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
An information system (IS) is a combination of people, hardware, software, computer networks, and data used to manage daily and long-term operations.
What role do information systems play in business?
Compared to pre-computer information systems, computer-based IS systems offer
What functions do information systems perform?
Common functional classifications for information systems are:
In a traditional inventory system, regularly scheduled deliveries move products from warehouse storage to storerooms until they are needed to stock the shelves.
In a just-in-time distribution system, deliveries are smaller and more frequent so that products are only in the storeroom briefly.
In a stockless inventory distribution system, deliveries move products from warehouse storage directly to the shelves with no need for a storeroom.
Office Information Systems (OIS)
typically provide the following functions:
maintaining standard operating procedures (SOP)
electronic data processing
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
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.
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
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.
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
What are important factors to consider when choosing a new information system?
user interface design
open versus closed system
niche information system
User Interface Design
Interface design should be user-friendly and intuitive
Critical information should be readily apparent
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
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
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
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?
Development of information systems follows an ongoing cycle that includes planning, design, implementation, and support.
Gantt charts help visually communicate the critical steps and schedule for a project.
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.
Commonly Used Information Systems Software
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.
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.
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.
Based on the information presented in this chapter and your own experience, what do you think is on the horizon?