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Introduction to Information Systems
Data Vs Information
• Data – Raw facts, No meaningful value• Information
– Data that has been put into a meaningful and useful context.
– Surprise value– aggregated, manipulated, and organized.
• Example: Single Railway Track is Data & Information is Rail track Network
Quality of InformationDetermined by how it motivates human action &
contributes to effective decision making:1. Utility of Information
• Form• Time• Place• Possession
2. Information Satisfaction3. Error & Bias
Information Systems: Turn Data into Information
• Raw material• Unformatted information or data• Generally has no context
Examples
• Processed material• Formatted information• Data given context
Individual time cards for factory workers entered into the payroll system
Department Labor Report, Project Status Report, Employee Payroll Checks
What Is an Information System?• An information system
– Set of interrelated components – That collect or retrieve, process, store, and
distribute information – To support decision making and control in an
organization.– To provide a feedback mechanism to meet an
objective– Used to analyze problems, visualize complex
subjects, and create new products
Components of an Information System
The Role of Information Systems in Business
• The increased use of cell phones and wireless telecommunications devices
• A massive shift toward online news and information, booming e-commerce and Internet advertising.
• Most of the firm's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.
• Key corporate assets (intellectual property, core competencies, and financial and human assets) are managed through digital means
The Role of Information Systems in Business
• Business responses to changes in their environment are enhanced through digital communications, allowing for time shifting (business being conducted 24x7) & space shifting (business being conducted globally or beyond traditional geographic boundaries).– Example 1: Most retail stores use IS to help them record
customer purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends.
– Example 2: Decisions about what lines of merchandise need to be added or discontinued, or about what kind of investment they require, are typically made after an analysis provided by IS
– Example 3: Store management might make a decision to install touch-screen kiosks in all of their stores, with links to their e-commerce website for online shopping.
Benefits of Automation – Loan Example
Three Primary Uses of Information Systems
AutomationProviding support to complete a task faster, more cheaply, and perhaps with greater accuracy and/or consistency
AutomationProviding support to complete a task faster, more cheaply, and perhaps with greater accuracy and/or consistency
Organizational Learning (Informing)Providing support to improve day-today operations by creating, acquiring, and transferring knowledge
Organizational Learning (Informing)Providing support to improve day-today operations by creating, acquiring, and transferring knowledge
Achieving StrategyProviding support in a way that enables the firm to gain or sustain competitive advantage over rivals
Achieving StrategyProviding support in a way that enables the firm to gain or sustain competitive advantage over rivals
Levels of the Organization
Who, What, Why: Operational Level
Who, What, Why: Managerial Level
Who, What, Why: Executive Level
Types Of IS
1. Operations Support Systems
• Focus on the operations of the enterprise• Objective is to improve the operational efficiency• Use internal data primarily• For lower level of management• Classified into the following categories
a)Transaction Processing Systemb)Process Control Systemc) Enterprise Collaboration System
a) Transaction Processing Systems
Focus on the recording and processing of economic events (transactions)
Example: Payroll System (TPS)
b) Processing Control Systems
• Monitor and control industrial processes• Examples: Petroleum Refining, Power
generation etc
c) Enterprise Collaboration System• Enhance team and workgroup communication and productivity,
and include applications that are sometimes called office automation system.
• It facilitates the following activities:– Producing outgoing documents (using text processors,
software as word processing and desktop publishing & hardware as printers)
– storage & retrieval of documents (using document management system)
– transmission of messages (using message communication systems, e-mail, voice mail, videoconferencing and groupware)
– scheduling and meeting management (using video conferencing, electronic calendars with resource management)
2. Management Support Systems
• Information System application focus on providing information and support for effective decision making by managers.
• Classified into following categoriesa) Management Information Systemb) Decision Support Systemc) Executive Support System