information for a
specific purpose.
● The major components of a computer-based
information system (CBIS) can include (1)
hardware, (2) software, (3) a database (4) a
network (5 )procedures, and (6) people.
● The system operates in a social context, and the
software usually includes application programs
which perform specific tasks for users.
 1996: Alter
● An information system is a system that uses
information technology to capture, transmit, store,
9 retrieve, manipulate, or display information that is
used in one or more business processes.
● A business process is a related group of steps or
activities that use people, information, and other
resources to create value for internal or external
customers. Business Processes consist of steps
related in time and place, have a beginning and
end, and have inputs and outputs.
 1997: Lucas
●Information systems may be described by
9 five of their key components:
– Decisions
– transactions and processing
– information and its flow
– individuals or functions involved
– communications and coordination
 1998: Zwass
●Information System - An organized set of
9 components for collecting, transmitting,
storing, and processing data in order to
deliver information for action.
 1999: Turban, McLean,
Wetherbe
●An information system is a physical process
9 that supports an organizational system by
providing information to achieve
organizational goals.
 1999: Alter
● A work system is a system that produces products
for internal and external customers through a
9 business process performed by human participants
with the help of information technology.

● An information system is a particular type of work

system that uses information technology to
capture transmit store, retrieve, manipulate, or
display information, thereby supporting one or
more other work systems.
 Information Systems Today
● The early focus on IS was for the support of
operations, management, analysis and decision-
making in organizations.
● A significant emphasis was on models of
9 planning and control.
● The late 1980’s and early 1990’s saw IS expand
from the support not only of decision-making,
but but for improved communication support as
well. Social impacts began to be recognized.
● The explosion of the Web has added the
important characteristic of providing
information access.
● Today the emphasis in organizations is on the
support of business processes.
 Terminology
● In many older textbooks and contexts, the
terms Management Information Systems (or
MIS) and Information Systems (IS) are used
interchangeably.
● However, in more contemporary contexts,
9
Management Information Systems are
considered as a subset of the more general
Information Systems. MIS are considered to
be information systems which provides
information specifically for managing an
organization generally at a tactical or middle
management level. The are sometimes
called Management Reporting Systems as
well.
 Information Technology
● Information Technology (IT) sometimes
9 refers to the technology component of an
information system.
● However, the concept is often used by
many to describe the collection of all
information systems in organization.
 Putting Things in Context - I
● Information Technology - the hardware, software,
and networks that make Information Systems
9 possible.
● Information System - a system that uses
information technology to capture, transmit, store,
retrieve, manipulate, and display information.
● Business process - a related group of steps or
activities that use people, information, and other
resources, to create value for internal or external
customers.
 Putting Things in Context - II
● Firm (or organization) - consists of a large number
of interdependent business processes that work
9 together to generate products of services in a
business environment.
● Business environment - includes the firm and
everything else that affects its success, such as
competitors, suppliers, customers, regulatory
agencies, and demographic, social, and economic
conditions.
Putting Things in Context – The Picture
9
9
Information
Systems & MIS
Characteristics of a CIS
A Computerized Information System. . .
Provides essential services to organizations,
Module including processing transactions and keeping exact
A records
9
Collects mission-critical data, processes this data,
stores the data and the results of processing, and
disseminates information throughout the
organization

Includes data, hardware, software, trained

personnel, and procedures
Information
Systems & MIS
Understanding Complex
Organizations: The Power Pyramid
● Functional divisions of an
Module

9
A organization
➤finance
➤marketing & sales
➤human resources
➤operation
➤information systems
 IS and Organisations
The Organisation and its Environment

9
 IS and Organisations
IT Services within an Organisation

9
9
 Types of Information Systems
● Transaction Processing Systems (TPS).
● Management Information Systems (MIS).
● Decision Support Systems (DSS).
9 ● Expert Systems (ES).
● Executive Information Systems (EIS).
● Office Automation Systems (including
document management systems).
● E-Commerce
● ERP(Enteprise Resourse Managament)
● CRM(Customer Relationship Management)
● M-Commerce
● and much more ….
 Decision-Making Levels of an
Organization

9
 Decision-Making Levels of an
Organization
● Executive level (top)
– Long-term decisions
– Unstructured decisions
9
● Managerial level (middle)
– Decisions covering weeks and months
– Semistructured decisions
● Operational level (bottom)
– Day-to-day decisions
– Structured decisions
9
 General Types of Information Systems

● Transaction Processing Systems

(TPSs)
9 – Transactions
– Used at Operational level of the organization
– Goal: to automate repetitive information
processing activities
● Increase speed
● Increase accuracy

● Greater efficiency
 General Types of Information Systems

● Transaction Processing Systems (TPSs)

– Online processing
– Batch processing
9
● Data input
– Manual data entry
– Semiautomated data entry
– Fully automated data entry
 General Types of Information Systems

● Transaction Processing Systems (TPSs)

– Examples:
● Payroll
9 ● Sales and ordering
● Inventory
● Purchasing, receiving, shipping
● Accounts payable and receivable
Information
Systems & MIS

Module ● Transaction Processing Systems (TPS)

A
9 ➤batch processing
➤online processing
➤summary reports
➤exception reports
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Transaction Processing Systems (TPS):

• Basic business systems that serve the

9 operational level
• A computerized system that performs and
records the daily routine transactions
necessary to the conduct of the business
• Most Important – initial data entry point
needs to insure “data integrity”
• Feeds all the other information systems
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Payroll TPS

Figure 2-3
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of TPS Systems

Figure 2-4
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS):

9 Management level
● Inputs: High volume data
● Processing: Simple models
● Outputs: Summary reports
● Users: Middle managers

Examples: Annual budgeting, variance reports,

regional sales reporting
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS)

Figure 2-5
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Management Information System (MIS)

● Structured and semi-structured decisions

9 ● Report control oriented

● Past and present data

● Internal orientation

● Lengthy design process (but fairly static after the

initial design)
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Decision Support System (DSS):

9 Management level
● Inputs: Low volume data
● Processing: Interactive
● Outputs: Decision analysis
● Users: Professionals, staff

Example: Contract cost analysis, forecasting,

simulation
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Decision Support System (DSS)

Figure 2-6
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS):

9 Strategic level
● Inputs: Aggregate data
● Processing: Interactive
● Outputs: Projections
● Users: Senior managers

Example: 5-year operating plan

 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive Support System (ESS)

Figure 2-8
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Executive support system (ESS)

● Top level management

9
● Designed to the individual
● Ties CEO to all levels
● Very expensive to keep up (customized for
each manager)
● Extensive support staff
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Traditional View of the Systems

Figure 2-16
 Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

INTEGRATING FUNCTIONS AND BUSINESS PROCESSES

Enterprise Systems

Figure 2-17
 Systems Analysis
and Design
Module ● System analysts: Communication counts
B
9 ● Systems development life cycle (SDLC)
● Phase 1: Identify the problem
● Phase 2: Analyze and document
● Phase 3: Designing the system
● Phase 4: Implementing the system
● Phase 5: Supporting the system
Systems
analysis &
design
System Analysts:
Communication Counts

help organizations determine their information

Module system needs
B
9 are problem-solving professionals who work with
users & management to determine an organization’s
information system needs

define the requirements needed to modify an

existing system, or to develop a new one

job involves communication, including

listening skills
Systems
analysis & Identify problems &
design opportunities

● Fivephases of Analyze & document

Module
system SDLC existing system

B
9
Design
system

Implement
system

Support
system
Systems
analysis &
design Avoiding Mistakes
● User involvement is crucial
Module
● A problem-solving approach works best
B
9 ● Good project management skills are
needed
● Documentation is required
● Use checkpoints to make sure the
project’s on track
● Design for growth and change
Systems
analysis & Identify problems &
design opportunities

● Waterfall
Analyze & document

Module
Model existing system

B The waterfall model

9 builds correction Design
pathways into the model system
that enable a return to a
previous phase. It’s
Implement
currently the most system
widely-used way to
implement the systems
development life cycle. Support
system
Systems
analysis &
design
Phase 1: Identifying the
Problem & Opportunities
● Recognize the need for the system
Module ● Define the problem
B
9 ● Identify opportunities
● Develop a plan
● Determine feasibility
➤technical, operational, economical
➤tangible, intangible benefits
➤return on investment (ROI)
● Prepare the project proposal
Systems
analysis &
design
Phase 1: Identifying the
Problem & Opportunities

Module
B
9

To determine the problem, the system analyst talks to as

many users as possible to discover what they do, when
they do it, how they do it, and why. The analyst then
recommends new system features or a new system.
Systems
analysis &
design
Phase 2: Analyzing &
documenting the existing system
Emphasis is on what the system should do
Module
B
9

Analyze the existing

system
Determine the new system’s
requirements
Systems
analysis &
design
Phase 3: Designing the
System
Concerned with how the new information
will work
Module
B
● Structural analysis & design tools
9 ➤entity-relationship diagram (ERD)
➤data flow diagram
➤project dictionary
➤data dictionary
➤prototyping also called joint application
development (JAD)
➤computer aided software engineering
(CASE)
Systems
analysis &
design A Prototyping Tool
at Work
Module
B
9
Systems
analysis &
design
Phase 4: Implementing
the System
● Deciding to buy or build
Module ➤request for quotation (RFQ)
B ➤request for proposal (RFP)
9
● Developing the software
● Testing
➤application testing
➤acceptance testing
● Training
➤may include computer-based
training (CBT)
Systems
analysis &
design Phase 4: Implementing
the System

Module
● Converting the system
B ➤parallel conversion
9
➤pilot conversion
➤phased conversion
➤direct conversion
Systems
analysis &
design Phase 5: Supporting the
System
In the final phase, the new system receives ongoing
Module assistance to ensure that it has met its intended
B needs and works correctly
9

A post-implementation
system review determines
whether the system has met its
goals
 Program Development
● The Need for PDLC
Module
● Phase 1: Defining the problem
C
9 ● Phase 2: Designing the program
● Phase 3: Coding the program
● Phase 4: Testing & debugging
● Phase 5: Formalizing the solution
● Phase 6: Implementing & maintaining
the program
Program
development

Program Development
Module
C
9

The program development life

cycle (PDLC) is an organized
method of software development
that bears many similarities to the
system development life cycle
(SDLC)
Program
development
The Need for Specifying the
problem
PDLC: Better
Software, Please Designing the
program
Module
- f i x
C - a n d Coding the
9 o d e s o f program
●C a se
x p h
● Si PDLC Testing & debugging
the the program

Formalizing the
solution

Maintaining the
program
Program
development Program Development
Life Cycle (PDLC)
● Phase 1: Defining the problem
Module ➤program specification (“spec”)
C
9 ● Phase 2: Designing the program
➤structured programming or top-down program
design
➤structured design
➤ control structures
➤ sequence control structure
➤ selection control structure
➤ case control structure
➤ repetition control structure (looping or iteration)
Program
development
Control Structures
Sequence control structure
Go to the phone.
Module Dial the pizza place.
C Order the pizza.
9 Hang up.
Selection control structure
Open your wallet.
IF you have enough money,
THEN Go to the phone.
Dial the pizza place.
Order the pizza.
Hang up.
Or ELSE Forget the whole thing.
Program
development
Control Structures
Repetition control structure
Module
Do-while
C
9 WHILE there is still more pizza, gobble down pizza
Do-until
DO gobble down pizza UNTIL none remains
Program
development
Developing an Algorithm
Programmers begin solving a problem by developing
an algorithm. An algorithm is a step-by-step
Module
description of how to arrive at a solution. You can
C
9 think of an algorithm as a recipe or a how-to sheet

WHILE there is still more pizza

Check to see if you’re still hungry
IF you are still hungry,
THEN Gobble down pizza
ELSE Put the rest in the fridge
Program
development
Program Design Tools
S tr u c tu r e d o r H ie r a r c h y C h a r ts

Module c o n tro l
C m o d u le
9

p rin t re p o rt p ro c e s s e a c h p rin t to ta l
h e a d in g s e p a ra tio n c o m m is s io n s

c a lc u la te p rin t s a le s p e rs o n
c o m m is s io n c o m m is s io n

Each box, or module, in a structure chart indicates a

task that the program must accomplish
Program
development
Program Design Tools
Commission program
get next
salesperson
print
headings
Module Flowchart end of A
C
9 get first
salesperson
data

A
print total
calculate commission
commission

end
print
salesperson

A flowchart is a diagram that shows the logic of a program.

Each flowcharting symbol has a meaning
Program
development Program Development
Life Cycle (PDLC)
Module ● Phase 3: Coding the program
C ➤syntax and syntax errors
9
● Phase 4: Testing and debugging the
program
➤logic error (bugs)
● Phase 5: Formalizing the solution
➤documentation
➤manuals