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INTRODUCTION TO CORPORATE INFORMATION SYSTEMS IS524 BY CHANDRA S. AMARAVADI

INTRODUCTION TO CORPORATE INFORMATION SYSTEMS IS524 BY CHANDRA S. AMARAVADI. INTRODUCTION (PART I). Definition of Corporate Systems Types of IS & Evolution Characteristics. DEFINITION OF CORPORATE INFORMATION SYSTEMS. Corporate Information Systems:

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INTRODUCTION TO CORPORATE INFORMATION SYSTEMS IS524 BY CHANDRA S. AMARAVADI

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  1. INTRODUCTION TO CORPORATE INFORMATION SYSTEMS IS524 BY CHANDRA S. AMARAVADI

  2. INTRODUCTION (PART I) Definition of Corporate Systems Types of IS & Evolution Characteristics

  3. DEFINITION OF CORPORATE INFORMATION SYSTEMS Corporate Information Systems: A collection of systems designed to fulfill the information/information processing needs of an organization. Information processing: collect, store, process, disseminate ORGANIZATION SYSTEM

  4. INFORMATION PROCESSING IN ORGANIZATIONS availability orders SALES/ MARKETING INVENTORY CUSTOMER raw materials ACCOUNTING/ FINANCE PRODUCTION SUPPLIERS order fulfillment

  5. THE EVOLUTION OF INFORMATION SYSTEMS 1950’s Transaction processing Reporting systems 1970’s Database management systems Decision support Office information systems 1980’s Database systems AI based systems Executive information systems Strategic systems 1990’s Enterprise information systems E-Commerce systems Knowledge Management systems BI systems (EIS)

  6. THE EVOLUTION OF INFORMATION SYSTEMS.. 1950’s 1960’s 1970’s 1980’s 1990’s-2000’s TP Systems Reporting Systems introduced because of problems with reporting Database Systems DSS Exec. info. Systems BI Systems Expert Systems KM Systems OIS E-commerce Systems web enabled Enterprise Systems integrated

  7. AN OVERVIEW OF THE DIFFERENT INFORMATION SYSTEMS Transaction processing systems: process business transactions Reporting systems: summarize transaction information Database management systems: systems to manage information Decision support systems: support analysis of data to aid in d.m. Executive information systems: systems to support executive d.m. BI: systems to provide execs with business intelligence (same as EIS) Office information systems: provide support to office workers (OIS) AI & expert systems: use artificial intelligence to duplicate human activity (in organizations). Strategic systems:systems which support the strategy of the organization and improve competitive advantage. Enterprise information systems: systems which support all functional areas, from marketing to production. E-commerce systems: systems for browsing, ordering, payment etc.

  8. ACRONYMS AI – Artificial Intelligence TP – Transaction Processing DSS – Decision Support Systems EIS -- Executive Information Systems BI – Business Intelligence ES -- Expert Systems ERP – Enterprise Resource Planning (same as Enterprise Systems) KM – Knowledge management Systems MSS – Management Support Systems OIS -- Office Information Systems

  9. CLASSIFICATION OF CORPORATE SYSTEMS Artificial Intelligence BI – Business Intelligence; DSS – Decision Support Systems; EIS – Executive Information Systems; ERP – Enterprise resource planning; GDSS – Group Decision Support Systems; KM – Knowledge Management; TP – Transaction processing;

  10. CHARACTERISTICS OF IS • Used in all organizations • Majority of applications are operational systems • Rest are DSS etc. • Most IS have database as a back end • Type of users depend on type of system • TP systems are being phased out (legacy systems) • AI is becoming part of every other system • DSS, BI, OIS customized from generic software Note: GL stands for Generation Language

  11. FOR DISCUSSION • IT consists of information systems: T/F? • DSS are most common IS: T/F? • E-commerce systems are operational systems? • Office Systems support D.M.: T/F? • What type of systems supply information? • DSS evolved from EIS: T/F? • A collection of systems to fulfill information processing needs is called __________

  12. INTRODUCTION (PART II) Perspectives on information systems Role of information systems IS strategy Development of IS

  13. DEFINING INFORMATION SYSTEMS: PERSPECTIVES Systems, STS, Work System, Strategic Systems

  14. Any set of related elements (which are under consideration) working together towards the common purpose of transforming inputs into outputs Examples: transportation network, education, building... In the IS context: a system is any part (or whole) of the organization which satisfies the definition above THE SYSTEM CONCEPT

  15. SYSTEM CHARACTERISTICS Systems have characteristics: • boundaries • inputs, processes & outputs • subsystems • life cycle The systems concept is used to: • understand systems • analyze systems Processes Outputs Inputs

  16. SYSTEMS PERSPECTIVE How can we view a bank as a system?

  17. A GENERIC TEMPLATE FOR STUDYING IS The systems perspective provides a template for studying information systems. BUSINESS PROCESSING Inputs: screens/ files Outputs: reports/ Screens/ files data inputs/ outputs

  18. THE STS APPROACH Socio-technical system:A system based on reciprocal inter-relationships between humans and machines. • Org consists of systems. What systems? • IS implementations can cause disruptions to ???? • when implementing IS need to consider ??? • any definition of a system should include ______ system • systems should fit workplace rather than vice versa To be successful, any IS implementation must consider the impact on work and power relationships. Organization

  19. ‘IS’ FROM STS PERSPECTIVE Inputs Outputs Processes Information System Above is a model of information systems based on STS.

  20. THE WORK SYSTEM PERSPECTIVE “Custo-mers” “Products and Services” Business Process Participants Information Technology Context IT Resources Information System Another perspective of an information system.

  21. THE WORK SYSTEM PERSPECTIVE Customers – beneficiaries of the IS i.e. users and their management. Products/services – the physical products/services provided by the IS. Processes – the steps performed within the IS e.g. taking orders. Participants – the people who perform the steps in the processes. Information – information used to perform the work. Technology – hardware, software etc. Context – the organizational, competitive, technical and regulatory realm within which the system operates IT Resources – refers to the IT department and leadership

  22. THE STRATEGIC SYSTEM PERSPECTIVE • IS as a competitive weapon • Started with classic cases of SABRE & AHS • SABRE -- reservation system of AA • AHS (BAXTER) -- system now classified as SCM. • IS should support org. strategies HOSPITAL AHS Note: AA – American Airlines; AHS – American Hospital Supply, now Baxter

  23. DISCUSSION • How do we view an ERP system from the system’s perspective? • How do you compare system’s with STS? • When does the STS perspective come into play? • How is it applied? • How do you compare STS with Work System perspective? • Which is the most comprehensive perspective? • Which perspective is applicable if Merck wants to use IT for • its drug delivery process to get drugs faster to market? Why?

  24. PURPOSE OF INFORMATION SYSTEMS IN ORGANIZATIONS - ROLE OF IS

  25. 1950s: Labor Substitution Use technology instead of labor 60s-70s: Managerial Control Use information to control operations 80s-90s: Organizational Strategy, Decision Support Support organizational strategy; d.m. 80s-90s: Institutional Core Activities Support activities such as accounting, finance etc. 80s-90s: Organizational Redesign See next Current: E-Commerce (not discussed) Support web operations IS EVOLUTION -- DIFFERENT ROLES d.m. – decision making

  26. LABOR SUBSTITUTION, MANAGERIAL CONTROL information Management control Head count, budget etc. Labor substitution in operations Organization Illustrates both labor substitution and managerial control.

  27. DECISION SUPPORT, STRATEGIC ROLE information Modeling, Analysis. Operations Trends, decisions strategic Impact (one example)

  28. CORE ACTIVITIES What are examples of core activities?

  29. ORGANIZATIONAL RE-DESIGN Use IS to change org. structure/processes: • Simplify & redesign business processes • e.g. use workflow systems • Extend organizational boundaries • e.g. through use of networks • Support new organizational structures • e.g. use web technologies Note: E-commerce role will be discussed later in the course

  30. IS STRATEGY & IMPACTS

  31. IS STRATEGY IS has many different roles most important is strategic • IS Strategy is to support corporate strategy • e.g. use CRM systems to monitor customers • e.g. use robots to cut mfg. costs • IS implementations can have strategic impacts • Such systems are called strategic systems

  32. GENERAL MODEL OF IT IMPACTS COSTS, FIRM SIZE, CUST. BASE ETC. Improve operations Improve product Improve mgmt. proc. Improve admin. proc. Information Systems Infrastructure Leadership Personnel

  33. GENERAL MODEL OF IT IMPACTS IT could be utilized to improve management, administrative and manufacturing processes or it could be used to impact the product itself or the “reach” of the organization. • Improve operations – use IT in marketing, finance, manufacturing etc. to • improve efficiencies. • Improve product – primarily where information-based product/ service is possible, e.g. on-line car-service records. • Improve management processes -- through “better information” to management via EIS, data mining etc. • Improve administrative processes – through streamlining them via customized applications or through workflow automation (OIS).

  34. IS DEVELOPMENT

  35. INFORMATION SYSTEMS DEVELOPMENT IS development refers to software development IS development is an organized process for developing an information system. Consists of many stages and many actors. • Stages in the development cycle (SDLC) are: • planning, • analysis, • design, • implementation, • maintenance.

  36. THE IS DEVELOPMENT PROCESS Project Manager (PM) Project plan Sr. Analyst or PM Planning/feasibility Users design specs code Business Analysts Developers System Analysis Design Implementation Note: actors are shown in black, outputs in blue and stages in green

  37. DISCUSSION Identify the relevant framework (a concept group) and answer each of the following questions: • How can we analyze ‘order processing’ in an org.? • Who are “customers”? • Company uses IT to support drug development process. • Company uses web technologies to develop an online store • What happens to an organization if an ERP system is • implemented? • What activity/activities take place when specs are received? • What is the role of a developer?

  38. THE END

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