What Is Information System

c

ip An Information System is defined as a set of interrelated components that collect, process, store
and distribute information to support decision making and control in an organization
ip Includes hardware, software, people, communications systems, and data
ip Allows managers to plan, monitor, and evaluate operations and performance of an activity
ip ¦esigned and used for administrative purposes
¦

ip ¦

ip A ͞given,͟ or fact; a number, a statement, or a picture
ip Yepresents something in the real world
ip he raw materials in the production of information
ip

ip ¦ata that have meaning within a context
ip ¦ata in relationships
ip ¦ata after manipulation

ip Yoles:
- support of business operations
- support of managerial decision making
- support of organizational strategies for survival /success
ip In an organization, information is the blood and MIS is the heart͛.

c

c
ip Yivalry of competitors within the industry
ip hreat of new entrants into an industry and its markets
ip hreat posed by substitute products which might capture market share
ip Ñargaining power of customers
ip Ñargaining power of suppliers
ip Ñusiness can counter the threats of competitive forces by implementing five basic competitive
strategies

!
ip c "
#
!
Ñecoming low cost producer of product or service in the industry

ip ¦

!
¦ifferentiate a firms product or service from its competitors
ÿp

!
¦evelopment of new product or service or finding new ways for distributing products and services
ip $
!
ip -rganic growth includes expanding a company͛s capacity to produce goods & services,
expanding into global markets and diversifying into new product lines or services
ip Inorganic growth is thru M & A
ip

!
Establishing new business linkages and alliance with customers, suppliers, competitors,
consultants and other companies

ip

ip collect and Store information about business transactions (ex: P-, S-, W-, Invoice,
Yaising a material indent, etc)
ip Subsystems are Sales & Marketing Systems, HY, Manufacturing & Production, Finance &
Accounting,
ip

!

ip Serves the function of planning, controlling & decision making by providing routine
summary and exception reports ʹ (Standard reports for middle management)
ip %

ip Provides cx-͛s information in a readily accessible, interactive format ʹ (Summary level

with drill down, uses sophisticated modeling tools to produce projections and allows
what if analysis)
ip ·$#!

ip Set of processes developed in an organization to create, gather, store, maintain and

distribute a firms knowledge
ip -rganizations create knowledge thru careful measurement of activities (S-P) in an org,

feedback from customers, suppliers, environment in general.
ip %
ip computer systems that use artificial intelligence techniques to solve problems that
requires a knowledgeable human.
ip Expert systems are built with decision making rules, and on the basis of a series of
questions, they narrow down the correct answer.
ip Expert system usually contains two components, a knowledge base and an inference
engine program, enabling it to suggest conclusions.

!
!
&#' !($'
1.Information can appear Shared databases Information appears
only at one place simultaneously
2.-nly experts can perform Expert Systems Generalists can act as
complex jobs experts.
p
3. Ñusinesses must choose elecommunication centralization and
between centralization and networks decentralization
decentralization possible
p
4 Managers make all the Software tools ¦ecision making is
decisions part of everyone͛s job
p
5. Field persons need offices Wireless/internet/laptops Field offices can be
virtual

6. Personal contacts Internet / email Effective contacts
7.pFind out the information Enterprise software Information comes to

8.pPlans get revised -n line computing Plans get revised
periodically instantly

!
)

Improves business process performance through
- automation of business processes
- simplification of business processes
- elimination of non value adding business processes
- reengineering of business processes

#

#
!
*
- improved coordination among sales, production
stores, purchase, and accounts due to close loop
systems and online data
- dynamic scheduling of production and purchase-
based on feedback from sales and visa versa
#!
Ëp #
#*
- the flexibility to take on new business opportunities as they arise
- a business framework that lets you
i. optimize business processes
ii. cut costs
ii. improve customer service
iv. shorten your time to market
- comprehensive decision support tools to provide up-to-date information on revenues, budget

performance, sales, and cash-flow
+
# #!#

+'
Ëp E-business is a new way of conducting, managing, and executing business transactions using I
and telecommunications networks (Internet and Extranet)
Ëp E-business is remaking the business world by:
- redefining virtually every business process and function
^p changing conventional concepts and rules about strategic alliances, outsourcing,

competition, industry specialization, and customer relationships
- creating a wealth of information about customers, enabling businesses to anticipate and
satisfy individual needs with pinpoint precision
- blurring the lines between industries
- challenging every business to reinvent itself
`p It provides companies with new, more cost and time-efficient means
for working with customers, suppliers, and development partners

c ,(information system infrastructure)

ip A well-designed information system rests on a coherent foundation that supports modifications

as new business requirements arise.
ip his foundation is known as the information system infrastructure (ISI), and it consists of core
networks, databases, software & Hardware. (c- for I investment should include all the
components)
ip ISI includes the following elements:
i. HY and organizational capabilities
ii. I infrastructure
ip Includes Information Security, Application Management (Software), Network

Management (LAN, WAN, WiFi), Server Management, Storage Management,
¦esktop Management (Helpdesk Services) and other compute infrastructure

#&!
)

c

ip echnological capabilities of people
ip Attitudes of people regarding the use of IS
ip culture
ip Processes
c#
-!
#

ip A key aspect of Information Security is to preserve the confidentiality, integrity and availability
of an organization's information. It is only with this information, that it can engage in
commercial activities. Loss of one or more of these attributes, can threaten the continued
existence of even the largest corporate entities.
ip c#
. Assurance that information is shared only among authorized persons or
organizations. Ñreaches of confidentiality can occur when data is not handled in a manner
adequate to safeguard the confidentiality of the information concerned.
ip !. Assurance that the information is authentic and complete. Ensuring that information
can be relied upon to be sufficiently accurate for its purpose. he integrity of data is not only
whether the data is 'correct', but whether it can be trusted and relied upon.
ip

. Assurance that the systems responsible for delivering, storing and processing
information are accessible when needed, by those who need them.

ip Mainframe computing Architecture
ip client-Server computing Architecture
ip Web computing Architecture
ip ¦istributed component Architecture

ip here are rules governing how data is transferred over networks, how they are compressed,
how they are presented on the screen and so on. hese set of rules are called protocols. here
are many protocols, each one governing the way a certain technology works.
ip cP: ransmission control Protocol, used for the reliable transmission of data over a network.
ip HP: Hypertext ransfer Protocol, used for transmitting and displaying information in the form
of web pages on browsers.
ip FP: File ransfer Protocol, used for file transfer (uploading and downloading) over the Internet
ip SMP: Simple Mail ransfer Protocol, used for email

ip A $ is a computer program that delivers content, such as web page, using the
hypertext transfer protocol. his service is also referred to as web hosting.
ip Every web server has a unique address so that other computers connected to the internet know
where to find it on the vast network. he IP address looks something like this: 69.93.141.146.
ip
exposes business logic to client applications. While a Web server mainly
deals with sending HML for display in a Web browser, an application server provides access to
business logic for use by client application programs.
ip An is a computer that receives outgoing mail messages from users and routes them
to their intended recipients.
ip he ¦omain Name system(¦NS)is a powerful internet technology for converting domain names
to IP addresses. A key element of the ¦NS is a worldwide collection of ¦ .
ip A ¦( is any computer registered to join the ¦omain Name System. A ¦NS server runs
special-purpose networking software, features a public IP address, and contains a database of
network names and addresses for other Internet hosts.
ip FP, Short for ile ransfer rotocolîis the protocol for exchanging files over the Internet.
ip FP works in the same way as HP for transferring Web pages from a server to a user's
browser.
ip FP is most commonly used to download a file from a server using the Internet or to upload a
file to a server (e.g., uploading a Web page file to a server).
ip An is a software application running the File ransfer Protocol (FP), which is the
protocol for exchanging files over the Internet.
ip he Network News ransfer Protocol "NNP" has the effect of broadcasting every message to
(basically) every site, in contrast to email protocols which send messages to specific sites, and
HP, which only transfers the information on demand by the reader.
ip An (( is set up by its system manager to know about some (at least one) nearby
servers. With these servers, there is an arrangement that they will pass news to each other.
Sometimes this arrangement is limited to certain news groups
ip Articles can be passed in both directions, and the servers compare article message-id headers to
see whether they have any new news for each other.
c #

ip 1. Market demand: make a list of the services that are currently provided to customers,
suppliers and employees. Survey each group to find if the services you currently offer are
meeting the needs of each group
ip 2. Your firm͛s business strategy: Analyze your firm͛s five year business strategy and try to assess
what new capabilties will be required to achieve strategic goals
ip 3:Examine your firm͛s I plans for the next five years and assess its alignment with the firm͛s
business plans. ¦etermine total I infrastructure costs
ip 4:Information technology assessment: Is your firm behind the technology curve or at the
bleeding edge of information technology. Ñoth situations are to be avoided
ip 5. competitor firm services: ry to assess what technology services competitors offer to

customers, suppliers and employees
ip 6. competitor firm I infrastructure investments: Ñenchmark your expenditures for I

infrastructure against your competitors
c .

#
ip he ¦eLone & McLean Model
ip he Seddon Model
ip he -rganizational ransformation Model
¦"/"
#
ip constructed by ¦eLone and McLean in 1992
ip considered to be the pioneer in the information system field
ip -vercomes the short-comings of the echnology Acceptance Model (AM)
ip Synthesizes a six-factor taxonomy of IS success such as:
lp Systems Quality
lp Information Quality
lp IS use
lp User satisfaction
lp Individual impact and
lp -rganizational impact
###
ip Seddon proposed this model in 1997
ip Model focuses on the variance aspects of the interrelationships among the taxonomic
categories
ip considers three classes of interrelated variables:
lp Measures of Information and System
Quality
lp General measures of net benefits of IS use
lp Ñehaviour with respect to IS use

&!
)

#
ip Earlier models do not capture the organization transformation dimension of successful IS

implementation
ip his model has three dimensions:
lp Systems and Information Quality
lp -rganizational usage of IS
lp -rganization transformation due to IS
c
!

!
lp Yole mapping
lp -verall & change specific communication
lp -verall & change specific training
ip change Management is an organized, systematic application of the knowledge, tools, and

resources of change that provides organizations with a key process to achieve their business
strategy
ip change management plans, initiates, realizes, controls, and finally stabilizes change processes
on both, corporate and personal levels

!
)

ip First effects of change on employees, leaders, and on performance levels are negative
ip hese effects include fears, stress, frustration and denial of change
ip Most employees tend to react with resistance to change rather than seeing change as a chance
to initiate improvements
ip hey are afraid of losing something, because they have incomplete information on how the
change processes will effect their personal situation in terms of tasks, workload, or
responsibilities
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What Is Information System

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c 

ip Includes hardware, software, people, communications systems, and data

ip ¦esigned and used for administrative purposes

ip A ͞given,͟ or fact; a number, a statement, or a picture

ip Yepresents something in the real world

ip he raw materials in the production of information

ip ¦ata that have meaning within a context

ip ¦ata after manipulation

- support of business operations

- support of managerial decision making

- support of organizational strategies for survival /success

ip In an organization, information is the blood and MIS is the heart͛.

c   

ip Yivalry of competitors within the industry

ip hreat of new entrants into an industry and its markets

ip hreat posed by substitute products which might capture market share

ip Ñargaining power of customers

ip Ñargaining power of suppliers

Ñecoming low cost producer of product or service in the industry

¦ifferentiate a firms product or service from its competitors

ip Inorganic growth is thru M & A

ip Provides cx-͛s information in a readily accessible, interactive format ʹ (Summary level

ip Set of processes developed in an organization to create, gather, store, maintain and

ip -rganizations create knowledge thru careful measurement of activities (S-P) in an org,

&#'    !   ($'  

1.Information can appear Shared databases Information appears

only at one place simultaneously

2.-nly experts can perform Expert Systems Generalists can act as

complex jobs experts.

decisions part of everyone͛s job

7.pFind out the information Enterprise software Information comes to

Improves business process performance through

- automation of business processes

- simplification of business processes

- elimination of non value adding business processes

- reengineering of business processes

- improved coordination among sales, production

stores, purchase, and accounts due to close loop

systems and online data

- dynamic scheduling of production and purchase-

based on feedback from sales and visa versa

- the flexibility to take on new business opportunities as they arise

- a business framework that lets you

i. optimize business processes

ii. cut costs

ii. improve customer service

iv. shorten your time to market

- comprehensive decision support tools to provide up-to-date information on revenues, budget

Ëp E-business is remaking the business world by:

- redefining virtually every business process and function

^p changing conventional concepts and rules about strategic alliances, outsourcing,

- creating a wealth of information about customers, enabling businesses to anticipate and

satisfy individual needs with pinpoint precision

- blurring the lines between industries

- challenging every business to reinvent itself

`p It provides companies with new, more cost and time-efficient means

for working with customers, suppliers, and development partners

ip A well-designed information system rests on a coherent foundation that supports modifications

ip ISI includes the following elements:

i. HY and organizational capabilities

ip Includes Information Security, Application Management (Software), Network

ip echnological capabilities of people

c

ip In an organization, information is the blood and MIS is the heart͛.

c

&#' !($'

ip SMP: Simple Mail ransfer Protocol, used for email

c #

ip -vercomes the short-comings of the echnology Acceptance Model (AM)

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2p % p p p

p p p p

Ëp &.p*p+ p p+p

Ëp | p*p+p p&

7p ppp pp p p p p

5p pp

9p p^ ^p

:p p

;p & pp

Ëp pp p p

2p + pp

5p

7p & p p

| pp| p

p p ppp

pp p% p pp

pp p% p% p

pp p p

pp p% p

pp pp

p p p" pp

p pp p pp

9p | p^pp p