Information System

Course Contents
Chapter 1 : Introduction to Information System Chapter 2: Basic components of Information System Chapter 3: Conceptual & Detailed system design Chapter 4: Implementation , Evaluation & Maintenance of IS

Course Contents contd

Chapter 5: Parts of information system Chapter 6: Management of Information System Chapter 7: System Design methodology Chapter 8: IS & Internets

References
J Kanter, Managing with information System, Prentice Hall of India, 1992 V Rajaraman, Analysis of Information System, Prentice Hall of India, 1998 R.G. Hardick, J.E. Ross & J.R. elaggett, Information System for modern management, PHI David Kroenke, Management Information Systems, Mc Graw Hill

Grading Guidelines
Theory - Full marks 20
Continuous tests - 8 marks,
Final assessment 4 marks, Attendance 4 marks, class presentation, assignments 4marks

Todays objective
To introduce Information system
Background Definitions Why IS is important to an organization? Components of IS Sources of information system & its various types

Chapter 1: Introduction to IS
Background Operational efficiency Computers replacing manual activities Speed, accuracy, efficiency, capacity Information a key business asset Information initially as a by-product The realization about information potential & the need to manage it for competitive advantage The Early IS Show computing Time consuming system development & Information management Failure stories

Introduction to IS contd
What are these systems? Definition: provides information to people in the organization to the right people, at the right time & at the right place An organized combination of interrelated components: computer hardware, communication systems (telecommunications), software, people and data Information Technology that interact
to support & improve day to day operations in a business as well as to support problem solving & decision making needs of the management & users

Introduction to IS contd
An information system collects, processes, stores, analyzes, and disseminates information for a specific purpose. Information system are the basic heart of most organizations.
For e.g. banks & airlines cannot function without Information System

Information System accepts input & process data to provide information to decision makers and help them produce their result.

Introduction to IS contd
Activities in an Information System

INPUT

PROCESS

OUTPUT

FEEDBACK

The Primary Functions of Information Systems

Perform on Information
collection Presentation Storage & Retrieval Processing Distribution

What make Information Systems Valuable?

Facilitates Data Capturing Storage Processing Transformation Sharing and exchanging

Why IS is important to an organization?

Understand the role & relevance of an information system aid decision making. Identifying & evaluating appropriate IS. Managing the process information gathering, processing, storage & retrieval. Managers make decisions using information available to them at a time

Why IS is important to an organization?

Organization require information system for
Planning Controlling Recording transaction Performance measurement Decision making

Components of IS
IS is composed of Hardware, Software, Data, People & Procedures These can be better understood with an example a computer operated check out station at a store.

Components of IS
Hardware Consists of a bar code scanner Touch screen monitor Some kind of a sound output A receipt printer A money handling device to accept payment & dispense change A credit card scanner

Components of IS
Software s/w is what the customer/cashier interacts with Telling the customer what button to press When to scan How to pay etc.

People Are the customers that use the system & The employees who serve in support roles.

 Data
Includes barcodes that are scanned for prices , Prices that are associated with each barcode & The amount of money paid.

Procedure Includes built in rules for sales tax or Handling credit card approvals Procedure also includes manual procedure such as having employees manually check credit card signatures.

Sources of Information system

Data:
Streams of raw facts representing events about the organization & its business transactions. A critical component of information systems Information systems typically, collect, store and process data Business data is collected in a number of different ways Primarily via the system input devices such as keyboards, a mouse, scanners, etc.. Typically stored in the various associated computer system storage devices A Databases for example No longer data gives a meaningful information e.g. 5002100

Sources of Information system contd

Information: Clusters of facts that are meaningful and useful to human beings in the processes such as making decisions

Sources of Information system contd

Information systems transforms data into information Data shown earlier transformed Customer ID: 5002100 Product Code:1001-10 Quantity:15 Price: 97.99 Date:10-8-06

Information system types

For most businesses, there are a variety of requirements for information. Senior managers need information to help with their business planning. Middle management need more detailed information to help them monitor and control business activities. Employees with operational roles need information to help them carry out their duties.

Information system types contd

As a result, businesses tend to have several "information systems" operating at the same time. This note highlights the main categories of information system and provides some examples to help you distinguish between them

Information system types contd

Four main types of information systems serve different organizational levels: operational-level systems, knowledge-level systems, management-level systems, and strategic-level systems.

Information system types contd

Operational-level systems support operational managers by
keeping track of the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory.

The principal purpose of systems at this level is to

answer routine questions and to track the flow of transactions through the organization.

Information system types contd

Knowledge-level systems support the organization's knowledge and data workers. The purpose of knowledge-level systems is
to help the business firm integrate new knowledge into the business and to help the organization control the flow of paperwork.

Knowledge-level systems, especially in the form of workstations and office systems, are among the fastestgrowing applications in business today.

Information system types contd

Management-level systems serve the monitoring, controlling, decision-making, and administrative activities of middle managers. The principal question addressed by such systems is, Are things working well? Management-level systems typically provide periodic reports rather than instant information on operations.

Information system types contd

An example is a relocation control system that reports on the total moving, house-hunting, and home financing costs for employees in all company divisions, noting wherever actual costs exceed budgets. Some management-level systems support non routine decision making (Keen and Morton, 1978).

Information system types contd

They tend to focus on less-structured decisions for which information requirements are not always clear. These systems often answer "what-if" questions: What would be the impact on production schedules if we were to double sales in the month of December? What would happen to our return on investment if a factory schedule were delayed for six months?

Information system types contd

Answers to these questions frequently require new data from outside the organization, as well as data from inside that cannot be easily drawn from existing operational-level systems. Strategic-level systems help senior management tackle and address strategic issues and long-term trends, both in the firm and in the external environment.

Information system types contd

Their principal concern is matching changes in the external environment with existing organizational capability. What will employment levels be in five years? What are the long-term industry cost trends, and where does our firm fit in? What products should we be making in five years?

Information system types contd

Information systems also serve the major business functions, such as sales and marketing, manufacturing, finance, accounting, and human resources. A typical organization has operational-, management-, knowledge-, and strategic-level systems for each functional area.

Information system types contd

Figure below shows the specific types of information systems that correspond to each organizational level. The organization has
executive support systems (ESS) at the strategic level; management information systems (MIS) and decision-support systems (DSS) at the management level; knowledge work systems (KWS) and office systems at the knowledge level; and transaction processing systems (TPS) at the operational level.

Information system types contd

It should be noted that each of the different systems may have components that are used by organizational levels and groups other than their main constituencies. A secretary may find information on an MIS, or a middle manager may need to extract data from a TPS.

Information system types contd

1. Transaction processing systems (TPS) are the basic business systems that serve the operational level of the organization. A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to the conduct of the business. Examples are sales order entry, hotel reservation systems, payroll, employee record keeping, and shipping. At the operational level, tasks, resources, and goals are predefined and highly structured. The decision to grant credit to a customer, for instance, is made by a lower-level supervisor according to predefined criteria. All that must be determined is whether the customer meets the criteria.