Understanding Information Systems Chapter 9 Computers Understanding Technology

Understanding Information Systems Chapter 9 – Computers: Understanding Technology

Information System • Definition: combination of people, hardware, software, computer networks, and data that organizations use to manage daily and long-term operations • Examples in daily life: ATMs, gas pumps which take credit cards, bar scanners in grocery stores

Information Systems Classified by Function • Distribution Management – reduction in cost of inventory – just-in-time production and distribution – Stockless inventory – daily delivery from factory or distribution center • Office Information – Maintaining standard operating procedures – Connectivity – Electronic data processing – often batch processing • Management Information System – typically integrates information from different departments or functions into one database

Information Systems Classified by Function (cont. ) • Decision support systems – Spreadsheets - spreadsheet as “killer application” for early PC sales – data modeling (simulation of real world situation) – – Expert systems – attempt to model an expert’s knowledge of a topic • Executive Support Systems • Factory Automation – Computer Aided Manufacturing – Computer-Integrated Manufacturing – Statistical Quality Control

Impact of a New Information System • Expanded technical staff – programmers, trainers • Increased Information Technology Costs • Enhanced Product Quality • Reduced Clerical Staff • Temporary Disruption

Factors in Choosing a New Information System • User interface design • Open (using company can modify) vs closed (serviced and supported by original vendor) • Niche information system – Because it is customized to the application, can be used without a lot of training – Small market may lead to high price – May lag technologically

Factors in Choosing a New Information System (cont. ) • Turnkey solutions – simply turn the key to get the system running; because of customization, often expensive and difficult to upgrade • System support

Developing a New Information System • Project team – project manager, system analysts, software engineers, technicians • System development life cycle – Planning – feasibility study, request for proposal (RFP) – Design – functional specification, design specification – Implementation – prototype, development, hardware and software purchasing, installation and testing, user training – Support