Introduction to information systems
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Introduction to Information Systems. http://www.youtube.com/watch?v=6ILQrUrEWe8. The Plan. Me: Madhu Rao The Course: MBA560: Management of IT The Course Structure and Requirements Introductions Break Introduction to Information Systems. Data Vs. Information. 392: Chocolate Chip Cookies

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Introduction to information systems

Introduction to Information Systems

http://www.youtube.com/watch?v=6ILQrUrEWe8


The plan

The Plan

  • Me: MadhuRao

  • The Course: MBA560: Management of IT

  • The Course Structure and Requirements

  • Introductions

  • Break

  • Introduction to Information Systems


Data vs information

Data Vs. Information

392: Chocolate Chip Cookies

342: Coffee Powder

341: Red Curry Paste

392: Chocolate Chip Cookies

391: Keebler Fudge Sticks

Data

  • Region:Redmond

  • Store:QFC Store 32

  • Item#DescriptionUnits Sold

  • Choc Chip Ck 2397

  • YTD Sales

  • $6972.78

Information


Data vs information1

Data vs. Information

  • The eternal question

  • Data

    • “Streams of raw fact representing events occurring in organizations or their environments before they have been organized and arranged into a form suitable for human interpretation”

  • Information

    • “Data that have been shaped into a form that is meaningful and useful”

  • What then is “knowledge”


The transformation from data to wisdom

The Transformation: From Data to Wisdom

  • Data is transformed into information

    • Resources used to organize data into categories

      • Examples include monthly reports, regional summaries, etc.

  • Information is transformed into knowledge

    • Knowledge is understanding patterns, rules and contexts.

  • Knowledge is transformed into wisdom

    • Collective and individual experience in applying knowledge to solve a problem

    • Wisdom is where, when and how to apply knowledge


The transformation data information knowledge wisdom

The transformation…Data, Information, Knowledge, Wisdom

Where is the Life we have lost in living?

Where is the wisdom we have lost in knowledge?

Where is the knowledge we have lost in information?

-T.S. Eliott, “The Rock”, 1934


Information what s the big deal

Information? What’s the big deal?

  • Globalization

  • Transformation of Industrial Economies

  • The Changing Organization


Emergence of global economy

Emergence of Global Economy

  • Management and control in a global marketplace

  • Competition in global markets

  • Global workgroups

  • Global delivery systems


From industrial to post industrial societies

From Industrial to Post-Industrial Societies

  • Knowledge- and information-based economies

  • Productivity

  • New products and services

  • Shorter product life-cycle

  • Turbulent operating environment


Transformation of the organization

Transformation of the Organization

  • Flattening

  • Decentralization

  • Flexibility

  • Location independence

  • Low transaction and coordination costs

  • Empowerment

  • Collaborative work and team activities


So what is an information system anyway

So, what is an Information System, anyway?


What is a system

What is a System?


A system

A System


A system1

A System

Input


A system2

A System

Process

Input


A system3

A System

Process

Output

Input


A system4

A System

Process

Output

Input

feedback


A system5

A System

Competitors

Customers

Process

Output

Input

feedback

Suppliers

Government


What is an information system

What is an Information System?

  • a set of interrelated components that

    • collect (or retrieve)

    • process

    • store

    • distribute

      information in order to support

    • decisionmaking

    • coordinationandcontrol


Approaches to information systems

Approaches to Information Systems

Technical

Approaches

Computer Science

Operations Research

Management Science

Information

Systems

Sociology

Psychology

Economics

Behavioral

Approaches


Information architecture

Information Architecture

  • Levels within a firm

  • Functional Areas

  • Types of Systems

  • Foundation of technology


Levels and functions within an organization

Levels and Functions within an Organization

  • Levels

    • Operational

    • Management

    • Strategic

  • Functions

    • Sales and Marketing

    • Manufacturing and Production

    • Finance and Accounting

    • Human Resources


Organization structure

Organization structure

strategic

management

oper

Sales and Marketing

Manufacturing and Production

Human Resources

Finance and Accounting


Introduction to information systems

strategic

Information

Architecture

management

oper

Sales and Marketing

Manufacturing and Production

Human Resources

Finance and Accounting

Hardware

Software

Data and Storage

Networks

IT Infrastructure


Level of the system

Level of the System

  • Operational-level systems

    • Keep track of elementary activities and transactions

      • Sales, receipts, payroll, etc.

    • Purpose is to answer routine questions and track flow of transactions


Level of the system1

Level of the System

  • Management-level systems

    • Keep track of monitoring, controlling decision making, and administrative work of middle management

      • Periodic reports

    • Some may be used for non-routine decisions

      • What-if analysis

    • Typically draws information from operational systems

  • Strategic-level systems

    • Assist senior management in making long-term decisions

    • Typically non-routine, unstructured decision making activities


Types of information systems

Types of Information Systems

  • Executive Support Systems (ESS)

  • Management Information Systems (MIS)

  • Decision Support Systems (DSS)

  • Transaction Processing Systems (TPS)


Types of systems

Types of Systems

  • Transaction Processing Systems

    • serves operational needs

    • performs/records daily and routine transactions

    • span boundary of organization and environment

    • major supplier of information to other IS

    • examples

      • airline reservation system

      • payroll system

      • plant scheduling


Types of systems contd

Types of Systems (contd.)

  • Management Information Systems

    • serves activities of planning, controllingand decision-making at the management level

    • usually take form of performance reports (such as exception or summary reports)

    • limited analytical ability

    • often (mistakenly) equated with IS


Types of systems contd1

Types of Systems (contd.)

  • Decision Support Systems

    • focussed on a specific type of problem

    • more analytical ability than an MIS

    • more interactive

    • eg: lease or buy in face of volatile interest rates

  • Executive Support Systems

    • used by senior management

    • used for unstructured problems

    • heavy graphics base


Information system integration

Information System Integration

Strategic Level

Management

Level

Management

Level

Operational Level


Information system integration1

Information System Integration

Strategic Level

Management

Level

Management

Level

TPS

Operational Level


Information system integration2

Information System Integration

Strategic Level

Management

Level

Management

Level

DSS

MIS

TPS

Operational Level


Information system integration3

Information System Integration

Strategic Level

ESS

Management

Level

Management

Level

DSS

MIS

TPS

Operational Level


Information system integration4

Information System Integration

Strategic Level

ESS

Management

Level

Management

Level

DSS

MIS

TPS

Operational Level


Information system integration5

Information System Integration

Strategic Level

ESS

Management

Level

Management

Level

DSS

MIS

TPS

Operational Level


Information system integration6

Information System Integration

Strategic Level

ESS

Management

Level

Management

Level

DSS

MIS

TPS

Operational Level


Business processes and is

Business Processes and IS

  • BPs are a set of interrelated activities aimed at achieving a specific result.

  • Examples

    • Manufacturing and Production

      • Checking quality

      • Assembling a product

    • Sales and Marketing

      • Identifying customers

      • Selling a product

  • Some processes go across functional areas


Cross functional business process

Cross-functional business process

Order Fulfillment Process

Sales

Submit

Order

Generate

Order

Accounting

Check

Credit

Approve

Credit

Generate

Invoice

Manufacturing

And

Production

Assemble

Product

Ship

Product


Enterprise applications

Enterprise Applications

  • Various systems described earlier operate within their level and functional area

    • Operational: TPS

    • Management: MIS and DSS

    • Strategic: ESS

  • But what about information systems that go across multiple levels and functions?

  • Known as Enterprise Applications

    • For example, SCM and CRM


Introduction to information systems

Enterprise Resource Planning Systems

Suppliers, other

Business partners

Customers,

distributors

Enterprise

Systems

Processes

CRM

Systems

SCM

Systems

Processes

Knowledge

Management

Systems

Sales and Marketing

Manufacturing and Production

Human Resources

Finance and Accounting

Hardware

Software

Data and Storage

Networks


The old way

The old way….

Functional Areas

Manufacturing and

Production

Finance and

Accounting

Sales and

Marketing

HR

Manufacturing and

Production

Finance and

Accounting

Sales and

Marketing

HR

Information Systems


The new way

The new way….

Manufacturing and

Production

Finance and

Accounting

Enterprise-wide

Business Processes

Sales and

Marketing

HR

Enterprise System


Next class

Next Class

Value of IT

Read Nicholas Carr Article!


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