001information sys-lec 1

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Information Systems FundamentalsInformation Systems Fundamentals

AnAn Information SystemInformation System is a set of (pr imar ily) electronic is a set of (pr imar ily) electronic components that collect, analyze and disseminate data andcomponents that collect, analyze and disseminate data and

infor mation to meet an objective.infor mation to meet an objective.

DataData: raw facts, e.g. text, image, audio, video. By itself , data: raw facts, e.g. text, image, audio, video. By itself , data

cannot help us mak e decisionscannot help us mak e decisions

InformationInformation: aggr egation, analysis and selection of data that : aggr egation, analysis and selection of data that

enables or ganizations to meet objectives. Some character istics enables or ganizations to meet objectives. Some character istics

of infor mation: of infor mation:

timelytimely

accurateaccurate

r eliabler eliable

appropr iateappropr iate

completecomplete

secur esecur e




(cont¶d)(cont¶d) SystemSystem: a collection of r elated elements or components that : a collection of r elated elements or components that

interact to accomplish goals. Composed of :interact to accomplish goals. Composed of :

InputsInputs

Processing mechanismsProcessing mechanisms

OutputsOutputs Feedback/assessmentFeedback/assessment

Many processes, whether or not they have a signif icant ISMany processes, whether or not they have a signif icant IS

component, can be viewed as component, can be viewed as systemssystems::

Per sonnel managementPer sonnel management

Univer sity admissionsUniver sity admissions

Production and inventor y managementProduction and inventor y management

Cr iminal justice systemCr iminal justice system



DefinitionsDefinitions Information system is a system of communication among peopleInformation system is a system of communication among people

and it is involve in gathering, processing, distributing and use of and it is involve in gathering, processing, distributing and use of information.information.

An information system consists of hardware, software, data,An information system consists of hardware, software, data,people and procedures.people and procedures.

The system that deliver information and communication services.The system that deliver information and communication services.

The organization function that plans, develops and manages theThe organization function that plans, develops and manages theinformation systems.information systems.

An information system is defined technically as a set of An information system is defined technically as a set of interrelated components that collect, process, store and interrelated components that collect, process, store and distribute information to support decision making and control indistribute information to support decision making and control inan organization.an organization.




(cont¶d)(cont¶d) Or ganizations may be Or ganizations may be classified classified according to the systems they according to the systems they

employ:employ: Simple vs. complexSimple vs. complex

Open vs. closedOpen vs. closed

Natural vs. manNatural vs. man--mademade

Adaptive vs. non adaptiveAdaptive vs. non adaptive

Per manent vs. temporar yPer manent vs. temporar y

System perfor mance can be System perfor mance can be measured measured along thr ee dimensions:along thr ee dimensions:

Eff iciencyEff iciency Eff ectivenessEff ectiveness

Equity (fairness)Equity (fairness)




(cont¶d)(cont¶d) Systems ar e designed, implemented and managed using Systems ar e designed, implemented and managed using modelsmodels: :

abstractions of r eality that allow us to apply pr inciples assumedabstractions of r eality that allow us to apply pr inciples assumed

to hold true for many diff er ent systemsto hold true for many diff er ent systems

Model types:Model types:

Narrative model, e.g. verbal descr iptions of model f eatur es, goals, Narrative model, e.g. verbal descr iptions of model f eatur es, goals,

r esour cesr esour ces

Physical model, e.g. prototypesPhysical model, e.g. prototypes

Schematic model, e.g. graphs and f lowchar tsSchematic model, e.g. graphs and f lowchar ts

Mathematical, e.g. equations and r elationsMathematical, e.g. equations and r elations

All models ar e based onAll models ar e based on assumptionsassumptions, e.g. mark et conditions, , e.g. mark et conditions, legal r estr ictions, physical perfor mance limitations. Assumptions legal r estr ictions, physical perfor mance limitations. Assumptions

must be wellmust be well--known and consistentknown and consistent



Changing Face of BusinessChanging Face of Business

EnvironmentEnvironment Can business sur vive without an infor mation system? Can business sur vive without an infor mation system?

1970s 1970s ± ± IS wer e TPS enabling an or g. to carr y out its IS wer e TPS enabling an or g. to carr y out its routine transactions such as payroll, accounting, inventor y routine transactions such as payroll, accounting, inventor y management etc.management etc.

1980s1980s-- DSS became the popular inf . Sys. Application as it DSS became the popular inf . Sys. Application as it could suppor t structur ed and uncer tain decision situations.could suppor t structur ed and uncer tain decision situations.

1990s1990s-- Inf . Sys. brought about business transfor mationInf . Sys. brought about business transfor mationwith the emer gence of BPR. Eg. BPCL, HLL, ICICI, with the emer gence of BPR. Eg. BPCL, HLL, ICICI, Indian railways, ITC, Tisco & Godr ej wer e implementing Indian railways, ITC, Tisco & Godr ej wer e implementing

the inf . Sys. for business transfor mation.the inf . Sys. for business transfor mation. 2000 onwards, inf . Sys. have been the cause of strategic 2000 onwards, inf . Sys. have been the cause of strategic

transfor mation in industr y due to widespr ead use of transfor mation in industr y due to widespr ead use of Internet. Eg. Dell, FedEx and CISCO. Internet. Eg. Dell, FedEx and CISCO.



Impact of Information SystemImpact of Information System

aa

Infor mation

System

Or ganization

Business

Value

�Customer

Satisfaction�Productivity

�Prof itability

Impact

for

�Better Sof twar e

�Lower Hardwar e Costs

�Easier to use sof twar e

�Reliable hardwar e�Reduced cost



Changing Role of Inf. Sys.Changing Role of Inf. Sys. Traditional Major IS Functions:Traditional Major IS Functions:

Managing system development and system project managementManaging system development and system project management Managing computer operations, including the computer center Managing computer operations, including the computer center

Staff ing, training and developing IS sk illsStaff ing, training and developing IS sk ills

Providing technical sk illsProviding technical sk ills

New (Additional) Major IS Functions:New (Additional) Major IS Functions: Initiating & designing specif ic strategic inf . Sys.Initiating & designing specif ic strategic inf . Sys.

Infrastructur e planning, development & controlInfrastructur e planning, development & control

Incorporating the internet & eIncorporating the internet & e--commer ce into the businesscommer ce into the business

Managing systems integration including the internet, intranet & extranetManaging systems integration including the internet, intranet & extranet

Educating the nonEducating the non--IS manager s about ITIS manager s about IT

Educating the IS staff about businessEducating the IS staff about business

Suppor ting endSuppor ting end--user computinguser computing Actively par ticipating in BPR Actively par ticipating in BPR

Proactively using business & technical knowledge to ³speed´ the manger s Proactively using business & technical knowledge to ³speed´ the manger s with innovative ideaswith innovative ideas

Cr eating business alliances with vendor s and IS depar tments in other Cr eating business alliances with vendor s and IS depar tments in other or ganizationor ganization



Information Systems ActivitiesInformation Systems Activities

InputsInputs: raw data: raw data May be physical, electronic or conceptualMay be physical, electronic or conceptual May use a manual or automated processMay use a manual or automated process

P rocessing P rocessing : conver sion of inputs to outputs: conver sion of inputs to outputs May be compr ised of computations, data storage, choosing alternativesMay be compr ised of computations, data storage, choosing alternatives

May be a manual or automated processMay be a manual or automated process

OutputsOutputs: infor mation used to mak e decisions: infor mation used to mak e decisions May be deliver ed in paper for m or electronicallyMay be deliver ed in paper for m or electronically

Outputs of one system may be inputs to another systemOutputs of one system may be inputs to another system

F eedback/assessment F eedback/assessment : outputs used to improve system : outputs used to improve system

perfor manceperfor mance Indication for manager ial inter ventionsIndication for manager ial inter ventions

Can f lag for incorr ect processingCan f lag for incorr ect processing

Supply estimates of futur e input values (for ecasting)Supply estimates of futur e input values (for ecasting)



Components of an InformationComponents of an Information

SystemSystem

`̀

People Resource

EndUser s and ISSpecialists

Software Resources

Programs andProcedur es

Hardware Resources

Machine and Media

Network Resources

Communication Media and Network Suppor t

Data Resources

Data & Knowledge Bases

System Activities

Control of System Perfor mance

Input of Data

Resour ces

Processing

Data into

Infor mation

Output of

Infor mation

Products

Storage of Data Resour ces



C omputer C omputer--Based IS C omponentsBased IS C omponents H ardwareH ardware, computer equipment used for , computer equipment used for

inputinput processingprocessing outputsoutputs

SoftwareSoftware, computer programs that run on hardwar e:, computer programs that run on hardwar e: systems sof twar esystems sof twar e applications sof twar eapplications sof twar e

DatabasesDatabases: specialized applications sof twar e designed to: specialized applications sof twar e designed to

or ganize data and infor mation on an or ganization¶s operationsor ganize data and infor mation on an or ganization¶s operations

InfrastructureInfrastructure: equipment designed to link hardwar e across : equipment designed to link hardwar e across

space:space: telecommunicationstelecommunications network snetwork s InternetInternet

P eopleP eople: IS per sonnel and user s: IS per sonnel and user s

P roceduresP rocedures: rules for developing and using the IS: rules for developing and using the IS



Information System Resources andInformation System Resources and

ProductsProducts P eople ResourcesP eople Resources-- SpecialistsSpecialists-- system analysts, sof twar e developer s, system operator ssystem analysts, sof twar e developer s, system operator s

-- End User sEnd User s-- anyone else who uses infor mation systemsanyone else who uses infor mation systems

H ardware ResourcesH ardware Resources

-- MachinesMachines-- computer s, video monitor s, magnetic disk dr ives, pr inter s, scanner s.computer s, video monitor s, magnetic disk dr ives, pr inter s, scanner s.

-- MediaMedia-- f loppy disk s, magnetic tape, optical disk , plastic cards.f loppy disk s, magnetic tape, optical disk , plastic cards.

Software ResourcesSoftware Resources-- ProgramsPrograms-- operating system programs, spr eadsheet programs, word processing, payroll operating system programs, spr eadsheet programs, word processing, payroll

programsprograms

-- Procedur esProcedur es-- data entr y procedur es, error corr ection procedur es, paycheck distr ibutiondata entr y procedur es, error corr ection procedur es, paycheck distr ibutionprocedur es.procedur es.

Data ResourcesData Resources

-- ProductProduct descr iptions, customer s r ecords, employee f iles, inventor y databasesdescr iptions, customer s r ecords, employee f iles, inventor y databases N etwork ResourcesN etwork Resources

-- Communications media, communications processor s, network access and control sof twar eCommunications media, communications processor s, network access and control sof twar e

Information P roductsInformation P roducts

-- M anagement reports and business documents using text and graphics displays, audioM anagement reports and business documents using text and graphics displays, audioresponses and paper formsresponses and paper forms





Business Information SystemsBusiness Information Systems Transaction processing Transaction processing : automation of routine, labor : automation of routine, labor--intensive intensive

processesprocesses payrollpayroll customer pur chasescustomer pur chases accounts payableaccounts payable

Transaction processing systems have histor ically been mainframeTransaction processing systems have histor ically been mainframe--

based, of ten run in batch, using older , less f lexible technology.based, of ten run in batch, using older , less f lexible technology. E E --commercecommerce: commer cial transactions conducted electronically: commer cial transactions conducted electronically

businessbusiness--toto--businessbusiness businessbusiness--toto--consumer consumer public sector public sector--toto--businessbusiness

public sector public sector--toto--customer customer Value of EValue of E--commer ce is estimated at $434 billion, with about commer ce is estimated at $434 billion, with about

20% of total devoted to business20% of total devoted to business--toto--customer transactionscustomer transactions



Business Information Systems (cont¶d)Business Information Systems (cont¶d)

M anagement information systems

M anagement information systems: collection of people, : collection of people, procedur es, sof twar e, hardwar e and databases designed toprocedur es, sof twar e, hardwar e and databases designed to

generate infor mation for management decisions about generate infor mation for management decisions about

or ganization strategy. MISs may compr ise:or ganization strategy. MISs may compr ise: Mark eting MISMark eting MIS

Financial management MISFinancial management MIS Operations MISOperations MIS Transaction processing systemsTransaction processing systems

Decision support systemsDecision support systems: an MIS intended to addr ess specif ic, : an MIS intended to addr ess specif ic,

complex decision problems r equir ing interaction of manager ial complex decision problems r equir ing interaction of manager ial

and machine exper tise. Composed of :and machine exper tise. Composed of : DatabaseDatabase ModelsModels User interfaceUser interface Repor tingRepor ting



M IS Demo: Workforce Training M IS Demo: Workforce Training

Information System (Fall 1998)Information System (Fall 1998) P olicy context P olicy context

Incr ease in spending on local constuctionIncr ease in spending on local constuction

Need to r emedy lack of minor ity par ticipation in constructionNeed to r emedy lack of minor ity par ticipation in construction

Incr eased gov¶t funding for or ganizations that can show positive Incr eased gov¶t funding for or ganizations that can show positive

r esults from job training programsr esults from job training programs Desired featuresDesired features

Registration infor mation on all program par ticipantsRegistration infor mation on all program par ticipants

Assignment of par ticipants to training program classesAssignment of par ticipants to training program classes

Recording per sonal and class outcomesRecording per sonal and class outcomes

ImplementationImplementation

Relational database application using Microsof t Access97Relational database application using Microsof t Access97

Web pages descr ibing project teams, problem and solution using Web pages descr ibing project teams, problem and solution using

Microsof t FrontPage98 (http://pirate.heinz.cmu.edu)Microsof t FrontPage98 (http://pirate.heinz.cmu.edu)



Information System Development Information System Development

Analysis and DesignAnalysis and Design problem def initionproblem def inition

justif ication of solution approachjustif ication of solution approach

system r equir ementssystem r equir ements

project teamproject team

conceptual application modelconceptual application model

ImplementationImplementation PrototypingPrototyping

Lar geLar ge--scale developmentscale development

TestingTesting

DeploymentDeployment

M aintenance and ReviewM aintenance and Review Evaluation of deliver ed productEvaluation of deliver ed product

Customer suppor tCustomer suppor t

UpgradesUpgrades



C areers in InformationC areers in Information

Systems/Information TechnologySystems/Information Technology OperationsOperations

systems maintenancesystems maintenance LAN operationsLAN operations data entr ydata entr y

Systems Development Systems Development

systems analysissystems analysis hardwar e/sof twar e developmenthardwar e/sof twar e development

Support Support data administrationdata administration Web development/maintenanceWeb development/maintenance

InterfaceInterface IS analysis in functional ar eas: engineer ing, planning and managementIS analysis in functional ar eas: engineer ing, planning and management Par ticipation in multiPar ticipation in multi--disciplinar y teams br idging policy and ISdisciplinar y teams br idging policy and IS



Maximizing Returns from IT

Investments StepStep11::

-- identifyidentify thethe needneed

-- thethe typetype of of ITIT investmentinvestment andand thethe ITIT metricmetric willwill dependdepend

onon strategicstrategic moves,moves, improvementsimprovements inin

productivityproductivity andand performance,performance, valuevalue additionaddition toto thetheproduct,product, andand gaininggaining leverageleverage

StepStep22::

-- identifyidentify thethe typetype of of applicationapplication

-- findfind outout whetherwhether thethe applicationapplication focusesfocuses onon thethe

infrastructure,infrastructure, process,process, useruser (employee),(employee), oror customercustomer

-- metricsmetrics willwill changechange dependingdepending uponupon thethe typetype of of

applicationapplication



Maximizing Returns from IT

Investments

StepStep 33::-- identifyidentify thethe useruser-- findfind outout if if thethe applicationapplication willwill bebe usedused byby aa singlesinglefunction,function, multiplemultiple functionsfunctions ,, oror allall overover thethe

organizationorganization StepStep 44::

-- identifyidentify thethe approachapproach toto measuremeasure returnsreturns

-- if if partpart of of aa strategicstrategic movemove thenthen thethe optionsoptions approachapproach isis

thethe mostmost suitablesuitable-- if if ITIT investmentinvestment isis mademade toto thethe improveimprove performanceperformance of of

thethe organizationorganization thenthen thethe scenario,scenario, businessbusiness value,value, andand

performanceperformance approachesapproaches wouldwould bebe moremore suitablesuitable

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001information sys-lec 1