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Unit 2

An Introduction toInformation Systems in

Organization

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Data vs Information vs Knowledge

Data- raw facts; no context

Types of Data

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Information

- collection of facts organized in such a way that they

have value beyond the facts themselves

-processed data- value-added to data

o summarized

o organized

o analyzed

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Knowledge

-awareness and understanding of a set of

information and the ways that info can be made

useful to support a specific task or decision

KnowledgeWorkers (KWs) people who create, use,

and disseminate knowledge and are usually

professionals in science, engineering, and other areas.

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The Process of Transforming Data into

Information

DataThe

transformationprocess

Information

Applying knowledge by selecting,organizing and manipulating data

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Data vs Information

Data

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SIRIUS SATELLITE RADIO INC.

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Last 10 Days

Stock

Price

Information

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DataInformationKnowledge

Summarizing the data

Averaging the dataSelecting part of the data

Graphing the data

Adding context

Adding value

Data

Information

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DataInformationKnowledge

How is the info tied to outcomes?

Are there any patterns in the info?What info is relevant to the problem?

How does this info effect the system?

What is the best way to use the info?

How can we add more value to the info?

Information

Knowledge

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The Characteristics of

Valuable Information

If an organizationsinformation is not accurate or

complete, people can make poor decisions, costing

thousands or even millions of pesos.

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INFORMATION SYSTEM (IS)

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Information System (IS) Information System (IS) is a set of interrelated elements

that:

- collects (input)

-manipulates (process)

- stores- disseminates (output) data and information

- provides a corrective reaction (feedback mechanism) tomeet an objective

Ex. ATMs, airline reservation systems, course reservationsystems

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Components of IS

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Elements of IS

1. People- qualified personnel to develop and maintain the system

- trainable users of the system or the operators

2. Computer equipment/hardwareused by the people to input,process, output activities

Input devices: keyboard, mouse, automatic scanning devices

Processing devices: computer chips that contains the CPU

and main memoryOutput devices: printer and computer screens or monitor

3. Softwareset of instructions that instructs the equipment what to

do

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Elements of IS

3. Data or informationencoded and manipulated

4. Procedures/ guidelines includes methods and rules

used for the effective and optimal operation of thesystem

5. Telecommunication the media composed of the

hardware and software that facilitate the transmission of

electronic data within the system

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Manual and Computerized

Information Systems

An information system can be manual or computerized

Example:

Investment analysts manually draw charts and trendlines to assist them in making investment decisions

Computerized information systems follow stock indexes

and markets and suggest when large blocks of stocks

should be purchased or sold

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Computer-Based

Information Systems

Single set of hardware, software, databases,telecommunications, people, and procedures that are

configured to collect, manipulate, store, and process

data into information

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Computer-Based

Information Systems

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Computer-Based

Information Systems

Hardware:

Consists of computer equipment used to perform

input, processing, and output activities

The objects that you can actually touch, like disks, diskdrives, display screens, keyboards, printers, boards, and

chips.

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Computer-Based

Information Systems

Software:Consists of the computer programs that govern the

operation of the computer

Software is often divided into two categories.

o Systems software includes the operating system and allthe utilities that enable the computer to function.

oApplications software consists of programs designed tomake users more productive and/ or assist them withpersonal tasks.

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Computer-Based

Information Systems

Telecommunications, networks, and the Internet

the electronic transmission of signals for

communications

enables organizations to link computer systems intoeffective networks

Networks

connect computers and equipment to enable

electronic communication

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BUSINESS INFORMATION

SYSTEMS

Business Information Systems

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Office Automation System

An Office Automation System aids office workers

in their daily information processing tasks. Personal and

organizational data are processed, calculations performed,and documents created, stored and printed for

management reference purposes.



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Office Automation Systems



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Communication Systems

A Communication System aids organizations

in their communication needs among different

subgroups and levels of the organization. Thisincludes IM Chat, videoconferencing, email etc.



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Electronic and Mobile Commerce

E-commerce - any business transaction executedelectronically; can enhance a companys stock prices

and market value

Example for placing a purchase order

Mobile commerce (m-commerce) - the use of mobile,

wireless devices to place orders and conduct business



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Transaction Processing Systems

Transaction

any business-related exchange, such as

payments to employees and sales to customers

Transaction processing system (TPS) organized

collection of people, procedures, software, databases,

and devices used to record completed business

transactions


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Management Information System (MIS)

CBIS was later known as Management InformationSystem (MIS) provides managers with information that can

be used in the problem-solving process.

MIS generate accurate, timely, and organizedinformation. Unlike TPS this do not help managers

perform their management function on a daily basis

rather serve as a knowledge base. This enables them to

make decisions, solve problems, and supervise activities.Example of this is the daily sales analysis report.



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Management

Information System (MIS)


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Decision Support System

It is a general term for any computer applicationthat enhances a person or groupsability to make

decisions. It does not only provide information

relevant to operations but they also have datamanipulation tools in models that stimulate

scenarios in the workplace. These models

present different alternatives to solve a problemfrom which managers could choose the best.

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Decision Support System

DSS are a form of weak AI in the sense thatthey are not designed to operate autonomously,

but merely provide assistance to medical staff in

tasks that involve the manipulation of data andknowledge.

Such assistance may be to an inexperienced

doctor regarding diagnosis, or helping even anexperienced physician in a situation too complex

for them to handle alone.

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Specialized Business Information

Systems:Knowledge Management, Artificial

Intelligence, Expert Systems, and Virtual

Reality


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Knowledge Management Systems (KMSs)

Organized collection of people, procedures,software, databases, and devices to create,

store, share, and use the organizations

knowledge and experienceE.g. help employees use critical knowledge to

help customers

f y


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Artificial intelligence (AI)

Computer system takes on characteristics of humanintelligence

Games playing: programming computers to play gamessuch as chess and checkers

f y


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Expert systems

Programming computers to make decisions in real-lifesituations (for example, some expert systems help

doctors diagnose diseases based on symptoms)

give computer ability to make suggestions and function

like an expert in a particular field

Robotics : programming computers to see and hear and

react to other sensory stimuli

f y


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Virtual Reality and Multimedia

Virtual realitySimulation of a real or imagined environment that can be

experienced visually in three dimensions

E.g. a healthcare company is experimenting with a virtualreality game designed to help treat cancer

Multimedia

Can include photos and images, the manipulation of

sound, and special 3D effects

f y

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Systems Investigation and

Analysis

Goal of systems investigation:

To gain clear understanding of the problem to besolved or opportunity to be addressed

Systems analysis:

Defines the problems and opportunities of theexisting system

l d

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Systems Design, Implementation, and

Maintenance and Review

Systems design:Determines how new system will work to meet

business needs defined during systems analysis

Systems implementation:Acquiring various system components defined in

design step, assembling them, and putting the new

system into operation Systems maintenance and review:

Checks and modifies the system so that it continues

to meet changing business needs

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Organization and Information

System

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Organization

formal collection of people and otherresources established to accomplish a set

of goals

A system

constantly uses money, people, materials,

machines and other equipment, data,information, and decisions

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Culture set of major understandings and assumptions shared by a

group

includes the organization values, visions, norms, working

language, systems, symbols, beliefs and habits.

Organizational culture

major understandings and assumptions; Influences

information systems is the behavior of humans who are part of an

organization and the meanings that the people

attach to their actions.

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Organizational change- how organizations plan for, implement, and handle

change

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1. Planning

involves formulation of objectives that

guide all members of the organization toward the

goals to be achieved, the methods to achieve

these goals and the probable outcomes andchallenges to encounter.

Organizational plans could be short term or

long term.

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2. Organizing

identifying resources and coordinating

these to achieve goals that may include review of

the current organizational setup, creation of

subgroups or departments, if needed.Time allotted to organizing would depend on

previously established plans and strategies.

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3. Directing

refers to communicating instructions necessary

to perform specific tasks to be done. For directing

to be effective, the organization officers should

consider motivating subordinates to work.Directing also means a regular meeting

between officers and working staff members to

discuss timetable, priorities, and eliminate error.

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4. Controlling

-entails performance evaluation to identify mattersthat need to be corrected or changed that affect

productivity and efficiency on workgroups.

Daily, monthly, and annual reports include

information needed by the managers in making necessary

modifications in the management process.

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Four Management Functions

Plan

Objectives

Strategies

Methodologies

Organize

Manpower

Money

Materials

Direct

Supervise

Motivate

Communicate

Control

Evaluate

Revise

Update

How Information Systems

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How Information Systems

affect Organizations

reduces operating costs

changes organizational structure

increase information and knowledge workers

increase self- guided workers (information access:

automated, timeliness, and accuracy)

shortens decision making process

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Careers in Information System

System Analysts-involve the analysis of business needs. Job may

involve designing or updating existing IS. The systemanalyst can also be a project leader, technician,

businessperson or mediator.

Project Manager/Leader

-involves working on systems project. Job involvescreating programs according to specifications of thesystem analysis and designer.

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Programmer

-involves creating particular programs or creatingsubroutines or specific parts of the system program. They

must work harmoniously with the project manager.

Data Administrator

responsible for the database of an organization;

overall planning and design of corporate databases;

establishes security measures to ensure authorized accessand proper use; establishing failure-recovery and backup and

data integrity

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Telecommunications Manager

-responsible for the acquisition, implementation,management, maintenance, and troubleshooting of computer

networks throughoutthe organization.

A data communications manager must carefully assess

the future communications needs of the organization, plan

local and wide area network topologies and virtual private

networks; recommend specific communication hardware and

software; supervise technicians and support personnel andhire qualified consultants, and provide ad-hoc solutions to

connectivity problems.

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Webmaster

-responsible for creating and maintaining the

organizations web site and its intranet pages, webmastersare also assigned to help individual departments create their

own web pages since many organizations use the web for e-

commerce are involved in creative decision making that

determine how to represent the organization on the web.

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Chief Information Officer

-responsible for all the aspects of an organizations

information system; oversees all IS research anddevelopment including new technologies that can be applied

to emerging business needs

Independent Consultants

-these are the independent experts on a certain

Information System field who offer their services to companies

who lack the qualified personnel for specific tasks. Their workvaries according to their capabilities, level of expertise, and

the period when the project will be finished.

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