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Chapter 10Information Systems

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Presentation Overview

• The Role of an Information System

• Information Systems Classified by Function

• Considerations for Planning and Updating Information Systems

• Factors to Consider When Choosing a New Information System

• The Process of Developing a New Information System

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The Role of an Information System

An information system (IS) is a combination of people, hardware, software, computer networks, and data used to manage daily and long-term operations.

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The Role of an Information System

What role do information systems play in business?Compared to pre-computer information systems, computer-based IS systems offer– improved speed– efficiency– quality– measurability

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Information Systems Classified by Function

What functions do information systems perform?Common functional classifications for information systems are:– distribution management– office information– management information– executive support– factory automation

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Information Systems Classified by Function

In a traditional inventory system, regularly scheduled deliveries move products from warehouse storage to storerooms until they are needed to stock the shelves.

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Information Systems Classified by Function

In a just-in-time distribution system, deliveries are smaller and more frequent so that products are only in the storeroom briefly.

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Information Systems Classified by Function

In a stockless inventory distribution system, deliveries move products from warehouse storage directly to the shelves with no need for a storeroom.

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Information Systems Classified by Function

Office Information Systems (OIS)typically provide the following functions:– maintaining standard operating procedures (SOP)– connectivity– electronic data processing

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Information Systems Classified by Function

Management Information Systems (MIS)typically provide the following functions:– integrate information from company departments

into one database– provide support to management in regular reports,

either on periodic or on-demand basis

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Information Systems Classified by Function

Decision Support Systems (DSS)– Data modeling provides a simulation of a real-

world situation built into a software application.– Expert systems make recommendations after

posing questions to the user.– Online analytical processing (OLAP) defines and

clarifies methods of handling what-if questions posed to large databases.

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Information Systems Classified by Function

Executive Support Systems (ESS)– brings together information from an entire

organization rather than one department or group– supports strategic decision making by facilitating

the creation of high-level summary reports

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Information Systems Classified by FunctionFactory Automation and Plant Operations– Computer-aided manufacturing (CAM) involves

direct use of computers to manufacture products.– Computer-integrated manufacturing (CIM)

connects every department in a business, making information available to anyone who needs it.

– Statistical quality control (SQC) tracks quality measurements of final product and compares them to conditions throughout manufacturing process.

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Considerations for Planning and Updating Information Systems

What are major effects of upgrading or switching to a computer-based information system?– expanded technical staff– increased information technology costs– increased profit margins– enhanced product quality– reduced clerical staff– temporary disruption

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Factors to Consider When Choosing a New Information System

What are important factors to consider when choosing a new information system?– user interface design– open versus closed system– niche information system– turnkey system– system support

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Factors to Consider When Choosing a New Information System

User Interface Design– Interface design should be user-friendly and intuitive– Critical information should be readily apparent

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Factors to Consider When Choosing a New Information System

Open or Closed System?– open system – company’s IT staff can alter system

or hire third party to make alterations– closed system – must be serviced and supported by

vendor

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Factors to Consider When Choosing a New Information System

Niche Information System– exists to serve specially focused sets of customers– includes all needed forms and templates– does not need a lot of technical know-how or staff

training

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Factors to Consider When Choosing a New Information System

Turnkey System– contains everything a company needs to know to get

system up and running– heavily customized and includes support people to

tailor system to exact needs of a business

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Factors to Consider When Choosing a New Information System

Questions Concerning System Support– Are installation, staff training, and on-site service and

repair included in the system package?– If not, what are the cost of these services?

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The Process of Developing a New Infor-mation SystemDevelopment of information systems follows an ongoing cycle that includes planning, design, implementation, and support.

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The Process of Developing a New Information SystemGantt charts help visually communicate the critical steps and schedule for a project.

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The Process of Developing a New Information System

Designing the System– A functional specification document is written first

and states exactly what information system must accomplish.

– A design specification describes how the goals in the functional specification will be reached.

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The Process of Developing a New Information System

Commonly Used Information Systems Software

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The Process of Developing a New Information System

Implementation– A prototype is a miniprogram that demonstrates the

user interface and functionality of the system.– Development is where the software programming is

done and technicians ensure the new hardware works.– Hardware and software purchasing is done and

delivered before system can be installed and considered up and running.

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The Process of Developing a New Information System

Implementation– Beta testing is where the system is rigorously tested

before it is completely trusted to function as designed.

– User training normally takes place at same time as beta testing.

– The committee or executive overseeing purchase of the system inspects, tests, and approves it.

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The Process of Developing a New Information System

Finally, The Support Stage– A support contract allows users to contact systems

integrator for technical support, training, and on-site troubleshooting.

– If system designed in-house, responsible department often operates as an independent entity.

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On the Horizon

Based on the information presented in this chapter and your own experience, what do you think is on the horizon?