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© Paradigm Publishing Inc. 10-1
Chapter 10Information Systems
© Paradigm Publishing Inc. 10-2
Presentation Overview
• The Role of an Information System
• Information Systems Classified by Function
• Considerations for Planning and Updating Information Systems
• Factors to Consider When Choosing a New Information System
• The Process of Developing a New Information System
© Paradigm Publishing Inc. 10-3
The Role of an Information System
An information system (IS) is a combination of people, hardware, software, computer networks, and data used to manage daily and long-term operations.
© Paradigm Publishing Inc. 10-4
The Role of an Information System
What role do information systems play in business?Compared to pre-computer information systems, computer-based IS systems offer– improved speed– efficiency– quality– measurability
© Paradigm Publishing Inc. 10-5
Information Systems Classified by Function
What functions do information systems perform?Common functional classifications for information systems are:– distribution management– office information– management information– executive support– factory automation
© Paradigm Publishing Inc. 10-6
Information Systems Classified by Function
In a traditional inventory system, regularly scheduled deliveries move products from warehouse storage to storerooms until they are needed to stock the shelves.
© Paradigm Publishing Inc. 10-7
Information Systems Classified by Function
In a just-in-time distribution system, deliveries are smaller and more frequent so that products are only in the storeroom briefly.
© Paradigm Publishing Inc. 10-8
Information Systems Classified by Function
In a stockless inventory distribution system, deliveries move products from warehouse storage directly to the shelves with no need for a storeroom.
© Paradigm Publishing Inc. 10-9
Information Systems Classified by Function
Office Information Systems (OIS)typically provide the following functions:– maintaining standard operating procedures (SOP)– connectivity– electronic data processing
© Paradigm Publishing Inc. 10-10
Information Systems Classified by Function
Management Information Systems (MIS)typically provide the following functions:– integrate information from company departments
into one database– provide support to management in regular reports,
either on periodic or on-demand basis
© Paradigm Publishing Inc. 10-11
Information Systems Classified by Function
Decision Support Systems (DSS)– Data modeling provides a simulation of a real-
world situation built into a software application.– Expert systems make recommendations after
posing questions to the user.– Online analytical processing (OLAP) defines and
clarifies methods of handling what-if questions posed to large databases.
© Paradigm Publishing Inc. 10-12
Information Systems Classified by Function
Executive Support Systems (ESS)– brings together information from an entire
organization rather than one department or group– supports strategic decision making by facilitating
the creation of high-level summary reports
© Paradigm Publishing Inc. 10-13
Information Systems Classified by FunctionFactory Automation and Plant Operations– Computer-aided manufacturing (CAM) involves
direct use of computers to manufacture products.– Computer-integrated manufacturing (CIM)
connects every department in a business, making information available to anyone who needs it.
– Statistical quality control (SQC) tracks quality measurements of final product and compares them to conditions throughout manufacturing process.
© Paradigm Publishing Inc. 10-14
Considerations for Planning and Updating Information Systems
What are major effects of upgrading or switching to a computer-based information system?– expanded technical staff– increased information technology costs– increased profit margins– enhanced product quality– reduced clerical staff– temporary disruption
© Paradigm Publishing Inc. 10-15
Factors to Consider When Choosing a New Information System
What are important factors to consider when choosing a new information system?– user interface design– open versus closed system– niche information system– turnkey system– system support
© Paradigm Publishing Inc. 10-16
Factors to Consider When Choosing a New Information System
User Interface Design– Interface design should be user-friendly and intuitive– Critical information should be readily apparent
© Paradigm Publishing Inc. 10-17
Factors to Consider When Choosing a New Information System
Open or Closed System?– open system – company’s IT staff can alter system
or hire third party to make alterations– closed system – must be serviced and supported by
vendor
© Paradigm Publishing Inc. 10-18
Factors to Consider When Choosing a New Information System
Niche Information System– exists to serve specially focused sets of customers– includes all needed forms and templates– does not need a lot of technical know-how or staff
training
© Paradigm Publishing Inc. 10-19
Factors to Consider When Choosing a New Information System
Turnkey System– contains everything a company needs to know to get
system up and running– heavily customized and includes support people to
tailor system to exact needs of a business
© Paradigm Publishing Inc. 10-20
Factors to Consider When Choosing a New Information System
Questions Concerning System Support– Are installation, staff training, and on-site service and
repair included in the system package?– If not, what are the cost of these services?
© Paradigm Publishing Inc. 10-21
The Process of Developing a New Infor-mation SystemDevelopment of information systems follows an ongoing cycle that includes planning, design, implementation, and support.
© Paradigm Publishing Inc. 10-22
The Process of Developing a New Information SystemGantt charts help visually communicate the critical steps and schedule for a project.
© Paradigm Publishing Inc. 10-23
The Process of Developing a New Information System
Designing the System– A functional specification document is written first
and states exactly what information system must accomplish.
– A design specification describes how the goals in the functional specification will be reached.
© Paradigm Publishing Inc. 10-24
The Process of Developing a New Information System
Commonly Used Information Systems Software
© Paradigm Publishing Inc. 10-25
The Process of Developing a New Information System
Implementation– A prototype is a miniprogram that demonstrates the
user interface and functionality of the system.– Development is where the software programming is
done and technicians ensure the new hardware works.– Hardware and software purchasing is done and
delivered before system can be installed and considered up and running.
© Paradigm Publishing Inc. 10-26
The Process of Developing a New Information System
Implementation– Beta testing is where the system is rigorously tested
before it is completely trusted to function as designed.
– User training normally takes place at same time as beta testing.
– The committee or executive overseeing purchase of the system inspects, tests, and approves it.
© Paradigm Publishing Inc. 10-27
The Process of Developing a New Information System
Finally, The Support Stage– A support contract allows users to contact systems
integrator for technical support, training, and on-site troubleshooting.
– If system designed in-house, responsible department often operates as an independent entity.
© Paradigm Publishing Inc. 10-28
On the Horizon
Based on the information presented in this chapter and your own experience, what do you think is on the horizon?