what is is? p. pete chong martel corp prof of cis university of houston-downtown
TRANSCRIPT
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What is IS?
P. Pete ChongMartel Corp Prof of CIS
University of Houston-Downtown
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What is Information?
Supports Decision Anything that does not support
decision is only data What is Decision? Why Decision?
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Must Come Out Ahead
Profit = Revenue - Cost Profit = Benefit - Cost The goal is to increase profit, not just
to decrease cost or increase benefit
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Rational Decisions
For Profit > 0, Benefit/Cost > 1 This ratio makes a RATIOnal decision Decision can then be reduced to:
IF (B/C > 1) THEN
Do
ELSE
Don’t Do
ENDIF
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Wrong Decisions?
IF (Value > Threshold) THEN… Use wrong decision criteria False assessment of values
IF(B/C > 1) THEN… Benefit = Bij P(Bij)
Cost = Cij P(Cij)
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Information System IS Decision Support System
Management: Allocation of Resources Information: Data Analysis Systems: Information Technology
(narrow), Organization Restructure (broad)
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Pete’s Pet Rules
The 70% Rule The 5% Rule Modular Combination The 80/20 Rule
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The 70% Rule
Benefit to self comes from benefit to clients – customer-centered approach
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The 5% Rule
Things are processed only 5% of time – increase productivity by reduce waiting time
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Modular Combination
Any solution is a combination of existing solutions
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The 80/20 Rule
Significant Few vs. Trivial Many
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System Development Life Cycle (SDLC)
Enterprise View Requirements Analysis Logical Design Physical Design Implementation/Testing
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Enterprise View
Define goals
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Requirements Analysis
What does it take? Identify Critical Success Factors from
interview, and study documents and forms.
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Logical Design
Organize by relevance and usage Create a “system on paper” Assume “prefect technology”
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Physical Design
Find the “right” tools Modify LD result to fit reality
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Implementation and Testing
Coding and testing
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Benefits of Using SDLC
Separation of Managerial Issues from Technological Issues
Results of Logical Design is stable (change little over time) and portable (may be implemented using many different tools)
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Effectiveness vs. Efficiency
Goal definition and factor identification are effectiveness issues
ORGANization is an efficiency issue
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IS Impact: Value Chain View
Inbound Logistic Process Outbound Logistic Marketing and Sales Customer Service
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IS Impact: SDLC View
Automation Rationalization Reengineering Paradigm Shift
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Automation
Standard Operation Procedures Quick and measurable benefit
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Rationalization
Streamlining the process Remove unnecessary steps With automation and increased
reliability, the elimination of monitoring system (source of security problems?)
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Reengineering
Accomplish the same goal with different means
Replace qualitative decision criteria with quantitative ones
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Paradigm Shift
Changing goals, either contract or expand