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Fundamental of Information System

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					  SIT




           Fundamental of
         Information System




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         Goals/Objectives
         • To present a core of IS principles with which every
           IT student should be familiar
         • To offer a survey of the IS discipline that will
           enable students to understand the relationship of
           advance courses to the curriculum as a whole
         • To present the changing role of the IS
           professional
         • To show the value of the discipline as an attractive
           field of specialization



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         Topic
         • Ch 1: An Introduction to Information Systems in
                Organizations
         • Ch2: Hardware and Software
         • Ch3: Organizing Data and Information
         • Ch4: Telecommunications, The Internet, Intranets,
                and Extranets




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         Topic (cont')
         • Ch5: Electronic and Mobile Commerce and
                Enterprise Systems
         • Ch6: Information and Decision Support Systems
         • Ch7: Knowledge Management and Specialized
                Information Systems
         • Ch8: System Development
         • Ch9: The Personal and Social Impact of
                Computers




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         IT vs. IS
         • Information Technology
            – The study, design, development, implementation,
              support or management of computer-base information
              system, particularly software applications and computer
              hardware
            – The use of electronic computers and computer software
              to convert, store, protect, process, transmit and security
              retrieve information
         • Information System
            – The system of persons, data records and activities that
              process the data and information in a given organization
            – A set of interrelated components that collect, manipulate,
              store, and disseminate data and information and provide
              a feedback mechanism to meet an objective

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            Components of Information Systems




         -Data        -Convert                -Information
                      -Transform +Knowledge   in documents or
                      -Store                  reports




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         Data, Information, Knowledge
         • Data
            – Raw facts
            – Employees' name, sales orders
         • Information
            – A collection of facts organized in added values beyond
              their facts' value
            – Total monthly sales,
         • Knowledge
            – The awareness and understanding of a set of
              information and ways that information can be useful to
              support a specific task or reach a decision


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         A railroad layout




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         The Characteristics of Valuable
         Information
         •   Accessible   •   Relevant
         •   Accurate     •   Reliable
         •   Complete     •   Secure
         •   Economical   •   Simple
         •   Flexible     •   Timely
                          •   Verifiable




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         Computer-based information
         system (CBIS)




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         • Computer-based information
           system (CBIS)
         • Is single set of
            –   Hardware
            –   Software
            –   Databases
            –   Telecommunications
            –   People
            –   Procedures
         • Is configured to collect, manipulate, store, and
           process data into information




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         CBIS components
         • Hardware
            – Input: keyboard, mouse, scanner
            – Processing: computer
            – Output: printer, monitor
         • Software
            – System software (OS) and applications software
         • Databases
         • Telecommunications, Networks, Internet and
           Extranet
         • People
         • Procedures
            – Strategies, policies, methods and rules

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         Uses of Information in a Business
         • Planning
             – Resources and markets
         • Recording
         • Controlling
             – Monitor progress against the plan
         • Measuring
             – Performance
         • Decision-making
             – Strategic Information
             – Tactical Information
             – Operational Information

         http://tutor2u.net/business/ict/intro_business_information.htm
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              Types of Information system in
              Business
              •   Executive Support Systems (ESS)
              •   Management Information System (MIS)
              •   Decision-Support Systems (DSS)
              •   Knowledge Management Systems (KMS)
              •   Transaction Processing Systems (TPS)
              •   Office Automation System (OAS)




         http://tutor2u.net/business/ict/intro_information_system_types.htm

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         Business Information System


                           •KMS
                           •AI
                           •Expert Systems
                           •Virtual Reality




                                     •TPS
                                     •ERP




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         Electronic and Mobile Commerce
         •E-Commerce
           ●   Involves any business transaction executed electronically
               between parties (B2B, B2C, C2C, B2P and C2P)
           ●   Offers online shopping, online payment system and
               entering the global market
         •M-Commerce
           ●   Refers to transactions conducted anywhere anytime
               using wireless communications
           ●   Allows corporations use to place orders with handheld
               computers, portable phones, laptop computers connected
               to a network and other mobile devices



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         Electronic Business (E-Business)




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         Transaction Processing Systems
         • Transaction: business-related exchange
            – Payments to employees
            – Sales to customers
            – Payments to suppliers
         • Transaction Processing Systems (TPS)
            – Is an organized collection of people, procedures,
              software, databases, and devices used to record
              completed business transactions




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         Payroll Transaction Processing
         System




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         Enterprise Resource Planning
         • Enterprise Resource Planning Systems
            – A set of integrated programs capable of managing a
              company's vital business operations for entire multisite,
              global organization
         • ERP modules
            –   Manufacturing
            –   Supply Chain Management
            –   Financials
            –   Projects
            –   Human Resources
            –   Customer Relationship management
            –   Data Warehouse

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         Management Information Systems
         • An organized collection of people, procedures,
           software, databases and devices
         • Provides routine information to manager and
           decision makers
         • Primary focuses on operational efficiency
         • Provide standard reports generated with data and
           information from TPS




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         Functional Management
         Information Systems




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         Decision Support Systems
         • Decision support system (DSS)
            – Organized collection of people, procedures, software,
              databases, and devices
            – Supports problem-specific decision making
         • Focus is on decision-making effectiveness

              MIS helps an organization “do things rights.”

              DSS helps a manager “do the right thing.”




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         Essential DSS Elements




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         Specialized Business Information
         Systems
         • Knowledge Management
            – A set of IS components to create, store, share and use
              the organization's knowledge and experience
         • Artificial Intelligence
            – A field in which the computer system takes on the
              characteristics of human intelligence
         • Expert Systems
            – A system that gives a computer the ability to make
              suggestions and act line an expert in a particular field
         • Virtual Reality
            – The simulation of a real or imagined environment that
              can be experienced visually in three dimensions

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         Major Elements in AI




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         System Development




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         System Development
         • Systems investigation
             – gain understanding of the problem to be solved or
               opportunity to be addressed
         • Systems analysis
             – defines problems and opportunities of the existing
               system
         •   Systems design
             – how the new system will work to meet the business
               needs defined during systems analysis




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         System Development (cont)
         • Systems implementation
           – creating or acquiring the various system components
             defined in the design step, assembling them, and putting
             the new system into operation
         • Systems maintenance and review
           – check and modify the system so that it continues to meet
             changing business needs




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         Organizations and Information
         Systems
         • An organization
            – A formal collection of people and other resources
              established to accomplish a set of goals
            – A system that has inputs, processing mechanisms,
              outputs and feedback




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         The Value Chain




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         Organization Culture and Change
         • Culture
            – A set of understanding and assumptions shared by a group
         • Organization Culture
            – The major understanding and assumptions for a business,
              corporation, or other organization
            – Common beliefs, values and approaches to decision making
            – Are often not stated or documented as goals or formal policies
            – Can greatly affect the development and operation of IS
         • Organization Change
            – How organization plan for, implement and handle
              change
            – Can be caused by internal factors or external factors

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         User Satisfaction and Technology
         Acceptance
         • User Satisfaction with IS
            – Depends on the quality of the system and the
              information
         • Technology acceptance model (TAM)
            – Is an information systems theory that models how users
              come to accept and use a technology
            – Factors influence users' attitudes about the IS
               •   The perceived usefulness of technology
               •   The ease of its use
               •   The quality of the information system
               •   The degree to which the organization supports its use
         • Technology diffusion/infusion

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         Competitive Advantage
         • A significant and (ideally) long-term benefit to a
           company over its competitors
            – Higher quality products
            – Better customer service
            – Lower costs




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         Factors that lead firms to seek
         completive advantage
         • Competitive forces model or Five-forces model
         • Five forces
            –   Rivalry among existing competitors
            –   Threat of new entrants
            –   Threat of substitute products and services
            –   Bargaining power of buyers
            –   Bargaining power of suppliers




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         Strategic Planning for Competitive
         Advantage
         • Cost leadership
            – Deliver the lowest possible products and services
         • Differentiation
            – Deliver different products and services
         • Niche strategy
            – Deliver to a small, niche market
         • Altering the industry structure
            – Change the industry to become more favorable to
              organization




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         Strategic Planning for Competitive
         Advantage (cont')
         • Creating new products and services
            – Introduce periodically or frequently
         • Improving existing product lines and service
            – Make real or perceived improvements
         • Other strategies
            –   Growth in sales
            –   First to market
            –   Customizing products and services
            –   Hiring the best people




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         Three stages in Business Use of
         Information Systems




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         Roles, Functions, and Careers in
         the IS Department
         • Primary responsibilities in information systems
            – Operations: focuses on the efficiency of IS functions
            – Systems development: focuses on development
              projects and ongoing maintenance and review
            – Support: provides user assistance, data administration,
              user training, and Web administration




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         Roles, Functions, and Careers in
         the IS Department (cont)




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DOCUMENT INFO
Description: Information Technology – The study, design, development, implementation, support or management of computer-base information system, particularly software applications and computer hardware – The use of electronic computers and computer software to convert, store, protect, process, transmit and security retrieve information • Information System – The system of persons, data records and activities that process the data and information in a given organization – A set of interrelated components that collect, manipulate, store, and disseminate data and information and provide a feedback mechanism to meet an objective