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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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DaimlerChrysler Agile Supply Chain
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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DaimlerChrysler Agile Supply Chain
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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DaimlerChrysler Agile Supply Chain
Case Sketch
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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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Business Information Systems
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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Business Information Systems
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