Chapter 10
Information Systems
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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
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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.
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The Role of an Information
System
What role do information systems play in
business?
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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
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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
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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
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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
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Information Systems Classified
by Function
What functions do information systems perform?
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Information Systems Classified
by Function
What functions do information systems perform?
Common functional classifications for information
systems are:
– distribution management
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Information Systems Classified
by Function
What functions do information systems perform?
Common functional classifications for information
systems are:
– distribution management
– office information
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Information Systems Classified
by Function
What functions do information systems perform?
Common functional classifications for information
systems are:
– distribution management
– office information
– management information
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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
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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
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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 Systems (OIS)
typically provide the following functions:
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Information Systems Classified
by Function
Office Information Systems (OIS)
typically provide the following functions:
– maintaining standard operating procedures (SOP)
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Information Systems Classified
by Function
Office Information Systems (OIS)
typically provide the following functions:
– maintaining standard operating procedures (SOP)
– connectivity
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Information Systems Classified
by Function
Office Information Systems (OIS)
typically provide the following functions:
– maintaining standard operating procedures (SOP)
– connectivity
– electronic data processing
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Information Systems Classified
by Function
Management Information Systems (MIS)
typically provide the following functions:
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Information Systems Classified
by Function
Management Information Systems (MIS)
typically provide the following functions:
– integrate information from company departments
into one database
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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 realworld 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 realworld 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 realworld 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
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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
– 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
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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.
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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.
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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.
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Considerations for Planning and
Updating Information Systems
What are major effects of upgrading or switching
to a computer-based information system?
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Considerations for Planning and
Updating Information Systems
What are major effects of upgrading or switching
to a computer-based information system?
– expanded technical staff
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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
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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
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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
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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
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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
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Factors to Consider When Choosing
a New Information System
What are important factors to consider when
choosing a new information system?
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Factors to Consider When Choosing
a New Information System
What are important factors to consider when
choosing a new information system?
– user interface design
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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
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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
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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
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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
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Factors to Consider When Choosing
a New Information System
User Interface Design
– Interface design should be user-friendly and intuitive
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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
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Factors to Consider When Choosing
a New Information System
Open or Closed System?
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Factors to Consider When Choosing
a New Information System
Open or Closed System?
– open system – company’s IT staff can alter system or
hire third party to make alterations
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Factors to Consider When Choosing
a New Information System
Open or Closed System?
– open system – company’s IT staff can alter system or
hire third party to make alterations
– closed system – must be serviced and supported by
vendor
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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
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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
– does not need a lot of technical know-how or staff
training
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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?
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The Process of Developing a New
Information
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?
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