Information Systems

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Contents
Data, Information, Knowledge Characteristics of Information What is a System Information System (IS) - Components, Characteristics Computer-Based Information Systems Need for Efficient IS Categories of IS
Operation Support System: TPS, OAS Management Support System: MIS, DSS, EIS
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Specialized System: Expert system, ERP, E-commerce

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Data, Information, Knowledge values Data - raw facts, isolated

Numbers, letters, characters, image, audio, video Not organized. Does not convey meaning

Information - processed,

manipulated, interpreted data

Olympics in UK from 27th July 2012

Created by defining, organizing relationship among data Can be used for different purposes

Knowledge inference, conclusion

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from information

I should plan trip to UK 33 around

Characteristics of Information
Accurate Accessible Complete Economical Formatted Flexible Reliable Relevant Secure Simple Timely Verifiable 5/23/12

Must not contain any errors Access by authorized users

We all need Must contain all important, related data informatio Both in terms of time and cost n to Should be available in desired format make To be used for different purposes decisions and take Dependable, generated using correct data actions, Relevant, can be used by organization when Access allowed to authorized individuals only needed.
Easily understandable, usable Available when needed Means to cross check Chapter-11: Information
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System
Set of components that work together to achieve

common goal

Accepts input, processes it, produces output Composed of one or more subsystems Two types
Closed system: Stand-alone system. Does not interact with other systems Open system: Interacts with other systems

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Information System
Set of interrelated components
Collect, manipulate, disseminate data & information, provide feedback to meet an objective

Uses resources: People, hardware, software, data,

networks to perform input, processing, output, storage and control activities

E.g. ATM, railway reservation system, movie ticket

reservation system
Needed both by people, business organizations
People: For entertainment and enlightenment Organizations: To support decision making, coordination, problem solving, control 5/23/12 Chapter-11: Information
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Components of IS

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Feedback Output that makes changes to input, processing activities

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Characteristics of IS
Environment Boundary Input Output Components Interrelationships Interface Anything outside the system Separates system from environment Data from environment to system Information from system to environment Subparts of system Association between components

Interaction between components Efficiency (what is produced/what is consumed), Performance of IS Effectiveness (extent to which the system attains goals) Manual, computerized (Computer-based Types 5/23/12 Chapter-11: Information 88 IS)

Characteristics of IS
Environmen t Interrelationship s Boundar y Input s

Compon ent A

Compon ent C

Outputs

Compon ent B
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Compon ent D
Interface

Informati on is a dynamic resource, it is constantl 99 y

Computer-Based Information System Use computer, telecommunication technology (CBIS)

Uses hardware, software, database, people,

telecommunication, procedures for collection, manipulation, storage, processing of data into information
Take raw data as input, process it, produce information

as output

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Components of CBIS
Hardware: computer devices - keyboard, monitor,

processor, printer

Software: computer programs Database: organized collection of data, consisting of

related data files

People: Work with CBIS Procedures: Strategies, policies, methods, rules Telecommunication, Network and Internet: To connect

computers, computer devices

E.g. e-commerce, e-banking, e-governance, e-

learning, Internet advertising

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Need for Efficient IS

Provides opportunity to do business in new

way, gain huge profits, market shares

Facilitate acquisition, transformation,

distribution of information. Improves decision making, enhances organizational performance, increases profitability
For strategic planning in competitive world.

Allows changing structure, creating new services, improving existing services data

Helps to better manage and secure critical Improves integration and work processes 5/23/12
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Categories of IS
IS provide support at all levels of organization, in

different functional areas

A pyramid divided both horizontally and vertically Vertical divisions: Functional areas of organization
E.g. sales, marketing, accounting, human resource, manufacturing

Horizontal divisions: Operational level of organization,

hierarchically from base of pyramid to top

E.g. low level, middle level, top level

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Categories of IS (contd..)
EIS

MIS DSS

TPS

Sales

Marketing

Accounting

HR

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Categories of IS (contd..)
Operations Support System
Transaction Processing System (TPS) Office Automation System (OAS)

Management Support System

Management Information System (MIS) Decision Support System (DSS) Executive Information System (EIS)

Specialized information systems

Expert Systems, Enterprise Resource Planning (ERP)
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E-commerce system

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Operations Support System

Main function: Transaction processing Provides information about day-to-day activities of

organization
Support operations of organization, keeps track of

resources, transactions
E.g.
Bank: keeps track of current balance of customer Manufacturing unit: keeps track of inventory of items Sales unit: keeps track of number of units of each item sold

Kinds: TPS, OAS

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Transaction: basic activity performed during business

Transaction Processing System (TPS)

operation
E.g. withdrawal of money from bank, booking ticket for airline, selling of goods to customer

Organized collection of people, procedure, software,

database, devices for recording business transaction related to transaction, automates data handling

Records business transactions, generates documents Increases transaction processing speed, enhances

productivity, simplifies processes

For different areas: Payroll TPS, Sales TPS, Marketing
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TPS

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Office Automation System (OAS)

Supports automation of tasks in office. Facilitates

communication, both within office, between office & environment - managing documents, sending messages, arranging meetings, scheduling projects spreadsheets, presentation packages, personal database systems, note-taking systems messages, documents, images, video, voice.

Uses word processors, desktop publishing system,

Includes communication systems for transmitting Uses network, Internet for e-mail, voice mail, web

sites, teleconferencing
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Management Support System at different levels in organization, in Assists managers

controlling, management of business
Provide reports
summary report, sales report, customer balance report

Assist managers in decision making process

generates projected reports like projected sales report

Provides information to executives

about operations, growth, profits, performance

Provides detailed report specifying internal details Kinds: MIS, DSS, EIS
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Collection of people, procedures, software,

Management Information System (MIS)

databases, devices that provides information to managers & decision makers

Summary report: statistical information to

Generates reports
managers

Exception report: about activities different from

normal functioning

Detailed report: operational level reports

Reports
scheduled (periodic: weekly, monthly, quarterly)
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ad-hoc (on-demand, whenever required by

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Decision Support System (DSS) of people, procedures, software, databases, Collection

devices that support problem-specific decision making mathematical models, interactions to solve problems
Support middle level managers. Applies logical, User-friendly, interactive Uses data from TPS, MIS, external sources Provides comparison of alternatives, recommendation

of preferred option
Provide models, tools for simulation, optimization to

managers, to evaluate from alternatives before decision making

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Executive Information System (EIS)

Provides generalized computing & communication

environment to senior managers to support decisions

Provides summarized information in convenient form Designed to facilitate access to information quickly,

effectively, for senior managers

Used for identifying problem, trends, opportunity Uses data from TPS, MIS, external sources Has menu driven user friendly interfaces, interactive

graphics to help visualization, telecommunication links to connect to external information

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Specialized Information Systemorganizational and individual use Are both for

Help organizations and individuals achieve goals Different kinds
Expert Systems Enterprise Resource Planning (ERP) E-commerce

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Expert Systems
AI: people, procedures, hardware, software, data,

knowledge needed to develop computer systems that display characteristics of intelligence

An applied area of AI. Knowledge-based system Two components: knowledge base, inference engine
knowledge base stores information, data, rules, cases, relationships inference engine gets information and relationships from knowledge base, provides answers & predictions the way human expert does

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Expert System: Applications

Used in areas where need to
capture, preserve irreplaceable human expertise provide expertise that is expensive or rare share wisdom of human experts with large number of people

Used to explore new business possibilities, increase

overall profitability, reduce costs

Provide information related to classification, diagnosis,

process control, scheduling, planning

E.g. antilock braking system, television, plant layout, manufacturing, credit granting, stock picking
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Enterprise Resource Planning (ERP)

Computer software that manages, coordinates

resources, information, functions of business from shared data stores

E.g. coordinate planning, inventory control, production, ordering

Integrate functions like human resources, supply chain

management, customer relations management, financial, manufacturing functions

Helps to streamline processes, workflows, allow data

sharing, improve efficiency & productivity levels, improves customer service

E.g. SAP (Systems, Applications and Products) 5/23/12
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E-Commerce
Involves business transaction executed

electronically between parties

Uses Internet & Web for doing business

e-mail, workflow software tools, Intranet, e-payment services

Involves buying, selling of products, services

electronically

Parties involved - B2B, B2C, C2C Web sites like on-line market places - sell & buy
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items, advertise product, establish newsgroups & blogs, post job-oriented resumes

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Career in IS
IS department controls, coordinates, manages

information system of organization

Chief Information officer (CIO)

Career opportunities
LAN administrators, System & Network operators System analyst and Programmers Network Analysts, Application Analysts Database Administrator, Systems Administrators Application Designers, Management Analysts Business Systems Analyst, Designer
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Information Systems Auditor, Database Architect

Thank You

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