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Why Do People Need Information?

Individuals - Entertainment and enlightenment

Businesses - Decision making, problem

solving and control

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Management information system

(MIS) Management information system (MIS)

An MIS provides managers with information and support foreffective decision making, and provides feedback on daily

operations

Right Information

To the right person

At the right placeAt the right time

In the right form

At the right cost

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Data

Raw facts such as an employees name

and number of hours worked in a week,.Information

Data presented in a meaningful context.

Data Information

$35,000

12 Unit $12,000J. Jones WesternRegion $100,000 100Units 35Units

DataProcessing

Salesperson : J. JonesSales Territory : WesternRegion Current Sales :147 Units = $ 147,000

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Data vs. InformationData

raw facts

just numbers and text

Information

processed data

value-added to data summarized

organized

analyzed

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Data vs. Information

Data 6.34

6.45

6.39 6.62

6.57

6.64

6.71

6.82 7.12

7.06

SIRIUS SATELLITE RADIO INC.

$5.80

$6.00

$6.20

$6.40

$6.60

$6.80

$7.00

$7.20

1 2 3 4 5 6 7 8 9 10

Last 10 Days

Stock

Price

Information

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GENERATING INFORMATION

Raw data areprocessed in an IS tocreate final useful

information

Process:Manipulation of data

Computer-basedISs: process data toproduce information

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Good information possesses these attributes:

Information Quality:measures information accuracy andreliability.

Timeliness:information is needed when managerial action istaken.

Real Time Information: reflects the current condition.

Completeness:manager has the information to act.

Relevance:information matches the managers specific needsat hand.

Irrelevant information does not apply

HighQuality

Relevant Timely

Relatively

Complete

UsefulInformation

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Intelligence The ability to acquire and apply knowledge and skills.

Two types of intelligence

- Natural intelligence- -Artificial intelligence

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Natural intelligenceDifficult

Takes time

Inexpensive

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Artificial intelligenceIt is concerned with two basic ideas Involves studying the thought processes of humans

Deals with representing those processes via machinesuch as computers, robots,etc

Easy

Fast

In Expensive - when shared by many users with

repetitive use.

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Information technologyI.T. is a combination of various techniques for data

capture, data storing, data processing, datatransmission, information retrieval, and informationdisplay

IT = CT(Computer Technology) + TCT

(Telecommunication Technology)

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Functions of information

TechnologyData capture- collect data from various sources.

Data storage-Data is stored in media for future use.

Data transmission-Data is transmitted from 1 place toanother.

Data Processing-Conversion of data into information.

Data Retrieval-Finding out the needed information.

Data display-Presenting information to user.

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INFORMATION TECHNOLOGY

ARCHITECTURE Information architecture is the particular form that

information technology takes in an organization toachieve selected goals or functions.

It is a design for the firms key business applicationsystems and the specific ways that are used by eachorganization.

Information architecture meet business requirementsnow and in future

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Information technologiesHardware software Mobile Magnetic tape Optical disc Pen based computing Speech based computing Optical scanning

Electronic mail

Electronic spread sheet Programming languages

Web languages

Data Resource Management

Data warehousing

Data mining

Telecommunications andnetworks Internet

Extranet

Intranet

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INFORMATION TECHNOLOGY ARCHITECTURE

TECHNOLOGY PLATFORM

DATA RESOURCES

APPLICATIONSARCHITECTURE

IT ORGANISATION

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INFORMATIONTECHNOLOGY

Hardware

Software

Databases

Networks

Other relatedcomponents

are used to build

INFORMATIONSYSTEMS

PayrollSystem

Inventory System

Marketing System

CustomerServiceSystem

IS Vs IT

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Evolution of information system Transaction processing systems these process data

resulting from business transactions, update operationaldatabases, and produce business documents. Examples:

sales and inventory processing and accounting systems. Office automation systems automate office procedures

and enhance office communications and productivity.

Management information systems provide

information in the form of pre-specified reports anddisplays to support business decisionmaking. Examples:sales analysis, production performance and cost trendreporting systems.

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Decision support systems provide interactive supportfor the decision-making processes of managers and otherbusiness professionals. Examples: product pricing,profitability forecasting and risk analysis systems

Executive information systems provide criticalinformation from MIS, DSS and other sources, tailored to

the information needs of executives. Examples: systems foreasy access to analysis of business performance, actions ofall competitors, and economic developments to supportstrategic planning.

Expert systems knowledge-based systems that provideexpert advice and act as expert consultants to users.Examples: process monitor, and diagnostic maintenancesystems.

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Artificial intelligence

It is concerned with two basic ideas

Involves studying the thought processes of humans Deals with representing those processes via machine

such as computers, robots, etc

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Evolution

TPS - Focus on Data

OAS - Focus on Communication

MIS - Focus on Information DSS - Focus on Decision Support

EIS - Focus on Decision Support

ES - Focus on Consultation

AI - Focus on self-learning / thinking systems

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MIS

TPS

DSS

OAS

EIS

ESAI

1950s 21st Century

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Operational Managers

Data Workers

Middle Managers

Senior Mgr

Expert system

Decision Support System

Executive InformationSystem

Management Information System

Office Automation System

Transaction Processing System

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Types based on functions of

information system

The accounting information system

The finance information system

The manufacturing (operations, production) information

system The marketing information system

The human resources information system

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Marketing Information Systems Systems that help the firm identify customers

for the firms products or services, developproducts and services to meet customersneeds, promote products and services, sell theproducts and services, and provide ongoing

customer support.EXAMPLES

System Description Organizational Level

Order processing Enter, process, and track orders Operational

Market analysis Identify customers and markets using Knowledge

data on demographics, markets,consumer behavior, and trends

Pricing analysis Determine prices for products Management

and services

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Finance and Accounting Systems

Systems that keep track of the firms financial

assets and fund flows.

Examples


Accounts receivable Track money owed the firm Operational

Portfolio analysis Design the firm's portfolio of investments Knowledge

Budgeting Prepare short-term budgets Management

Profit planning Plan long-term profits Strategic

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Manufacturing and Production Systems

Systems that deal with the planning,

development, and production of products andservices and with controlling the flow of

production.

Examples


Machine control Control the actions of machines Operational

and equipment

Computer-aided design (CAD) Design new products using Knowledge

the computer

Production planning Decide when and how many Managementproducts should be produced

Facilities location Decide where to locate new Strategic

production facilities

H R S t

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Human Resources Systems

Systems that maintain employee records; Track

employee skills, job performance, and training;And support planning for employee compensation

and career development.

Examples


Training and development Track employae training, skills, Operational

and performance appraisals

Career pathing Design career paths for employees Knowledge

Compensation analysis Monitor the range and distribution Management

ofemployee wages, salaries, and bene6csHuman resources planning Plan the long-term labor force needs Strategic

of the organization

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Types based on Hierarchy of IS

Information Systems

Operations Support

SystemManagement SupportSystem

Transactionprocessingsystems

Processcontrolsystems

Officeautomationsystems

Managementinformationsystems

Decisionsupportsystems

Executiveinformationsystems

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1. Operations support systems process data generated by business operations

Major categories are:

i) Transaction processing systems

ii) Process control systems

iii) Office automation systems

2. Management Support Systems provide information and support needed foreffective decision making by managers

Major categories arei) Management Information System

ii) Decision Support Systems

iii) Executive Information System

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1. Operations Support System

i) Transaction processing systems

Process business exchanges Maintain records about the exchanges

Handle routine, yet critical, tasks

Perform simple calculations

ii) Process control systems monitor and control industrial processes.

iii) Office automation systems automate office procedures and enhance officecommunications and productivity.

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2. Management support systems provide information and support needed foreffective decision making by managers

Major categories are:

i) Management information systems

Routine information for routine decisions

Operational efficiency

Use transaction data as main input

Databases integrate MIS in different functional areas

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ii) Decision Support System

Interactive support for non-routine decisions or problems End-users are more involved in creating a DSS than an MIS

iii) Executive information systems

provide critical information tailored to the information needs of executives

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Other categories

a) Expert systems

b) Business information systems

a) Expert Systems are knowledge-based systems that provides expert advice and act

as expert consultants to the usersb) Business information systems support the operational and managerial

applications of the basic business functions of a firm

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Definition of system

System is a group ofinterrelated componentsworkingtogether toward a common goal by accepting inputand producing outputs in an organized transformationprocess.

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System has three basic interacting components orFunctions:

1. Input2. Processing3. Output

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1.Input Involves capturing and assembling elements thatenter the system to beprocessed. For ex. Raw materials,energy, data, and human effort must be secured and

organized for processing. 2.Processing involves transformation processes that

convert into output. Ex:manufacturing process, the humanbreathing process or mathematical calculations.

3.Output involves transferring elements that have been

produced by atransformation process to their ultimatedestination. E.g. finished products, human services, andmanagement information must be transmitted to theirhuman users.

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The system concept becomes even more useful byincluding two addition components: feedback and control

Feedback: is data about the performance of a system. Ex.

Data about sales performance is feedback to a salesmanager.

Control: Involves monitoring and evaluating feedback to determine

whether a system is moving toward the achievement of its

goal. The control function then makes necessary adjustments to a

systems input and processing components to ensure that itproduces proper output.

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The System Analyst is one who figure out how to use

computers to get things done.

Any system in the world need some one to analyze it to

identify the problems in it and to help in recommendation

and in the improvement of the system.

In term of the computer system, we need the analyst to

perform this work.

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Role of a System Analyst Change Agent:

Among all the roles of a system analyst, it is the most wide-ranging andresponsible role. They are also known as the person who serves as a catalyst forchange, develops a plan for change, and works with others facilitating thechange. Analyst carefully plans, monitors and implements change into the userdomain because people inherently resist changes. In the role of a change agent,Systems Analyst may use different approaches to introduce changes to the userorganization.

Consultant:

They are an agent to a business. They set as to address Information Systemsissues with in a business. They can give you different perspective. They will alsohelp you to understand organizational culture from other viewpoints.

Intermediary:The analyst tries to appease all parties involved while implementing a

candidate system. People can improve acceptance of the system throughDiplomacy in dealing. It is the goal of a system analyst to have the support

of all the users. He represents their thinking and tries to achieve theirgoals through computerization.

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Architect:

The architect role of a system analyst is a liaison between the user's logical designrequirements and the detailed physical system design. In this role he also

creates a detailed physical design of candidate systems. On the basis of end user

requirements a systems analyst makes the design of information systemarchitecture. This design becomes the blue print for the programmers. Motivator:

The analyst's role as a motivator becomes obvious during the first few weeks afterimplementation and during times when turnover results in new

people being trained to work with the candidate system. As the System acceptance isachieved through user participation in its development,

effective user training and proper motivation to use the system. Investigator and Monitor:

A systems analyst as an investigator, investigates the existing system to find thereasons for the failure. His role is to extract the problems from existing systems

and create information structures that uncover previously unknown trends that mayhave a direct impact on organization. And as a monitor, to undertake and

successfully complete a project, the analyst must monitor programs in relation to

time, cost, and quality. Of these resources, time is the most important. If time"gets away", the project suffers from increased costs and wasted human resources.Implementation delays also mean the system will not be ready on time, which

frustrates users and customers alike.

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Psychologist:

Since systems are built around people, a System Analyst plays the role of apsychologist in the way he/she reaches people, interprets their thoughts,

assesses their behavior, and draws conclusions from these interactions. Inother words, understanding inter functional relationships is important.

Salesperson:Selling change can be as crucial as initiating change. Selling the system

actually types place at each step in the system life cycle, however, Sales skillsand

persuasiveness, then, are crucial to the success of the system.

Politician:In implementing a candidate system, the analyst tries to appease all

parties involved. Diplomacy and finesse in dealing with people can improveacceptance of the system. In as much as a politician must have the support

of his/her constituency, so is the analyst's goal to have the support ofthe users' staff. He/she represents their thinking and tries to achieve their

goals through computerization.

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Functions of System Analyst System Development:

Systems analysts and programmers are organized into permanent teams that support theinformation systems and applications for specific business function. A systemdevelopment unit includes a centre for excellence, which is a group of experts(experienced systems analysts, system designers, and system builders) who establish andenforce methods, tools, techniques and quality for all system development projects.

Data Administration:

In Data Administration, data and other Information Resources of the organization aremanaged, which includes databases that are used to support applications by systemdevelopers. Those analysts who are experts in data analysis can work here who arecommonly known as Data Analysts. They analyze database requirements, design andconstruct (sometimes) the corresponding databases.

Telecommunications:

In Telecommunication, the computer networks are designed, implemented and managedwhich play a critical role in the success of any business. Here, Network analysts performmany of the tasks as applied to designing local and wide area networks that willultimately be used by systems and applications.

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End-user Computing:

The growing base of personal computers and local area

networks in the end user community are supported. Thisprovide installation services, training and help-deskservices. Analysts also provides standards and consulting toend users that develop their own systems with PC powertools such as spreadsheets and PC database management

systems. In this centre, analysts may work as End-usercomputing consultants.

Computer Operations:

Computer Operations include all of the shared computersincluding minicomputers and other computers are put tooperation and the same is coordinated. Systems Analystsmay work as Capacity Analysts in this area.

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