Foundation Of Information Systems In Business

K.Madhavi Krishna

Learning Objectives:
Understand the concept of a system and how

it relates to information systems.

Types Of Information Systems

What Is A System?
Systems have three basic functions:
1. Input: Involves capturing and assembling elements that enter the system to be processed. Example: - raw materials, - energy, - data.
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What Is A System? (continued)

Systems have three basic functions (continued): 2. Processing: involves transformation processes that convert input into output. Example: - manufacturing process, 3. Output: involves transferring elements that have been produced by a transformation process to their ultimate destination. Example: - finished products, - human services
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What Is An Information System?

An Information System can be any organized

combination Of: - people, - hardware, - software, - communications networks, - policies.

What Is An Information System? (continued)

People rely on modern information systems

to communicate using a variable: - physical devices (hardware). - information processing instruction and procedures (software). - communications channels (network). - stored data (data resources).

Examples Of Information Systems:

Card catalog in a library.
The cash register. Student Information System.

The Fundamental Roles Of Information System In Business

There are three fundamental reasons: 1. Support of its business processes and operations. 2. Support of decision making by its employees and managers. 3. Support of its strategies for competitive advantage.

The Major Areas Of Information Systems Knowledge Needed By Business Professionals 1. Foundation concepts. concept about the components and roles of information systems.

2. Information technologies. hardware, software, networks, data management, many internet based technologies.

The Major Areas Of Information Systems Knowledge Needed By Business Professionals (continued)
3. Business applications. operations, management, competitive advantage of a business. 4. Development processes. plan, develop, and implement information systems to meet business opportunities. 5. Management challenges. the challenges of effectively and ethically managing information technology at end user, enterprise, and global levels of a business.
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Trends In Information Systems:

1. Data processing: 1950s 1960s - electronic data processing systems. -- transaction processing, record keeping, and traditional accounting applications. 2. Management reporting: 1960s 1970s - management information systems --management reports are generated of pre specified information to support decision making.
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Trends In Information Systems (continued):

3. Decision support: 1970s 1980s - decision support systems 4. Strategic and User Support: 1980s 1990s - end user computing systems - executive information systems - expert systems - strategic information systems
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Trends In Information Systems (continued):

4. Electronic Business and Commerce: 1990s 2000s - internet based e business and e commerce systems

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A Frame Work Of Information Systems

Strategic Planning EP S -Support Of Decisions

Tactical

MIS Demand Reports

Operational

TPS Scheduled Reports

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A Frame Work Of Information Systems (contd..)

Operational Systems : At Operational Level the Primary Concern is

to Collect, Validate and Record Transaction of Data ,describing there acquisition or disbursement of Corporate Resources.

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Characteristics Of Operational Systems:

REPETITIVENESS:- The information of

Operational Systems is generally Repetitive at Periodic Intervals like :monthly,daily,weekly etc.

PREDICTABILITY:- The information usually

does not contain any surprises to the managers or other Users of the system.
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Characteristics Of Operational Systems:

Emphasis on Past: - The information

describes Past activities : Ex: O/p of a Payroll system stress on the Past work of an Employee.
DETAILED NATURE: - The information is

very detailed .
Internal Origin: Data is generated from

Internal Origin only

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Characteristics Of Operational Systems:

STRUCTURED FORM:- The form of the data

produced is in a very structured method.

GREAT ACCURACY: - Accurate I/P gives an

accurate data.

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TACTICAL SYSTEMS
The Second level of the Framework consists

of Tactical Systems .
They provide middle level managers with

Information they need to monitor and control operations .

In Tactical Systems ,transactions are

Summarized ,aggregated and analyzed.

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Types Of reports in Tactical Systems :

Summary Reports: provide with imp.. Totals,

averages, key data etc. Ex: Total weekly sales of a Region.

Exception Reports: These reports Warn

Managers when results from a particular operation exceed or do not meet the expected standard. Ex: list of all plants that have logged more overtime than expected hours for the week.
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Types Of reports in Tactical Systems :

AdHoc reports: - Reports managers may

need quickly,that may never need again.

Theses Reports are produced when he

require to solve a unique problem.

Ex: Report That produces Production of Each

plant over a week.

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Characteristics Of TACTICAL SYSTEMS

Periodic Nature

Unexpected Findings
Comparitative Nature Summary Form Both Internal and External Resources.

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STRATEGIC PLANNING
These reports are generated in order to

support the top managers with proper planning.

Tactical IS almost help Strategic Planning .
It has the same characteristics as Tactical.

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Types Of Information Systems under Framework of IS

Information Systems

Operations Support Systems

Management Support Systems

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Types Of Information Systems (continued)

Operations Support Systems

Specialized Processing Systems

Transaction Processing Systems

Process Control Systems

Enterprise Collaboration Systems

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Types Of Information Systems (continued)

Management Support Systems

Management Information Systems

Decision Support Systems

Executive Information Systems

Specialized Processing Systems

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Types Of Information Systems (continued)

Operations support systems:

- Transaction processing systems -- TPS Supports day-day transactions by maintaining detailed records. --These Systems help an Organization to conduct its business and keep track of its activities. Examples: Sales and inventory, processing and accounting systems.Hotel Reservation System.Salary Transaction Report.

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Types Of Information Systems (continued)

Operations support systems (continued):

- Process control systems. -- minor and controlled industrial process.

Examples: Petroleum refining, power generation, steel producing systems.

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Types Of Information Systems (continued)

Operations support systems (continued):

- Enterprise collaboration systems. -- support team, workgroup, and enterprise communications and collaboration. Examples: email, chat, video conferencing groupware systems.
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Types Of Information Systems (continued)

Management support systems:

- Management information systems -- provide information in the form of pre specified reports and displays to support business decision making. Examples: Sales analysis, production performance, cost trend reporting systems.
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Types Of Information Systems (continued)

Management support systems (continued):

- Decision support systems -- provide interactive ad hoc support for the decision making processes of managers and other business professionals. Examples: product pricing, profitability forecasting, risk analysis.
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Information Systems Development

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Challenges faced by Implementing IS

1. Workforce downsizing
2. Information overload

3. Employee mistrust
4. Difficult to built 5. Security breaches

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Opportunities faced by Implementing IS

1. Enhanced global competitiveness 2. Capture market opportunities 3. Support corporate strategy 4. Enhance worker productivity 5. Improve quality of goods and services

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THANK YOU

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