Information Systems Applications

Informationdata as processed, stored, or transmitted by a computer.

Systema group of related hardware units or programs or both, especially when dedicated to a single application.

What is Information System?Information system(IS) is the study of complementary networks of hardware and software (information technology) that people and organizations use to collect, filter, process, create and distributedata.

HISTORY OF INFORMATION SYSTEMSThe earliest mainframe computers could only process a single task by a single user1946: ENIAC (Electronic Numerical Integrator and Calculator) was developed 1951: first computer installed by the U.S. Census Bureau 1954: first computer used by G.E.Over the last half century, hardware has seen many-fold increases in speed and capacity and dramatic size reductions Applications have also evolved from relatively simple accounting programs to systems designed to solve a wide variety of problems

Multitasking IBM revolutionized the computer industry in the mid-1960s by introducing the IBM System/360 line of computersThese computers were the first to perform multiple processing tasks concurrently

Smaller Computers The first small-scale systems, called minicomputers, were smaller and less powerful but could handle processing for small organizations more cheaplyEven smaller microcomputers designed for individual use were later developed, first by Apple and Tandy Corp.In 1982, IBM introduced the first personal computer, or PC, in 1982, which has since become the standard for individual computing

Moore's Law Coined in the 1960s by Gordon Moore, one of the founders of IntelStates that the storage density (and therefore the processing power) of integrated circuits is doubling about every yearBy the 1970s the doubling rate had slowed to 18 months, a pace that has continued up to the present

Information Systems ApplicationsWhat functions and procedures does the system perform?What type of information does the system provide?Which business functional unit can it support?Who uses and benefits from the system?

Role of Information Systems in OrganizationsSupport of its business processes and operationsSupport of decision-making by its managersSupport of its strategies for competitive advantage

Role of Information Systems in OrganizationsIt can provide early warning signals of problems that originate both externally and internallyIt can automate routine clerical operationsIt can assist all levels of managers in making routine (programmed) decisionsIt can provide the information necessary for management to make strategic (non-programmed) decisions

Major Types of Information SystemsTransaction Processing SystemsOffice Automation SystemsKnowledge Work SystemsManagement Information SystemsDecision Support SystemsExpert SystemsExpert Support/Information Systems

Transaction Processing SystemsDeveloped to process large amounts of data for routine business transactions

Transaction Processing SystemsBoundary-spanning systems that permit the organization to interact with the external environment

Transaction Processing SystemsAllow sorting, listing, merging, and updating of data and information

Transaction Processing SystemsHandle and produce data and information in the form of transactions, events, detailed reports, lists, and summaries

Transaction Processing SystemsSales and Marketing SystemsSales Order Information SystemMarketing Research SystemPricing SystemOrder Tracking and Processing

Transaction Processing SystemsManufacturing and Production SystemsMaterials Resource Planning SystemPurchase Order Control SystemEngineering SystemQuality Control System

Transaction Processing SystemsAccounting and Finance SystemsGeneral Ledger SystemAccounts Payable/Receivable SystemBudgeting SystemFunds Management System

Transaction Processing SystemsHuman Resource SystemsPayroll SystemEmployee Records SystemBenefit SystemCareer Path SystemTraining and Development System

Transaction Processing Systems

Office Automation SystemsSystems that make use of tools like word processing, electronic mail, calendaring features, and reminder files

Office Automation SystemsHandle document management, scheduling, and communicationsSupport data workers

Office Automation SystemsWord ProcessingDocument ImagingElectronic CalendarsSpreadsheetsDesktop PublishingVideo ConferencingVoice Mail

Office Automation Systems

Knowledge Work SystemsSupport professional workers such as scientists, engineers and doctors by aiding them to create new knowledge

Knowledge Work SystemsSupport the creation, organization, and dissemination of business knowledge to employees and managers throughout the organization

Knowledge Work SystemsComputer Aided DesignComputer Aided ManufacturingE-Learning SystemsScientific Computing SystemsEngineering, Graphics, and Managerial Workstations

Knowledge Work Systems

Management Information SystemsDeals with the planning for, development, management, and use of information technology tools to help people in the organization perform all tasks related to information processing and management

Management Information SystemsProvide information in the form of reports and displays to managers and many business professionals

Management Information SystemsProvide access to current performance and historical records of the organization

Management Information SystemsFocus entirely on internal events, providing the information for short-term planning and decision making

Management Information SystemsSales ManagementInventory ControlAnnual BudgetingCapital Investment AnalysisRelocation Analysis

Management Information Systems

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

Decision Support SystemsHave greater analytical power than other systems, incorporate modeling tools, aggregation and analysis tools, and support what-if scenarios

Decision Support SystemsSales Region AnalysisProduction SchedulingCost AnalysisPricing/Profitability AnalysisContract Cost Analysis

Decision Support Systems

Expert SystemsAlso known as Knowledge-Based SystemsApplication of Artificial IntelligenceDesigned to mimic the performance of human experts

Expert SystemsEffectively capture and use the knowledge of an expert for solving a particular problem experienced in an organization

Expert SystemsTraining SystemsEquipment DiagnosticsPortfolio ManagementTroubleshooting Systems

Expert Systems

Executive Support/Information SystemsHelp executives organize their interaction with the external environment and looking for ways to help them make decisions on the strategic level

Executive Support/Information SystemsAddress unstructured decisions and create a generalized computing and communications environment, rather than providing any fixed application or specific capability

Executive Support/Information SystemsDesigned to incorporate data about external events, such as new tax laws or competitors, and also draw summarized information from internal Management Information Systems and Decision Support Systems

Executive Support/Information SystemsThese systems filter, compress, and track critical data, emphasizing the reduction of time and effort required to obtain information useful to executive management

Executive Support/Information SystemsSales Trend ForecastingOperations PlanningBudget ForecastingProfit PlanningManpower Planning

Executive Support/Information Systems

Enterprise Resource Planning Systems (ERP)Over time, firms began to use many different kinds of information systems throughout the firmDuring the 1990s firms began to see the value in integrating all of these systems so that they could function as a coordinated unitERP systems are computer-based systems aimed at meeting this need that enable the management of all of a firms resources on an organization-wide basis

Thank you