INTRODUCTION TO

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INFORMATION SYSTEM
 What is a System?
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 A system is a group of elements that are integrated with the common
purpose of achieving an objective. An organization such as a firm or a
business area fits this definition.
 Input resources are transformed into output resources. The resources flow
from the input element, through the transformation element, and to the
output element.
  A control mechanism monitors the transformation process to ensure
that the system meets its objectives.
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 Feedback helps you determine if the system is achieving its
goal. Feedback is information about how the system is performing.
 Feedback can help you identify problems with the system
 A system exists within an environment
 A boundary separates a system from its environment
System Components
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Objectives

Control Feedback
mechanism

Input Transformation Output

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5 System Components
 Systems
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Can Be Composed of Subsystems or Elemental Parts

System

Subsystem A Subsystem B Elemental

Part C

Subsystem A-1 Subsystem B-1

Subsystem A-2 Subsystem B-2

Elemental
Subsystem A-3
part B1 1-6
Physical
7 and Conceptual Systems

 Physical system
 The business firm
 Composed of physical resources
 Conceptual system
 Represents a physical system
 Uses conceptual resources
 Information
 Data

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What is Information System (IS)?

In a general sense , the term Information System

(IS) refers to a system of people, data records
and activities that process the data and
information in an organization, and it includes
the organization's manual and automated
processes.
In a narrow sense, the term information system (or
computer-based information system) refers to
the specific application software that is used to
store data records in a computer system and
automates some of the information-processing
activities of the organization.
9 Basic Concepts

 Information systems in organizations

thus, provide information support for
decision makers. Information systems
encompass transaction processing
system, decision support system, and
strategic information system.
 Information Systems
 Crucial to success of modern business organizations
 Constantly being developed to make business more competitive
 Impact productivity and profits
 Keys to successful systems development
 Thorough systems analysis and design
 Understanding what business requires

Systems Analysis and

Design in a Changing 10
World, 3rd Edition
Overview

 Systems analysis – what system should do

 Systems design – how components of information system should

be physically implemented

 Systems analyst – uses analysis and design techniques to solve

business problems with information technology

Systems Analysis and

Design in a Changing 11
World, 3rd Edition
12Generating Information:
Computer-based ISs take data as raw material,
process it, and produce information as output.
 Other Components of
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Information System
14 Information Systems

Why Do People Need Information?

Individuals - Entertainment and enlightenment

Businesses - Decision making, problem solving

and control
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 Information in Context

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Fig.1 Characteristics of useful information

21 Data, Information,
and Systems
 The Four Stages of Data Processing

◦ Input: Data is collected and entered into computer.

◦ Data processing: Data is manipulated into information

using mathematical, statistical, and other tools.

◦ Output: Information is displayed or presented.

◦ Storage: Data and information are maintained for later

use.
22 Why Study IS?

 Information Systems Careers

 Systems analyst, specialist in enterprise resource
planning (ERP), database administrator,
telecommunications specialist, consulting, etc.
 Knowledge Workers
 Managers and non-managers
 Employers seek computer-literate professionals
who know how to use information technology.
 Computer Literacy Replacing Traditional Literacy
 Benefits of Information System
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 Faster and more accurate transactions

 Better managerial decision making
 Improves inventory and asset management
 Ease of expansion/growth and increase flexibility
 Fewer physical resources and improves
logistics/transportation
 Cycle time reduction
 Improves customer service and retention
 Head count reduction/personnel reduction
 Increase revenue
 Productivity improvement
Expanding Roles of IS
1. Data Processing: 1950s-1960s
2. Management Reporting: 1960s-1970s
3. Decision support: 1970s-1980s
4. Strategic and End User Support: 1980s-1990s
5. Global Internetworking: 1990s-2000s
Expanding Role of IS
Information Systems are being used in more
areas, especial at the strategic level.
At the same time, Information Systems are
expanding participation of
End Users (The Grunts)
Biggest advantages of IS:
Information can flow up
the pyramid faster and
more effectively.
Types of Information Systems
Transaction Processing System (TPS)

 Supports Operations
 Updates Operational Databases
 Examples:
 ATM Machine System – Banking
Transactions
 Cash Register System – Point of Sale
Transactions
 Accounting System – Checking Account
Transactions
 Even Pay-per-view or OnDemand is a TPS
Process Control Systems
(PCS)
 Supports Operations
 Monitor and Control Industrial/Manufacturing Process
 Examples:
 Petroleum Refining
 Power Generation
 Automobile Manufacturing
Enterprise Collaboration Systems (ECS)

 Supports Operations (Surprised?)

 Teamwork, communication, and collaboration
 Examples:
 E-mail
 Chat
 Video Conferencing
 Calendaring
 Journaling
 Workflow
 File Sharing (Kazaa, Morpheus, Limework, Napster)
Management Information System (MIS)

Supports Management
Analysis & Reporting
Charts, Graphs, Summary Tools
Examples:
Spreadsheet (Excel) – One of the first
and most basic
Oracle's Corporate Performance
Management
Decision Support System
(DSS)
 Support Management
 What-if Analysis, Decision Modeling,
Scenario Building, Highly interactive,
ad hoc.
 Examples
 Enterprise Decision Manager 2.0 Fair
Isaac Corporation
 AIMMS 3.6
 Most DSS’s are custom developed for
specific companies; very few out-of-
the-box products.
Executive Information Systems (EIS)

 Supports high-level strategic management

 Provides critical info from other systems (MIS
and DSS).
 Portal Concept: one place with links to all
information
 EIS’s integrate external information such as
economic developments and news about
related markets and competitors. Helps
strategic decision making, not necessarily
tactical.
 Tactical – doing things the right way right
 Strategic – doing the right things
Management Information Systems
for Competitive Advantage

 Provides support to managers as they work to achieve corporate

goals
 Enables managers to compare results to established company
goals and identify problem areas and opportunities for
improvement
 Internet An Organization’s
MIS

Financial
MIS
Business
transactions

Drill down reports

Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports

Business
transactions
Databases Human
of
Resources Etc.
external
data MIS
Extranet
Etc.

Figure 9.3
Financial MIS

 Provides financial information to all financial managers

within an organization.

Schematic
Inputs to the Financial Information
System

 Strategic plan or corporate policies

 Contains major financial objectives and
often projects financial needs.
 Transaction processing system (TPS)
 Important financial information collected
from almost every TPS - payroll, inventory
control, order processing, accounts
payable, accounts receivable, general
ledger.
 External sources
 Annual reports and financial statements
of competitors and general news items.
Financial MIS Subsystems and
Outputs

 Financial subsystems
 Profit/loss and cost systems
 Auditing
 Internal auditing
 External auditing
 Uses and management of funds
Manufacturing MIS

Schematic
 Inputs to the Manufacturing
MIS
 Strategic plan or corporate policies.
 The TPS:
 Order processing
 Inventory data
 Receiving and inspecting data
 Personnel data
 Production process
 External sources
Manufacturing MIS Subsystems
and Outputs

 Design and engineering

 Master production scheduling
 Inventory control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing (CIM)
 Quality control and testing
Marketing MIS

 Supports managerial activities in product

development, distribution, pricing decisions, and
promotional effectiveness

Schematic
Inputs to Marketing MIS

 Strategic plan and corporate policies

 The TPS
 External sources:
 The competition
 The market
Marketing MIS Subsystems and
Outputs
 Marketing research
 Product development
 Promotion and advertising
 Product pricing
Human Resource MIS

 Concerned with all of the activities related to

employees and potential employees of the
organization
Inputs to the Human Resource MIS

 Strategic plan or corporate policies

 The TPS:
 Payroll data
 Order processing data
 Personnel data
 External sources
Human Resource MIS Subsystems
and Outputs

 Human resource planning

 Personnel selection and recruiting
 Training and skills inventory
 Scheduling and job placement
 Wage and salary administration
 Other MISs

 Accounting MISs
 Provides aggregated information on accounts payable, accounts
receivable, payroll, and other applications.
Outputs of a
Management Information
System
 Scheduled reports
 Produced periodically, or on a schedule (daily,
weekly, monthly)
 Key-indicator report
 Summarizes the previous day’s critical activities
 Typically available at the beginning of each day
 Demand report
 Gives certain information at a manager’s request
 Exception report
 Automatically produced when a situation is
unusual or requires management action
 Scheduled Report Example

Daily Sales Detail Report

Prepared: 08/10/xx
Order Customer Sales Ship
# ID Rep ID Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720
 Key Indicator Report
Example

Daily Sales Key Indicator Report

This Last Last

Month Month Year
Total Orders Month to Date $1,808 $1,694 $1,014

Forecasted Sales for the Month $2,406 $2,224 $2,608

 Demand Report Example

Daily Sales by Sales Rep Summary Report

Prepared: 08/10/xx
Sales Rep ID Amount
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350
52 The Analyst as a Business
Problem Solver
 Understands business problems
 Uses logical methods for solving
problems
 Has fundamental curiosity
 Wants to make things better
 Is more of a business problem solver than
technical programmer
 53 Technical Knowledge and
Skills
 Analyst uses tools:
 Software productivity packages (MS Office)
 Integrated development environments (IDEs) for programming languages
 CASE tools / coding, testing, and documentation support packages
 Analyst understands SDLC phase techniques:
 Project planning
 Systems analysis, systems design
 Construction, implementation, systems support
54 Business Knowledge and
Skills
 Analyst must understand:
 Business functions performed by organization

 Organizational structure

 Organization management techniques

 Functional work processes

55 People Knowledge and Skills

 Systems analysts need to understand how people:

 Think

 Learn

 React to change

 Communicate

 Work (in a variety of jobs and levels)

56 People Knowledge and Skills
(continued)
 Interpersonal and communication skills are crucial to:

 Obtaining information

 Motivating people

 Getting cooperation

 Understanding the complexity and workings of an

organization in order to provide necessary support
57 Integrity and Ethics

 Analyst has access to confidential information such as

salary, an organization’s planned projects, security
systems, etc.

 Must keep information private

 Any impropriety can ruin an analyst’s career

 Analyst plans security in systems to protect confidential

information
Required Skills of the Systems
Analyst
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