Introduction to Information Systems - Lecture 16

Introduction to Information SystemsLecture 16Summary of Previous LectureIn previous lecture we have been learnt about,Web AdvertisementWeb Advertisement TerminologiesAd viewsBannerClicks (or ad clicks)Click RatioCookieCPMSummary of Previous LectureEffective FrequencyHitImpressionsReachVisitPros of Internet AdvertisementDouble Click ApproachAdvertisement MethodsBanners and Banner ExchangesBanner SwappingSummary of Previous LectureAdvertisement StrategyInternet Based Ad DesignPassive Pull StrategyActive Push StrategyAd as a CommodityPush TechnologyImplementing StrategyIntelligent AgentsSummary of Today’s LectureWhat is information?System components and conceptsCharacteristics of informationWhat is information system? Why need information system?Historical background of information systemInformation system today.Terminology related to MIS and ISSummary of Today’s LectureTypes of Information SystemsEarly history of IS with other disciplinesInformation system versus computer scienceInformation technologyContext and definitionsCapabilities of information systemSummaryWhat is Information?Information is created by defining and organizing relationships among data. Defining different relationships results in different information. Example: Different Designs of wood depicting different shapes of information!System Components and ConceptsInput Capturing and gathering raw dataProcessing Converting or transforming data into useful outputsOutput Useful information, usually in the form of documents, reports, and transaction dataFeedback Output that is used to make changes to input or processing activitiesSystem components and conceptsCharacteristics of a Valuable informationInformation should posses following characteristics,Accurate Complete Economical Flexible Reliable Relevant Simple Timely Verifiable Accessible Secure What is an Information System?A set of interrelated elements or components that collect (input), manipulate and store (process), disseminate (output) data and information, and provide a feedback mechanism to meet an objective.Computer based information system Composed of hardware, software, data, telecommunications, people, and procedures to collect, manipulate, store, and process data into information Why Need an Information System?Here are some reasons for the need of an information system,Global Competition for Market and for LaborNeed for Real-time OperationsManaging Work ForceCustomer-Oriented OperationsTechnological Innovation and ObsolescenceInformation OverloadSocial Responsibility of OrganizationsGovernment Regulation and DeregulationOrganizational Responses to Business Pressures in the Information AgeLets look at some historical definitions of information systems by famous writers.Historical BackgroundThe Data Processing Industry grew rapidly in the 1960’s, however, the “quantity” of output, most often, far overshadow the “quality” of output.Historical BackgroundThe growth of the 1960’s and 1970’s saw a shift from “computer” orientation, to “information” orientation.Shift from Data storage to organized information systemsJohn Diebold (1979) wrote:“Information, which in essence is the analysis and synthesis of data, will unquestionably be one of the most vital corporate resources in the 1980’s. It will be structured into models for planning and decision-making. It will be incorporated into measurements of performance and profitability. It will be integrated into product design and marketing methods. In other words, information will be recognized and treated as an asset.”John Theurer Diebold (June 8, 1926 – December 26, 2005) was an early champion of widespread use of computing and automated technology. IFIP/BCS (1985)An information system is a system which assembles, stores, processes, and delivers information relevant to an organization (or to society) in such a way that the information is accessible and useful to those who wish to use it, including managers, staff, clients, and citizens. An information system is a human activity (social) system which may or may not involve the use of computer systems.International Federation for Information Processing/British Computing Society 1985 curriculum for information systems.International Federation for Information Processing/British Computer Society: Founded 1957McNurlin and Sprague (1989 & 1999)“The mission for information systems in organizations is to improve the performance of people in organizations through the use of information technology.”The ultimate objective is performance improvement - a goal based on outcomes and results rather than a “go-through-the-steps process” goal.The focus is the people who make up the organization. Improving organizational performance is by the people and groups that comprise the organization.The resource for this improvement is information technology.Turban (1990)A management information system is a formal, computer-based (but need not be) system intended to retrieve, extract, and integrate data from various sources in order to provide timely information necessary for managerial decision-making.An MIS is a business information system designed to provide past, present, and future information appropriate for planning, organizing, and controlling the operations of the organization.Steven Alter (1992)An information system is a combination of work practicesinformationpeople, andinformation technologiesorganized to accomplish goals in an organization.Vladimir Zwass (1992)A Management Information System is an organized portfolio of formal systems for obtaining, processing, and delivering information in support of the business operations and management of an organization.Ken Laudon and Jane Laudon (1995)Information system - (definition) Interrelated components that collect, process, store, and disseminate information to support decision-making, control, analysis, and visualization in an organization.Turban, McLean, Wetherbe (1996)An information systems is a collection of components that collects, processes, stores, analyzes, and disseminates information for a specific purpose.The major components of a computer-based information system (CBIS) can include (1) hardware, (2) software, (3) a database (4) a network (5 )procedures, and (6) people.The system operates in a social context, and the software usually includes application programs which perform specific tasks for users.Components of Information System as Defined byTurban, McLean, Wetherbe (1996)Henry C. Lucas (1997)Information systems may be described by five of their key components:Decisionstransactions and processinginformation and its flowindividuals or functions involvedcommunications and coordinationWhere is the difference?Outcome of different definitions depictsTrend and technological effects at that timeInformation system definition evolved with respect to time.People worked on data processing until they realized the need of information systems.Information Systems Today The early focus on IS was for the support of operations, management, analysis and decision-making in organizations.Information System TodayA significant emphasis was on models of planning and control.The late 1980’s and early 1990’s saw IS expand from the support not only of decision-making, but for improved communication support as well. Social impacts began to be recognized. The explosion of the Web has added the important characteristic of providing information access. Today the emphasis in organizations is on the support of business processes. Social Media Information System TodayTerminologyIn many textbooks and contexts, the terms Management Information Systems (or MIS) and Information Systems (IS) are used interchangeably. However, in other contexts, Management Information Systems are considered as a subset of the more general Information Systems. MIS are considered to be information systems which provides information specifically for managing an organization generally at a tactical or middle management level. Information Systems would be a more general term that can include other systems (e.g. group communication systems). We will generally follow this convention.Types of Information SystemsTransaction Processing Systems (TPS).Management Information Systems (MIS). Decision Support Systems (DSS).Expert Systems (ES).Executive Information Systems (EIS).Office Automation Systems (including document management systems).GroupWare, Computer-Supported Cooperative Work (CSCW), and other communication systems.and much more .Types of Information SystemsTransaction Processing Systems (TPS)It is an information system designed to process day-to-day business event data at the operational level of the organization.A transaction is an elementary activity conducted during business operations (e.g. merchandise sale).Support the monitoring, collection, storage, processing, and dissemination of the organization’s basic business transactions.Provides backbone for many other applications involving other support systems.Different Examples of Transaction Processing SystemsTPS Data Entry ScreenTypes of Transaction Processing SystemsBatch processingBatch processing is a form of transaction processing. Batch processing involves processing several transactions at the same time, and the results of each transaction are not immediately available when the transaction is being entered; there is a time delay. Online transaction processing is the form of transaction processing that processes data as it becomes available. Management Information SystemsA management information system (MIS) provides information that is needed to manage organizations efficiently and effectively.Management information systems involve three primary resources: people, technology, and information or decision making. Management Information System Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization.Different applications of MIS are, Human Resource Management System, Financial Management System etc.HR Management Software ExampleFinancial Management Software ExampleDecision Support SystemA decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. Decision Support SystemsDSS include knowledge-based systems.Knowledge base is the set of rules that group together to build knowledge.Fundamental components of DSS model are,The database (or Knowledge base)the model (i.e., the decision context and user criteria), and The user interfaceThe users themselves are also important components of the architecture. Decision Support SystemExpert SystemAn expert system is a computer system that emulates the decision-making ability of a human expert.Expert systems are designed to facilitate tasks in the fields of accounting, medicine, process control, financial service, production, human resources, among others. Executive Information SystemThey are intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. It is commonly considered as a specialized form of decision support system (DSS) Office Automation SystemOffice automation systems helps in optimizing or automating existing office procedures.Office workflows of information and other documentation procedures are automated using office automation system.Groupware information systemsCollaborative software (or groupware) is a type of information system, designed to help people involved in a common task achieve goals. One of the earliest definitions of “collaborative software” is, "intentional group processes plus software to support them." Collaboration software ExampleThe Early History of IS with other disciplinesInformation systems have been used with variety of different subject areas, includingIS and Managerial AccountingIS and Operations ResearchIS and Management and Organization TheoryIS and Computer ScienceIS and Cognitive PsychologyInformation Systems vs. Computer ScienceComputer Science has its concentration in the study of algorithms, computation, software, and data structures. Information Systems is an extension of management and organization theory that applies technical capabilities and solutions initially developed by computer science, to tasks in organizations. For example, web development using HTML, XML, scripting may be a computer scientist job, but integrating all these to develop business portal is an Information Systems job.Information TechnologyInformation Technology (IT) sometimes refers to the technology component of an information system.However, the concept is often used by many to describe the collection of all information systems in organization.Putting Things in ContextInformation Technology - the hardware, software, and networks that make Information Systems possible.Information System - a system that uses information technology to capture, transmit, store, retrieve, manipulate, and display information.Business process - a related group of steps or activities that use people, information, and other resources, to create value for internal or external customers.Putting Things in ContextFirm (or organization) - consists of a large number of interdependent business processes that work together to generate products of services in a business environment.Business environment - includes the firm and everything else that affects its success, such as competitors, suppliers, customers, regulatory agencies, and demographic, social, and economic conditions.What goes wrong?Provide Fast and Accurate Transaction Provide Large Capacity, Fast Access Storage Provide Fast Communications (machine to machine, human to human) Reduce Information Overload Span Boundaries Provide Support for Decision Making Provide a Competitive Weapon General Technological Trends for ITCapabilities of Information SystemsSummaryToday we have learnt,Information, information system, needs and importanceHistorical perspectives of information systemsDifferent types of information systemsCapabilities of information system