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1-1
INTRODUCTION TO SYSTEM
A system
Is a set of interrelated components
With a clearly defined boundary
Working together to achieve a common set of objectives
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1-2
SYSTEMS HAVE THREE BASIC
FUNCTIONS :
Input involves capturing and assembling elements
that enter the system to be processed
Processing involves transformation process that
convert input into output
Output involves transferring elements that have
been produced by the transformation process to
their ultimate destination
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1-3
INFORMATION SYSTEM
An organized combination of
People
Hardware
Software
Communications networks
Data resources
Policies and procedures
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That stores, retrieves, transforms, and disseminates
information in an organization
INFORMATION SYSTEM
continues
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IS KNOWLEDGE FRAMEWORK
FOR BUSINESS PROFESSIONALS
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TYPES OF IS
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Type 1 - Operations supportsystems
What are they?
Efficiently process business transactions
Control industrial processes
Support communications and collaboration Update corporate databases
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Types of Operations Support
Systems
Transaction Processing Systems Record and process data from business transactions
Examples: sales processing, inventory systems,accounting systems
Process Control SystemsMonitor and control physical processes
Example: in a petroleum refinery use sensors tomonitor chemical processes
Enterprise Collaboration Systems Enhance team and work group communications
Examples: e-mail, videoconferencing
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Type 2 - Management SupportSystems
What are they?
Provide information and support for effective decisionmaking by managers
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Types of Management Support
Systems
Management Information Systems (MIS) Provide reports and displays to managers
Example: daily sales analysis reports
Decision Support Systems (DSS) Provide interactive ad hoc support for decision making
Example: A what-if-analysis to determine where tospend advertising dollars
Executive Information Systems (EIS) Provide critical information for executives and
managers
Example: easy access to actions of competitors
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Classifications of IS by scope
Functional business systems
Focus on operational and managerial applications of basicbusiness functions
Examples: support accounting, finance or marketing
Strategic information systems
Help get a strategic advantage over its customers
Examples: shipment tracking, e-commerce web systems
Cross-functional information systems
Systems that are combinations of several types ofinformation systems
Provide support for many functions
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IS Function represents
Major functional area of business
Important contributor to operational efficiency,employee productivity, morale, customer service and
satisfactionMajor source of information and support for effective
decision making
Vital ingredient in developing competitive products
and services in the global marketplace
Dynamic and challenging career opportunity
Key component of todays networked business
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Information systems model
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Components of an IS
People End users: the people who use the IS or the
information from the IS
IS specialists: the people who develop and operate IS
Hardware ResourcesAll physical devices used in information processing
Machines, data media, peripherals
Software Resources All information processing instructions including
programs and procedures
System software, application software and procedures
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Components of an IS (cont.)
Data Resources
Facts about the business transactions
Processed and organized information
Databases of organized dataNetwork Resources
Communications media
Network infrastructure: hardware and software
The Internet, intranets and extranets
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Measuring success of an IS
Efficiency
Minimize cost, time and use of information resources
Effectiveness
Support business strategies Enable business processes
Enhance organizational structure and culture
Increase the customer and business value
Whats the difference between Efficiency andEffectiveness?