Chapter 1- Is and Business

7/28/2019 Chapter 1- Is and Business

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Business Information Systems

Introduction

The domain of businessinformation systems

Continue from Chapter 1


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Foundation Concepts:Information Systems and Technologies


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introduction

Information technology (IT)

(abbreviated IT) refers to all of the computer-based

information systems used by organizations and theirunderlying technologies.

related terms: it architecture & it infrastructure


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introduction

Information system (IS)

A set of interrelated components that collect, manipulate,

and disseminate data and information and provide

feedback to meet an objective

Examples: ATMs, airline reservation systems, course

reservation systems


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IS are more then a computers

perspectives on information systems


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are used to build

INFORMATION

TECHNOLOGY

Hardware

Software

Databases

Networks

Other related

components

INFORMATIONSYSTEMS

PayrollSystem

InventorySystem

MarketingSystem

CustomerServiceSystem

IS vs. IT


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DaimlerChrysler Agile Supply Chain

Case Intro

Includes Chrysler group, The Mercedes , Small PassengerCar Group & Commercial Vehicles Unit

More than 120 plants(45 countries), 20,000 suppliers &

15,000 sales outlets (210 countries)

Auto Industry

Tough Competition

Fickle Customers

Objective: Bring new models rapidly & economically


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Case Through IS Glass Series of IS: Automate & Streamline

Transactions with its suppliers

Integrated Volume Planning System

Gathers Sales Data Production Planning Systems

Suppliers (Adjust delivery of parts & Prod) Dealers

(Right amount of vehicle models)


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Case What IS has changed Past

Quality Specialist store quality issues paper binders frompart designing companies

Any prod error 3 weeks to notify Supplier for changes

Now

Powerway (Web-Enabled Portal, Paperless) Designers Track parts thru nine QC gatesProd

Identify potential design & engineering problems b4 partsare constructed

Outcome Design new cars faster

Remain Competitive


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Case Sketch
http://localhost/var/www/apps/conversion/tmp/scratch_2//upload.wikimedia.org/wikipedia/commons/7/77/IS-Relationships-Chart.jpg


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http://localhost/var/www/apps/conversion/tmp/scratch_2//upload.wikimedia.org/wikipedia/commons/7/77/IS-Relationships-Chart.jpghttp://localhost/var/www/apps/conversion/tmp/scratch_2//upload.wikimedia.org/wikipedia/commons/7/77/IS-Relationships-Chart.jpghttp://localhost/var/www/apps/conversion/tmp/scratch_2//upload.wikimedia.org/wikipedia/commons/7/77/IS-Relationships-Chart.jpghttp://localhost/var/www/apps/conversion/tmp/scratch_2//upload.wikimedia.org/wikipedia/commons/7/77/IS-Relationships-Chart.jpg


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A look at IPL Cricket


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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 organizedtransformation process (dynamic system).

Three basic interacting components:

Input Processing (transformation process)

Output


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What IS a system?

components of a system


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Add Feedback and Control Loops..

And the system,

now called a

cybernetic

system,

becomes even

more useful.

Self-

monitoring Self-

regulating


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Components of an Information System


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Data Versus Information

Monthly Sales Report

for West Region

Sales Rep: Charles Mann

Emp No. 79154

Item Qty Sold Price

TM Shoes 1200 $100


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Data, Information,

and Systems Data vs. Information

Data

A given, or fact; a number, a statement, or a picture

Represents something in the real world

The raw materials in the production of information

Information

Data that have meaning within a context

Data in relationships

Data after manipulation

D t I f ti


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Data, Information,

and Systems

Data Manipulation

Example: customer survey

Reading through data collected from a customer survey with

questions in various categories would be time-consuming and notvery helpful.

When manipulated, the surveys may provide useful information.

I f i i C


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Information in Context

Figure 1.2 Characteristics of useful information


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Data, Information and Systems

Generating Information

Computer-based ISs take data as raw material,

process it, and produce information as output.

Figure 1.1 Input-process-output


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DIKW Quartet

Data

Symbols

Signs

Represent:

Stimuli

Signals

Info

Symbolic

Subjective

Represent:

Structural

Functional

Knowledge

Processed

Represent:

Procedural

Propositional

Wisdom

EvaluatedUnderstanding

Represent:

Judgments

Decisions


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DIKW Flow Diagram


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Information LS


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classification of information systems

organizational structure EIS, IS

functional area

F,H,A,M

activity supported S,M,O

support provided

TPS,MIS,KMS,OAS,DSS,GSS,ISS and etc

system architecture mainframe, standalone, distributed (networking)


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transactionprocess

MIS DSS

EISData

warehouse

Externalinformation

Non computersupport

Internet &Other computer support

The TPS collects information that is used to build the DSS and EIS.

The information in the data warehouse and DSS can be used as an input to EIS

interrelated support systems


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growing impact of IT/IS: factor

1. internet growth and technology convergence

e-business, e-commerce, e-government

2. transformation of the business enterprise

flattening, decentralization, flexibility,

collaborative work Organizations have discovered that they can cut huge amounts of

indirect costs by limiting travelabout a $100 million annual expense for

a $10 billion companyand reducing square footage dedicated to the

individual worker.

They are replacing expensive face-to-face meetings with remote

technologies, and combining centralized workplaces with alternative

workplace programs.


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growing impact of IT/IS: factor

3. growth of a globally connected economy

global delivery systems, management control in a globalmarketplace

4. growth of knowledge and information basedeconomies

k-economy, time based competition

5. emergence of the digital firm

core business processes accomplished using digitalnetwork

Data Information


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Data, Information,and Systems

The Benefits of Human-Computer Synergy

Synergy

When combined resources produce output that exceeds the sum

of the outputs of the same resources employed separately

Allows human thought to be translated into efficient

processing of large amounts of data

ex: emergence of the digital firm


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ex: emergence of the digital firm


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IS Perspectives - Interdependence


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Information Systems Framework

Information Systems Concepts


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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.

Information Systems Concepts


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Information Systems Concepts(Continued)

Business Applications The major uses of information systems for

operations, management, and competitiveadvantage.

Development Processes How business professionals and information

specialists plan, develop, and implement informationsystems.

Management Challenges The challenge of managing

ethically and effectively.


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Approaches to IS

Management Sciences

Computer Sciences

Operations Research & MgmtTechnical

Economics

Sociology

PsychologyBehavioral

Avoiding Pure Technical Approach

Optimize Social & Technical SystemsSociotechical


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Need of IS

Respond changes in Marketplace quickly

Agility to Monitor & React to Data

See into systems & make changes on the fly

Align Manufacturing & Delivery with Cust needs


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Figure 1.1: Elements of the Field

BIS is made up of anumber of

interdependent areas

These areas overlap

with other disciplines,

which provideacademic frames of

reference

Elements of BIS


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Figure 1.2: Reference disciplines


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Building a model for the domain of BIS

An organisation is a series of inter-dependent activity systemswhich in combined action produce value

Value is the key flow between an organisation and actors in its

environment

Businesses deliver value through products or services providedto customers

Business receive value from suppliers or partners

A business organisation is a value-creating system whichinteracts with a wider value network making up its environment

see Figure 1.3


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Figure 1.3: Organisation, activity

systems and environment


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Figure 1.4: Information systems

Organisations require activity systems to function

Activity systems in-turn rely on information systems

An information systemis a system of

communication

between a group of

people to coordinate

the action of

individuals.


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Figure 1.5: Data and information

Information is data

interpreted in some

context A datum (a unit of

data) is one or more

symbols used to

represent something

On the basis of

information supplied

by the information

system, decisions are

made aboutappropriate actions

to take


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Figure 1.6: ICT systems and infrastructure

Data is supplied to

the information

system by its ICTsystem


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Figure 1.7: Information systems development

Business

information systems

have to be

developed

This is referred to as

the information

systems

developmentprocess


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Figure 1.8: Use and impact

After an information

system is introduced,

it begins to haveeffects:

First order effects

concern issues of

use

Second order

effects concern

the impact of the

information

system


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Figure 1.9:

Planning, management and operations

Effective planning

and management

are necessary toensure information

systems are

successful and

aligned with

organisationalstrategy

l l


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Case example: Goronwy Galvanising

Inputs into the Goronwy Galvanising system consist of black

products

Rito metals also supply zinc as raw material for thegalvanising process

Outputs consist of white products

Transformation in this system is the process of galvanisation. The information flow consists of documents detailing

deliveries and dispatches

The physical flow of black material is received from the steel

fabrication customer, the major actor in the environment


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Figure 1.10: Goronwy Galvanising as a system


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An organisation consists of a number of inter-dependent activity

systems

An activity systemis a social system (or soft system) It consists of a logical collection of activities, processes or tasks

in pursuit of some goal

The precedence or order of activities is normally critical as this

determines the flow necessary for the coordination of work

In terms of our case, Goronwys activity systems are likely to

consist of processes for:

Receiving unfinished products

Galvanising these products

Dispatching finished products back to customers


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Figure 1.11: The activity system at Goronwy


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Figure 1.12: Sample delivery advice note

Goronwy has a manual information system - it relies on the flow of

documents to inform the coordination of activity

The delivery advice note supplied with BlackWalls products is

identified by a delivery advice number specific to this manufacturer

Each batch is identified on the delivery advice note by an order

number generated by BlackWalls


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Figure 1.13: Sample job sheet

After checking, details from the delivery advice notice are

transcribed to ajob sheet

A separate job sheet is filled in for each order-line on the delivery

advice note


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Figure 1.14: Sample dispatch advice note

When the shop-floor has treated a series of jobs a dispatch advice

note is issued

Each trailer for dispatch will have an associated dispatch advice

note detailing the white material on the trailer Because of discrepancies, partial despatches may be made from

one job - so the information on delivery advices need not

correspond precisely with the information on dispatch advices.


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Figure 1.15:

The information

system at

Goronwy

Shows:

Physicaltransformation

Information

handling

activities

Stores ofrecords

I f i d l


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Information models

Information models show the structure of information,

particularly the information of relevance to decision-making.

Boxes indicate individual elements of information or

information classes

Connecting lines indicate an association between

information classes

Symbolsattached to each line represent a number of

rules governing the behaviour of the association between

classes


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Figure 1.16: Information model for Goronwy Galvanising

ICT t i f


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ICT systems in focus

An ICT system

Is an organised collection of hardware, software,

data and communication technology

Takes data as input, manipulates it and outputs

manipulated data for interpretation

Is a technical system

Is a hard system (i.e. consists of an assembly of

designed artefacts)


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Figure 1.17:An ICT system, information system and activity system


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Figure 1.18: Layers of an ICT system

ICT systems consist of three inter-dependent layers :

Data management

BusinessInterface


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ICT systems rely on a database (which is a repository for

the data used within the system)

The database is controlled by the data management

layer

The design for the structure of the database is referred

to as a data model The data model defines what data will be stored

within the system and in what form


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Figure 1.19: Order lines data structure


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Figure 1.20:

Part of the proposedinterface for the Goronwy

ICT system

f &


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System Software & Types

Designed to operate the computerhardware

Platform for running App Software

Def

BIOS/Device Firmware

Loaders/Linkers

OS

Utility Software

Shells

Hypervisors

DBMS

Types

i li i S f


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Business Application Softwares

Comes on Top of Middleware& System Software

Enterprise Software: ERP, CRM,SCM, IT Helpdesk - Salesforce,SAP, SAS, SPSS, Oracle,Compiere

Accounting Software: TallyOffice Suites: Netsuites, Office2010, Open Office

Graphics Softwares: AdobeCS5, Maya, 3DMax

Enterprise Infra Software:Business workflow s/w, DigitalAsset Management, DBMS &GIS

I i P k


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Integration Packages

Combining variousBusiness Functionalities

using S/w Packaging

MS Visual Studio; SAPSWIFT Integration

Package;

HP OpenView;CISCOWorks; MS SQL

Server Integration

D b & I M


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Database & Its Management

Def

Coll of Ordered data Create, Maintain & Use

Model

Relational: Attributes & their relationshipsRDBMS Oracle, MySQL, SQL Server

Network: Objects & their relationships OODBMS

Use & Scope

Query Control Data Access, Enforce Data Integrity,

Manage Concurrency and Backup & Restore

Documents

Chapter 1- Is and Business