Chapter 10 Information Systems

1
Chapter 10
Information Systems
2
Presentation Overview

• The Role of an Information System
• Information Systems Classified by Function
• Considerations for Planning and Updating
  Information Systems
• Factors to Consider When Choosing a New
  Information System
• The Process of Developing a New Information System

3
The Role of an Information System

• An information system (IS) is a combination of
  people, hardware, software, computer networks,
  and data used to manage daily and long-term
  operations.

4
The Role of an Information System

• What role do information systems play in business?

5
The Role of an Information System

• What role do information systems play in
  business?
• Compared to pre-computer information systems,
  computer-based IS systems offer
• improved speed

6
The Role of an Information System

• What role do information systems play in
  business?
• Compared to pre-computer information systems,
  computer-based IS systems offer
• improved speed
• efficiency

7
The Role of an Information System

• What role do information systems play in
  business?
• Compared to pre-computer information systems,
  computer-based IS systems offer
• improved speed
• efficiency
• quality

8
The Role of an Information System

• What role do information systems play in
  business?
• Compared to pre-computer information systems,
  computer-based IS systems offer
• improved speed
• efficiency
• quality
• measurability

9
Information Systems Classified by Function

• What functions do information systems perform?

10
Information Systems Classified by Function

• What functions do information systems perform?
• Common functional classifications for information
  systems are
• distribution management

11
Information Systems Classified by Function

• What functions do information systems perform?
• Common functional classifications for information
  systems are
• distribution management
• office information

12
Information Systems Classified by Function

• What functions do information systems perform?
• Common functional classifications for information
  systems are
• distribution management
• office information
• management information

13
Information Systems Classified by Function

• What functions do information systems perform?
• Common functional classifications for information
  systems are
• distribution management
• office information
• management information
• executive support

14
Information Systems Classified by Function

• What functions do information systems perform?
• Common functional classifications for information
  systems are
• distribution management
• office information
• management information
• executive support
• factory automation

15
Information Systems Classified by Function

• In a traditional inventory system, regularly
  scheduled deliveries move products from warehouse
  storage to storerooms until they are needed to
  stock the shelves.

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Information Systems Classified by Function

• In a just-in-time distribution system, deliveries
  are smaller and more frequent so that products
  are only in the storeroom briefly.

17
Information Systems Classified by Function

• In a stockless inventory distribution system,
  deliveries move products from warehouse storage
  directly to the shelves with no need for a
  storeroom.

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Information Systems Classified by Function

• Office Information Systems (OIS)
• typically provide the following functions

19
Information Systems Classified by Function

• Office Information Systems (OIS)
• typically provide the following functions
• maintaining standard operating procedures (SOP)

20
Information Systems Classified by Function

• Office Information Systems (OIS)
• typically provide the following functions
• maintaining standard operating procedures (SOP)
• connectivity

21
Information Systems Classified by Function

• Office Information Systems (OIS)
• typically provide the following functions
• maintaining standard operating procedures (SOP)
• connectivity
• electronic data processing

22
Information Systems Classified by Function

• Management Information Systems (MIS)
• typically provide the following functions

23
Information Systems Classified by Function

• Management Information Systems (MIS)
• typically provide the following functions
• integrate information from company departments
  into one database

24
Information Systems Classified by Function

• Management Information Systems (MIS)
• typically provide the following functions
• integrate information from company departments
  into one database
• provide support to management in regular reports,
  either on periodic or on-demand basis

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Information Systems Classified by Function

• Decision Support Systems (DSS)

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Information Systems Classified by Function

• Decision Support Systems (DSS)
• Data modeling provides a simulation of a
  real-world situation built into a software
  application.

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Information Systems Classified by Function

• Decision Support Systems (DSS)
• Data modeling provides a simulation of a
  real-world situation built into a software
  application.
• Expert systems make recommendations after posing
  questions to the user.

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Information Systems Classified by Function

• Decision Support Systems (DSS)
• Data modeling provides a simulation of a
  real-world situation built into a software
  application.
• Expert systems make recommendations after posing
  questions to the user.
• Online analytical processing (OLAP) defines and
  clarifies methods of handling what-if questions
  posed to large databases.

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Information Systems Classified by Function

• Executive Support Systems (ESS)

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Information Systems Classified by Function

• Executive Support Systems (ESS)
• brings together information from an entire
  organization rather than one department or group

31
Information Systems Classified by Function

• Executive Support Systems (ESS)
• brings together information from an entire
  organization rather than one department or group
• supports strategic decision making by
  facilitating the creation of high-level summary
  reports

32
Information Systems Classified by Function

• Factory Automation and Plant Operations

33
Information Systems Classified by Function

• Factory Automation and Plant Operations
• Computer-aided manufacturing (CAM) involves
  direct use of computers to manufacture products.

34
Information Systems Classified by Function

• Factory Automation and Plant Operations
• Computer-aided manufacturing (CAM) involves
  direct use of computers to manufacture products.
• Computer-integrated manufacturing (CIM) connects
  every department in a business, making
  information available to anyone who needs it.

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Information Systems Classified by Function

• Factory Automation and Plant Operations
• Computer-aided manufacturing (CAM) involves
  direct use of computers to manufacture products.
• Computer-integrated manufacturing (CIM) connects
  every department in a business, making
  information available to anyone who needs it.
• Statistical quality control (SQC) tracks quality
  measurements of final product and compares them
  to conditions throughout manufacturing process.

36
Considerations for Planning and Updating
Information Systems

• What are major effects of upgrading or switching
  to a computer-based information system?

37
Considerations for Planning and Updating
Information Systems

• What are major effects of upgrading or switching
  to a computer-based information system?
• expanded technical staff

38
Considerations for Planning and Updating
Information Systems

• What are major effects of upgrading or switching
  to a computer-based information system?
• expanded technical staff
• increased information technology costs

39
Considerations for Planning and Updating
Information Systems

• What are major effects of upgrading or switching
  to a computer-based information system?
• expanded technical staff
• increased information technology costs
• increased profit margins

40
Considerations for Planning and Updating
Information Systems

• What are major effects of upgrading or switching
  to a computer-based information system?
• expanded technical staff
• increased information technology costs
• increased profit margins
• enhanced product quality

41
Considerations for Planning and Updating
Information Systems

• What are major effects of upgrading or switching
  to a computer-based information system?
• expanded technical staff
• increased information technology costs
• increased profit margins
• enhanced product quality
• reduced clerical staff

42
Considerations for Planning and Updating
Information Systems

• What are major effects of upgrading or switching
  to a computer-based information system?
• expanded technical staff
• increased information technology costs
• increased profit margins
• enhanced product quality
• reduced clerical staff
• temporary disruption

43
Factors to Consider When Choosing a New
Information System

• What are important factors to consider when
  choosing a new information system?

44
Factors to Consider When Choosing a New
Information System

• What are important factors to consider when
  choosing a new information system?
• user interface design

45
Factors to Consider When Choosing a New
Information System

• What are important factors to consider when
  choosing a new information system?
• user interface design
• open versus closed system

46
Factors to Consider When Choosing a New
Information System

• What are important factors to consider when
  choosing a new information system?
• user interface design
• open versus closed system
• niche information system

47
Factors to Consider When Choosing a New
Information System

• What are important factors to consider when
  choosing a new information system?
• user interface design
• open versus closed system
• niche information system
• turnkey system

48
Factors to Consider When Choosing a New
Information System

• What are important factors to consider when
  choosing a new information system?
• user interface design
• open versus closed system
• niche information system
• turnkey system
• system support

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Factors to Consider When Choosing a New
Information System

• User Interface Design

50
Factors to Consider When Choosing a New
Information System

• User Interface Design
• Interface design should be user-friendly and
  intuitive

51
Factors to Consider When Choosing a New
Information System

• User Interface Design
• Interface design should be user-friendly and
  intuitive
• Critical information should be readily apparent

52
Factors to Consider When Choosing a New
Information System

• Open or Closed System?

53
Factors to Consider When Choosing a New
Information System

• Open or Closed System?
• open system companys IT staff can alter system
  or hire third party to make alterations

54
Factors to Consider When Choosing a New
Information System

• Open or Closed System?
• open system companys IT staff can alter system
  or hire third party to make alterations
• closed system must be serviced and supported by
  vendor

55
Factors to Consider When Choosing a New
Information System

• Niche Information System

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Factors to Consider When Choosing a New
Information System

• Niche Information System
• exists to serve specially focused sets of
  customers

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Factors to Consider When Choosing a New
Information System

• Niche Information System
• exists to serve specially focused sets of
  customers
• includes all needed forms and templates

58
Factors to Consider When Choosing a New
Information System

• Niche Information System
• exists to serve specially focused sets of
  customers
• includes all needed forms and templates
• does not need a lot of technical know-how or
  staff training

59
Factors to Consider When Choosing a New
Information System

• Turnkey System

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Factors to Consider When Choosing a New
Information System

• Turnkey System
• contains everything a company needs to know to
  get system up and running

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Factors to Consider When Choosing a New
Information System

• Turnkey System
• contains everything a company needs to know to
  get system up and running
• heavily customized and includes support people to
  tailor system to exact needs of a business

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Factors to Consider When Choosing a New
Information System

• Questions Concerning System Support

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Factors to Consider When Choosing a New
Information System

• Questions Concerning System Support
• Are installation, staff training, and on-site
  service and repair included in the system package?

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Factors to Consider When Choosing a New
Information System

• Questions Concerning System Support
• Are installation, staff training, and on-site
  service and repair included in the system
  package?
• If not, what are the cost of these services?

65
The Process of Developing a New Infor-mation
System

• Development of information systems follows an
  ongoing cycle that includes planning, design,
  implementation, and support.

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The Process of Developing a New Information System

• Gantt charts help visually communicate the
  critical steps and schedule for a project.

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The Process of Developing a New Information System

• Designing the System

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The Process of Developing a New Information System

• Designing the System
• A functional specification document is written
  first and states exactly what information system
  must accomplish.

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The Process of Developing a New Information System

• Designing the System
• A functional specification document is written
  first and states exactly what information system
  must accomplish.
• A design specification describes how the goals in
  the functional specification will be reached.

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The Process of Developing a New Information System

• Commonly Used Information Systems Software

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The Process of Developing a New Information System

• Implementation

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The Process of Developing a New Information System

• Implementation
• A prototype is a miniprogram that demonstrates
  the user interface and functionality of the
  system.

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The Process of Developing a New Information System

• Implementation
• A prototype is a miniprogram that demonstrates
  the user interface and functionality of the
  system.
• Development is where the software programming is
  done and technicians ensure the new hardware
  works.

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The Process of Developing a New Information System

• Implementation
• A prototype is a miniprogram that demonstrates
  the user interface and functionality of the
  system.
• Development is where the software programming is
  done and technicians ensure the new hardware
  works.
• Hardware and software purchasing is done and
  delivered before system can be installed and
  considered up and running.

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The Process of Developing a New Information System

• Implementation

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The Process of Developing a New Information System

• Implementation
• Beta testing is where the system is rigorously
  tested before it is completely trusted to
  function as designed.

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The Process of Developing a New Information System

• Implementation
• Beta testing is where the system is rigorously
  tested before it is completely trusted to
  function as designed.
• User training normally takes place at same time
  as beta testing.

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The Process of Developing a New Information System

• Implementation
• Beta testing is where the system is rigorously
  tested before it is completely trusted to
  function as designed.
• User training normally takes place at same time
  as beta testing.
• The committee or executive overseeing purchase of
  the system inspects, tests, and approves it.

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The Process of Developing a New Information System

• The Support Stage

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The Process of Developing a New Information System

• The Support Stage
• A support contract allows users to contact
  systems integrator for technical support,
  training, and on-site troubleshooting.

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The Process of Developing a New Information System

• The Support Stage
• A support contract allows users to contact
  systems integrator for technical support,
  training, and on-site troubleshooting.
• If system designed in-house, responsible
  department often operates as an independent
  entity.

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On the Horizon

• Based on the information presented in this
  chapter and your own experience, what do you
  think is on the horizon?