Chapter 10 Information
Systems
Chapter 10
Information Systems
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Presentation Overview
• The Role of an Information System
• Information Systems Classified by Function
• Planning and Updating Information
Systems
• Choosing a New Information System
• The Process of Developing a New
Information System
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The Role of an
Information System
An information system is
a combination of people,
hardware, software,
computer networks, and
data that organizations
use to manage daily and
long-term operations.
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The Role of an
Information System
What role do information systems play in
business?
Computer-based information systems offer four
key advantages over traditional information
systems.
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Improved speed
Improved efficiency
Improved quality
Improved measurability
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Information Systems
Classified by Function
What are some common functional
classifications for information systems?
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Distribution management
Office information
Management information
Decision support
Executive support
Factory automation
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Information Systems
Classified by Function
Distribution Management Systems
– Designed to deliver products quicker, cheaper,
and with fewer errors.
– The major advantage provided by this type of
system is the reduction of inventory overhead.
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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.
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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 System (OIS)
– Used to automate office work.
– Typically provides the following functions
• Maintaining standard operating procedures
• Connectivity
• Electronic data processing
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Information Systems
Classified by Function
Management Information System (MIS)
– Provides information that assists in the
management of business operations.
– Typically
• Integrates information from different departments or
functions into one database
• Provides support to management in the form of
regular reports
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Information Systems
Classified by Function
Decision Support System
Helps managers make informed business
judgments.
• Data modeling provides a simulation of a realworld situation built into a software application.
• A expert system is a sophisticated DSS that attempts
to model an expert’s knowledge of a topic.
• An online analytical processing (OLAP) system
defines and clarifies methods of handling what-if
questions posed to large databases.
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Information Systems
Classified by Function
Executive Support System (ESS)
– Attempts to bring together information from an
entire organization, not just one department or
group.
– Supports strategic decision-making by
facilitating the creation of high-level summary
reports.
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Information Systems
Classified by Function
Factory Automation and Plant Operations
– A computer-aided manufacturing (CAM)
system involves the direct use of computers to
manufacture products.
– A computer-integrated manufacturing
(CIM) system connects all departments in a
manufacturing company.
– A statistical quality control (SQC) system
assesses how well a factory is operating.
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Planning and Updating
Information Systems
What are the effects of upgrading or switching
to a computer-based IS?
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Expanded technical staff
Increased information technology costs
Increased profit margins
Enhanced product quality
Reduced clerical staff
Temporary disruption
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Choosing a New
Information System
What are important factors to consider when
choosing a new IS?
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User interface design
Open versus closed system
Niche information system
Turnkey system
System support
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Choosing a New
Information System
• User Interface Design
– The interface design should be user-friendly
and intuitive.
– Critical information should be readily apparent.
• Open or Closed System?
– In an open system, the company’s IT staff can
alter the system or hire a third party to do so.
– A closed system must be supported by the
original vendor.
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Choosing a New
Information System
Niche Information System
– Serves a specially focused set of customers.
– Does not require a lot of training or
technological know-how.
– Can be expensive and tends to lag
technologically.
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Choosing a New
Information System
Turnkey System
– Contains everything a business needs to get a
new IS up and running.
– Usually the best and most expensive.
– The services of support people are included.
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Choosing a New
Information System
System Support
– Ask whether or not installation, staff training,
and on-site service and repair are included in
the package.
– If they are not, these extra costs must be
factored into calculations of the total cost.
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The Process of Developing a
New Information System
The 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 to 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
– The functional specification document states
exactly what the IS must accomplish.
• This document is usually written first.
– The design specification spells out how these
goals 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
– A prototype is a miniprogram that
demonstrates how the system works.
• This step is sometimes skipped.
– In the development stage, software
programming is done and the technicians
ensure that the hardware works.
– Before any system can be installed, hardware
and software must be purchased.
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The Process of Developing a
New Information System
Implementation
– Once the system is installed, it undergoes beta
testing—a period of rigorous testing to ensure
that the system functions as designed.
– User training often occurs at the same time.
– Finally, the system must be approved by the
committee or executive overseeing its purchase.
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The Process of Developing a
New Information System
The Support Stage
– A system goes into the support stage after it has
been accepted and approved.
– A support contract allows users to contact the
systems integrator for technical support,
training, and on-site troubleshooting.
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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?
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