1.information system

Information SystemInformation System

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Rakesh S. PandyaRakesh S. Pandya

100 years ago100 years agoCharles Babbage…statedCharles Babbage…stated

AT A PERIOD WHEN THE PROGRESS OF PHYSICAL AT A PERIOD WHEN THE PROGRESS OF PHYSICAL SCIENCE IS OBSTRACTED BY THATSCIENCE IS OBSTRACTED BY THAT EXHAUSTINGEXHAUSTING INTELLECTUALINTELLECTUAL ANDAND MENTAL LABORMENTAL LABOR INDISPENSABLE FOR ITS ADVANCEMENT… I THINK INDISPENSABLE FOR ITS ADVANCEMENT… I THINK THE THE APPLICATIONAPPLICATION OF MACHINERYOF MACHINERY IN AID OF THE IN AID OF THE MOST COMPLICATED AND OBSTRUSE MOST COMPLICATED AND OBSTRUSE CALCULATIONS CALCULATIONS CAN NO LONGER BE DEEMED CAN NO LONGER BE DEEMED UNWORTHY OF THE ATTENTION OF THE UNWORTHY OF THE ATTENTION OF THE COUNTRY . IN FACT THERE IS NO REASON WHY COUNTRY . IN FACT THERE IS NO REASON WHY MENTALMENTAL AS WELL AS AS WELL AS BODILY LABOR BODILY LABOR SHOULD NOT SHOULD NOT BE BE ECONOMIZEDECONOMIZED BY THE AID OFBY THE AID OF MACHINERYMACHINERY

22Information System - 1 (RS Pandya)Information System - 1 (RS Pandya)

Information SystemsInformation SystemsWhy Do People Need Information?Why Do People Need Information? Individuals - Individuals - Entertainment and Entertainment and

enlightenmentenlightenment Businesses - Businesses - Decision making, problem Decision making, problem

solving & solving & controlcontrol Information and knowledge are so important that Information and knowledge are so important that

society can be divided up into two groups.society can be divided up into two groups.• Information richInformation rich - you have access to: - you have access to:

– many TV and radio channelsmany TV and radio channels– books, newspapers and journalsbooks, newspapers and journals– computers and the World Wide Web.computers and the World Wide Web.

• Information poor –Information poor –– tend to not have access to the Web and probably find it tend to not have access to the Web and probably find it

difficult to access relevant books and journals.difficult to access relevant books and journals.33Information System - 1 (RS Pandya)Information System - 1 (RS Pandya)

Data-Information-and-SystemsData-Information-and-Systems Information Systems Information Systems includes two words includes two words

: : InformationInformation and and SystemsSystems where : where : InformationInformation is is processed processed datadata that has that has

meaning and a context where :meaning and a context where :• DataData

– A “given,” or fact; a number, a statement, or a pictureA “given,” or fact; a number, a statement, or a picture– Represents something in the real worldRepresents something in the real world– The raw materials in the production of informationThe raw materials in the production of information

• InformationInformation– Data that have meaning within a contextData that have meaning within a context– Data in relationshipsData in relationships– Data after manipulationData after manipulationi.e. A collection of facts organized in such a way that they i.e. A collection of facts organized in such a way that they

have additional value beyond the value of the facts have additional value beyond the value of the facts themselvesthemselves


ExamplesExamples Data – thermometer readings of temperature taken every hour:Data – thermometer readings of temperature taken every hour:

16.0, 17.0, 16.0, 18.5, 17.0,15.5….16.0, 17.0, 16.0, 18.5, 17.0,15.5….

Information – Information – today’s high: 18.5today’s high: 18.5today’s low: 15.5today’s low: 15.5

Example: customer surveyExample: customer survey• Reading through data collected from a customer survey with Reading through data collected from a customer survey with

questions in various categories would be time-consuming questions in various categories would be time-consuming and not very helpful.and not very helpful.

• When manipulated, the surveys may provide useful When manipulated, the surveys may provide useful information.information.


The process includes to find out the The process includes to find out the range range

Transformation to informationTransformation to information

What is a SystemWhat is a System


A system is a group of interrelated components A system is a group of interrelated components working together toward a common goal by working together toward a common goal by accepting inputs and producing outputs in an accepting inputs and producing outputs in an organized transformation process.organized transformation process. Components and their attributionComponents and their attribution

• Systems structure: relationship between componentsSystems structure: relationship between components• SubsystemsSubsystems

Environment and BoundaryEnvironment and Boundary Input and OutputInput and Output SS

11 SS22SS33

SS44

Systems structureSystems structure

SubsystemsSubsystems

Systems BoundarySystems Boundary

EnvironmentEnvironment

Systems InputSystems Input OutputOutput

Abstract Concept of a SystemsAbstract Concept of a Systems


INPUTINPUT OUTPUTOUTPUTPROCESSPROCESS

FEEDBACKFEEDBACK

Information System (IS)Information System (IS) DefinitionDefinition A set of interrelated elements or components that A set of interrelated elements or components that

collect (input), manipulate (process), and collect (input), manipulate (process), and disseminate (output) data and information and disseminate (output) data and information and provide a feedback mechanism to meet an provide a feedback mechanism to meet an objectiveobjective

(IS) Pronounced as separate letters, and short for (IS) Pronounced as separate letters, and short for Information Systems or Information Services. For Information Systems or Information Services. For many companies, IS is the name of the department many companies, IS is the name of the department responsible for computers, networking and data responsible for computers, networking and data management. Other companies refer to the management. Other companies refer to the department as IT (Information Technology) and MIS department as IT (Information Technology) and MIS (Management Information Services). (Management Information Services).


Activities of an ISActivities of an IS


InpuInputt

ProcessinProcessingg

OutpOutputut

OrganizatioOrganizationn

EnvironmeEnvironmentnt

FeedbacFeedbackk

Categorisation of InformationCategorisation of Information Information can be categorized under several Information can be categorized under several

headings that allow us to determine its overall headings that allow us to determine its overall usefulness.usefulness. Main categoriesMain categories • Source Source :: Primary, SecondaryPrimary, Secondary• Nature Nature :: Formal or Informal CommunicationFormal or Informal Communication• Level Level : : four levelsfour levels• TimeTime :: Historic(Past), Present, FutureHistoric(Past), Present, Future• FrequencyFrequency :: Continuous, Periodic,Continuous, Periodic,• UseUse :: Planning, Control (different level), Planning, Control (different level),

DecisionDecision• Form : Form : Written, Aural, VisualWritten, Aural, Visual• Type : Type : Detailed, Sampled, AggregatedDetailed, Sampled, Aggregated


Characteristics of InformationCharacteristics of Information Availability / AccessibilityAvailability / Accessibility AccuracyAccuracy Reliability or objectivityReliability or objectivity Relevance / AppropriatenessRelevance / Appropriateness CompletenessCompleteness Level of Detail / ConcisenessLevel of Detail / Conciseness PresentationPresentation TimingTiming


Characteristics – Value and Characteristics – Value and CostCost

Value : The relative importance of Value : The relative importance of information for decision making can increase information for decision making can increase or decrease its value to an organization.or decrease its value to an organization.

Cost : Information should be available within Cost : Information should be available within the set cost levels that may vary dependent the set cost levels that may vary dependent on situation.on situation.

The difference between value and cost The difference between value and cost Valuable information need not cost muchValuable information need not cost much Information costly to obtain may not have much Information costly to obtain may not have much

value. value.



Types of Information SystemsTypes of Information Systems

Operational-level SystemsOperational-level Systems

Support operational managers by Support operational managers by keeping track of the elementary activities keeping track of the elementary activities and transactions of the organization. The and transactions of the organization. The principle purpose of systems at this level principle purpose of systems at this level is to answer routine questions and track is to answer routine questions and track the flow of transactions through the the flow of transactions through the organization. Covers things such as sales, organization. Covers things such as sales, receipts, cash deposits, payroll, credit receipts, cash deposits, payroll, credit decisions, flow of materials.decisions, flow of materials.


4 Levels of Information System4 Levels of Information System

Operational-level SystemsOperational-level Systems Transaction-Processing Systems (TPS)Transaction-Processing Systems (TPS)

Basic business systemsBasic business systemsPerform daily routine transactions Perform daily routine transactions

necessary for business functionsnecessary for business functionsAt the operational level, tasks, resources At the operational level, tasks, resources

and goals are predefined and highly and goals are predefined and highly structuredstructured

Generally, five functional categories are Generally, five functional categories are identified, as shown in the diagram.identified, as shown in the diagram.



Transaction-Processing Systems Transaction-Processing Systems (TPS)(TPS)

Knowledge-level SystemsKnowledge-level SystemsSupport knowledge and data workers in an Support knowledge and data workers in an

organisation. The purpose of these systems organisation. The purpose of these systems is to help the organisation discover, is to help the organisation discover, organise and integrate new and existing organise and integrate new and existing knowledge in to the business, and to help knowledge in to the business, and to help control the flow of paperwork. These control the flow of paperwork. These systems, specially in the form of systems, specially in the form of collaboration tools, workstations, and office collaboration tools, workstations, and office systems, are the fastest growing systems, are the fastest growing applications in business today.applications in business today.



Knowledge Work Systems (KWS)Knowledge Work Systems (KWS)Targeted at meeting the knowledge needs of Targeted at meeting the knowledge needs of

knowledge workersknowledge workers within the organisation within the organisation In general, knowledge workers hold degree-In general, knowledge workers hold degree-

level professional qualifications (e.g. level professional qualifications (e.g. engineers, scientists, lawyers), their jobs engineers, scientists, lawyers), their jobs consist primarily in creating new information consist primarily in creating new information and knowledgeand knowledge

KWS, such as scientific or engineering design KWS, such as scientific or engineering design workstations, promote the creation of new workstations, promote the creation of new knowledge, and its dissemination and knowledge, and its dissemination and integration throughout the organisation.integration throughout the organisation.


Knowledge-level SystemsKnowledge-level Systems Office Automation Systems (OAS)Office Automation Systems (OAS)

Targeted at meeting the knowledge needs Targeted at meeting the knowledge needs of of data workers data workers within the organisationwithin the organisation

Data workers tend to process rather than Data workers tend to process rather than create information. Primarily involved in create information. Primarily involved in information use, manipulation or information use, manipulation or dissemination.dissemination.

Typical OAS handle and manage Typical OAS handle and manage documents, scheduling and documents, scheduling and communication.communication.


Management-level SystemsManagement-level SystemsDesigned to serve the monitoring, controlling, Designed to serve the monitoring, controlling,

decision-making, & administrative activities of decision-making, & administrative activities of middle managers. These typically provide middle managers. These typically provide periodic reports rather than instant periodic reports rather than instant information on operations. Some of these information on operations. Some of these systems support non-routine decision-making, systems support non-routine decision-making, focusing on less-structured decisions for focusing on less-structured decisions for which information requirements are not which information requirements are not always clear. This will often require always clear. This will often require information from outside the organisation, as information from outside the organisation, as well as from normal operational-level data. well as from normal operational-level data.



Management-level SystemsManagement-level Systems Management Information Systems (MIS)Management Information Systems (MIS)

MIS provide managers with reports and, in some MIS provide managers with reports and, in some cases, on-line access to the organisations current cases, on-line access to the organisations current performance and historical recordsperformance and historical records

Typically these systems focus entirely on internal Typically these systems focus entirely on internal events, providing the information for short-term events, providing the information for short-term planning and decision making.planning and decision making.

MIS summarise and report on the basic operations MIS summarise and report on the basic operations of the organisation, dependent on the underlying of the organisation, dependent on the underlying TPS for their data. TPS for their data.



Management Information Systems Management Information Systems (MIS)(MIS)

Decision-Support Systems (DSS)Decision-Support Systems (DSS)

As MIS, these serve the needs of the As MIS, these serve the needs of the management level of the organisationmanagement level of the organisation

Focus on helping managers make decisions Focus on helping managers make decisions that are semi-structured, unique, or rapidly that are semi-structured, unique, or rapidly changing, and not easily specified in advancechanging, and not easily specified in advance

Use internal information from TPS and MIS, Use internal information from TPS and MIS, but also information from external sourcesbut also information from external sources

Greater analytical power than other systems, Greater analytical power than other systems, incorporate modelling tools, aggregation and incorporate modelling tools, aggregation and analysis tools, and support analysis tools, and support what-ifwhat-if scenarios scenarios

Must provide user-friendly, interactive toolsMust provide user-friendly, interactive tools


Voyage-estimating Decision Support SystemVoyage-estimating Decision Support System


Strategic-level SystemsStrategic-level SystemsHelp senior management tackle and Help senior management tackle and

address strategic issues and long-term address strategic issues and long-term trends, both within the organisation and trends, both within the organisation and in the external environment. Principal in the external environment. Principal concern is matching organisational concern is matching organisational capability to changes, and opportunities, capability to changes, and opportunities, occurring in the medium to long term occurring in the medium to long term (i.e. 5 - 10 years) in the external (i.e. 5 - 10 years) in the external environment.environment.



Typically, an organisation might have operational, Typically, an organisation might have operational, knowledge, management and strategic level knowledge, management and strategic level systems for each functional area within the systems for each functional area within the organisation. This would be based on the organisation. This would be based on the management model adopted by the organisation, management model adopted by the organisation, so, while the most commonly-adopted systems so, while the most commonly-adopted systems structure would simply follow the standard structure would simply follow the standard functional model, structures reflecting bureaucratic, functional model, structures reflecting bureaucratic, product and matrix models are also possible.product and matrix models are also possible.

As identified before, enterprise level information As identified before, enterprise level information systems attempt to encompass the whole systems attempt to encompass the whole organisation in one system.organisation in one system.


Strategic-level SystemsStrategic-level Systems Executive Support/Information Systems Executive Support/Information Systems

(ESS/EIS)(ESS/EIS)Serve the strategic level of the Serve the strategic level of the

organisationorganisationESS/EIS address unstructured decisions ESS/EIS address unstructured decisions

and create a generalised computing and and create a generalised computing and communications environment, rather than communications environment, rather than providing any fixed application or specific providing any fixed application or specific capability. Such systems are not designed capability. Such systems are not designed to solve specific problems, but to tackle a to solve specific problems, but to tackle a changing array of problemschanging array of problems


ESS/EIS are designed to incorporate data ESS/EIS are designed to incorporate data about external events, such as new tax laws about external events, such as new tax laws or competitors, and also draw summarised or competitors, and also draw summarised information from internal MIS and DSSinformation from internal MIS and DSS

These systems filter, compress, and track These systems filter, compress, and track critical data, emphasising the reduction of critical data, emphasising the reduction of time and effort required to obtain information time and effort required to obtain information useful to executive managementuseful to executive management

ESS/EIS employ advanced graphics software ESS/EIS employ advanced graphics software to provide highly visual and easy-to-use to provide highly visual and easy-to-use representations of complex information and representations of complex information and current trends, but they tend not to provide current trends, but they tend not to provide analytical modelsanalytical models



Characteristics of Information Processing Characteristics of Information Processing SystemsSystems

Inter-relationships & inter-dependencies between IS Inter-relationships & inter-dependencies between IS typestypes


Information FlowInformation Flow


Executive Information SystemExecutive Information System

ExecutiveExecutivess

MISMISTPSTPS

PCSPCS

Operational Systems and StaffOperational Systems and Staff

DSSDSSManagerManagerss

Enterprise Collaboration SystemEnterprise Collaboration System

SystemSystemInformatioInformationnFlowFlow

InformationInformationExchange/Exchange/CommunicatioCommunicationn

Information FlowInformation Flow


Executive Information SystemExecutive Information System

ExecutiveExecutivess

MISMISTPSTPS

PCSPCS

Operational Systems and StaffOperational Systems and Staff

DSSDSSManagerManagerss

Enterprise Collaboration SystemEnterprise Collaboration System

ManagemeManagementnt

OperationsOperations

Organizations and Information Organizations and Information SystemsSystems


Organization:Organization:• Formal collection of people and other resources Formal collection of people and other resources

established to accomplish a set of goalsestablished to accomplish a set of goals• A system A system • Constantly uses money, people, materials, machines and Constantly uses money, people, materials, machines and

other equipment, data, information, and decisionsother equipment, data, information, and decisions


Organizations and Information Organizations and Information SystemsSystems

Thank you ?Thank you ?


1.information system

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