INFORMATION SYSTEMS

H.T Mushonga
[email protected]
 Lecture objectives
• To gain an understanding of what an
Information system is.
• To gain an understanding of the various types
of information systems, including
characteristics of each type.
 Three main types of ICT systems
1. Information systems. This type of ICT
system is focused on managing data and
information.
2. Control systems. These ICT systems
mainly control machines.
3. Communications systems. The output
of these ICT systems is the successful
transport of data from one place to
another.

3
 What is an information system?

Information system (IS): A set of interrelated

components that collect, manipulate, store,
and disseminate data and information and
provide feedback to meet an objective
Why do we need information systems
• The purpose of the company’s information
system is to gather the information it needs and,
following necessary transformations, ensure that
it reaches the members of the company who
require it, whether for decision making, strategic
control, or for implementing decisions adopted
by the company (Menguzzato and Renau, 1991).
• A manager’s performance therefore depends on
his or her skills in exploiting the information
system’s capacities in order to obtain positive
business outcomes.
 What is an information system?
Information system (IS) is a set of interrelated
elements that:
– Collect (input)
– Manipulate (process)
– Store
– Disseminate (output) data and information
– Provide a corrective reaction (feedback
mechanism) to meet an objective
 Feedback
• In information systems, feedback is information from the
system that is used to make changes to input or processing
activities.
• For example, errors or problems might make it necessary to
correct input data or change a process.
 Feedback example
If the number of hours an employee worked was entered as 400
instead of 40.
Fortunately, most information systems check to make sure that
data falls within certain ranges.
For number of hours worked, the range might be from 0 to 100
because it is unlikely that an employee would work more than
100 hours in a week.
The information system would determine that 400 hours is out
of range and provide feedback.
The feedback is used to check and correct the input on the
number of hours worked to 40.
Components of an Information System
Hardware - computer equipment used to perform input,
processing, and output activities.

Software - computer programs that govern the operation of the

computer. These programs allow a computer to: process payroll,
send bills to customers, and provide managers with information
to increase profits, reduce costs, and provide better customer
Service

Database - an organized collection of facts and information,

typically consisting of two or more related data files. An
organization’s database can contain facts and information on
customers, employees, inventory, competitors’ sales, online
purchases, and much more.
Components of an Information System
People - People are the most important element in most
computer-based information systems. They make the difference
between success and failure for most organizations. Information
systems personnel include all the people who manage, run,
program, and maintain the system.

Procedures - include the strategies, policies, methods, and rules

for using the Computer Based Information Systems
Components of an Information System
TYPES OF INFORMATION SYSTEMS
1. Transaction processing systems (TPS)
2. Management Information System (MIS) and
Decision Support Systems (DSS)
3. Executive Support System (ESS) for senior
management
Organizational levels and information
requirements
Organizational levels and information
requirements
 Transaction processing system
• TPSs collect, store, modify and retrieve the
transactions of an organization.
• A Transaction is an event that generates or modifies
data that is eventually stored by an information
system.
– E.g.: Order entry system, payroll systems and
ticket reservation systems
• These systems help any company to conduct
operations and keep track of its activities
Transaction Processing System
 TPS CHARACTERISTICS
• A TPS records internal and external transactions for a
company.
• It is a repository of data that is frequently accessed by other
systems
• A TPS performs routine, repetitive tasks .It is mostly used by
lower level managers to make operational decisions
• Transactions can be recorded in batch mode or online (real
time).
– In batch mode the files are updated periodically.
– In online mode , each transaction is recorded as it occurs
 Objectives of TPS

• Process data generated by and about

transactions
• Maintain a high degree of accuracy and
integrity
• Avoid processing fraudulent transactions
• Produce timely user responses and reports
• Help improve customer service
 Transaction processing cycle
• Transaction processing cycle

– Data collection
– Data editing
– Data correction
– Data manipulation
– Data storage
– Document production
 Outputs of a TPS
1. Transaction documents: Many TPSs produce
transaction documents, such as invoices, purchase
orders, or payroll cheques
2. Query responses: TPS offer certain querying and
simple reporting capabilities, albeit much less
elaborate than those of management reporting
systems. Most queries produce a screenful of
information
3. Reports: Unlike management reporting systems,
TPSs typically provide a limited range of pre-
planned reports
TPS example

Cheques
 TYPES OF TPS
• Online system:
– it involves a direct connection between the
operator and TPS program, they provide
immediate results e.g. An order arrives by
telephone call it is processed at that moment and
results are produced.
• Batch processing:
– it is the second type of TPS ,where transactions
are grouped together and processed as a unit
 Difference between online/real time
and Batch
• Online / Real time:
– Each transaction is unique, transactions are standalone,
– Requires master file to be available more often for updating;
– More costly than batch processing
– Database is always up to date
– Fewer errors:- transaction data is validated and entered
immediately, infrequent errors may occur.
– Not practical to shut down the whole system
• Batch:
– Each transaction is part of a group; database may not be
accessible all of the time.
– Batch processing is usually cyclic: daily, weekly, or monthly run
cycle is established depending on the nature of the transactions
– Cheaper than on-line processing
– More errors
– easier to maintain than real- time.
 Management Information Systems
(MIS)
• This is a specific category of information
systems that serve middle management.
• Provides middle managers with reports on
organization’s current performance.
• Information thus obtained is used to monitor
and control the business.
• MIS are oriented toward reporting on the
past and the present, rather than projecting
the future.
 Characteristics of MIS
• MIS is an integrative system
• Provides relevant information to Management
• Enhances productivity
• Generally have limited analytical capabilities.
They are not built around elaborate models,
but rather rely on extraction of data from
databases according to given criteria, and on
summarization of the data.
 Structure of an MIS

• In the system illustrated by this diagram, three TPS supply

summarized transaction data to the MIS reporting system at the end
of a time period.
• Managers gain access to the organizational data through the MIS,
which provides them with the appropriate reports.
 Decision Support System
A decision support system (DSS) is a computer program
application that analyzes business data and presents it so that
users can make business decisions more easily.
Typical information that a decision support application might
gather and present would be:
– Comparative sales figures between one week and the next
– Projected revenue figures based on new product sales
assumptions
– The consequences of different decision alternatives, given
past experience in a context that is described
 Cont’d
• Decision support systems (DSS), or business
intelligence systems, help managers with non-routine
decisions that are unique, rapidly changing, and not
easily specified in advance.
• DSS are more analytical than MIS, using a variety of
models to analyse internal and external data or
condense large amounts of data for analysis.
Characteristics of Decision support system
• Provides rapid access to information
• Handles large amount of data from different
sources
• Provides report and presentation flexibility
• Offer both textual and graphical orientation
• Support drill down analysis
• Perform complex ,sophisticated analysis and
comparisons using advanced software
 Activities in decision support system

• What if analysis
• Sensitivity analysis
• Goal seeking analysis
• Optimization analysis
 DSS:Example
• Voyage estimating system calculates financial and technical
voyage details.
• It is based on analytical models.
• Financial calculations that can be made by the system include :
– ship/time costs(fuel, labor, capital)
– freight rates for various types of cargo and port expenses

• Technical details required for use in the system include factor

such as:
– ship cargo capacity,
– speed ,port distances
– fuel and water consumption
– loading patterns ( locations of cargo for different ports
 Cont’d
• The system can answer questions such as:
– Given a customer delivery schedule and an
offered freight rate, which vessel should be
assigned at what rate to maximize profits?
– What is the optimal speed at which a
particular vessel can optimize its profit and
still meet its delivery schedule?
– What is the optimal loading pattern for a ship
bound for US west coast from Malaysia?
 EXECUTIVE SUPPORT SYSTEMS FOR SENIOR
MANAGEMENT
Deals with issues at senior Management level:
– What will employment be in 5 years ?
– What are long term industry cost trends , where does our
firm fit in?
– What products should we be making in next 5 years?
– What new acquisitions would protect us from cyclical
business swings ?
 Characteristics of ESS
• Are tailored to individual executives
• Are easy to use
• Have drill down abilities
• Support the need for the external data
• Have a future orientation
 Role of ESS
• Addresses non routine decisions requiring judgment ,
evaluation, and insight
• Presents graphs and data from many sources through
an interface that is easy for senior managers to use
• Incorporates data about external events such as new
tax laws or competitors ,but also draws a summarised
information from internal MIS and DSS
• It filters ,compresses and track critical data , displaying
that data of greatest importance to senior managers.
MODEL OF AN EXECUTIVE SUPPORT SYSTEM
 DSS, MIS & EIS Comparison
DIMENSION DSS MIS EIS
Focus Analysis, decision Support Information processing Status Access
Typical Users Analysts, professions, Middle, lower levels, sometime Senior Executives Expediency
Served managers (via intermediaries) senior executives
Impetus Effectiveness Efficiency
Application Diversified Areas where Managerial Production control, sales Environmental scanning,
Decisions are made forecasts, financial analysis, performance evaluation, identifying
human resource management problems and opportunities
Database(s) Special Corporate Special
Decision Support Supports semi-structured and Direct or indirect support, mainly Indirect support, mainly high level
Capabilities unstructured decision making; structured routine problems, and
mainly ad-hoc, but sometimes using standard operations, unstructured decisions and policies
repetitive decisions research and other models
Type of Information to support Scheduled and demand reports; News items, external information on
Information specific situations structured flow, exception customers, competitors and the
reporting mainly internal environment
operations
Principal Use Planning, Organizing, staffing and Control Tracking and control
control
Adaptability to Permits individual judgment, what-if Usually none, standardized Tailored to the decision making
Individual User capabilities, some style of each individual executive,
choice of dialogue style offers several options of outputs

Graphics Integrated part of many DSS Desirable A must

User Friendliness A must where no Desirable A must
intermediaries are used
Treatment of Information provided by the Information is provided to a Filters and compresses the
Information EIS/or MIS is used as an input diversified group of users who information, tracks critical data and
to the DSS then manipulate it or summarize information
it as needed
 DSS, MIS & ESS

• The various types of systems in the organization have

interdependencies.
• TPS are major producers of information that is required by many
other systems in the firm, which, in turn, produce information for
other systems.
SYSTEMS DEVELOPMENT
H Mushonga
 ICT system

A system that uses any form of digital technology to

input and process data and output the information
which goes directly to a human or into another
system

Their purpose is to make a particular ‘process’

within an organization more efficient. They deal
with the input and process of data in order to
produce information.
 SYSTEMS DEVELOPMENT
• Systems development is the activity of creating or
modifying ICT systems.

• People inside a company can develop systems, or

companies can use outsourcing (hiring an outside
company to perform some or all of a systems
development project).

• Outsourcing allows a company to focus on what it

does best and delegate other functions to companies
with expertise in systems development.
Why are new systems developed?

• Current one is out of date

• Technology has moved on
• Competitors have developed new systems
• The organisation has grown
• A new part of the company is established that
requires IT support
• The company wants to improve the quality of a
repetitive task
Why systems development sometimes
fails
• Systems development failures can be a result of poor
planning and scheduling, poor requirements
determination, and lack of user involvement.

• One strategy for improving the results of a systems

development project is to divide it into several steps,
each with a well-defined goal and set of tasks to
accomplish
What method is often followed to
develop an ICT system?

The Systems Development Life Cycle (SDLC)

The system development life cycle

It is a method / model which aims to maximise the

chances of a successful project
 Stages of the SDLC
1. Analysis
2. Design
3. Constructing the solution
4. Testing
5. Installing
6. Review and maintenance
 Analysis
• What is the problem you intend to solve?
• What does the existing system do?
• What are the strengths and weaknesses of the existing
system?
• What is required of the new system? (Client/User
requirements)
• Who will be using the new system and if necessary who
will be viewing the final product? (End Users and
Audience)
• Are there any constraints that may be placed on the
new solution, e.g. legal requirements?
 Methods used to analyse the current
situation

• Interviews at all levels

• Questionnaires/Surveys
• Analysis of existing paper work
• Observation of users of the current system
 Deliverables from analysis
• User Requirements
• List of tasks and subtasks that need to be completed
• A Gantt Chart to show scheduled timings
• An assessment of user skills
• Hardware and Software requirements and limitations
• Performance indicators of evaluation criteria matching
the client/users requirements
 Note
• The analysis phase describes WHAT the project is
going to do
• The design phase explains HOW it is going to do it
 System design

• Focus is on how the system will accomplish its

objectives.

• This is where issues related to hardware, software,

networking , data storage, security and many others
will be discussed and determined .

• As such system design consists of design activities

that ultimately produce physical system
specifications satisfying the functional requirements
that were developed in the system analysis process.
 Hardware Evaluation Factors
Hardware Evaluation factors Ratings
PERFORMANCE: What is its speed, capacity and throughput
COST : What is its lease or purchase price ? What will be its cost of operation and
maintenance ?
RELIABILITY ; What are the risk of malfunction and its maintenance requirements? What are
its error control and diagnostic features?
COMPATIBILITY : Is it compatible with existing hardware and software? Is it compatible with
hardware and software provided by competing suppliers?
TECHNOLOGY: does it use a new untested technology , or does it run the risk of
obsolescence?
ERGONOMICS: Has it been “human factors engineered” with the user in mind ?Is it user
friendly, designed to be safe , comfortable , and easy to use?
CONNECTIVITY :Can it be easily connected to wide area and local area networks that use the
different types of network technologies and bandwidth alternatives
SCALABILITY: Can it handle the processing demand of a wide range of end users ,transactions
, queries , and other information processing requirements ?
SOFTWARE: Are system and application software available that can best use this hardware?

SUPPORT:ARE the services required to support and maintain it available?

OVERALL RATING
 Software Evaluation Factors
Software Evaluation factors Ratings
QUALITY : Is it bug free , or does it have many errors in its program code
EFFICIENCY: Is the software a well developed system of program code that does not
use much CPU time , memory capacity , or disk space?
FLEXIBILITY: Can it handle our business processes easily , without major
modifications?
SECURITY: Does it provide control procedures for errors, malfunctions , and
improper use?
CONNECTIVITY:Is it web enabled so it can easily access the Internet or intranet on
its own , or by working with WEB browsers or other network software?
MAINTENANCE: Will new features and bug fixes be easily implemented by our
software developers?
DOCUMENTATION: is the software well documented ? Does it include help screens
and helpful software agents?
HARDWARE: Does existing hardware have the features required to best use this
software?
OTHER FACTORS: What are its performance costs, reliability , availability,
compatibility, technology ,ergonomics , scalability and support characteristics ?
OVERALL RATINGS
 Deliverables of the system design
stage
• Details of file definitions, data structures and
processes
• Design of outputs
• A test strategy and plan (**research on the various
test strategies that can be adopted**)

(a data structure is a data organisation, management and storage

format that enables efficient access and modification)
 Ways to construct an ICT solution
1. Customising a package
– Using a generic or special purpose package and simply
customising it
– May require compromises (not able to fully customise)
– Less risky
– More help and support available

2. Writing Code
– This is when you build the solution from scratch
– More flexible
– Likely to take longer
– Likely chance of errors
Documentation of construction is essential for both
 Deliverable from Construction

• Working system
• Documentation of the solution
• Draft version of the user guide
 Deliverables from testing

• Test data and results

• Modified user guide
• Client approval to install
 What to consider during installation
The type of changeover
1. Direct – Company literally switches off the old system
and switches on the new one.
2. Parallel – The company runs both the old and new
system in parallel for a time.
– Once they are sure it is working properly and staff are
ready they will do a complete change over.
3. Phased – Old system is still active but parts of the new
system are used e.g. The front end input screens are
used but run the old systems back end.
4. Pilot – complete new system is installed in a small
number of departments / branches.
 Deliverables from the installation
phase

• Fully functional solution

• Full documentation
• User guides
• Technical documentation
 Review and Maintenance

• Corrective maintenance: Putting right any reported

errors once the system is operational

• Adaptive maintenance :Altering the system to meet

new organisation, legislation or security
requirements

• Perfective maintenance: Where any inefficiencies

are tweaked i.e. make the system even better
 SDLC Models
SDLC models:
1. Waterfall Model
2. Iterative Model
3. Spiral Model
4. V-Model
5. Big Bang Model
6. Prototype Model

[Assignment: prepare short presentations (max: 8 slides) on

the above models highlighting when it is most appropriate
to use the model as well as the advantages and
disadvantages of each model]… presentations to be made
on Tuesday 23rd of September 2019
Each presentation should not be more than 12 minutes long