Understanding Information Systems Copyright 2003 Paradigm Publishing Inc

Topics What is an Information System? Factors in Choosing a New Information Systems Classified by Function Developing a New Information Systems Considerations On the Horizon Topics Copyright 2002, Paradigm Publishing Inc. 11 - 2

What is an Information System? used to manage daily and long-term operations Topics Copyright

Meeting Business Needs with Information Systems speed efficiency quality measurability Topics Copyright 2002, Paradigm

The Rise of Information Systems First computerized system in 1950 s – sorting mail, printing checks, creating phone bills, storing demographic information Now: all around us – ATMs, purchase gas, online shopping Newer systems merge databases – makes them more accessible – Internet is a good example Topics Copyright 2002, Paradigm Publishing Inc. 11 - 5

Information Systems Classified by Function Many types of information systems easiest way to differentiate them is by their function provide same service, but on a different scale Topics Copyright 2002, Paradigm Publishing Inc. 11 - 6

Distribution Management Systems Designed to deliver products quicker, cheaper, and with fewer errors Major advantage is the reduction of inventory overhead Systems: – traditional distribution management – just-in-time distribution – stockless inventory Topics Copyright 2002, Paradigm Publishing Inc. 11 - 7

Office Information Systems Used to automate office work – collect, store, and transmit data in a shared environment Functions: – standard operating procedures – connectivity – electronic data processing Topics Copyright 2002, Paradigm Publishing Inc. 11 - 8

Management Information Systems Provide information that assists in the management of business operations – improve productivity and profitability Typically integrate information from different departments or functions into one database – enable comprehensive reporting capabilities Topics Copyright 2002, Paradigm Publishing Inc. 11 - 9

Decision Support Systems Help managers make informed business judgments Data modeling – provides a simulation of a real-world situation – input numeric data into “what if” scenarios Generally custom-built for each application – spreadsheet programs – expert systems – online analytical processing Topics Copyright 2002, Paradigm Publishing Inc. 11 - 10

Executive Support Systems Upper-management tool Less technical and broader in focus – brings together information from entire organization Support strategic decision-making by facilitating the creation of high-level summary reports Topics Copyright 2002, Paradigm Publishing Inc. 11 - 11

Factory Automation CAM – computer-aided manufacturing – computerized systems to manufacture products CIM – computer-integrated manufacturing – broader coverage than CAM systems – impacts everyone in a manufacturing company SQC – statistical quality control – data tracking and data modeling to build a picture of how well a factory is operating Topics Copyright 2002, Paradigm Publishing Inc. 11 - 12

Information Systems Considerations Planning or updating an information system is a process that is initiated by a variety of factors market demands expansion of business Topics Copyright 2002, Paradigm Publishing Inc. 11 - 13

Impact of a New Information System Positive and negative effects – investment in the future – negative effects are usually short-term Effects – – – expanded technical staff increased information technology costs increased profit margins enhanced product quality reduced clerical staff temporary disruption Topics Copyright 2002, Paradigm Publishing Inc. 11 - 14

To Buy or to Develop? Influenced heavily by size of company – large organizations usually have in-house IT staffs devoted to developing and maintaining information systems – smaller companies may purchase standard software packages or outsource • hiring a technician for system maintenance and support can be less costly than a consultant Topics Copyright 2002, Paradigm Publishing Inc. 11 - 15

Factors in Choosing a New Information System User Interface Design user-friendly and intuitive Open vs. Closed System open: company can alter system closed: serviced by original vendor Niche Information Systems serve specially focused sets of customers Turnkey Solutions custom-built product; no technical skills required System Support does package cover installation, training, on-site service and repair Topics Copyright 2002, Paradigm Publishing Inc. 11 - 16

Developing a New Information System Identifying employees with skills required to develop a new in-house information system is a necessary first step – management group involved for questions and information – programmers, software engineers handle design and implementation Topics Copyright 2002, Paradigm Publishing Inc. 11 - 17

Project Team Topics Copyright 2002, Paradigm Publishing Inc. 11 - 18

System Development Life Cycle Return to Stage 1 Planning a. prepare needs analysis b. conduct feasibility studies c. establish project team d. create project plan Support a. identify technical support needs b. provide for system updates Implementation a. design prototype b. develop system c. purchase hardware and software d. install and test e. train users f. approve system Design a. develop functional specification b. develop design specification Topics Copyright 2002, Paradigm Publishing Inc. 11 - 19

Planning a System Feasibility study – how difficult project is, cost Internal team or systems house – request for proposal is sent to suppliers – lowest qualifying bidder meeting with company approval gets the job Project plan – how long it will take – outline of steps involved – list of deliverables Project management tools – CASE tools: software packages that automate the design and development of an IS – Gantt charts: show stages of project Topics Copyright 2002, Paradigm Publishing Inc. 11 - 20

Designing the System Functional Specification Written document that states what must be accomplished by the information system Functions to perform, not kinds of computers or software Design Specification Outlines how the goals laid out will be reached Hardware and software requirements are detailed – operating system – data model – authorized users Requires development of a data dictionary Topics Copyright 2002, Paradigm Publishing Inc. 11 - 21

Implementation Putting the system together – usually the longest, most difficult step Prototype – mini-program that demonstrates user interface and functionality – gives a chance for suggestions Development – software programming is done – new computer hardware works – discovering and solving problems Hardware and software purchasing – software and service costs usually exceed hardware costs Topics Copyright 2002, Paradigm Publishing Inc. 11 - 22

Installing and Testing Beta testing – system is rigorously tested before it is completely trusted to function as designed – other systems usually still in operation – one plant may use new system until deemed satisfactory; then roll out the system to all plants Topics Copyright 2002, Paradigm Publishing Inc. 11 - 23

User Training Usually takes place the same time as beta testing May discover errors

Approval When installed and working Usually after a successful beta testing Often tied to

The Support Stage After a system has been accepted and approved Support Contract normally allows users to contact the systems house for - technical support - training - on-site troubleshooting Topics Copyright 2002, Paradigm Publishing Inc. 11 - 26