Information System IS Definition 1 A set of

Information System (IS) Definition 1) A set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective 2) (IS) Pronounced as separate letters, and short for Information Systems or Information Services. For many companies, IS is the name of the department responsible for computers, networking and data management. Other companies refer to the department as IT (Information Technology) and MIS (Management Information Services).

What is an Information System? • Schematic model of an information system Feedback Input Processing Output

Input, Processing, Output, • Input – The activity of gathering and capturing data – Whatever goes into the computer • Processing – Converting or transforming data into useful outputs • Output – Useful information, usually in the form of documents and/or reports – Anything that comes out of a computer

Input ‘Discussion’ Whatever goes into the computer. Input can take a variety of forms. A device that feeds data into a computer, such as a keyboard or mouse, is called an input device.

Output ‘Discussion’ Anything that comes out of a computer. Output can be meaningful information or garbage, and it can appear in a variety of forms -- as binary numbers, as characters, as pictures, and as printed pages. Output devices include display screens, loudspeakers, and printers.

Feedback • Feedback – Output that is used to make changes to input or processing activities • Forecasting – A proactive approach to feedback – Use for estimating future sales or inventory needs

Computer-based Information Systems • A CBIS is composed of… – – – – Hardware Software Databases Telecommunications Networks People Procedures • Together they are… – Configured to collect, manipulate, store, and process data into information

Business Information Systems • Types – Transaction processing systems – E-commerce systems – Management information systems – Decision support systems – Expert systems

Transactions Processing Systems • Transaction – Any business-related exchange – E. g. , generating a weekly payroll • Transaction processing system (TPS) – An organized collection of people, procedures, software, databases, and devices used to record completed for business related exchanges

Payroll Example Hours worked Payroll transaction processing Pay rate Payroll checks

E-Commerce System • E-commerce – Involves any business transaction electronically – Conducting business on-line – Example for placing a purchase order executed

Purchase Order – E-commerce

Management Information Systems • An MIS is… – An organized collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers

Schematic of MIS Marketing management information system Financial management Information system Manufacturing management Information system Common databases TPS Order management information system

Decision Support Systems • A DSS is… – An organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making • A DSS helps a manger “do the right thing”

Expert Systems • An expert system is… – A computer application that performs a task that would otherwise be performed by a human expert – gives the computer the ability to make suggestions and to act like an expert in a particular field – Examples: diagnose human illnesses, make financial forecasts, schedule routes for delivery vehicles • Expert systems typically include “artificial intelligence”

Development of Information Systems

Working with Systems (1) • Systems development – The activity of creating or modifying an existing business system • Systems investigation and analysis – Defines the problems and opportunities of an existing system • Systems design – Determine how a new system will work to meet business needs

Working with Systems (2) • Systems implementation – Creating and acquiring system components defined in the design • Systems maintenance and review – Checks and modifies the system so that it continues to meet changing business needs