Principles of Information Systems Eighth Edition Chapter 2 Information Systems in Organizations.
COURSE CONTENT Management information systems (MIS); challenges and opportunities, the strategic...
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Transcript of COURSE CONTENT Management information systems (MIS); challenges and opportunities, the strategic...
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COURSE CONTENT
Management information systems (MIS); challenges and opportunities, the strategic role of information systems in organizations, and business processes
Management of information and decision making; ethical and social impact of information systems.
Computers and information processing; information systems software, and managing data resources
Telecommunications and the internet networking, redesigning the organization with information systems and ensuring quality with information systems. Managing knowledge and enhancing management decision making. Controlling information systems and managing international information systems.
REFERENCE BOOKS Ralph M. Stair, G.W Reynolds, 2008, Principles of Information
System, A Managerial Approach, Thomson Learning (Text Book).
Kenneth C.L. and Jane P.L., 1998. Management Information Systems: New Approaches to Organization and Technology, Fifth Edition, Prentice Hall.
Sarah, E., Sawyer and Stacey, C., 1998, Management Information Systems for the Information Age, Irwin/McGraw-Hill, Boston, Massachusetts, ISBN: 0-07-025465-6.
Post, G.V. and David L.A., 1997, Management Information Systems: Solving Business Problems with Information Technology, Irwin/McGraw Hill, Illinois.
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Introduction toManagement Information Systems
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Data vs. Information Data▪ Raw facts▪ Distinct pieces of information, usually
formatted in a special way Information▪ A collection of facts organized in such a way
that they have additional value beyond the value of the facts themselves
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Data – thermometer readings of temperature taken every hour:
16.0, 17.0, 16.0, 18.5, 17.0,15.5….
Information – today’s high: 18.5today’s low: 15.5
Transformation
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Data Represented by
Alphanumeric data Numbers, letters, and other characters
Image data Graphic images or pictures
Audio data Sound, noise, tones
Video data Moving images or pictures
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Data InformationTransformation
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accurate, complete, economical, flexible, reliable, relevant, simple, timely, verifiable, accessible, secure
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You want the information about you in a health information system to be: As accurate as possible (e.g. your age, sex) As complete as possible Relevant To be reliable Should be available in a timely manner (e.g.
information about your drug allergies are available before your operation!)
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Definition A set of elements or components that
interact to accomplish goals A combination of components working
together
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CustomerMaintenanceComponent
Order EntryComponent
CatalogMaintenanceComponent
Order FulfillmentComponent
Customer Support System
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(1) Refers to a combination of components working together. For example, a computer system includes both hardware and software. A Windows system is a personal computer running the Windows operating system. A desktop publishing system is a computer running desktop publishing software.
(2) Short for computer system. (3) Short for operating system. (4) An organization or methodology. The binary
numbering system, for instance, is a way to count using only two digits
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InputsProcessing mechanismsOutputs
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System
Elements
GoalInputs
Processingelements
Outputs
Movie
Actors, director, staff, sets, equipment
Filming, editing, special effects, distribution
Finished film delivered to movie studio
Entertaining movie, film awards, profits
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System boundary Defines the system and distinguishes it from
everything else System types
Simple vs. complex Open vs. closed Stable vs. dynamic Adaptive vs. non-adaptive Permanent vs. temporary
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Efficiency A measure of what is produced divided by
what is consumed (eg. Efficiency of a motor is the energy produced divided by what is consumed)
Effectiveness A measure of the extent to which a system
achieves its goals System performance standard
A specific objective of the system
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Figure 1
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Figure 1.5b
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System variable A quantity or item that can be controlled
by the decision maker E.g. the price a company charges for a
productSystem parameter
A value or quantity that cannot be controlled by the decision maker
E.g., cost of a raw material
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Model An abstraction or an approximation that
is used to represent reality Types of models
Narrative (aka descriptive) Physical Schematic Mathematical
Next slide
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Make understanding complex systems easier (simplifies)
Can be used to design – make models of new systems so can refine them
Makes communication about systems easier (e.g. a picture can communicate a thousand words)
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Definition A set of interrelated elements or components that
collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective
(IS) Pronounced as separate letters, and short for Information Systems or Information Services. For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).
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Input Processing Output
Organisation
Environment
Feedback
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InformationSystem
External Environment
People Organisation
Technology
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Input The activity of gathering and capturing data Whatever goes into the computer
Processing Converting or transforming data into useful
outputs Output
Useful information, usually in the form of documents and/or reports
Anything that comes out of a computer
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(n) Whatever goes into the computer. Input can take a variety of forms, from commands you enter on a keyboard to data from another computer or device. A device that feeds data into a computer, such as a keyboard or mouse, is called an input device.
(v) The act of entering data into a computer
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(n) Anything that comes out of a computer. Output can be meaningful information or gibberish, and it can appear in a variety of forms -- as binary numbers, as characters, as pictures, and as printed pages. Output devices include display screens, loudspeakers, and printers.
(v) To give out. For example, display screens output images, printers output print, and loudspeakers output sounds.
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Feedback Output that is used to make changes to
input or processing activitiesForecasting
A proactive approach to feedback Use for estimating future sales or
inventory needs
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Manual systems still widely used E.g., some investment analysts manual draw
charts and trend lines to assist them in making investment decisions
Computerized systems E.g., the above trends lines can be drawn by
computer Evolution
Many computerized system began as manual systems
E.g., directory assistance (“911”)
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A CBIS is composed of… Hardware Software Databases Telecommunications People Procedures
Together they are… Configured to collect, manipulate, store, and
process data into information
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Five parts Hardware Software Database Telecommunications Networks
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Five parts Hardware Software Database Telecommunications Networks
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Hardware Computer equipment used to perform
input, processing, and output activities The objects that you can actually touch,
like disks, disk drives, display screens, keyboards, printers, boards, and chips.
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Hardware refers to objects that you can actually touch, like disks, disk drives, display screens, keyboards, printers, boards, and chips. In contrast, software is untouchable. Software exists as ideas, concepts, and symbols, but it has no substance.
Books provide a useful analogy. The pages and the ink are the hardware, while the words, sentences, paragraphs, and the overall meaning are the software. A computer without software is like a book full of blank pages -- you need software to make the computer useful just as you need words to make a book meaningful.
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Five parts Hardware Software Database Telecommunications Networks
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Software Computer programs that
govern/determine/control the operation of the computer
Computer instructions or data
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Software is computer instructions or data. Anything that can be stored electronically is software. The storage devices and display devices are hardware.
The terms software and hardware are used as both nouns and adjectives. For example, you can say: "The problem lies in the software," meaning that there is a problem with the program or data, not with the computer itself. You can also say: "It's a software problem.“
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The distinction between software and hardware is sometimes confusing because they are so integrally linked. Clearly, when you purchase a program, you are buying software. But to buy the software, you need to buy the disk (hardware) on which the software is recorded.
Software is often divided into two categories. Systems software includes the operating system and all the utilities that enable the computer to function. Applications software includes programs that do real work for users. For example, word processors, spreadsheets, and database management systems fall under the category of applications software.
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Five parts Hardware Software Database Telecommunications Networks
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Database An organized collection of facts and
information A collection of information organized in
such a way that a computer program can quickly select desired pieces of data
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A database is a collection of information organized in such a way that a computer program can quickly select desired pieces of data.
You can think of a database as an electronic filing system. Traditional databases are organized by fields, records, and files. A field is a single piece of information; a record is one complete set of fields; and a file is a collection of records. For example, a telephone book is analogous to a file. It contains a list of records, each of which consists of three fields: name, address, and telephone number.
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An alternative concept in database design is known as Hypertext. In a Hypertext database, any object, whether it be a piece of text, a picture, or a film, can be linked to any other object. Hypertext databases are particularly useful for organizing large amounts of disparate information, but they are not designed for numerical analysis.
To access information from a database, you need a database management system (DBMS). This is a collection of programs that enables you to enter, organize, and select data in a database.
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Five parts Hardware Software Database Telecommunications Networks
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Telecommunications The electronic transmission of signals for
communications; enables organizations to link computer systems into effective networks
Refers to all types of data transmission, from voice to video
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Five parts Hardware Software Database Telecommunications Networks
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Network Used to connect computers and
computer equipment in a building, around the country, across the world, to enable electronic communications
A group of two or more computer systems linked together
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There are many types of computer networks, including:
local-area networks (LANs) : The computers are
geographically close together (that is, in the same building).
wide-area networks (WANs) : The computers are farther apart and are connected by telephone lines or radio waves.
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In addition to these types, the following characteristics are also used to categorize different types of networks:
topology : The geometric arrangement of a computer system. Common topologies include a bus, star, and ring.
protocol : The protocol defines a common set of rules and signals that computers on the network use to communicate. One of the most popular protocols for LANs is called Ethernet. Another popular LAN protocol for PCs is the IBM token-ring network .
architecture : Networks can be broadly classified as using either a peer-to-peer or client/server architecture.
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Computers on a network are sometimes called nodes.
Computers and devices that allocate resources for a network are called servers.
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Internet The world’s largest telecommunications
network A network of networks Free exchange of information A global network connecting millions of
computers. Intranet
A network that uses Internet technology within an organization
A network belonging to an organization
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People The most important element in most
computer-based information systems Includes people who manage, run,
program, and maintain the system E.g., IT professionals (you!)
Procedures Includes the strategies, policies,
methods, and rules for using the CBIS
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Types Transaction processing systems E-commerce systems Management information systems Decision support systems Expert systems
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Transaction Any business-related exchange E.g., generating a weekly payroll
Transaction processing system (TPS) An organized collection of people,
procedures, software, databases, and devices used to record completed for for business related exchanges
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Hoursworked
Payrate
Payrolltransactionprocessing
Payrollchecks
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Types Transaction processing systems E-commerce systems Management information systems Decision support systems Expert systems
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E-commerce Involves any business transaction executed
electronically Conducting business on-line For example, between…
▪ Companies▪ Companies and consumers▪ Business and the public sector▪ Consumers and the public sector
Example for placing a purchase order
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Types Transaction processing systems E-commerce systems Management information systems Decision support systems Expert systems
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An MIS is… An organized collection of people,
procedures, software, databases, and devices used to routine information to managers and decision makers
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Management Information Systems (MIS)
Management information system (MIS)▪ An MIS provides managers with
information and support for effective decision making, and provides feedback on daily operations▪ Output, or reports, are usually generated
through accumulation of transaction processing data▪ Each MIS is an integrated collection of
subsystems, which are typically organized along functional lines within an organization
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Commondatabases
Marketingmanagementinformation
system
FinancialmanagementInformation
system
ManufacturingmanagementInformation
system
Ordermanagementinformation
system
TPS
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MIS is short for management information system or management information services, and pronounced as separate letters
MIS refers to a class of software that provides managers with tools for organizing and evaluating their department. Typically, MIS systems are written in COBOL and run on mainframes or minicomputers.
Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology).
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Types Transaction processing systems E-commerce systems Management information systems Decision support systems Expert systems
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A DSS is… An organized collection of people,
procedures, software, databases, and devices used to support problem-specific decision making
A DSS helps a manger “do the right thing”
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Types Transaction processing systems E-commerce systems Management information systems Decision support systems Expert systems
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An expert system is… A computer application that performs a task
that would otherwise be performed by a human expert
gives the computer the ability to make suggestions and to act like an expert in a particular field
Examples: diagnose human illnesses, make financial forecasts, schedule routes for delivery vehicles
Expert systems typically include “artificial intelligence” (next slide)
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AI is… A branch of computer science concerned
with making computers behave like humans
Term was coined in 1956 by John McCarthy at the Massachusetts Institute of Technology
Draws from many areas, including cognitive psychology
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Artificial intelligence includes games playing: programming computers to play games such as chess and checkers
expert systems : programming computers to make decisions in real-life situations (for example, some expert systems help doctors diagnose diseases based on symptoms)
natural language : programming computers to understand natural human languagesneural networks : Systems that simulate intelligence by attempting to reproduce the types of physical connections that occur in animal brainsrobotics : programming computers to see and hear and react to other sensory stimuli
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Attempted to replace humans in decision making
However did not take into account How humans actually reason Human information needs (doctors do
not want their decision making replaced, but rather want it supported)
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Systems development The activity of creating or modifying an
existing business system Systems investigation and analysis
Defines the problems and opportunities of an existing system
Systems design Determine how a new system will work to
meet business needs
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Systems implementation Creating and acquiring system
components defined in the designSystems maintenance and review
Checks a modifies the system so that it continues to meet changing business needs