Introduction to Information Systems

Class 1

Data vs. Information

The eternal question Data

“Streams of raw fact representing events occurring in organizations or their environments before they have been organized and arranged into a form suitable for human interpretation”

Information “Data that have been shaped into a form

that is meaningful and useful”

Data Vs. Information

392: Chocolate Chip Cookies342: Coffee Powder341: Red Curry Paste392: Chocolate Chip Cookies391: Keebler Fudge Sticks……

Region: RedmondStore: QFC Store 32

Item# Description Units Sold

392 Choc Chip Ck 2397

YTD Sales

$6972.78

Data

Information

Information? What’s the big deal?

Globalization Transformation of Industrial

Economies The Changing Organization

Emergence of Global Economy

Management and control in a global marketplace

Competition in global markets Global workgroups Global delivery systems

From Industrial to Post-Industrial Societies

Knowledge- and information-based economies

Productivity New products and services Time-based competition Shorter product life-cycle Turbulent operating environment Limited employee knowledge base

Transformation of the Organization

Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and team activities

So, what is an Information System, anyway?

What is a System?

A System

InputInput OutputOutputProcessProcess

feedbacfeedbackk

CustomersCompetitors

Suppliers Government

What is an Information System? a set of interrelated components that

collect (or retrieve) process store distribute

information in order to support decision making coordination and control

Approaches to Information Systems

InformationSystems

Management Science

Computer ScienceOperations Research

Psychology

Economics

Sociology

Behavioral Approaches

Technical Approaches

Information Systems and the Organization

Flattening organizations Separating work from location Reorganizing workflows Increased flexibility Changing management process Redefining organizational boundaries

Information Architecture

Levels within a firm Functional Areas Types of Systems Foundation of technology

Levels within an Organization

Operational Knowledge Management Strategic

Functional Areas

Finance Accounting Production Marketing Human Resources Public Relations

strategic

management

knowledge

operoper

Finance Marketing Production Personnel Acctg

Hardware SoftwareData and StorageNetworks

InformationArchitecture

IT Infrastructure

Challenges Facing Managers

The Strategic Business Challenge The Globalization Challenge The Architecture and Infrastructure

Challenge The Investment Challenge The Responsibility and Control

Challenge

strategic

management

knowledge

operoper

Finance Marketing Production Personnel Acctg

Senior management

Middlemanagement

Knowledgeand data workers

Operationalmanagers

Kind of Kind of ISIS

GroupGroupServedServed

Functional AreaFunctional Area

Level of the System

Operational-level systems Keep track of elementary activities and

transactions Sales, receipts, payroll, etc.

Purpose is to answer routine questions and track flow of transactions

Knowledge-level systems Integrate new knowledge into the business Control flow of paperwork

Level of the System Management-level systems

Keep track of monitoring, controlling decision making, and administrative work of middle management

Periodic reports Some may be used for non-routine decisions

What-if analysis Typically draws information from operational systems

Strategic-level systems Assist senior management in making long-term

decisions Typically non-routine, unstructured decision making

activities

Types of Information Systems Executive Support Systems (ESS) Management Information Systems

(MIS) Decision Support Systems (DSS) Knowledge Work Systems (KWS) Office Automation Systems (OAS) Transaction Processing Systems (TPS)

Types of Systems

Transaction Processing Systems serves operational needs performs/records daily and routine transactions span boundary of organization and environment major supplier of information to other IS examples

airline reservation system payroll system plant scheduling

Types of Systems (contd.)

Knowledge Work Systems KWs are those whose job involves

creating new information and knowledge (doctors, scientists, engineers, etc.)

Use specialized systems such as workstations

Office Automation Systems used to process information eg. document management, scheduling,

communication

Types of Systems (contd.)

Management Information Systems serves activities of planning, controlling and

decision-making at the management level usually take form of performance reports

(such as exception or summary reports) limited analytical ability often (mistakenly) equated with IS

Types of Systems (contd.) Decision Support Systems

focussed on a specific type of problem more analytical ability than an MIS more interactive eg: lease or buy in face of volatile interest

rates Executive Support Systems

used by senior management used for unstructured problems heavy graphics base

Information System Integration

Management Level

Strategic Level

Operational LevelKnowledgeLevel

Management Level

KWS &KWS &OASOAS

TPSTPS

MISMISDSSDSS

ESSESS

Next Class

Telecommunications