Chapter 1 - Is and Business

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Introduction The domain of business information systems
Business Information Systems
Foundation Concepts: Information Systems and Technologies
introduction
Information technology (IT)
(abbreviated IT) refers to all of the computer-based information systems used by organizations and their underlying technologies.
related terms: it architecture & it infrastructure
introduction
Information system (IS) A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective Examples: ATMs, airline reservation systems, course reservation systems
IS are more then a computers

perspectives on information systems
IS vs. IT
Payroll System
INFORMATION TECHNOLOGY Hardware Software Databases are used to build INFORMATION SYSTEMS
Inventory System
Networks
Other related components
Marketing System
Customer Service System
DaimlerChrysler Agile Supply Chain Case Intro

Includes Chrysler group, The Mercedes , Small Passenger Car Group & Commercial Vehicles Unit More than 120 plants(45 countries), 20,000 suppliers & 15,000 sales outlets (210 countries) Auto Industry
Tough Competition Fickle Customers
Objective:
Bring new models rapidly & economically
DaimlerChrysler Agile Supply Chain Case Through IS Glass

Series of IS: Automate & Streamline
Transactions with its suppliers
Integrated Volume Planning System

Gathers Sales Data Production Planning Systems Suppliers (Adjust delivery of parts & Prod) Dealers (Right amount of vehicle models)
DaimlerChrysler Agile Supply Chain Case What IS has changed

Past
Quality Specialist store quality issues paper binders from part designing companies Any prod error 3 weeks to notify Supplier for changes
Now
Powerway (Web-Enabled Portal, Paperless) Designers Track parts thru nine QC gates Prod Identify potential design & engineering problems b4 parts are constructed
Outcome
Design new cars faster Remain Competitive
DaimlerChrysler Agile Supply Chain Case Sketch
A look at IPL Cricket
What IS a system?
A group of interrelated or interacting elements forming a unified whole, OR A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system). Three basic interacting components:
Input Processing (transformation process) Output
What IS a system? components of a system
Add Feedback and Control Loops..

And the system, now called a cybernetic system, becomes even more useful. Selfmonitoring Selfregulating
Components of an Information System
Data Versus Information

Monthly Sales Report for West Region
Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100
Data, Information, and Systems

Data vs. Information
Data
A given, or fact; a number, a statement, or a picture Represents something in the real world The raw materials in the production of information
Information
Data that have meaning within a context Data in relationships Data after manipulation

Data Manipulation
Example: customer survey
Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful. When manipulated, the surveys may provide useful information.
Information in Context
Figure 1.2 Characteristics of useful information
Data, Information and Systems

Generating Information
Computer-based ISs take data as raw material, process it, and produce information as output.
Figure 1.1 Input-process-output
DIKW Quartet
Data
Symbols Signs Represent: Stimuli Signals
Info
Symbolic Subjective Represent: Structural Functional
Knowledge
Processed Represent: Procedural Propositional
Wisdom Evaluated Understanding Represent: Judgments Decisions
DIKW Flow Diagram
Information LS
classification of information systems

organizational structure
EIS, IS
functional area
F,H,A,M
activity supported
S,M,O
support provided
TPS,MIS,KMS,OAS,DSS,GSS,ISS and etc
system architecture
mainframe, standalone, distributed (networking)
interrelated support systems
transaction process
MIS
DSS
Non computer support
External information
Data warehouse
EIS
Internet & Other computer support
The TPS collects information that is used to build the DSS and EIS. The information in the data warehouse and DSS can be used as an input to EIS
growing impact of IT/IS: factor 1. internet growth and technology convergence

e-business, e-commerce, e-government
2. transformation of the business enterprise

flattening, decentralization, flexibility, collaborative work
Organizations have discovered that they can cut huge amounts of indirect costs by limiting travelabout a $100 million annual expense for a $10 billion companyand reducing square footage dedicated to the individual worker. They are replacing expensive face-to-face meetings with remote technologies, and combining centralized workplaces with alternative workplace programs.
growing impact of IT/IS: factor

3. growth of a globally connected economy
global delivery systems, management control in a global marketplace
4. growth of knowledge and information based economies

k-economy, time based competition core business processes accomplished using digital network
5. emergence of the digital firm

The Benefits of Human-Computer Synergy
Synergy
When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately
Allows human thought to be translated into efficient processing of large amounts of data
ex: emergence of the digital firm
IS Perspectives - Interdependence
Information Systems Framework
Information Systems Concepts (Continued)

Foundation Concepts
Fundamental concepts about the components and roles of information systems.
Information Technologies
Major concepts, developments, and management issues in information technology.
Information Systems Concepts (Continued)

Business Applications
The major uses of information systems for operations, management, and competitive advantage.
Development Processes
How business professionals and information specialists plan, develop, and implement information systems.
Management Challenges
The challenge of managing ethically and effectively.
Approaches to IS
Technical Behavioral
Management Sciences Computer Sciences Operations Research & Mgmt Economics Sociology Psychology
Sociotechical
Avoiding Pure Technical Approach Optimize Social & Technical Systems
Need of IS
Respond changes in Marketplace quickly
Agility to Monitor & React to Data
See into systems & make changes on the fly
Align Manufacturing & Delivery with Cust needs
Elements of BIS
BIS is made up of a number of interdependent areas These areas overlap with other disciplines, which provide academic frames of reference
Figure 1.1: Elements of the Field
Figure 1.2: Reference disciplines

Building a model for the domain of BIS

An organisation is a series of inter-dependent activity systems which in combined action produce value
Value is the key flow between an organisation and actors in its environment
Businesses deliver value through products or services provided to customers Business receive value from suppliers or partners A business organisation is a value-creating system which interacts with a wider value network making up its environment see Figure 1.3
Figure 1.3: Organisation, activity systems and environment
Organisations require activity systems to function Activity systems in-turn rely on information systems An information system is a system of communication between a group of people to coordinate the action of individuals.
Figure 1.4: Information systems Business Information Systems
Information is data interpreted in some context A datum (a unit of data) is one or more symbols used to represent something On the basis of information supplied by the information system, decisions are made about appropriate actions to take
Figure 1.5: Data and information
Data is supplied to the information system by its ICT system
Figure 1.6: ICT systems and infrastructure
Business information systems have to be developed This is referred to as the information systems development process
Figure 1.7: Information systems development
After an information system is introduced, it begins to have effects:

First order effects concern issues of use Second order effects concern the impact of the information system
Figure 1.8: Use and impact
Effective planning and management are necessary to ensure information systems are successful and aligned with organisational strategy
Figure 1.9: Planning, management and operations
Case example: Goronwy Galvanising

Inputs into the Goronwy Galvanising system consist of black products Rito metals also supply zinc as raw material for the galvanising process Outputs consist of white products Transformation in this system is the process of galvanisation. The information flow consists of documents detailing deliveries and dispatches The physical flow of black material is received from the steel fabrication customer, the major actor in the environment
Figure 1.10: Goronwy Galvanising as a system
An organisation consists of a number of inter-dependent activity systems An activity system is a social system (or soft system) It consists of a logical collection of activities, processes or tasks in pursuit of some goal The precedence or order of activities is normally critical as this determines the flow necessary for the coordination of work In terms of our case, Goronwys activity systems are likely to consist of processes for: Receiving unfinished products Galvanising these products Dispatching finished products back to customers
Figure 1.11: The activity system at Goronwy
Goronwy has a manual information system - it relies on the flow of documents to inform the coordination of activity The delivery advice note supplied with BlackWalls products is identified by a delivery advice number specific to this manufacturer Each batch is identified on the delivery advice note by an order number generated by BlackWalls
Figure 1.12: Sample delivery advice note Business Information Systems
After checking, details from the delivery advice notice are transcribed to a job sheet A separate job sheet is filled in for each order-line on the delivery advice note
Figure 1.13: Sample job sheet Business Information Systems
When the shop-floor has treated a series of jobs a dispatch advice note is issued Each trailer for dispatch will have an associated dispatch advice note detailing the white material on the trailer Because of discrepancies, partial despatches may be made from one job - so the information on delivery advices need not correspond precisely with the information on dispatch advices.
Figure 1.14: Sample dispatch advice note Business Information Systems
Figure 1.15: The information system at Goronwy
Shows: Physical transformation Information handling activities Stores of records
Information models
Information models show the structure of information, particularly the information of relevance to decision-making. Boxes indicate individual elements of information or information classes Connecting lines indicate an association between information classes Symbols attached to each line represent a number of rules governing the behaviour of the association between classes
Figure 1.16: Information model for Goronwy Galvanising
ICT systems in focus

An ICT system Is an organised collection of hardware, software, data and communication technology Takes data as input, manipulates it and outputs manipulated data for interpretation Is a technical system Is a hard system (i.e. consists of an assembly of designed artefacts)
Figure 1.17: An ICT system, information system and activity system
ICT systems consist of three inter-dependent layers : Data management Business Interface
Figure 1.18: Layers of an ICT system
ICT systems rely on a database (which is a repository for the data used within the system) The database is controlled by the data management layer The design for the structure of the database is referred to as a data model The data model defines what data will be stored within the system and in what form
Figure 1.19: Order lines data structure
Figure 1.20: Part of the proposed interface for the Goronwy ICT system
System Software & Types
Def Types
Designed to operate the computer hardware Platform for running App Software
BIOS/Device Firmware Loaders/Linkers OS Utility Software Shells Hypervisors DBMS
Business Application Softwares

Comes on Top of Middleware & System Software Enterprise Software: ERP, CRM, SCM, IT Helpdesk - Salesforce, SAP, SAS, SPSS, Oracle, Compiere
Accounting Software: Tally
Office Suites: Netsuites, Office 2010, Open Office
Graphics Softwares: Adobe CS5, Maya, 3DMax
Enterprise Infra Software: Business workflow s/w, Digital Asset Management, DBMS & GIS
Integration Packages
Combining various Business Functionalities using S/w Packaging MS Visual Studio; SAP SWIFT Integration Package; HP OpenView; CISCOWorks; MS SQL Server Integration
Database & Its Management

Def
Coll of Ordered data Create, Maintain & Use
Model
Relational: Attributes & their relationships RDBMS Oracle, MySQL, SQL Server Network: Objects & their relationships OODBMS
Query Control Data Access, Enforce Data Integrity, Use & Scope Manage Concurrency and Backup & Restore

Chapter 1 - Is and Business

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Chapter 1 - Is and Business

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Continue from Chapter 1

Introduction The domain of business information systems

Business Information Systems

Foundation Concepts: Information Systems and Technologies

Business Information Systems

Business Information Systems

Business Information Systems

IS are more then a computers

Business Information Systems

Customer Service System

Business Information Systems

DaimlerChrysler Agile Supply Chain Case Intro

Business Information Systems

DaimlerChrysler Agile Supply Chain Case Through IS Glass

Integrated Volume Planning System

Business Information Systems

DaimlerChrysler Agile Supply Chain Case What IS has changed

Business Information Systems

DaimlerChrysler Agile Supply Chain Case Sketch

Business Information Systems

Business Information Systems

A look at IPL Cricket

Business Information Systems

What IS a system? components of a system

Business Information Systems

Add Feedback and Control Loops..

Components of an Information System

Business Information Systems

Data Versus Information

Business Information Systems

Data, Information, and Systems

Business Information Systems

Data, Information, and Systems

Business Information Systems

Figure 1.2 Characteristics of useful information

Business Information Systems

Data, Information and Systems

Figure 1.1 Input-process-output

Business Information Systems

Wisdom Evaluated Understanding Represent: Judgments Decisions

Business Information Systems

DIKW Flow Diagram

Business Information Systems

Business Information Systems

Business Information Systems

classification of information systems

Business Information Systems

interrelated support systems

Non computer support

Internet & Other computer support

Business Information Systems

growing impact of IT/IS: factor 1. internet growth and technology convergence

2. transformation of the business enterprise

Business Information Systems

growing impact of IT/IS: factor

4. growth of knowledge and information based economies

5. emergence of the digital firm

Business Information Systems

Data, Information, and Systems

Business Information Systems

ex: emergence of the digital firm

Business Information Systems

Business Information Systems