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Information Systems
Framework
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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 informationtechnology.
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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 byaccepting inputs and producing outputs in
an organized transformation process
(dynamic system). Three basic interacting components:
Input
Processing (transformation process)
Output
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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 byaccepting inputs and producing outputs in
an organized transformation process
(dynamic system). Three basic interacting components:
Input
Processing (transformation process)
Output
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Other System Characteristics
A system exists and functions in an
environment containing other systems.
Subsystem a component of a largersystem.
Systems that share the same
environment may be connected to one
another through a shared boundary, or
interface.
Open versus closed system.
Ada tive s stem
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MIS
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Major Roles of IS
SupportCompetitive
Advantage
SupportBusiness
Decision Making
Support ofBusiness Processes and Operations
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CLASSIFICATION OF INFORMATION SYSTEMSCLASSIFICATION OF INFORMATION SYSTEMS
DATAWORKERSDATAWORKERS
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIORSTRATEGIC LEVEL SENIOR
MANAGERSMANAGERS
MANAGEMENT LEVEL MIDDLEMANAGEMENT LEVEL MIDDLEMANAGERSMANAGERS
OPERATIONALOPERATIONAL OPERATIONALOPERATIONAL
LEVEL MANAGERSLEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
RESOURCESRESOURCESMARKETINGMARKETING
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Types of Information Systems
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Types of Information Systems
Operations Support Systems
Transaction processing systems
Batch transaction data accumulate over time,
processed periodically.
Real-time data processed immediately after a
transaction occurs.
Process Control Systems monitor &
control physical processes.
Enterprise Collaboration Systems
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Types of Information Systems
Operations Support Systems
Transaction processing systems
Batch transaction data accumulate over time,
processed periodically.
Real-time data processed immediately after a
transaction occurs.
Process Control Systems monitor &
control physical processes.
Enterprise Collaboration Systems
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An organization can be classified as a threelayered:
Layer 3 or top level or non programmed(unstructured) decision making processes arefound here that are required to design andredesign the entire system, to provide it with itsbasic goals and objectives and to monitor its
performance. Layer 2 or middle level have the programmed
(structured) decision making processes, theprocesses that govern the day to day operationsof the manufacturing and distribution system.
Layer 1 or Bottom level processes procure rowmaterials, manufacture the physical product,store them in warehouse and ship it.
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Characteristics ofMIS
There are several characteristics ofMIS as:
MIS is management oriented.
Management directed.
Integrated system Avoids redundancy in data storage.
Common data flow
Heavy planning elements.
Subsystem concept
Common database
Flexibility and case of use
Computerization
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Types of Information Systems
(continued) Other Classifications
Expert systems expert advice
Knowledge management systems supportthe creation, organization, & dissemination
of business knowledge
Functional business systems support the
basic business functionsStrategic information systems strategic
advantage
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Managerial challenges of
information technology Information systems can be mismanaged
and misapplied so that they create both
technological and business failure.Top Five Reasons for Success Top Five Reasons for Failure
User involvement Lack of user input
Executive management support Incomplete requirements and
specificationsClear statement of requirements Changing requirements and
specifications
Proper planning
Lack of executive support
Realistic expectations Technological incompetence
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Role ofMIS
The MIS is to produce information so that people within the firm canuse it in their decision making. An MIS must manipulate greatquantities of data in various ways, often with the aid of computers.
Many kinds of manipulation and transfers of information support
daily operations and decision making in a manufacturing companydone by MIS.
Gathering information, analyzing it and reporting it are the main jobsof an MIS. To do so, MIS collects row data facts, statistics, opinionand predictions from both inside and the outside the company and
then organize them so that they can be stored. Not all of these areuseful to each manager, a lot may be too detailed or perhapsirrelevant. So the MIS must pull out from the flood of data that poursin each day, only the selected piece of data that a particularmanager needs.
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Developing IS Solutions to Busines
Challenges
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Competitive Strategies & the Role
ofIT
Cost Leadership (low cost producer)
Reduce inventory (JIT)
Reduce manpower costs per sale (see
RealWorld Case 1)
Help suppliers or customers reduce costs
Increase costs of competitors
Reduce manufacturing costs (process control)
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Intelligent
Decision Support Systems
IE 8541 / HUMF 8001
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Decision Support Systems
Computer tool that helps people make
betterdecisions, faster
Leaves the human in control of decisionmaking.
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Examples ofSituations in which
DSSs may be used
Help medical personnel in a hospital
setting to consider various diagnoses and
treatment plans,
Help engineers to analyze, develop and
compare solution options,
Help military planners to generate
alternative plans of military maneuvers,
Help search and rescue workers to
prioritize which of many critical activities
to attend next.
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The need forDSSs in the 21rst
Century
The move towards global comepetion in a
global market place has increased the
market formore complexsystems and
products,
At the same time companies and
organizations must produce these systems
and products faster, and with lesspersonnel,
DSSs provide a way to help manage this
complexity,
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Example ofHow a DSS can
multiply human capabilities
NASA Mars Rover program demonstrated
that a DSSs can enable people to
effectivelymanage more complex systems
than would be possible with out DSS
assistance.
Operations staff at JPL could produce
40% more activities with the rovers whenusing a DSS, than not.
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A Continuum of Human Control
and Automation
Computer in ControlHuman in Control
*Adapted from Fischer et al. Critics, and Emerging Approach to knowledge-based ,
International Journal ofMan-Machine Studies, 35 (5) 695-721, 1991.
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IntelligentDecision Support
Systems
IntelligentDSSs perform some part of theproblem solving for the user.
Non-intelligent DSSs my simply structure orpresent knowledge in a way that facilitatesproblem solving or decision making.
This course will emphasize intelligent DSSswhich assist in complexproblem solvingsituations, usually requiring expertise
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Challenges
DSSs are hard to characterize as points on this
scale:
They may be highly automated in some portions, and
human driven in others. A single system may incorporate multiple styles of
interaction.
Need additional ways in which to characterizeDSSs design space, map out specific planning
functions.