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Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
Information Systems
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
An Information Systems (IS) is:
the business application of the computer.
The Information System:
Processes business transactions, andProvides management information
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
• Information Systems– “An organized combination of people, hardware,
software, networks and data resources that collect, transforms, and disseminates information in the organization.” James O’Brien (1998).
• Management Information Systems– Above definition plus…..Systems that provide people
with information relating to organizational operation, to support their Decision-Making activities
– Two Crucial Activities• Information Management• Management Reporting
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
Example information system: Payroll
Input data: employee details and rates of pay.Output transactions: bank transactions, payslips, etc.Management Information:payroll costs by department, etc.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
Example information system: Order Processing
Input transaction: customer order.Standing data: customer and product data.Output transactions: delivery note, invoice, etc.Management Information: sales analysis, etc.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Data
Information
Knowledge
meaning
useful
Information is a difference that makes a
difference
unstructured, uninformed
facts
To conceive of knowledge as a collection of
information seems to rob the concept of all of its
life... Knowledge resides in the user and not in the collection. It is how the
user reacts to a collection of information that
matters(Experience)
Understanding the nature of information
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Various Information Systems • TPS (Transaction Processing Systems)• MIS (Management Information Systems)• MRS (Management Reporting Systems)• DSS (Decision Support Systems)• EIS (Executive Information Systems)• SIS (Strategic Information Systems)• KMS (Knowledge Management Systems)• OIS (Office Information Systems)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
IS Types• Define and describe business processes and their relationship to information
systems.• Describe the information systems supporting the major business functions: sales
and marketing, manufacturing and production, finance and accounting, and human resources.
• Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other.
• Explain how enterprise applications and intranets promote business process integration and improve organizational performance.
• Assess the role of the information systems function in a business.• Assess how information systems support the activities of managers and
management decision making.• Demonstrate how decision-support systems (DSS) differ from MIS and how they
provide value to the business.• Demonstrate how executive support systems (ESS) help senior managers make
better decisions.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Business Processes• Business processes• How information technology enhances
business processes: efficiency and transformation
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Integrating Functions and Business Processes
• Business processes– Sets of logically related activities for accomplishing a
specific business result– Manner in which work is organized, coordinated, and
focused to produce a valuable product or service– Concrete work flows of material, information, and
knowledge—sets of activities– Unique ways to coordinate work, information, and
knowledge– Ways in which management chooses to coordinate work
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Order fulfillment process
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Information systems and business processes
• Information systems help organizations achieve great efficiencies by automating parts of processes
• IS also contributes to completely rethinking processes.
• Business processes typically span several different functional areas.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Information System Taxonomy
Constituency perspective
Functional perspective
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Business Functions• Sales and Marketing
– Identifying customers, creating customer awareness, selling
• Manufacturing and Production– Assembling product, checking quality, producing bills
of materials• Finance and Accounting
– Paying creditors, creating financial statements, managing cash accounts
• Human Resources– Hiring employees, evaluating performance, enrolling
employees in benefits plans
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
TPS• Transaction Processing Systems
– Inputs: transactions/records– Processing: data manipulation– Outputs: various detailed operational reports– Users: Operational level employees– Focus: improve efficiency of structured data
processing
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
An Example: Payroll System
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
MIS• Management Information Systems
– Inputs: high volume transaction data– Processing: routines, simple models– Outputs: summary reports– User: Middle-level managers– Focus: improve the efficiency and effectiveness
of management for middle managers
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
A typical MIS
Figure 2-6
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
DSS• Decision Support Systems
– Inputs: transaction/aggregate data, analytical models
– Processing: interactive (between man and machine)
– Outputs: decision analysis, responses to ad hoc query
– Users: Professionals, staff– Focus: increase the effectiveness of the
decisions made by middle managers
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Decision Making
Figure 12-1
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Architecture of DSS
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
ESS• Executive Support Systems
– Inputs: aggregate data from company– Processing: Interactive and live– Outputs: reports on projections, responses to ad
hoc queries– Users: senior managers, executives, BOD etc.– Focus: increase the non-routine decision
effectiveness of senior managers.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
A typical ESS
Internal Data
External Data
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Information Systems Interrelationships
feedback
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Summary
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Management Support Systems
• The support of management tasks by the application of technologies– Sometimes called Decision Support Systems or
Business Intelligence
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Learning Objectives
• Understand how management uses computer technologies.
• Learn basic concepts of decision-making. • Understands decision support systems.• Recognize different types of decision support
systems used in the workplace.• Determine which type of decision support system
is applicable in specific situations.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Factors Affecting Decision-Making
• New technologies and better information distribution have resulted in more alternatives for management.
• Complex operations have increased the costs of errors, causing a chain reaction throughout the organization.
• Rapidly changing global economies and markets are producing greater uncertainty and requiring faster response in order to maintain competitive advantages.
• Increasing governmental regulation coupled with political destabilization have caused great uncertainty.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
What do Management Support Systems Offer?
• Quick computations at a lower cost• Group collaboration and communication• Increased productivity• Ready access to information stored in multiple
databases and data warehouse• Ability to analyze multiple alternatives and apply
risk management• Enterprise resource management• Tools to obtain and maintain competitive
advantage
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Cognitive Limits• The human mind has limited processing and
storage capabilities.• Any single person is therefore limited in their
decision making abilities.• Collaboration with others allows for a wider range
of possible answers, but will often be faced with communications problems.
• Computers improve the coordination of these activities.
• This knowledge sharing is enhanced through the use of GSS, KMS, and EIS
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Management Support Systems Tools
• Decision support system (DSS)• Management Science• Business Analytics• Data Mining• Data Warehouse• Business Intelligence• Online analytical processing (OLAP)• Computer-assisted systems engineering (CASE) • Group support systems (GSS)• Geography information system (GIS)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Types• Enterprise information system (EIS)• Enterprise resource management(ERM)• Enterprise resource planning(ERP)• Customer resource management(CRM)• Supply chain management (SCM)• Knowledge management system (KMS)• Expert system(ES)• Artificial neural networks (ANN)• Intelligent Agents• E-commerce DSS
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)Decision Support Frameworks
Type of Control
Type of Decision: Operational Control Managerial Control Strategic Planning
Structured(Programmed)
Accounts receivable, accounts payable, order entry
Budget analysis, short-term forecasting, personnel reports
Investments, warehouse locations, distribution centers
Semistructured Production scheduling, inventory control
Credit evaluation, budget preparation, project scheduling, rewards systems
Mergers and acquisitions, new product planning, compensation, QA, HR policy planning
Unstructured(Unprogrammed)
Buying software, approving loans, help desk
Negotiations, recruitment, hardware purchasing
R&D planning, technology development, social responsibility plans
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Technology Support
Type of Control
Operational Control
Managerial Control
Strategic Planning
Technology Support Needed
MIS, Management Science
Management Science, DSS, ES, EIS, SCM, CRM, GSS, SCM
GSS, CRM, EIS, ES, neural networks, KMS
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Explanations of systems• MIS - Information systems at management level
to serve the function of planning, controlling, and decision making by providing routine summary and expectation reports.
• DSS - Information systems at management level to combine data and sophisticated analysis model to support non routine decision making.
• ESS - Information systems at strategic level designed to address non routine decision making through advanced graphics and communication
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Six Major Types Of Systems• TPS - Computerized system that perform and
record the daily routine transaction necessary to conduct the business.
• OS - Computer systems, such as word processing ,e-mail, scheduling, that are designed to increase the productivity of data workers in office.
• KWS - Information system that aid knowledge workers in the creation and integration of new knowledge in the organization.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Basic Six MSSType of system
Information Input Processing Information output Users
ESS Aggregate data;Internal, external
Graphics; simulation Projections; responses to queries
Senior manager
DSS Low-volume data ; analytic models & tools
Interactive ; simulation
Special reports ; decision analysis
Professionals ; staff managers
MIS Summary transaction data ;High volume data ; simple models
Routine reports ; low level analysis
Summary and exception reports
Middle manager
KWS Design specification ;Knowledge base
Modeling ; simulation
Models; graphics Professionals ; technical staff
OS Documents ; schedules Document management ; scheduling; communication
Documents ; Schedules ;mails
Clerical workers
TPS Transaction ; events Sorting; listing ; merging ;updating
Detailed reports ; lists; summaries
Operation personnel;supervisors
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
Organisational IS:
Corporate IS: large system(s) central to the core activity of the organisation.e.g. supermarket sales and stock replenishment. … any more ?
Additional (departmental) IS:
MarketingAccountsCustomer complaints…. Any more ??
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Introto IS
Chap 1
Example IT Infrastructure: a supermarket
EPOS
EPOS
EPOS
server
Store
EPOS
EPOS
EPOS
server
Store
EPOS
EPOS
EPOS
server
Store
datacentre
Head Office
server
RegionalWarehouse
server
RegionalWarehouse
order IS
Supplier
order IS
Supplier
order IS
Supplier
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
The study of IS encompasses:
The application and effect of IS within organisations:
The Business Context of IS (Part II).Business application and use of IS (Part III).Information Technology for IS (Part IV).Legal, Social and Ethical Implications of IS (Part VI)
The analysis, design and implementation of IS (Part V).
These topics are covered by your course text as indicated above.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
Business
Computers Storage & Comms
Project
Management
Systems Analysis &
Design
System Test
Project Quality
Acceptance Test
Programming
The IS Function in an Organisation
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
IS in Organizations
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)Further Roles in the IS Function.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
introduction to information systems: whiteley / palgravechapter 1 – information systems
Feasibility Study
System Analysis and Design
Program and Unit Test
System and Acceptence Test
Operations
The SystemDevelopment Lifecycle
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
IS Perspectives & Goals• IS Perspectives
– Operational activities– Management support– KM– Networking and e-activities
• Objectives & Goals– Operational Efficiency– Functional Effectiveness– Customer Service– Product Creation & Enhancement– Competitive Advantage– Communication and Networking– Control & Feedback
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Contemporary Issues• IS Theory seems to be still in evolution• People/Management a trouble area• Keeping yourself updated (choice of
technologies)• Investment Analysis for IS• Interaction between IT and other functional
areas• Career Development • For us as Academic participants (Teachers &
Students)– Controversial area of study (Hype another factor)– Still the most demanded course in field of IT
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Other Challenges• The challenge of IS planning• The challenge of time required for successful
organizational learning about IT limits the practical speed of change
• The challenge of managing disruptive technologies (e.g. the Internet)
• The challenge of developing competencies for harnessing IT
• The challenge of remaining ethical• The challenge of information security
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Counter Strategies• ??????????? (More Questions than
answers)• Circumstances might change from situation to
situation and organization to organization• Continuous search for better IS options• Knowledge about IS issues/strategies is more
crucial than having the latest technology• Recommendations
– Analysis of the IS decisions will require same care and deep thinking as done for other business and functional problems/situations
– Project Management
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)
Systems
• A system is made up of a number of parts combined in a particular way to do something useful. We think of the combined parts as a single thing and we give it a name.
Wheels, axles, pedals, gears, chain, seat and handlebars are combined to form a single whole we call a bicycle. A bike is a system when all the parts are connected correctly because it allows
the rider to move from one place to another more easily.
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)Systems
• Systematic– Words like “Arrangements, Coordination”– Objectives of Systems (clear definition,
optimization)• What is a System?
– Interrelated Elements that collectively work to achieve a common goal
– Physical Elements– Logical constitution– System Environment (internal Vs. external
influences)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)Systems…..
• Examples – Universities
• Departments• Staff• Courses• Hostels etc. • Environment• Logical Arrangements
– Class Room• Whiteboard• Chairs, Tables• Technologies (projectors)• Teachers• Students• Non-physical Things (Guess what could be?)
Adrian Gauci BA (Hons), MA, MBA (NY) - Associate Business Lecturer and MBA Dissertation Supervisor at
Adrian Gauci BA (Hons), MA, MBA (NY)System Models
• What is a Model?– Presentation of real world elements and the relationship
among them– Porter’s five forces Model, Management level’s Model etc.
• Why we need Models • Types (General Vs Specific)
– Graphical– Mathematical– Narrative– Physical
• Examples– Organization’s general model– Strategic Planning Models– DSS (utilizing models & modeling techniques)
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