G0 B00 OC. Content Lecture 3 Components of IS System & Sub-Systems Logical Components of a Business Process Information System Output Flow and Users Information Qualities Key Takeaways ‘Scanned with CamScannerBusiness Processes & Information Systems Components of IS ire Se coo Communications Systems development and operation ‘Scanned with CamSeannerBusiness Processes & Information Systems What is an Information System System & Sub-Systems. + Asystem is a set of interdependent elements that together accomplish specific objectives. + Asystem must have organization, interrelationships, integration, and central objectives + Inexample picture system 4,0. as. NMIMS university and system 1.2 as the School of Business Mgmt (SBM) ** Interrelationship F might be 2 finance student being sent by the Finance Department (0 Sem 10 b) Systems 12 (1.2.1) to the Department of Slime: 13,12,13,14 Slieyae: 121,122,123 Accountancy (1.2.2) fora itereatonsis: A. 8, 0,0, € inerestorspe FG minor in accounting Seanned with CamScannerBusiness Processes & Information Systems What Is an Information System Hierarchical Structure * Figure depicts the hierarchical organization structure inherent in any system. = Any Systems (even IS) has a basic objective or function * Asystem’s basic objectives depend on its type—natural, biological, or human-made—. = For example, the human circulatory system is a biological system whose objective is to carry blood containing oxygen and carbon dioxide to and from the organs and extremities of the body. (6) System 1.0 organization ‘Scanned with CamSeanneeBusiness Processes & Information Systems What is an Information System Information System = The most basic function of an IS is to transform data into information that is useful in decision making * An Information System consists of an integrated set of computer-based and manual components established to facilitate an organization's operational functions and to support management decision making by providing information that managers can use to plan and control the activities of the firm. = Example : Shoe Stose - Inventory Management System ‘Scanned with CamSeanner"Sash Aide aengtimet = Helge gaat AA A Gaia Me ce Oe FO soe ten: Medel | hy | xSemcntme “A Ree . Business Processes & Information Systems Functional Model ofan Information System 1 Cramp entan A Eemtyinrone Bosc ed F puto ae ibe ere > Bo tien Saeed eae soredsetee Sac apes ee en meets shoes and tee Siren aseimmon instore, rescence | Teapecve reed : Siimnaeonor seus "| balances. Touch on MOM ‘Scanned with CamSeannerBusiness Processes & Information Systems Functional Model of an Information System NOTE: | ‘System outputs result in user actions. Some actions (e., feedback) in tun become subsequent system inputs, ‘Scanned with CamScannerExample: |S to maintain inventory balances in a shoe store. Storage > Inputs: might be receipts of new shoes or sales of shoes; Processing > Process: might be to update (in storage) the T inventory records for 1 } the particular shoe; i TA 1 >» Output: might be a listing of all the various -4i0e kinds and sizes of shoes and their ate npn acre NOTE: System outputs result in user actions. Some actions, ie subsequent system inputs, ARs OC ae Seanned with CamScanneBusiness Processes & Information Systems Logical Model of a Business Process for Ordering Books Online ee —Shipaing acknowledgement ‘Scanned with CamSeannerBusiness Processes & Information Systems _ Logical Model of a Business Process for Ordering Books Online ‘Scanned with CamSeannerBusiness Processes & Information Systems Information System Output Flow and Users > The information process supports all Ni layers through horizontal and vertical on information flows. Strategie \ \%, management \\& ¥ Figure depicts data flow from business events - the vertical information flows upward & other data, such as budgets, would flow downward. c Horizontal flows relate to specific business or ‘such as one shipment, or to iiMividual inventory items which progresses through different stages at a given level Operations management (Operations and business event processing Horizontal information tows, ° ‘Scanned with CamSeannerBusiness Processes & Information Systems Information System Output Flow and Users Horizontal Flows > At the level of operations events processing, the flows are horizontal as the information moves through operational units such as sales, the warehouse, and accounting. » Horizontal flows relate to specific business events, such as one shipment, or to individual inventory items. Vertical Flows > The vertical infc. mation flow is useful to management > Information useful to operations management personnel is often an aggregate of data related to several business events. > The data captured at the operations and business event processing level constitute the foundation for the vertical information flows that service a multilevel management function EDW constitures the organization wide data reposito ‘Scanned with CamScannerBusiness Processes & Information Systems AHierarchy of Information Qualities epceen makes Qualities of Information teens > Effectiveness > Efficiency > Confidentiality > Integrity > Availability > Compliance i > Reliability of Information In the real world maximizing Business objective, rather than obtaining the "best quality” of information is a strategic choice! ‘Scanned with CamSeanner