Information Systems: An Introduction and Overview

1
Information Systems An Introduction and
Overview
2
What are we studying?

• How many are computer science majors?
• How many are information systems majors?
• What is the difference between computer science
  and information systems as a discipline?

3
Information Systems vs. Computer Science

• Computer Science has its concentration in the
  study of algorithms, computation, software, and
  data structures. Its roots are in mathematics
  and engineering. Programming is only one aspect
  of computer science.
• Information Systems is an extension of management
  and organization theory that applies technical
  capabilities and solutions initially developed by
  computer science, to tasks in organizations. It
  involves the study of information its
  structure, representation,and utilization. It
  focuses on the information needs of organizations
  for a wide variety of business processes,
  management, decision-making, and planning
  purposes.

4
IS History with Other Disciplines

• Managerial Accounting - looks at relevant costs
  and performance analysis for managerial control
  and decision making.
• Operations Research - systematic approach to
  problem solving use of models.
• Management and Organization Theory - behavioral
  theory individual and group decision making
  leadership organization design and development.
• Computer Science - algorithms, computation,
  software, data structures
• Cognitive Psychology - human-computer interaction

5
What is an Information System?

• Lets look at some different definitions and then
  explore the context of an IS in the
  organizational setting.
• The contrasting definitions should provide a
  variety of different perspectives.

6
Historical Background

• The Data Processing Industry grew rapidly in the
  1960s, however, the quantity of output, most
  often, far outstripped the quality of output.
• Basic computing was often looked at as
  scientific vs. business contrasting
  applications built with FORTRAN and COBOL.
• The growth of the 1960s and 1970s saw a shift
  from computer orientation, to information
  orientation.
• The role of information resource manager in the
  organization offered an opportunity to migrate
  from the technocratic image of the past, and
  establish an image as a business manager, a
  general manager, an information manager. Today
  this is the role of the CIO - Chief Information
  Officer.

7
1979 John Diebold writes

• Information, which in essence is the analysis
  and synthesis of data, will unquestionably be one
  of the most vital corporate resources in the
  1980s.
• It will be structured into models for planning
  and decision-making.
• It will be incorporated into measurements of
  performance and profitability.
• It will be integrated into product design and
  marketing methods.
• In other words, information will be recognized
  and treated as an asset.

8
1985 Davis and Olson

• A management information system is
• an integrated user-machine system
• for providing information
• to support the operations, management, analysis,
  and decision-making functions in an organization.
• The system utilizes
• computer hardware and software
• manual procedures
• models for analysis, planning, control, and
  decision-making
• a database

9
1985 IFIP/BCS

• An information system is a system which
  assembles, stores, processes, and delivers
  information relevant to an organization (or to
  society) in such a way that the information is
  accessible and useful to those who wish to use
  it, including managers, staff, clients, and
  citizens.
• An information system is a human activity
  (social) system which may or may not involve the
  use of computer systems.
• International Federation for Information
  Processing /British Computing Society 1885
  curriculum for information systems.

10
1989/99 McNurlin and Sprague

• The mission for information systems in
  organizations is to improve the performance of
  people in organizations through the use of
  information technology.
• The ultimate objective is performance improvement
  - a goal based on outcomes and results rather
  than a go-through-the-steps process goal.
• The focus is the people who make up the
  organization. Improving organizational
  performance is by the people and groups that
  comprise the organization.
• The resource for this improvement is information
  technology.

11
1990 Turban

• A management information system is a formal,
  computer-based (but need not be) system intended
  to retrieve, extract, and integrate data from
  various sources in order to provide timely
  information necessary for managerial
  decision-making.
• An MIS is a business information system designed
  to provide past, present, and future information
  appropriate for planning, organizing, and
  controlling the operations of the organization.

12
1992 Alter

• An information system is a combination of
• work practices
• information
• people, and
• information technologies
• organized to accomplish goals in an organization.

13
1992 Zwass

• A Management Information System is an organized
  portfolio of formal systems for obtaining,
  processing, and delivering information in support
  of the business operations and management of an
  organization.

14
1995 Laudon and Laudon

• Information system - (definition) Interrelated
  components that collect, process, store, and
  disseminate information to support
  decision-making, control, analysis, and
  visualization in an organization.

15
1996 Turban, McLean, Wetherbe

• An information systems is a collection of
  components that collects, processes, stores,
  analyzes, and disseminates information for a
  specific purpose.
• The major components of a computer-based
  information system (CBIS) can include (1)
  hardware, (2) software, (3) a database (4) a
  network (5 )procedures, and (6) people.
• The system operates in a social context, and the
  software usually includes application programs
  which perform specific tasks for users.

16
1996 Alter

• An information system is a system that uses
  information technology to capture, transmit,
  store, retrieve, manipulate, or display
  information that is used in one or more business
  processes.
• A business process is a related group of steps or
  activities that use people, information, and
  other resources to create value for internal or
  external customers. Business Processes consist
  of steps related in time and place, have a
  beginning and end, and have inputs and outputs.

17
1997 Lucas

• Information systems may be described by five of
  their key components
• Decisions
• transactions and processing
• information and its flow
• individuals or functions involved
• communications and coordination

18
1998 Zwass

• Information System - An organized set of
  components for collecting, transmitting, storing,
  and processing data in order to deliver
  information for action.

19
1999 Turban, McLean, Wetherbe

• An information system is a physical process that
  supports an organizational system by providing
  information to achieve organizational goals.

20
1999 Alter

• A work system is a system that produces products
  for internal and external customers through a
  business process performed by human participants
  with the help of information technology.
• An information system is a particular type of
  work system that uses information technology to
  capture transmit store, retrieve, manipulate, or
  display information, thereby supporting one or
  more other work systems.

21
Information Systems Today

• The early focus on IS was for the support of
  operations, management, analysis and
  decision-making in organizations.
• A significant emphasis was on models of planning
  and control.
• The late 1980s and early 1990s saw IS expand
  from the support not only of decision-making, but
  but for improved communication support as well.
  Social impacts began to be recognized.
• The explosion of the Web has added the important
  characteristic of providing information access.
• Today the emphasis in organizations is on the
  support of business processes.

22
Terminology

• In many older textbooks and contexts, the terms
  Management Information Systems (or MIS) and
  Information Systems (IS) are used
  interchangeably.
• However, in more contemporary contexts,
  Management Information Systems are considered as
  a subset of the more general Information Systems.
  MIS are considered to be information systems
  which provides information specifically for
  managing an organization generally at a tactical
  or middle management level. The are sometimes
  called Management Reporting Systems as well.
  Information Systems are the more general category
  that support all levels of an organization and
  include a wide variety of applications (e.g.
  group decision support systems). We will
  generally follow this convention.

23
Types of Information Systems

• Transaction Processing Systems (TPS).
• Management Information Systems (MIS).
• Decision Support Systems (DSS).
• Expert Systems (ES).
• Executive Information Systems (EIS).
• Office Automation Systems (including document
  management systems).
• GroupWare, Computer-Supported Cooperative Work
  (CSCW), and other communication systems.
• and much more .

24
Information Technology

• Information Technology (IT) sometimes refers to
  the technology component of an information
  system.
• However, the concept is often used by many to
  describe the collection of all information
  systems in organization.

25
Putting Things in Context - I

• Information Technology - the hardware, software,
  and networks that make Information Systems
  possible.
• Information System - a system that uses
  information technology to capture, transmit,
  store, retrieve, manipulate, and display
  information.
• Business process - a related group of steps or
  activities that use people, information, and
  other resources, to create value for internal or
  external customers.

26
Putting Things in Context - II

• Firm (or organization) - consists of a large
  number of interdependent business processes that
  work together to generate products of services in
  a business environment.
• Business environment - includes the firm and
  everything else that affects its success, such as
  competitors, suppliers, customers, regulatory
  agencies, and demographic, social, and economic
  conditions.

27
Putting Things in Context The Picture
28
Frameworks for Understanding IS

• A framework is a brief set of ideas for
  organizing a thought process about a particular
  type of thing or situation. Any useful framework
  helps make sense of the worlds complexity by
  identifying topics that should be considered and
  showing how these topics are related.
• We will consider two such frameworks
• The Gorry Scott-Morton Framework for MIS
• The Work-Centered Analysis (WCA) Framework by
  Alter.

29
The Gorry and Scott-Morton Framework for
Management Information SystemsNote This
framework was first discussed in 1971. The term
Management Information Systems refers to the
broad category we now refer to simply as
Information Systems.
30
The Gorry and Scott-Morton Framework for MIS

• At the time, (1971), the framework provided a
  much needed perspective on the role of MIS in
  organizations.
• It is more a framework on managerial activities
  and a way of looking at decisions in an
  organizations. The framework helps us understand
  the role of MIS in organizations.
• Focuses on the nature and characteristics of
  managerial decisions made at different levels in
  an organization.
• Also Focuses on the characteristics of
  information that pertains to the decisions made
  at these levels.

31
Structural Outline

• Combines the works of Robert Anthony and Herbert
  Simon
• Robert Anthonys taxonomy for Managerial Activity
  (1965).
• Herbert Simons Categorization of Decision Types
  (1960).
• The works of Anthony and Simon are important
  foundations of Organizational Theory today.

32
Robert Anthonys Taxonomy for Managerial Activity

• You can divide the entire management hierarchy
  along the following levels
• Operations Control
• Management Control
• Strategic Planning

33
Anthonys ManagementHierarchy
Strategic Planning
Management Control
,
Operational Control
Organizational Members
34
Operational Control

• concerned with carrying out the tasks necessary
  and that need to be performed
• lower level of the organizational hierarchy
• performed by supervisors of small work units
  concerned with planning and control of short-term
  (a week to six months) budgets and schedules.

35
Management Control/Tactical Management

• concerned with the utilization and management of
  resources to achieve organizational objectives.
• concerned with effective and efficient
  performance.
• Performed by middle managers (e.g. department
  heads, plant managers).
• set out for one to three years.

36
Strategic Planning Level

• focuses on decisions on the objectives for the
  organization as a whole and also on the way to
  achieving them
• typically involves a small number of high level
  people
• Carried out by top organizational executives and
  organization boards responsible for setting and
  monitoring long-term directions for the
  organization three or more years into the future

37
Information Requirements

• Gorry and Scott Morton were concerned with the
  information requirements at the these three
  levels
• They noted that the requirements for information
  at these levels were very different.
• The next slide shows these differing requirements

38
Information Requirements by Management Level
39
Simons Categorization of Decisions

• concerned with the manner in which humans solve
  problems in an organization
• differentiated between programmed and
  nonprogrammed decisions

40
Simons Programmed Decisions

• they are repetitive and routine
• follow a preset definite procedure each time they
  occur
• programmable is a better concept
• Gorry and Scott Morton call it structured

41
Simons Nonprogrammed Decisions

• they are novel, unstructured
• no cut-and-dried method for handling the problem
  exists
• calls for intelligent, adaptive, problem-oriented
  action
• nonprogrammable is a better concept
• Gorry and Scott Morton call it unstructured

42
Structured vs. Unstructured

• They are not bipolar concepts
• decisions range in a continuum from structured to
  unstructured ..
• In between you might have decisions called
  semi-structured.

43
Combined A Framework

• Gorry and Scott Morton combined the two concepts
  of Simons Decision Making categories with
  Anthonys management levels in an organization
  and provide the following Framework for
  Decision-Making
• (See next slide)

44
A Framework for Decision Making
45
Framework Comments

• The original framework has been augmented with
  the right-most column and bottom row showing some
  typical support systems available. These are
  meant be be illustrative and not inclusive.
• The framework shows the need for information
  systems to support all cells.
• The figure as well as the characteristics of
  systems shows that the information requirements
  vary considerably from among management levels in
  an organization.
• The information requirements are also diverse.
• The framework looks at decision-making. However,
  we should not infer that information systems
  today are restricted only to support for
  decision-making.

46
Implications Total MIS is a myth

• Gorry and Scott Morton showed that the prevalent
  concept (at that time, 1971) of a
  totally-integrated-management-information-system
  was a myth.
• Since we can not have a single total MIS, we
  need the concept of what David and Olsen called a
  federation of integrated information systems.
• Today technology provides appropriate tools which
  gives the appearance of information being totally
  integrated.
• This is the basic reasoning for the separation of
  todays data warehouses from systems to support
  current operations.

47
Information Systems for Operational Control

• Operational Control process of ensuring
  operational activities are carried out
  effectively and efficiently.
• Processing support
• Transaction processing
• Report processing
• Inquiry processing

48
Information Systems for Management Control

• Management Control Information that is required
  by managers of departments, profit centers, etc.
  to measure performance, decide on control
  actions, formulate new decision rules to be
  applied by the operational personnel and allocate
  resources.
• Processing support
• Planning and budget models to assist managers in
  finding problems and preparing plans and budgets.
• Variance reporting programs Exception Reports
• Problem analysis models
• Decision models to analyze a problem situation
  and provide solutions
• Inquiry models to assist in responding to queries.

49
Information Systems for Strategic Planning

• Systems that are designed to help managers
  perform the strategic planning function
• This function has the responsibility of
  developing strategies to achieve objectives and
  goals
• Such systems might have to provide information
  on
• economic outlook
• political environment
• competitive environment
• impact analysis of alternative strategies, etc.

50
A Short Sidebar.

• Transaction Processing Systems
• vs.
• Management Information Systems
• (or Management Reporting Systems)
• presented now since this is an important
  distinction, so lets get it right early!

51
Transaction Processing Systems

• A transaction is an elementary activity conducted
  during business operations (e.g. merchandise
  sale).
• Earliest Information Systems in organizations.
• Support the monitoring, collection, storage,
  processing, and dissemination of the
  organizations basic business transactions.
• Provides backbone for many other applications
  involving other support systems.
• On-line systems called OLTP vs. batch
• Routine, repetitive tasks.

52
Business Transactions in a Factory

• Payroll employee time cards, employee pay and
  deductions, payroll checks.
• Purchasing purchase orders, deliveries,
  payments (accounts payable)
• Sales sales records, invoices and billing,
  accounts receivable, sales returns, shipping
• Manufacturing production reports,
  quality-control reports
• Finance and Accounting financial statements, tax
  records, expense accounts
• Inventory management materials usage, inventory
  levels

53
Transaction Processing Systems - 3

• In addition to processing the routine critical
  organizational activities, transaction processing
  systems also provide the source data for many
  other type of information systems used at the
  tactical and strategic levels in the
  organization.
• Recall that tactical and strategic levels use
  aggregated data, over multiple time periods. TPS
  are often the source of this information. TPS
  often populate data warehouses which provide
  on-line analytical processing (OLAP).

54
TPS Data Entry Screen
55
Management Information Systems

• Systems that convert TPS data into information
  for monitoring performance and managing an
  organization.
• The MIS provides periodic information to
  functional (operational) and mid-level (tactical)
  managers on routine matters such as operational
  efficiency, effectiveness, and productivity.
• Example An HRIS can provide the HR manager with
  percentages of people who are on vacation or call
  in sick. It can compare actual to forecasted
  values, or to an industry average.
• MIS are used for planning, monitoring, and
  control.

56
Sample MIS Management Report
57
The Work Centered Analysis (WCA) Framework
58
The Work Centered Analysis (WCA) Framework

• The Work-Centered Analysis (WCA) is a framework
  for thinking about business processes and the
  information systems that support them. It
  focuses on the work being done.
• Work is the application of human and physical
  resources such as people, equipment, time,
  effort, and money to generate outputs used by
  internal or external customers.
• It ideas from several prominent management
  theories including Total Quality Management,
  business process reengineering, and systems
  theory.

59
Alters (1999) Definition of an Information System

• An information system is a system that uses
  information technology to capture, transmit,
  store, retrieve, manipulate, or display
  information that is used in one or more work
  systems.
• A work system is a system in which human
  participants perform a business process that uses
  (which may use) information technology (and other
  resources) to produce a product (or service) for
  customers.
• A business process is a related group of steps or
  activities that use people, information, and
  other resources to create value for internal or
  external customers. Business Processes consist
  of steps related in time and place, have a
  beginning and end, and have inputs and outputs.

60
Examples of Information Systems Supporting
Business Processes

• Bar-code scanners and computers identify items
  sold and calculate the bill (Performing customer
  checkout).
• Airline reservation system keeps track of flights
  and accepts reservations for customers (making
  airline reservations).
• System that identifies people by scanning and
  analyzing voice prints (preventing unauthorized
  access to restricted areas).
• Word processing system for typing and revising
  book chapters (Writing a book).

61
Elements of the Work-Centered Analysis (WCA)
Framework

• The internal or external customers of the
  business process
• The products (or services) generated by the
  business process.
• The steps in the business process.
• The participants in the business process.
• The information the business process uses or
  creates.
• The technology the business process uses.

62
The WCA Framework
63
The WCA Framework

• The WCA framework implies that although people
  sometimes speak of computers as systems, the
  system business professionals should focus on is
  the system performing the work.
• The system performing the work is much broader
  than the technology. It includes the business
  processes, the participants, any information
  used, and any technology used.
• The links are two-way, implying that the elements
  should be in balance. Also, changes in one place
  may result in changes in other elements.

64
Group Work and Discussion
65
Group Assignments

• Gorry and Scott Morton Framework
• Other than the examples given earlier, give some
  examples of decisions made in organizations and
  classify them using the framework.
• WCA Framework
• Consider your typical interactions with a bank
  ATM (automated teller machine). Describe your
  interaction using the WCA Framework.