Information Systems

Framework
 Information Systems
Concepts (Continued)
• Foundation Concepts
– Fundamental concepts about the
components and roles of information
systems.
• Information Technologies
– Major concepts, developments, and
management issues in information
technology.
 What IS a system?
• A group of interrelated or interacting
elements forming a unified whole, OR
• A group of interrelated components
working together toward a common goal by
accepting inputs and producing outputs in
an organized transformation process
(dynamic system).
• Three basic interacting components:
– Input
– Processing (transformation process)
– Output
 What IS a system?
• A group of interrelated or interacting
elements forming a unified whole, OR
• A group of interrelated components
working together toward a common goal by
accepting inputs and producing outputs in
an organized transformation process
(dynamic system).
• Three basic interacting components:
– Input
– Processing (transformation process)
– Output
Other System Characteristics
• A system exists and functions in an
environment containing other systems.
• Subsystem – a component of a larger
system.
• Systems that share the same environment
may be connected to one another through a
shared boundary, or interface.
• Open versus closed system.
• Adaptive system
MIS
Major Roles of IS

Support
Competitive
Advantage

Support
Business
Decision Making

Support of
Business Processes and Operations
 CLASSIFICATION OF INFORMATION SYSTEMS

KIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR
MANAGERS

MANAGEMENT LEVEL MIDDLE

MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS

OPERATIONAL
OPERATIONAL LEVEL
MANAGERS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING RESOURCES
Types of Information Systems
Types of Information Systems
• Operations Support Systems
– Transaction processing systems
• Batch – transaction data accumulate over time,
processed periodically.
• Real-time – data processed immediately after a
transaction occurs.
– Process Control Systems – monitor &
control physical processes.
– Enterprise Collaboration Systems
Types of Information Systems
• Operations Support Systems
– Transaction processing systems
• Batch – transaction data accumulate over time,
processed periodically.
• Real-time – data processed immediately after a
transaction occurs.
– Process Control Systems – monitor &
control physical processes.
– Enterprise Collaboration Systems
 An organization can be classified as a three
layered:
• Layer 3 or top level or non programmed
(unstructured) decision making processes are
found here that are required to design and
redesign the entire system, to provide it with its
basic goals and objectives and to monitor its
performance.
• Layer 2 or middle level have the programmed
(structured) decision making processes, the
processes that govern the day to day operations
of the manufacturing and distribution system.
• Layer 1 or Bottom level processes procure row
materials, manufacture the physical product,
store them in warehouse and ship it.
 Characteristics of MIS
There are several characteristics of MIS as:
• MIS is management oriented.
• Management directed.
• Integrated system
• Avoids redundancy in data storage.
• Common data flow
• Heavy planning elements.
• Subsystem concept
• Common database
• Flexibility and case of use
• Computerization
Types of Information Systems
(continued)
• Other Classifications
– Expert systems – expert advice
– Knowledge management systems – support
the creation, organization, & dissemination
of business knowledge
– Functional business systems – support the
basic business functions
– Strategic information systems – strategic
advantage
 Managerial challenges of
information technology
• Information systems can be mismanaged
and misapplied so that they create both
technological and business failure.
 Top Five Reasons for Success  Top Five Reasons for Failure

 User involvement  Lack of user input

 Executive management support  Incomplete requirements and

specifications
Clear statement of requirements  Changing requirements and
specifications
Proper planning  Lack of executive support

Realistic expectations  Technological incompetence

 Role of MIS
The MIS is to produce information so that people within the firm can
use it in their decision making. An MIS must manipulate great
quantities of data in various ways, often with the aid of computers.

Many kinds of manipulation and transfers of information support

daily operations and decision making in a manufacturing company
done by MIS.

Gathering information, analyzing it and reporting it are the main jobs

of an MIS. To do so, MIS collects row data facts, statistics, opinion
and predictions from both inside and the outside the company and
then organize them so that they can be stored. Not all of these are
useful to each manager, a lot may be too detailed or perhaps
irrelevant. So the MIS must pull out from the flood of data that pours
in each day, only the selected piece of data that a particular
manager needs.
Developing IS Solutions to Business
Challenges
 Competitive Strategies & the Role
of IT
• Cost Leadership (low cost producer)
– Reduce inventory (JIT)
– Reduce manpower costs per sale (see Real
World Case 1)
– Help suppliers or customers reduce costs
– Increase costs of competitors
– Reduce manufacturing costs (process control)
 Intelligent
Decision Support Systems
IE 8541 / HUMF 8001
 Decision Support Systems
• Computer tool that helps people make
better decisions, faster
• Leaves the human in control of decision
making.
 Examples of Situations in which
DSSs may be used
• Help medical personnel in a hospital setting
to consider various diagnoses and treatment
plans,
• Help engineers to analyze, develop and
compare solution options,
• Help military planners to generate alternative
plans of military maneuvers,
• Help search and rescue workers to prioritize
which of many critical activities to attend
next.
 The need for DSSs in the 21rst
Century
• The move towards global comepetion in a
global market place has increased the market
for more complex systems and products,
• At the same time companies and
organizations must produce these systems
and products faster, and with less personnel,
• DSSs provide a way to help manage this
complexity,
 Example of How a DSS can
multiply human capabilities
• NASA Mars Rover program demonstrated
that a DSSs can enable people to
effectively manage more complex systems
than would be possible with out DSS
assistance.
• Operations staff at JPL could produce
40% more activities with the rovers when
using a DSS, than not.
 A Continuum of Human Control
and Automation
an
e nt t um h m
er n m an y s te
ap o i st b sy
p ir s s ted s
d nv a i s ou
a n e ent a ss om
cil ign it i
c lli
g
ent t on
n s r te
Au
Pe De C In Ag

Human in Control Computer in Control

*Adapted from Fischer et al. “Critics, and Emerging Approach to knowledge-based …,”
International Journal of Man-Machine Studies, 35 (5) 695-721, 1991.
 Intelligent Decision Support
Systems
• Intelligent DSSs perform some part of the
problem solving for the user.

• Non-intelligent DSSs my simply structure or

present knowledge in a way that facilitates
problem solving or decision making.

• This course will emphasize intelligent DSSs

which assist in complex problem solving
situations, usually requiring expertise
 Challenges
• DSSs are hard to characterize as “points” on this
scale:
– They may be highly automated in some portions, and
human driven in others.
– A single system may incorporate multiple styles of
interaction.

• Need additional ways in which to characterize

DSSs design space, map out specific planning
functions.