INFORMATION SYSTEMS

Information Systems
Why Do People Need Information?
Individuals - Entertainment and enlightenment Businesses - Decision making, problem solving and control
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Information is Critical
The information we have is not what we want, The information we want is not the information we need, The information we need is not available.

Information is a Resource
It is scarce
It has a cost

It has alternative uses

There is an opportunity cost factor involved if one does not process information
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Data, Information & Systems

Data vs. Information
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

Information
Data that have meaning within a context Data in relationships Data after manipulation
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Data, Information, and Systems

Data Manipulation
Example: customer survey
Reading through data collected from a customer survey with questions in various categories would be timeconsuming and not very helpful. When manipulated, the surveys may provide useful information.
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Data, Information, and Systems

Generating Information
Computer-based ISs take data as raw material, process it, and produce information as output.

Figure 1.1 Input-process-output

Data, Information and Systems

Information in Context

Figure 1.2 Characteristics of useful information

Data, Information, and Systems

Figure 1.3 Several subsystems make up this corporate accounting system.

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Data, Information, and Systems

Information and Managers
Systems thinking
Creates a framework for problem solving and decision making. Keeps managers focused on overall goals and operations of business.

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Data, Information and Systems

Figure 1.5 Qualities of humans and computers that contribute to synergy

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Data, Information and Systems

The Benefits of Human-Computer Synergy Synergy When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately Allows human thought to be translated into efficient processing of large amounts of data
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Data, Information and Systems

Figure 1.6 Components of an information system

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Data, Information, and Systems

The Four Stages of Data Processing Input: Data is collected and entered into computer. Data processing: Data is manipulated into information using mathematical, statistical, and other tools. Output: Information is displayed or presented. Storage: Data and information are maintained for later use.
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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

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Ethical and Societal Issues

The Not-So-Bright Side

Consumer Privacy
Organizations collect (and sometimes sell) huge amounts of data on individuals.

Employee Privacy
IT supports remote monitoring of employees, violating privacy and creating stress.
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Data, Information, and Systems

What Is a System? System: A set of components that work together to achieve a common goal Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal Closed system: Stand-alone system that has no contact with other systems Open system: System that interfaces with other systems
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Why Need Information ?

To ensure effective and efficient decision making leading to prosperity of the Organisation. MIS :MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.

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What is MIS?
Right Information To the right person At the right place At the right time In the right form At the right cost

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Management Information System

The three sub-components Management, Information and System System emphasizing a fair degree of integration and a holistic view; Information stressing on processed data in the context in which it is used by end users;

Management focusing on the ultimate use of such information systems for managerial decision making.
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Historic Development

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Historic Development
EDP - Focus on Data OAS - Focus on Communication MIS - Focus on Information DSS - Focus on Decision Support EIS - Focus on Decision Support for Top Management ES - Focus on Consultation AI - Focus on self-learning / thinking systems

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What is an Organization?

An organization is a stable, formal social structure that takes resources from the environment and processes them to deliver goods and services.

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Salient Features of Organization

Product Line Tangible products: ones that can be measured Intangible products: Cannot be discretely measured Organizational Structure Function Product Customer Geography
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Salient Features of Organization

Organizational Culture Centralized organizations Decentralized Organizations Environments

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Levels & Role Of Management

Levels of management: Upper Level Management Middle Level Management Lower Level Management

Roles of management: Plan Organize Staff Direct Control

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Organizational System & MIS

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Organizational System & MIS

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Organizational System & MIS

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Users of the Information System

Hands-on users: Users who are responsible for entering data on the machine as a result of direct transaction. Manager Users: The people at various levels of the firm, who utilize the data captured by hands on users. Indirect Users: Any user inside or outside the organization, who doesnt directly use the system but get benefit in terms of improved services (e.g. Customers, suppliers etc )
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Benefits Of Information System

Operational Efficiency Functional Effectiveness Quality Customer Service Product Development Identifying Business Opportunities Client Lock-in/ Competitor Lock-out Inter-Organizational Systems and Electronic Markets

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Challenges In Information Systems

Understanding and awareness of IS contribution Human Resources for IS Data sources Data security Organizational cultural barriers Alignment of IS with the organization Information Architecture IS efficiency/effectiveness Business value of IS
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