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INTRODUCTION TO SYSTEM

A system

Is a set of interrelated components

With a clearly defined boundary

Working together to achieve a common set of objectives

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1-2

SYSTEMS HAVE THREE BASIC

FUNCTIONS :

Input involves capturing and assembling elements

that enter the system to be processed

Processing involves transformation process that

convert input into output

Output involves transferring elements that have

been produced by the transformation process to

their ultimate destination

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INFORMATION SYSTEM

An organized combination of

People

Hardware

Software

Communications networks

Data resources

Policies and procedures

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That stores, retrieves, transforms, and disseminates

information in an organization

INFORMATION SYSTEM

continues

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IS KNOWLEDGE FRAMEWORK

FOR BUSINESS PROFESSIONALS

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TYPES OF IS

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Type 1 - Operations supportsystems

What are they?

Efficiently process business transactions

Control industrial processes

Support communications and collaboration Update corporate databases

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Types of Operations Support

Systems

Transaction Processing Systems Record and process data from business transactions

Examples: sales processing, inventory systems,accounting systems

Process Control SystemsMonitor and control physical processes

Example: in a petroleum refinery use sensors tomonitor chemical processes

Enterprise Collaboration Systems Enhance team and work group communications

Examples: e-mail, videoconferencing

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Type 2 - Management SupportSystems

What are they?

Provide information and support for effective decisionmaking by managers

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Types of Management Support

Systems

Management Information Systems (MIS) Provide reports and displays to managers

Example: daily sales analysis reports

Decision Support Systems (DSS) Provide interactive ad hoc support for decision making

Example: A what-if-analysis to determine where tospend advertising dollars

Executive Information Systems (EIS) Provide critical information for executives and

managers

Example: easy access to actions of competitors

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Classifications of IS by scope

Functional business systems

Focus on operational and managerial applications of basicbusiness functions

Examples: support accounting, finance or marketing

Strategic information systems

Help get a strategic advantage over its customers

Examples: shipment tracking, e-commerce web systems

Cross-functional information systems

Systems that are combinations of several types ofinformation systems

Provide support for many functions

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IS Function represents

Major functional area of business

Important contributor to operational efficiency,employee productivity, morale, customer service and

satisfactionMajor source of information and support for effective

decision making

Vital ingredient in developing competitive products

and services in the global marketplace

Dynamic and challenging career opportunity

Key component of todays networked business

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Information systems model

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Components of an IS

People End users: the people who use the IS or the

information from the IS

IS specialists: the people who develop and operate IS

Hardware ResourcesAll physical devices used in information processing

Machines, data media, peripherals

Software Resources All information processing instructions including

programs and procedures

System software, application software and procedures

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Components of an IS (cont.)

Data Resources

Facts about the business transactions

Processed and organized information

Databases of organized dataNetwork Resources

Communications media

Network infrastructure: hardware and software

The Internet, intranets and extranets

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Measuring success of an IS

Efficiency

Minimize cost, time and use of information resources

Effectiveness

Support business strategies Enable business processes

Enhance organizational structure and culture

Increase the customer and business value

Whats the difference between Efficiency andEffectiveness?