Chapter Outline

Information Systems: Concepts and Definitions

Classification and Types of Information Systems
How IT Supports People
How IT Supports Supply Chains and Business
Processes
Emerging Computing Environments

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 Learning Objectives

1. Define information systems and describe various types

of information systems and categorize specific systems
you observe.
2. Relate and contrast transaction processing and
functional information systems.
3. Identify the major enterprise internal support systems
and relate them to managerial functions.
4. Analyze the support IT provides people in different roles
in the organization.
5. Describe the support IT provides to business processes
and the supply chain.

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 Learning Objectives contd

6. Explain information infrastructure and different

types of information architectures.
7. Distinguish the major types of Web-based
information systems and understand their
functionalities.
8. Describe emerging information technologies.
9. Analyze innovative and futuristic IT systems and
applications.

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The Business Performance Management Cycle
and IT Model

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2.1 Information Systems: Concepts and
Definitions

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 Figure 2.1

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The relationship among data, information, & knowledge.
2.2 Classification and Types of
Information Systems

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 Information systems
AI
Artificial Intelligence
KS/ES System
Knowledge / Expert
ESS System
Executive
Support
System

DSS
Decision
Support
System

MIS
Management
Information
System

TPS
Transaction
Processing
System

OAS
Office Automation
System

1951 21 century
Airlines,health care,university

Two o More countries,

ebusiness

Wall mart with supp

2 or more depts.

Accounting ,
Prod
POS
terminals

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 BI
Business Inteligence
Software architecture (Linux or Windows)
Database (RDBMS)
Analytical Tools (OLAP)
Graphical displays (dash boards
Decision making methods (Brain
storming,SWOT,consensus etc.)

Objective Timely analysis, of current

and historical data
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Table 2.1

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Figure 2.3 Functional information systems.

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Business processes across & beyond the enterprise.

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Table 2.2

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 Figure 2.8

Interrelated support systems. The TPS collects information that is used to build the MIS and
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the data warehouse. These feed the BI and other enterprise systems.
2.3 How IT Supports People

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 IT supports people
Operational Level
Shop floor clericalTPS/MIS
Managerial Level --
Tactical-Short term Planning
new Product launch
MIS
Strategic levels
Extensive processed info,,
Tools----BI,Lotus notes.
Top Level---
Strategic decisions
Long term planning 17
 IT supports people

Knowledge Workers Older Name ?

Support Supply Chains
Complex
Many Business Partners, Customers
Divided into three components
Internal Company -TPS,inventory
Upstream Suppliers -Relationships
Downstream Customers Best Buy.

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 IT supports people
RFID can improve supply chain
Uses electronic tags(chips)
Used instead of bar codes.
Attached or embedded.
uses radio waves
Uses are
Quick tracking
Better Inventory control
Extensive information.

Drawbacks
security
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 IT supports people
Information Infrastructure
Components of IS Physical , facilites,Services
and management support and computing
resources
Hardware , software network, database,
and data workers
Information Technology Architecture Physical
assets
Meet the strategic goals
Ex : Desktop publishing, Hospitals , Banks.
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Table 2.3

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 Figure 2.10

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Representative questions in the financial services industry.
2.5 Emerging Computing Environments

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 Cloud computing
It is computing where IT related services are
provided as a service
Example : Google uses web platform to
provide various services like google docs.
Desktop vs Cloud computing.

24
 Cloud computing
Steps in creating a cloud
Assemble your computing inventory where it
is installed.
What portion is in use
Geographical distribution
Grow and distribution (also create
fragmentation across offices)

25
 Cloud computing
Cloud characteristics
On demand self service
Broad Network access
Resource planning
Cloud Models
SOA - Software oriented architecture Reuse &
Reconnect
* Reduce Integration Cost
* IT alignment
* New applications faster
* Low IT maintenance cost
SPI Software platform and infrastructure
SaaS Software as a service
PaaS Platform as service
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 Cloud computing
Cloud Deployment
Private cloud - within the corporate firewall,
under the control of the IT
department.
Public cloud --- services and infrastructure are
provided off-site over the
Internet.
Community cloud--that is shared among several
organizations from a specific group
with common computing concerns
Hybrid cloud ---at least one private cloud and at least
one public cloud 27
 Emerging Computing Environments
Utility Computing
Computing that is available for your use
Pay as you use-Ex: mobile Travel Guide-
maintains 25000 restaurants-uses IBM servers.
Grid Computing
Group all the unused server idle time and
and give it over network
Pervasive computing
Computing is embedded in things--"machines
that fit the human environment instead of forcing
humans to enter theirs-Ex: Washing machine,Elecrtic
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Meter, Auto Pilot in aircrafts.
2.7 Managerial Issues

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 Managerial Issues

Transition to digital enterprise may be lengthy &

with lots of opposition to the needed change.
How to deal with outsourcing & utility computing
trends.
Ethical issues.
Risk of introducing new technologies.
Importance of supply chain management.
Importance of business intelligence.

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 Futuristic IS
Predictive Analysis- Sophisticated algorithms
designed to test large ampunt of data for
trends etc.

Copyright 2010 John Wiley & Sons, Inc. 31