Information Systems: Concepts and
Definitions
w Data Item. Elementary
description of things, events, activities and transactions that are recorded,
classified and stored but are not organized to convey any specific meaning.
w Information. Data
organized so that they have meaning and value to the recipient.
w Example: 3.0 à Data ; Ahmed GPA is 3.0 àInformation
w Knowledge. Data and/or
information organized and processed to convey understanding, experience,
accumulated learning and expertise as they apply to a current problem or
activity.
w
Information Technology Architecture. A high-level map or plan of the information assets in an organization,
which guides current operations and is a blueprint for future directions.
w
Information Technology Infrastructure. The physical facilities, IT components, IT
services and IT management that support an entire organization.
Information Systems
w
Information System (IS).
Collects, processes, stores, analyzes and disseminates information for a
specific purpose.
w
Computer-based Information System (CBIS). An information system that uses computer
technology to perform some or all of its intended tasks.
Basic Components of Information Systems
w
Hardware is a device
such as a processor, monitor, keyboard or printer
w
Software is a program
or collection of programs that enable hardware to process data.
w
Database is a
collection of related files or tables containing data.
w
Network is a connecting
system (wireline or wireless) that permits different computers to share
resources.
w
Procedures are the set
of instructions about how to combine the above components in order to process
information and generate the desired output.
w
People are those
individuals who use the hardware and software, interface with it, or uses its
output.
Application Programs
w
Application program is
a computer program designed to support a specific task , a business process or
another application program.
Types of Information Systems
w
Information Systems that support specific functional areas and
operations include:
n
Functional Area Information System
n
Transaction Processing System (TPS)
n
Enterprise Resource Planning (ERP) System
n
Interorganizational Information System
n
Electronic Commerce Systems
w
Functional area information systems or departmental information systems
n
Function: Support the activities
within specific functional areas.
n
Example: System for processing
payroll.
w
Transaction processing system (TPS)
n
Function: Process transaction
data from business events.
n
Example: Walmart checkout
point-of-sale terminal.
w
Enterprise Resource Planning System (ERP)
n
Function: Integrate all
functional areas of the organization.
n
Example: Oracle, SAP
w
Interorganizational information systems (IOS) are information systems that connect two or
more organizations and support interorganizational operations such as supply
chain management.
n
Function: Manage flows of
products, services and information among organizations.
n
Example: Walmart Retail Link
System connecting suppliers to Walmart.
n
Supply chain describes
the flow of materials, information, money and services from raw material
suppliers through factories and warehouses to the end customers.
w
Electronic Commerce Systems
n
Function: Enable transactions
among organizations and between organizations and customers.
n
Business-to-Business (B2B)
n
Business-to-Consumer (B2C)
Support for Organizational
Employees
w
Knowledge workers are
professional employees such as financial and marketing analysts, engineers,
lawyers and accountants.
n
They create information and knowledge about a specific subject area and
integrate it into an organization.
n
Act as advisors to middle managers and executives.
w
Office Automation System (OAS)
n
Function: Support daily work
activities of individuals and groups.
n
Example: Microsoft Office
n
Support: Clerical staff, lower
and middle managers and knowledge workers.
w
Management Information System (MIS)
n
Function: Produce reports
summarized from transaction data, usually in one functional area.
n
Example: Report on total sales of
each customer.
n
Supports: Primarily for middle
managers, sometimes for lower level managers as well.
w
Decision Support System (DSS)
n
Function: Provide access to data
and analysis tools.
n
Example: “What if” analysis of
changes in a budget.
n
Supports: Primarily for Middle
managers and knowledge workers
w
Expert System (ES)
n
Function: Mimic human expert in a
particular area and make a decision.
n
Example: Credit card approval
analysis.
n
Supports: Knowledge workers
w
Executive Information System (EIS)
n
Function: Present structured,
summarized information about aspects of business important to executives.
n
Example: Status of production by
product.
n
Supports: Top managers of the
organization.
New (Consultative) IS Functions
w
Initiating and designing specific strategic IS.
w
Incorporating the Internet and e-commerce into the business.
w
Managing system integration including the Internet, intranets and
extranets.
w
Educating the non-IS managers about IT
w
Educating the IS staff about the business
w
Supporting end user computing.
w
Partnering with the executives.
w
Managing outsourcing.
w
Proactively using business and technical knowledge to “seed” innovative
ideas about IT.
w
Creating business alliances with vendors and IS departments in other
organizations.
IT Offers Career Opportunities
w
The demand for traditional IT staff – such as programmers, business
analysts, systems analysts and designers – is substantial.
w
In addition, well-paid jobs in Internet and e-commerce, mobile commerce,
network, security, object-oriented programming, telecommunications and
multimedia design are available too.
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