Information Systems
Content
Chapter 2
Information Systems
Introduction
Business organizations always had some kind of information systems. Not fully recognized ± processing The computer was initially used to process accounting transactions & this function was called Electronic Data Processing (EDP). Transactions & data processing Periodic standardized reports ± effective panning & control of activities. EDP locate & fix problems- computer based Information System
Information Systems: Generating Information ± Computer-based ISs take data as raw material, process it, and produce information as output.
Information system
Information system generates information from data. Data ± raw material- useful information Managerial use- planning & control- (MIS) Management Information Systems MIS - Decision makers- timely, relevant & reliable Information System can be any organized combination of people, hardware, software, communications network & data resources that collects, transformation & disseminates information in an organization.
Information Systems:- Types
Information Systems
Transaction Processing System
Process Control System
Decision Support System
Expert System
Office Automation System
Information Reporting System
Executive Support System
Transaction Processing Systems (TPS)
Support day-to-day operations Detailed records- managers-track Operations like a\c receivables, a\c payable, inventory control, payroll & customer order processing etc.
Office Automation Systems (OAS)
Technology mix - Improving efficiency Computer based application like word-processing, DTP, E-mail, teleconferencing etc Collects, process, store & transmit electronic message, doc. Others communication among others. Reduce time & effort for handling of business communication.
Office Automation Systems :Tools & Systems
Knowledge workers
Word Processing DTP E-mail Image storage & retrieval
Office Automation Systems
Teleconferencing Voice Mail FAX
Clerical Workers
Electronic fund transfer Multimedia
The important areas in office automation are:
Word processing : typing in documents , creation ± storage & retrieval. Desktop Publishing:- professional print quality- combine text, artwork, photos & variety fonts. E-mail:- communication b/w computers ± transfer of messages - quick, continent & economic. Facsimile (FAX):- sends & receives text & images. Converted => digital . Voice mail:- sends digitalized speech. Teleconferencing- face to face video communications. Electronic fund transfer:- transfer funds b/w A/c¶s .
Process Control System
The physical production flow ± controlled computerized PCS. Like cement, steel, paper & chemical products. PCS ± sensors measures process related variables & transfer to computer. Feedback to adjust & variable control
Information Reporting Systems (MIS)
Pre-planned reports- summarizes Contains routine summary. is a system that provides information needed to manage organizations effectively . internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Regular reports :- weekly, monthly, quarterly etc.. ex : payroll Ad-hoc reports:- not planned to designed & produced ± user-request Exception reports:-
TPS & IRS- A Comparison
Generates raw data
Decision Support System (DSS)
is a computer-based information system that supports business -decision-making activities. management, operations &planning levels of an organization - make decisions, which may be rapidly changing & not specified in advance. comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions
Expert system
Evolved out of the work on artificial intelligence Gathers a database of knowledge or expertise to offer advice or solution for problems in a particular area. Expert knowledge in given area so that the advice or solution offered is better than that of a single consultant or expert. given answers are checked against the rule base.
Executive supporting system
Designed for the top level managers of an organization . It¶s a kind of DSS designed to meet information & analysis requirement of top level management of a business
Role of Information Systems
Information System
Support To Business Operations
Support To Managerial Decision Making
TPS
PCS
OAS
IRS
DSS
ES
ES
Potential Risk of Information Systems
Information ± strategic advantage Technologies available for data capturing, data warehousing, data minig etc.. They facilitate analysis of datain a variety of innovative ways. Deskilling of workers :-Deskilling is the process by which skilled labor within an industry or economy is eliminated by the introduction of technologies operated by semiskilled or unskilled workers. Retained or employed in other activities.
Information overload:- huge storage capacity. Decision-makers- not able to digest Employee mistrust:-technology- replace ± employers. Increased competitive pressure:information- successful- do not employ Poor returns from IT investment:support service ± returns- business Challenges in developing information system:- very difficult ± takes more time & within budget Security breaches:- responsibility to protect- ensuring security is expensive & difficult.
Information Systems
Introduction
Business organizations always had some kind of information systems. Not fully recognized ± processing The computer was initially used to process accounting transactions & this function was called Electronic Data Processing (EDP). Transactions & data processing Periodic standardized reports ± effective panning & control of activities. EDP locate & fix problems- computer based Information System
Information Systems: Generating Information ± Computer-based ISs take data as raw material, process it, and produce information as output.
Information system
Information system generates information from data. Data ± raw material- useful information Managerial use- planning & control- (MIS) Management Information Systems MIS - Decision makers- timely, relevant & reliable Information System can be any organized combination of people, hardware, software, communications network & data resources that collects, transformation & disseminates information in an organization.
Information Systems:- Types
Information Systems
Transaction Processing System
Process Control System
Decision Support System
Expert System
Office Automation System
Information Reporting System
Executive Support System
Transaction Processing Systems (TPS)
Support day-to-day operations Detailed records- managers-track Operations like a\c receivables, a\c payable, inventory control, payroll & customer order processing etc.
Office Automation Systems (OAS)
Technology mix - Improving efficiency Computer based application like word-processing, DTP, E-mail, teleconferencing etc Collects, process, store & transmit electronic message, doc. Others communication among others. Reduce time & effort for handling of business communication.
Office Automation Systems :Tools & Systems
Knowledge workers
Word Processing DTP E-mail Image storage & retrieval
Office Automation Systems
Teleconferencing Voice Mail FAX
Clerical Workers
Electronic fund transfer Multimedia
The important areas in office automation are:
Word processing : typing in documents , creation ± storage & retrieval. Desktop Publishing:- professional print quality- combine text, artwork, photos & variety fonts. E-mail:- communication b/w computers ± transfer of messages - quick, continent & economic. Facsimile (FAX):- sends & receives text & images. Converted => digital . Voice mail:- sends digitalized speech. Teleconferencing- face to face video communications. Electronic fund transfer:- transfer funds b/w A/c¶s .
Process Control System
The physical production flow ± controlled computerized PCS. Like cement, steel, paper & chemical products. PCS ± sensors measures process related variables & transfer to computer. Feedback to adjust & variable control
Information Reporting Systems (MIS)
Pre-planned reports- summarizes Contains routine summary. is a system that provides information needed to manage organizations effectively . internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Regular reports :- weekly, monthly, quarterly etc.. ex : payroll Ad-hoc reports:- not planned to designed & produced ± user-request Exception reports:-
TPS & IRS- A Comparison
Generates raw data
Decision Support System (DSS)
is a computer-based information system that supports business -decision-making activities. management, operations &planning levels of an organization - make decisions, which may be rapidly changing & not specified in advance. comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions
Expert system
Evolved out of the work on artificial intelligence Gathers a database of knowledge or expertise to offer advice or solution for problems in a particular area. Expert knowledge in given area so that the advice or solution offered is better than that of a single consultant or expert. given answers are checked against the rule base.
Executive supporting system
Designed for the top level managers of an organization . It¶s a kind of DSS designed to meet information & analysis requirement of top level management of a business
Role of Information Systems
Information System
Support To Business Operations
Support To Managerial Decision Making
TPS
PCS
OAS
IRS
DSS
ES
ES
Potential Risk of Information Systems
Information ± strategic advantage Technologies available for data capturing, data warehousing, data minig etc.. They facilitate analysis of datain a variety of innovative ways. Deskilling of workers :-Deskilling is the process by which skilled labor within an industry or economy is eliminated by the introduction of technologies operated by semiskilled or unskilled workers. Retained or employed in other activities.
Information overload:- huge storage capacity. Decision-makers- not able to digest Employee mistrust:-technology- replace ± employers. Increased competitive pressure:information- successful- do not employ Poor returns from IT investment:support service ± returns- business Challenges in developing information system:- very difficult ± takes more time & within budget Security breaches:- responsibility to protect- ensuring security is expensive & difficult.
