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Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Business Information SystemsBusiness Information Systems
Building BlocksBuilding Blocks
Dr Sherif Kamel
The American University in Cairo
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Outline
Role of information systems.
Types of information systems.
Data and information.
Classes of information systems.
Information systems architecture.
Information systems applications.
Information systems building blocks.
5 Ps in systems development.
The life cycle.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
An integrated view of the role of IS in the organization
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Types of information systems
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
MIS obtaining data from multiple TPS
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Interrelationships among systems
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Transaction processing systems
A customer placing an order for products or services with a company.
Making a holiday booking
Buying an air line ticket
Buying a car
Withdrawing money from the ATMa customer ringing a call centre to pay his/her bills
Payment for goods and services
Placing order with a supplier
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
A transaction is…
Any business related exchange.
An event to which the business must respond.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Input-processing-output cycle
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Transaction processing system functions
Transaction processing systems consist of 4 main functions to accomplish their purposes
The functions include:Input function
Storage function
Processing function
Output function
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Example: TPS payroll system
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Types of TPS by function
Major Functionsof system
Major Application
systems
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Concepts of transaction processing systems
On-Line Input
Transaction filesfrom other
systems
Data for othersystems
Keypunched cards Scanning devicesand sensors
Audioinput
Audiooutput A displayed
message
Transaction Processing
Record Merge
Perform Sort
List Update
Documents
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
TPS characteristics
Provide fast and efficient processing
Perform rigorous data editing
Audited
Involves a high potential for security-related problems.
Support the work processes of a large number of people
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TPS cycle
A cycle through which business data goes…
Data collection
Data editing
Data correction
Data manipulation
Data storage
Document production
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Transaction processing activities
Data collectionThe process of capturing and gathering all data necessary to complete transactions.– Begins with a transaction
– Should be captured at the source
– Timely
– With minimum manual effort
– Suitable format
Data editingChecks data for validity and completeness
Data correctionRe-entry of wrongly keyed or scanned data
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Transaction processing activities (Cont’d)
Data manipulationPerforming data transformations
Data storageUpdating databases with new transactions
Document ProductionGenerating output records and reports
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Reports produced
Detailed reports
Summary reports
Exception reports
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Methods of transaction processing
Batch processing systems.
Online transaction processing (OLTP).Interactive/ Real-time.
Online entry with delayed processing.
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Transaction processing objectives
Process data generated by and about transactions
Maintain a high degree of accuracy
Ensure data and information integrity
Produce timely documents and reports
Increase labour efficiency
Help provide increased and enhanced service
Help build and maintain customer loyalty
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Transaction processing applications
1. Accounting and financial information systems
2. Sales and marketing information systems
3. Production information systems
4. Human resources information systems
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
1. Accounting and financial IS
Systems that are first computerised by organisations.
Outputs include:pay cheques
cheques to vendors
customer invoices
stock reports
many other forms and reports– Accounts receivable– Payroll systems
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
2. Sales and marketing IS
System’s basic goal is to satisfy the needs of customers.Help the firm identify customers for the firm’s products or services,
Develop products and services to meet customer needs,
Promote products and services,
Sell the products and services
Provide ongoing customer support.
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Sales and marketing IS types
Sales order
Market research
Sales commission
Point-of-sale systems
Electronic shopping and advertising systems
Telemarketing systems.
Direct mail advertising systems.
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3. Production IS
These systems support the production of goods and services (to meet marketing system projections)
Support decision-making for the operation, allocation, and planning of production resources.
Produce reports about production data.
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Production IS types
Purchasing systems
Quality control systems
Shipping systems
Inventory control systems
Automated Material handling systems
Computer aided design/manufacturing
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Example – order processing system
Order entry, sales configuration, shipment planning and shipment execution.
Inventory control (finished product), invoicing, customer interaction and routing and scheduling.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Example – purchasing systems
Inventory controlRaw materials
Packing materials
Spare parts
Supplies
Purchase order processing
Receiving
Accounts payable
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
4. Human Resource IS
Support acquiring and managing human resources including:
recruiting, assessment, selection, placement, training, performance appraisal, compensation and benefit management, promotion, termination, occupational health and safety, and other activities.
Integrates with other systems like payroll.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Data and information
Data are raw facts about the organization and its business transactions. Most data items have little meaning and use by themselves.
Information is data that has been refined and organized by processing and purposeful intelligence. The latter, purposeful intelligence, is crucial to the definition—People provide the purpose and the intelligence that produces true information.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Information systems and technology
An information system (IS) is an arrangement of people, data, processes, communications, and information technology that interact to support and improve day-to-day operations in a business as well as support the problem-solving and decision making needs of management and users.
Information technology is a contemporary term that describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks).
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Front and back office information systems
Front-office information systems support business functions that reach out to customers (or constituents).
Marketing
Sales
Customer management
Back-office information systems support internal business operations and interact with suppliers (of materials, equipment, supplies, and services).
Human resources
Financial management
Manufacturing
Inventory control
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Federation of information systems
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Classes of information systems
1. Transaction processing systems
2. Management information systems
3. Decision support systems
4. Expert systems
5. Office automation systems
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
1. Transaction processing
Transaction processing systems are information system applications that capture and process data about business transactions.
Includes data maintenance, which provides for custodial updates to stored data.Business process redesign (BPR) is the study, analysis, and redesign of fundamental business (transaction) processes to reduce costs and/or improve value added to the business.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
2. Management information systems
A management information system (MIS) is an information system application that provides for management-oriented reporting. These reports are usually generated on a predetermined schedule and appear in a prearranged format.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
3. Decision support systems
A decision support system (DSS) is an information system application that provides its users with decision-oriented information whenever a decision-making situation arises. When applied to executive managers, these systems are sometimes called executive information systems (EIS).
A data warehouse is a read-only, informational database that is populated with detailed, summary, and exception data and information generated by other transaction and management information systems. The data warehouse can then be accessed by end-users and managers with DSS tools that generate a virtually limitless variety of information in support of unstructured decisions.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
4. Expert systems
An expert system is a programmed decision-making information system that captures and reproduces the knowledge and expertise of an expert problem solver or decision maker and then simulates the “thinking” or “actions” of that expert.
Expert systems are implemented with artificial intelligence technology that captures, stores, and provides access to the reasoning of the experts.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
5. Office automation systems
Office automation (OA) systems support the wide range of business office activities that provide for improved work flow and communications between workers, regardless of whether or not those workers are located in the same office.
Personal information systems are those designed to meet the needs of a single user. They are designed to boost an individual’s productivity.
Work group information systems are those designed to meet the needs of a work group. They are designed to boost the group’s productivity.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Information systems applications
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Information systems architecture
Information systems architecture provides a unifying framework into which various people with different perspectives can organize and view the fundamental building blocks of information systems.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Perspectives or stakeholders
System owners pay for the system to be built and maintained.
System users use the system to perform or support the work to be completed.
System designers design the system to meet the users’ requirements.
System builders construct, test, and deliver the system into operation.
Systems analysts facilitate the development of information systems and computer applications by bridging the communications gap that exists between non-technical system owners and users and technical system designers and builders.
IT vendors and consultants sell hardware, software, and services to businesses for incorporation into their information systems.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Focuses for information systems
Data—the raw material used to create useful information.Processes—the activities (including management) that carry out the mission of the business.
Interfaces—how the system interfaces with its users and other information systems.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Information system building blocks
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Data focus
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Data focus
System owners’ perspectiveBusiness knowledge is the insight that is gained from timely, accurate, and relevant information. (Recall that information is a product of raw data.)
System users’ perspectiveData requirements are a representation of users’ data in terms of entities, attributes, relationships, and rules. Data requirements should be expressed in a format that is independent of the technology that can or will be used to store the data.
System designers’ perspectiveDatabase schema
System builders’ perspectiveDatabase management system
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Process focus
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Process focus
System owners’ perspectiveBusiness functions are ongoing activities that support the business. Functions can be decomposed into other subfunctions and eventually into processes that do specific tasks.
A cross-functional information system supports relevant business processes from several business functions without regard to traditional organizational boundaries such as divisions, departments, centers, and offices.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Process focus (Cont’d)
System users’ perspectivesBusiness processes are activities that respond to business events. Business processes are the “work” performed by the system.
Process requirements are a representation of the users’ business processes in terms of activities, data flows, or work flow.
A policy is a set of rules that govern a business process.
A procedure is a step-by-step set of instructions and logic for accomplishing a business process.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Process focus (Cont’d
System designers’ perspectivesAn application schema is a model that communicates how selected business processes are, or will be, implemented using the software and hardware.Software specifications represent the technical design of business processes to be automated or supported by computer programs to be written by system builders.
System builders’ perspectivesApplication programs are language-based, machine-readable representations of what a software process is supposed to do, or how a software process is supposed to accomplish its task.Prototyping is a technique for quickly building a functioning, but incomplete model of the information system using rapid application development tools.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Interface focus
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Interface focus
System owners’ perspective
System users’ perspectivesInterface requirements are a representation of the users’ inputs and outputs.
System designers’ perspectiveUser dialogues describe how the user moves from window-to-window, interacting with the application programs to perform useful work.
System builders’ perspectiveMiddleware is a layer of utility software that sits in between application software and systems software to transparently integrate differing technologies so that they can interoperate.
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
Information system building blocks
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
The role of the network in IS
DataBuildingBlocks
ProcessBuildingBlocks
InterfaceBuildingBlocks
The network
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Communications focus in IS
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5 Ps of information systems development
Process - how we do it
Project - the structures we use to manage it
Product - the things we produce
People - lots of them in various roles
Problem - why we started in the first place
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Process
a set of activities inter linked and interdependent in time
choice as to what we accentuate, what we ignore
choice as to sequence and degree of linearity
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It is important to note....
Committing resources to activities; Committing to some change
Analysing organisational problems, work processes, user needs and business opportunities
Designing the future activities of information use and restructuring work processes (the future information system)
Designing and producing software
Acquiring and configuring hardware
Introducing the system to the organisation and to the people within it
Sustaining the new ways of working through time, and making further adjustments
Managing and controlling all the above activities
Copyright © 2003 Sherif KamelCopyright © 2001 Whitten, Bentley and Dittman
The life cycle
problem identification
feasibility study
project set up and planning
requirements specification
systems analysis
design
programming
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Project
To initiate the process
The unit the organisation recognises
Goals and resources
Framework for management
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Project activities
Organising
Coordinating
ControllingAn activity view (how)
A resource view (who and with what)
A product view (what)
An outcomes view (with consequences)
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Project manager
Achieve and sustain commitment
Plan activities and achieve a work breakdown
Estimate effort and cost
Allocate resources to tasks
Monitor milestones and deliverables
Manage risk, sustain quality, respond
Communicate and evaluate progress, problems and results
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Product (deliverables)
Concrete products, things to be made and delivered along the way
Things left behind when the project is over
Programs, a data base, a new order form
A training course
New jobs and new tasks
A viable and feasible information system
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Product in IS terms
hardware and software
documentation and training materials
data resources
formalised 'knowledge'
informational transformations and outputs
new jobs and new roles for people
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Qualities looked for in product
address the real problem
be cost effective
be user friendly…?
be reliable and secure
be sustainable
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Away from computing
cost
convenience
security
maintainability
politics
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People
Need people for an information systems
Information systems perspective only makes sense if people are there
Various ways of naming themUsers or participants
Customers and clients
Actors and members
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What do people want?
Knowledge contract
Psychological contract
Efficiency contract
Task structure contract
Value contract
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Problem
Why did we start to talk about information systems?
To achieve something new, better, different, but what?
What is a problem?‘A situation upon which someone may wish to act
Different problems, different people, different process etc.…
For the same problem we can choose to address it in different terms, different process, different project, different people, different product
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