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CH 02

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15 views31 pages

CH 02

Uploaded by

Yadoji bokare
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Information System & Business

Strategy
An Introduction to Information Systems

Information System:

An information system is a set of interrelated


components that collect, manipulate, store data
and disseminate information and provide a
feedback mechanism to monitor performance.
What is an Information System?

An organized combination of people,


hardware, software, communications
networks, and data resources that
collects data, transforms it, and
disseminates information.
Data Vs. Information
Data: Raw unorganized facts
Information:
A collection of facts organized in such a
way that they have additional value beyond
the value of the facts themselves.

Defining and organizing relationships among


data creates information.
Information Management
• Information management is an emerging field
that is concerned with: The infrastructure
used to collect, manage, preserve, store and
deliver information.
• The guiding principles that allow information
to be available to the right people at the right
time.
Information Concepts
Process:
A set of logically related tasks performed
to achieve a defined outcome.

Knowledge:
An awareness and understanding of a set
of information and ways that information
can be made useful to support a specific
task or reach a decision
The Value of Information

The value of Information


is directly linked to how
it helps decision makers
achieve their organization’s
goals.
System

A system is a set of elements or


components that interact to
accomplish goals.
CBIS (Computer Based Information System)

It consists of the following elements:


• Hardware
• Software
• Data
• Procedure
• People
Components of CBIS
• Hardware: The term hardware refers to machinery.
• Software: The term software refers to computer
programs and the manuals (if any) that support
them.
• Data: Data are facts that are used by program to
produce useful information.
• Procedures: Procedures are the policies that govern
the operation of a computer system.
• People: Every Computer Based Information System
(CBIS) needs people if it is to be useful.
Model Of CBIS
• A transaction processing system can be
defined as a computer based system that
captures, classifies, stores, maintains, updates
and retrieves transaction data for record
keeping and for input to other types of CBIS.
• MIS can be described as information system
that can provide all levels of management
with information essential to the running of
smooth business.
• It is true that all the decisions in an organisation are not of
a recurring nature. Decision support systems assist
managers who must make decisions that are not highly
structured, often called unstructured or semi-structured
decisions.
• Office automation systems are among the newest and most
rapidly expanding computer based information systems.
They are being developed with the hopes and expectations
that they will increase the efficiency and productivity of
office workers-typists, secretaries, administrative
assistants, staff professionals, managers and the like.
Factors Stimulating Interest in
Information Management
• Increasing complexity of business activity
– International economy
– Worldwide competition
– Increasing complexity of technology
– Shrinking time frames
– Social constraints
• Improved computer capabilities
– Size
– Speed
1-15
Who are the Users?

• Managers
• Nonmanagers
• Persons & organizations in the firm’s
environment

1-16
Managers Can Be Found on All
Levels and in All Functional
Areas of the Firm
Strategic planning level

Management Control Level

Operational Control
Level

Finance Human Information Manufacturing Marketing


Function Resources Services Function Function
Function Function
1-17
What Managers do --
Fayol’s Functions
Strategic Management Operational
Planning Level Control Level Control Level

Plan Organize Direct


Direct Plan Control
Control
Staff Staff Staff
Control Organize
Organize Direct Plan

1-18
Evolution of the CBIS
• Data Processing (DP)
• Management Information Systems (MIS) 1964
– IBM promoted the concept as a means of selling disk files and
terminals
• Decision Support Systems (DSS) 1971
– Text book’s distinction:
• MIS: Organizational/group - general
• DSS: Individual - specific
• Office Automation (OA) 1964
• Artificial Intelligence (AI)/ Expert Systems (ES) - 1990s
– Heavy investment by businesses

1-19
Information Services

Information specialists have


full-time responsibility for
developing and maintaining
computer-based systems

1-20
End-User Computing (EUC)
• End-user computing
– Development of all or part of applications
– Information specialists act as consultants
• Stimulants to EUC
– Increased computer literacy
– IS backlog
– Low-cost hardware (the PC)
– Prewritten software (electronic spreadsheets)

1-21
IS and EUC
The End-User Computing Communication
Chain

Information
Specialists

Support

Communication

User Computer
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Justifying the CBIS
• Justify in the same manner as any other large
investment
• Economic
– Cost reduction
– Reduced inventory investment
– Increased productivity (CAD/CAM)
• Noneconomic
– Perceived value

1-23
Achieving the CBIS

1-24
Strategic Information System
Business and Firm Level Strategy
Business and Firm Level Strategy

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