The Knowing Organization: How Organizations Use Information to

Introduction to Information Systems
IMEN 381
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POSTECH Strategic Management of Information Systems Lab.
Contents
 Introduction
 Trend in Business and Management
 What is an Information System?
 What Does an Information System Do?
 Does Information System Need Computers?
 What Types of Information System Exist?
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POSTECH Strategic Management of Information Systems Lab.
Introduction
Information
System
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POSTECH Strategic Management of Information Systems Lab.
Trend in Business and Management
Global
Customer
Information
Technology
driven
Business
and
Management

Blurring of industry boundaries

Deregulation of industries

Faster pace of business

Increasing foreign competition

Global business community

An information society

Increasing complexity of management

Interdependence of organization units

Improvement of productivity

Availability of computers for end-users

Recognition of information as a resource
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POSTECH Strategic Management of Information Systems Lab.
What is an Information System?(1/2)
A set of people, data, procedure to provide useful information
People
Communication of
information
Information
System
Data
Management of
activities
Decision
making
Procedure
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POSTECH Strategic Management of Information Systems Lab.
What is an Information System?(2/2)
Components of a Loan
Information System
• Fund on deposit
• Loan balance
• Balance financial plan
• Loan portfolio
Banking database
Processor
Computer based
loan information
systems
Information supplied by
applicant for loan
• Financial status
• Loan details
• Employment status
Economic database
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• Employment data
• Economic data
POSTECH Strategic Management of Information Systems Lab.
What Does an Information System Do?
 An information system performs three general activities
 It accepts data from sources as input
 It acts on data to process(produce) information
: information generating system
 The system outputs the information for the user, manager or staff
member
Input of data
Information generating
First Step
Second Step
Output
Third Step
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POSTECH Strategic Management of Information Systems Lab.
Does an Information System Need Computer?
95%
5%
Yes
No
As the volume of work grows
 procedures increase in complexity,
 activities become more interrelated,
 improvements can be gained by introducing computer
Small
size
managemen
-t
assistance
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POSTECH Strategic Management of Information Systems Lab.
What types of Information Systems Exist?(1/4)
Types of Information Systems
IS
Recognition
about
Information
The advent
TPS(Transaction
Processing System)
Efficiency
Computer
To process data about
transactions
MIS(Management
Information
System)
Control
Database
To enable people to make
decision(action)
Decision
PC and
Model based
To assist managers with
unique strategic decisions
that relatively unstructured
DSS(Decision
Support System)
Explanation
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POSTECH Strategic Management of Information Systems Lab.
What types of Information Systems Exist?(2/4)
Types of Information Systems
IS
Recognition
about
Information
The advent
Explanation
ESS(Executive
Support System)
Strategic
Resource
Executive
Support
To assist top-level executive
Work Group
Support System
Communication
Communication
To exchange information
(ex : EDI, WP)
ES(Expert System)
Knowledge
AI
To mimic the decision
process of a human expert
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POSTECH Strategic Management of Information Systems Lab.
What types of Information Systems Exist?(3/4)
1950
1960
1970
1980
1990
2000~
TPS(Transaction Processing System)
MIS(Management Information System)
IPS(Information Processing System)
DSS(Decision Support System)
ESS(Executive Support System)
EIS(Executive Information System)
ES(Expert
System)
?
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POSTECH Strategic Management of Information Systems Lab.
What types of Information Systems Exist?(4/4)
Level
IS
Top
EIS
High
DSS
Middle
MIS/IPS
Low
TPS
Organization Triangle to explain the relationship between the organizational structure and IS
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POSTECH Strategic Management of Information Systems Lab.
Summary
 Today Information Systems touch every aspects of Biz.
 The effective use of information systems in management
builds on a vision.
 A computer is a useful and powerful tool in Information
Systems.
 Types of Information Systems are TPS, MIS, IPS, DSS,
ESS, EIS and ES.
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POSTECH Strategic Management of Information Systems Lab.