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Chapter 10. Information Systems. 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

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Chapter 10

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Chapter 10 3095004

Chapter 10

Information Systems


Presentation overview

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


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.

The Role of an Information System


The role of an information system1

What role do information systems play in business?

Compared to pre-computer information systems, computer-based IS systems offer

improved speed

efficiency

quality

measurability

The Role of an Information System


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

Information Systems Classified by Function


Information systems classified by function1

In a traditional inventory system, regularly scheduled deliveries move products from warehouse storage to storerooms until they are needed to stock the shelves.

Information Systems Classified by Function


Information systems classified by function2

In a just-in-time distribution system, deliveries are smaller and more frequent so that products are only in the storeroom briefly.

Information Systems Classified by Function


Information systems classified by function3

In a stockless inventory distribution system, deliveries move products from warehouse storage directly to the shelves with no need for a storeroom.

Information Systems Classified by Function


Information systems classified by function4

Office Information Systems (OIS)

typically provide the following functions:

maintaining standard operating procedures (SOP)

connectivity

electronic data processing

Information Systems Classified by Function


Information systems classified by function5

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

Information Systems Classified by Function


Information systems classified by function6

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.

Information Systems Classified by Function


Information systems classified by function7

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

Information Systems Classified by Function


Information systems classified by function8

Factory 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.

Information Systems Classified by Function


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

Considerations for Planning and Updating Information Systems


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

Factors to Consider When Choosing a New Information System


Factors to consider when choosing a new information system1

User Interface Design

Interface design should be user-friendly and intuitive

Critical information should be readily apparent

Factors to Consider When Choosing a New Information System


Factors to consider when choosing a new information system2

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

Factors to Consider When Choosing a New Information System


Factors to consider when choosing a new information system3

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

Factors to Consider When Choosing a New Information System


Factors to consider when choosing a new information system4

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

Factors to Consider When Choosing a New Information System


Factors to consider when choosing a new information system5

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?

Factors to Consider When Choosing a New Information System


The process of developing a new infor mation system

Development of information systems follows an ongoing cycle that includes planning, design, implementation, and support.

The Process of Developing a New Infor-mation System


The process of developing a new information system

Gantt charts help visually communicate the critical steps and schedule for a project.

The Process of Developing a New Information System


The process of developing a new information system1

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.

The Process of Developing a New Information System


The process of developing a new information system2

Commonly Used Information Systems Software

The Process of Developing a New Information System


The process of developing a new information system3

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.

The Process of Developing a New Information System


The process of developing a new information system4

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.

The Process of Developing a New Information System


The process of developing a new information system5

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.

The Process of Developing a New Information System


On the horizon

On the Horizon

Based on the information presented in this chapter and your own experience, what do you think is on the horizon?


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