Information Systems Evolution and Modelling

Information Systems
Evolution and Modelling
Chapter 6
Emergence of Information Systems
Chapter-6,MIS, PRM41
Emergence of Information Systems
We Know
Contingency Theory suggests that:
• External and Internal factors influence the organization (employees,
suppliers, customers, competitors…)
It is argued that functional silos can manage these

contingencies better
Each Function can be attached with an Information
System
Information System (IS) More information in TAU material
A set of procedures (processes) interconnected
Makes information available as applicable to a functional part of the
organization
Assists the requirements at organizational level.
The Path Traversed by IS
Highly User Oriented
2000 and beyond:

1980s-1990s: Focus of external interfaces
Information due to enhancement in
Business – Management Orientation Systems became internal information system
part of competencies
Organization’s Core
1960s and 1970s: Activity
Managerial Control
through Information
Systems
1950s:
Technical
Changes/Limit
ations for User Highly Technology Oriented
Services
Time
How IS represents the Organization?
IS-3 IS-4
IS-2
IS-1
IS – Advantages and Limitations
Advantages:
An IS maps the Organization Partially
An IS introduces
• Systematic Information Flow
• Systemic views through interactions among
people and processes
• Technologies for improvements
Disadvantages
Difficult to apply systems thinking
Difficult to map the real world
Types of IS
IS are of various Types:
FORM-1: Communication related – mail,
Call Centre…….
FORM-2: Office Automation- Word
Processors, Spreadsheets…..
FORM-3: Business Transaction-
OLTP/ERP/SCM….
FORM-4: Individual-Expert Systems
FORM-5: Strategic- OLAP, Decision Support
Barriers in IS Development
Business Strategic
Management
Executive Strategic Barriers
Management
IS/IT
Strategic Management
Impact analysis
User Management
Information
Systems Management
User Operations
Information analysis
Process Projects and Computer

Management
Barriers
Systems design
Barriers
Strategy Barriers
Communication leading to poor articulation of information
needs
• Let it come with time
Inefficient coordination among functional areas and inability
to find a path
Process Barriers
First Order
• Poor use of IS
Second Order
• Far reaching effects on key performances
Third order
• Increase in total cost of ownership
IS Life Cycle
1. Systems Life Cycle
should follow OLC
Start of
(longer the better)
The Cycle
User Needs Feasibility Information

Identification Assessment Systems Plan
Information Design- Information

Systems Tests Reality Gaps Systems
Design
Install User End of

Information Acceptance The Cycle
Systems
3. Internal adjustments to align with 2. Systems should be

Market conditions should not affect introduced during FIRST
Systems Life Cycle stage of OLC
IS Infrastructure
1. IS infrastructure
Users Should be acquired
initially
Business Practices captured
Information System
Infrastructure
Information System Identified,

prioritized
Hardware Software Networks

Information Technology
Infrastructure
Vendors/ IT Service Providers

2.IT infrastructure life
Cycle should not affect
IS infrastructure
IS – Organization Alignment
Process-LCs
Product-LCs
IS-LC
OLC IT-LC
IS Modeling
OMNIS Model
First Alignment Second Alignment
First Alignment Second Alignment
Components of Functional System
Functions
Processes
Transactions Functional System
Events
Actors Rules Process Events

/
Logics
Functions and Their Roles
Function
Information System
Process # n Process # 1
Initiate
Feedback Transaction #1
Function- Specific domain
Process- Component of an Information system
Transaction- May encompass many Functions
Note: Functions are not processes
Processes Identified….
Definition of Process
It is some kind of related and well sequenced
activities within the organization where people work
together to achieve some desired outcome.
The work can be done Iteratively
A process involves activity, people and/or
machine
Doing things collaboratively (Rules, Logics)
Have transactions (How the transformation takes
place)
Has a goal
Has owner/stakeholder
The Basics of Processes
• Organizing work flows
Work procedures
• Ex: Allocation of Manpower to a Machine
by Shift
Work flows
• Ex: Machine Layout and Sequencing
(Mimic Panel/ Dashboards)
Types of Processes
Core Process
Central to objective of Organisation
Mostly Static
(Example- PRM, FPRM courses of IRMA)
Support Process
Supports Core Process
(Example- Admissions, Teaching)
Management Process
Formulate strategies
(Example-for admission, PRM courseware, Eligibility)
Transaction: A Definition
Transaction
A set of well organised Activities
Required for exchange of
• Goods
• Services
• Information
Stakeholders
• Owner
• Service provider
• Medium (an agency, technology, person ..)
Transactions- How to Conduct? Modes
Off-line Mode:
Independent of state of a process/ processes
No time limit to get feedback on completion of
transaction
(Example: sending a letter by ordinary post,
Submission of cheque for withdrawal)
Batch-Mode:
An extension to Off-Line Mode
Group of transactions honoured at a time
There is a time lag
(Example: Payment of salary at the end of month,
Printing through Print server)
Transactions- Modes
On-Line Mode:
Process waits for a transaction
Technology is a must
No time lag once transaction is initiated (only process time)
(Example: Cash withdrawal through ATM, Railway Reservation
through computers)
Real-Time Mode:
Extension of On-line mode
Automated input for a transaction
No time lag
(Example: Aviation control)
Question: What is the mode when you pay a vendor for
purchase of vegetables?
Modes of Transactions
Mode Interventions of Time Lag Example
people
Off-Line and Yes Yes Purchase of goods from
Manual vendor
Off-Line and Yes Yes Sorting of Letters in a
Batch Post Office
On-Line Yes Yes, But Less Withdrawal of Money
from ATM
Real Time No No Trajectory of Satellite;
Time lag may be due to
delay in transmission
Example of On-Line and Batch Mode:

Milk Collection in a DCS ; On-line mode needs IT/technology
Transaction Table – IRMA Mess
Transaction
ID# Narration Owner Exchange Mode Service Frequency

(indicative)
Remarks
Type Provider
XX999AAA1 Purchase of Concerned Goods OFF-Line and Purchase Weekly Once As per Re-
R/M Manager Batch Manager order level
who would who would
use use
XX999AAA2 Payment to Vendor Service Can be ON- Accounts As per As per credit
Vendor Line and Manager agreement Policy
Batch
XX999AAA3 Issue of R/M Concerned Goods OFF-Line and Stores Daily As per
Manager Batch Manager demand
who would
use
XX999AAA4 Use of R/M Operator Goods and OFF-Line and Floor Daily As per
Services Batch Manager demand
# Transaction ID will be modeled through Data Architectures

Systems Thinking : IS Events
Production Cost P&L Captures increase
IS CYCLE: goes up in Direct Cost
1
Events in Updating in
? Functions Information Base
2
Records increase
in R/M 4
Holding cost Change in Management &
3 control
Events
Variance in
Direct Material
Event Table – IRMA Mess
Events
ID# Narration Related Updates in Management Change Steady State
Process to
Function Information and Control in Event
follow
Base
XX999AAA1 Production Cost ??? Increase in direct Variance in Direct Increase Assess demand
Goes Up Cost Material, in R/M and decrease
Holding R/M holding
XX999AAA2 Stock-Outs in ??? Decrease in Re- To manage total Increase Assess Demand
R/M order level and Cost Safety and increase
Safety Stock stock Safety Stock
and Re-order
Level
XX999AAA3 ---- So on
XX999AAA4 -----
XX999AAA5 ------
# Event ID will be modeled through Data Architectures

Thumbnails
Abstract the Organization
Develop/ Study the Organization Structure
Look for Functions – Attach an Information System to each
Look for “Core Process” – Attach one Information System to each
Look for processes in each function
Prepare Process Matrix
Look for Roles
Prepare Views (Resource and Management Views)
Prepare Information Matrix
Look for Transactions
Create Transaction Table
Look for Events
Populate them to address systematically and create an Event table
Look for Data Sources/ Ownerships
Prepare Data Matrix (Optional for your case analyses)
How to link process with IS?
Data Process
Matrix Matrix
Data Data
Process
Identification Information
Sources Rules/
Logics
Feedback to Information
change data Matrix;
Transaction
tables, Event
Tables
Process/Information Matrix
Process Owner P1 P2 P3 P4
P1 Sales x x
P2 Accounts x x x
P3 Accounts x
P4 Production x x
Internal Reported Processed

Number of Sales order submitted to Accounts Budgeted Information
Quantity of Products to be produced by Production deptt. as per Sales order Production Matrix for Sales
Manager
External Reported Processed
Number of Sales order Generated Sales Variance
Number of Products Shipped
Data Source E1 E2 E3 E4
E1- Item U x x
E2-Department x x x
E3-Customer x X U
E4-Employee x x U
MCS
MCS Fundamentals
MCS includes
Validations of feedback received from
Functional system
Prepares and designs “References” for
exercising “Controls”
• To attain steady states
• to establish path for cybernetics
Responsible Decision making
• Brings in “role clarity”
Areas of MCS
Systems Nature of Purpose of Focus Area Examples
Area systems Systems
Belief Shared beliefs, To respect core Retain Missions, statement
Systems purpose areas of organizational of purpose in the
organization value organization as
commonly
understood
Boundary Formalization To encourage To avoid risks in Clearly defined
Systems of rules and individual innovation the domain rules, logics
logics within the boundary
specified
Diagnostic Feedback, Resource allocation Design critical Benchmarks,

Systems Controls and and motivation to performance organization wide
monitoring of optimization areas performance
organizational measures
outcomes
Interactive Role specific Stay prepared for Address strategic Organize dynamic
Control controls and uncertainties and uncertainties controls based on
Systems measurements take new initiatives debates and
interactions with
subordinates
What MCS is expected to do”
Manage Surprises
Identify areas where surprises are
expected
• Capture them before/ after they occur ??
• Establish path to receive signals (own body!!)
It includes
Events (Referencing performances)
Simulations (to predict and to find solutions)
Messages (translate signals into understandable terms)
OMNIS Model and MCS
Can we place these events
Can we plan events in information systems associated?
through Benchmarks? Belief
Systems
Events
Events
Boundary
Processes
Information Systems
Functional
System
System Simulations
Rules Diagnostic MCS

Control
Messages Systems
Actors
Interactive
Control
Can we formalize expected Systems
solutions and
Create message Portfolios?
Organization
Can we simulate events and

try their solutions for steady state?
End

Information Systems Evolution and Modelling

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Information Systems Evolution and Modelling

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Information Systems

Evolution and Modelling

It is argued that functional silos can manage these

Highly User Oriented

2000 and beyond:

Process Projects and Computer

User Needs Feasibility Information

Information Design- Information

Install User End of

3. Internal adjustments to align with 2. Systems should be

Information System Identified,

Hardware Software Networks

Vendors/ IT Service Providers

First Alignment Second Alignment

First Alignment Second Alignment

Actors Rules Process Events

Example of On-Line and Batch Mode:

ID# Narration Owner Exchange Mode Service Frequency

# Transaction ID will be modeled through Data Architectures

# Event ID will be modeled through Data Architectures

Internal Reported Processed

Diagnostic Feedback, Resource allocation Design critical Benchmarks,

Rules Diagnostic MCS

Can we simulate events and

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