Information Systems for

Managers

Prof. Sudarshan
IBS Gurgaon

1
 Information System Concepts
●Understanding Data and Information,
●System Concepts,

Open System, Closed System,

●

●Business as a System,
●What is Information System,

●Classification of IS in organization,

●Attributes of Information Quality

 What is a system?

●Example Human Body, Computer System,

Business Enterprise – An organization
●Set of elements arranged orderly to
achieve a similar goal.
 Data & Information
●Data
●Information

●System

●Information System
Organization: Elements
Process

People

Technology
 - S/W
- Data
- Procedure
Technology Element of an Organization
- People

Technology
What are the components of an IS?
 System
●Group of Interrelated components working
3 Basic components in a dynamic system are - Input, Processing &
Output Data.
2 Additional components to have a cybernetic or self regulatory system
are Feedback and Control Data.
●Within a clearly defined boundary
●Towards a common goal or objective.

Biological System – Human body

Technological System – Thermal Power Plant
Socio Economic System – Business organization
 Systems
Closed Systems
●

Open Systems
●
 What is Information System?
●Input data resources ->Information ->
Product or Service KPI Output
●Database
●IS Resources
●People
●Hardware
●Software
●Data
●Network
●Information products
 Why to study Information
System?
●Objective: Control and Performance
Improvement
●More important is to survive in competition.

●IS Functions –
●Business functional area
●Contributor to operational efficiency

●Decision making support

●Strategic advantage for an organization in global

market
●Networked business enterprise
A schematic representation of an Information
System
 Schematic Representation of Information System

Sourc
 System

Degree of Human
Elements Interactive Behavior Working Output
Intervention
 System Types
● Abstract: Ideas, Model, Conceptual elements.
● Physical: Tangible elements – Car
● Open: Interact with environment-IPO Computer
● Closed: Insulated from environment- Watch
● Manual: Human efforts for process and output
● Automatic: Using Microprocessor
● Deterministic: Predictable-ATM
● Probabilistic: Uncertainty – Forecast, Inventory
System
 General Model For CBIS

D O
I Pr
at P A
n
o ab u c
c as e
t
p e e
p
o ti
ss St
u or pl o
in u
e
Feedback
ag
t g e t n
 Other elements

●Information: Meaningful data and useful

context
●Knowledge: Right people having all the
information at right time.
●People: In business
●Operational: Supervisory Level
●Decision Making: Tactical Level
●Top management: Strategic Level
 CBIS for Functions

●Marketing
●Inventory
●Accounts
●Production
●Banking
●CRM
●SCM
●HRM
CBIS for different levels
 CBIS

Office
Operational Management
Automation
Support System Support System
System

TPS DSS E-Document

PCS ESS E-Messaging
ERP MIS E-Meetings
 Information
System

Management Support
Operation Support System
System

Transaction Management
Process Control Decision
processing Information
System Support System
System System

Enterprise Executive
Specialized Specialized
Collaboration Information
Process System Process System
System System

Knowledge Strategic Functional

Expert
Management Information Business
System
System System System
 Business as a System
A business is an organizational system where –
-economic resources (input) are transformed
by
-various business processes (processing) into
-goods or services (output).
Information system provides information
(Feedback) on the operations of the business
system to management for direction and
maintenance of the business system (Control).
 What Is Business?

An organization that
provides goods and
services to earn
profits

Profits:
The positive
difference between
revenues and
expenses
Factors of Production

Labor Capital

Information
Resources

Physical
Entrepreneurs Resources
 “Circular Flow in Market Economy”
OUTPUT MARKETS
SUPPLY DEMAND
Goods
Servic
es
FIRMS HOUSEHOLDS

Supply products in
● ● Demand
output markets products in output
●Demand resources markets
in input markets INPUT MARKETS ●Supply

resources in input
DEMAND
Labor SUPPLY
markets
Capital
Entrepreneurs
Physical Resources
Information
Resources
Copyright ©2003 Prentice Hall, 1-*
 Looking to the Future

Three Major Forces:

The information revolution will continue to
●

boost productivity

●Technological breakthroughs will create new

industries

Increasing globalization will create larger

●

markets and tougher competition

 IS in Organization

Information System Classification

Executive Support Systems
Management Information Systems
Decision-Support Systems
Knowledge Management Systems
Transaction Processing Systems
Office Automation Systems
 Information Quality
System Quality Attributes [Trade Offs]
●
 Cases
Aviall Inc.: From failure to success with Information Technology
●
[Refer: MIS by James A. O. Brian and George M Marakas]

●Sew what? Inc. – Information System in Business

Ans. 1- Helps in Efficiency, Effectiveness and Competitiveness.

Ans. 2- Classify the recommendations for CBIS Infrastructure on

the basis of types for different level and functional areas.

Ans. 3 – Refer another case Pg. 66 of Leonard Jessup – Using

IS for Effectiveness, Efficiency and competitive advantage.