Components of Information Systems

Information Systems

Hardware
D
A
T
A

Communications

Information
Systems

Information Driven by Technology

Software

People/
Users

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Information Systems

Technology & Information Systems

. . . equipment and/or techniques that

accomplishes a task. . .

Technology-Based Information Systems

Hardware, software, and

telecommunications networks used to
collect, create, and distribute useful
information to organizations

Technology any mechanical and/or

electrical means to supplement, extend, or
replace human activity
Information Technology (IT) systems

used to create, store, disseminate,

exchange, and use information

IS Focus

Local or global,
Organizational or enterprise-wide

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Why Information Systems?

Doing Things Efficiently & Effectively

Supporting Organizational Strategy

Advantage over Competition

I
N
F
O
R
M
A
T
I
O
N

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Information Systems
Why computer-based Information
Systems?

To provide users with appropriate

information that aids in making timely
decisions or taking actions

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Strategy

Johnson and Scholes (Exploring Corporate Strategy)

define strategy as follows:

Supporting Organizational Strategy

"Strategy is the direction and scope of

an organization over the long-term:
which achieves an advantage for the
organization through its configuration of
resources within a challenging
environment, to meet the needs of
markets and to fulfill stakeholder
expectations".

http://tutor2u.net/business/strategy/what_is_strategy.htm

Organizational Learning

Using acquired knowledge and insights to

improve organizational performance

Going beyond automation

Identifying patterns and trends

Learning to improve day-to-day process
steps

Total Quality Management (TQM)

Monitoring an organization to improve quality

of operations, products, and services

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Doing Things Smarter

IS for Competitive Advantage

IS provide organizations competitive
advantage by;

Providing Strategic Systems &

Functional improvements:

Strategic Planning

Create a vision: setting direction

Create a strategy: defining goals
Create standards: performance targets

Fast Market Response

Greater Product Value
Higher Quality Allows for Higher Prices
Apple Computer
Draegers Super Market
Organic Food

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Competitive Advantage

Competitive Strategies

Being the Leader by:

Types:

Low-Cost Leader

Establish A Competitive Strategy

Deploying technologies that is:

Faster, Cheaper & Better than

competitors

Applying technology in innovative ways

Raise Barriers
Establishing Alliances

Differentiation

Best products or services

Examples: Safeway, American Tire Co, Costco

Value Provider (middle-of-the-road)

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Best prices on goods/services

Examples: Frys, BigLots, Tuesday Morning

Reasonable quality, competitive prices

Example: Marie Calendar, I-Hop, Kohls

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Types Of Information Systems

Transaction Processing System

Decision
Support
Systems
(1970)

EVENT
Knowledge-Base
(expert)
Systems
(1980s)

Management
Information
Systems
(1960)

Office
information
Systems
(1980)

Notice of
Event

TPS
Processing

Report(s)
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Transaction Processing System

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Transaction Processing System

Captures the organizations events and

transactions

Documents or requests

Output

Produces detail reports

Input

Response

Transaction Processing
Systems
(1950s)

Computer-Assisted
Systems
(1980s)

TPS
Data

Produces responses

Reports, invoices, checks or

response(s)

Device activation
Audio or displayed information

Used by Lower managers

Specific detailed information about

routine activities

Principally supervisor
Assisting with operational decisions

Basis for MIS and DSS

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Management Information System

MIS
Processing

Management Information System

Supports tactical decisions through
interactivity and reports

MIS
Data

TPS
Data

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Requests
Response

TPS
Data

TPS
Extract

Report(s)

Provides overviews of organizational

activities
Draws from multiple sources
Filters inputs and outputs
Helps spot patterns and trends
Used by Middle/Functional managers
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DECISION SUPPORT SYSTEM

TPS
Data

MIS
Data

Decision Support System

Supporting strategic decisions

Model
Base

Inputs

DSS
Processing

TPS
Data

External
Data

Charts &
Graphs

Outputs

Report(s)

Mostly summarized transaction data

and information
A Model Base
Related external data
Flexible demand reports and charts

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Decision Support System

Decision Support Resources

Mainly top and middle managers

Helps make strategic decisions

Data

Effecting events and trends inside and

outside of the organization

Utilizes analytical tools

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Modeling

These simulations or models to project

trends and determine possibilities for
reacting to changing conditions

Internal and external data, and personal or

local databases
Mathematical, simulations and analytical
models

People

Data analyst and managers who explore

decision alternatives or take appropriate
actions

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Decision Support Applications

Decision Support Applications

Real estate

RealPlan helps in complex analysis of

real estate investments

Predictive analytics

Geographic

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Geographic Information System (GIS)

integrates computer graphics and
databases

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The science that makes smarter

decisions by applying cutting-edge
statistical and data analysis techniques
to complex data.
Predictive analytics gives you a better
look at the future so you can chart your
actions with greater success. Know
your customers better, work smarter
and faster, reduce costs, improve
regulatory compliance and respond
more quickly to market conditions.
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IS Reports

Decision Support Applications

Enterprise Decision Management (EDM)

Detailed

a systematic approach to automating

and improving decisions. Through
business rules management
technology and advanced predictive
analytics, EDM can give your most
critical, high-volume, operational
decisions greater precision,
consistency and agility.

Summarized
Periodic
Demand
Exception

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IS Reports
Custom
Audit
Predictive

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