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Information Systems

The document outlines the definition and components of Information Systems (IS), emphasizing the importance of people, hardware, software, procedures, and data. It classifies IS according to their portfolio and management levels, detailing different types such as Transaction Processing Systems, Management Information Systems, and Decision Support Systems. Additionally, it highlights the significance of investing in IS to enhance operational efficiency, create new business models, and improve decision-making.
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0% found this document useful (0 votes)
14 views29 pages

Information Systems

The document outlines the definition and components of Information Systems (IS), emphasizing the importance of people, hardware, software, procedures, and data. It classifies IS according to their portfolio and management levels, detailing different types such as Transaction Processing Systems, Management Information Systems, and Decision Support Systems. Additionally, it highlights the significance of investing in IS to enhance operational efficiency, create new business models, and improve decision-making.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Recap - Information Management (IM) Knowledge Areas

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Information System
Definition:-
A set of interrelated elements or components that collect (input), manipulate
(process), store, and disseminate (output) data and information and provide a
corrective reaction (feedback mechanism) to meet an objective(s).

Can either be manual or computer based

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Components of an IS

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Information System Components
► People
The most important element of computer based information systems; Determine the
success and failure of an information system; Divided into IS personnel and users
► Hardware
Physical components for input, processing, output, storage and communication, The faster,
and smaller the better.
► Software
Computer programs governing the operations of the computer, system software and
application software
Allow a computer to process payroll, send bills to customers, and provide managers with
information to increase profits, reduce costs, and provide better customer service
► Procedures
Strategies, policies, methods, and rules for using the CBIS, including the operation,
maintenance, and security of the computer
► Data
Normally stored in databases, data marts and data warehouses.
Large database storage requirements often require more storage devices, more space
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to house the additional storage devices, and additional electricity to operate them
Telecomms. and Networks
IS Classification
IS classification helps us to systematically study, acquire and use information
systems.

I. According to Portfolio:
Applications portfolio - organization's collection of
software applications and software-based services, which
it uses to attain its goals or objectives.

▪ High Potential
▪ Strategic (Rising Star)
▪ Key Operational (Cash cow) and
▪ Support
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Applications Portfolio
Strategic High POTENTIAL

Applications that are critical to


sustaining future business Applications that may be
strategy important in achieving future
business strategy

KEY OPERATIONAL Support

Applications upon which the Applications that are valuable


organization currently depends but not critical to success
for success
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Applications Portfolio
High Potential IS
⮚ Can possibly confer competitiveness to the
organization
⮚ Requires investment in research & innovation
⮚ Prototyping in close collaboration with users may
produce a meaningful result
⮚ Highly exploratory
⮚ Need thorough evaluation to bring about
understanding

Hint:- Research ⇒ Prototype ⇒ Evaluate then invest


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Applications Portfolio
Strategic information systems
⮚ Designed to bring about change in an organization
⮚ Designed to give the organization a competitive edge
(High potential IS may mature to be strategic IS)
⮚ Address what might be done in the future
⮚ Their success hinges on successful business analysis
⮚ Require some experimentation
⮚ Rapid prototyping may help in speeding and visualising
the product

Hint: - Identify business critical success factors then invest


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Applications Portfolio
Key operational information systems
⮚ May evolve from strategic information systems
⮚ Serve particular purpose, support business processes
⮚ An essential in a business environment
⮚ Enhance organizational capabilities
⮚ Need thorough understanding of the business need and
business processes to set up
⮚ Accuracy is key

Hint:- Aim for accuracy, increased efficiency, lower costs


and more contribution to profit 10
Applications Portfolio
Support information systems
⮚ Have little strategic role in the organisation
⮚ Less critical, their failure have minimal impact to the organization
⮚ May easily be implemented as off-the-shelf packages with minimal
adaptation
⮚ Less resources may be needed for implementation

⮚ e.g. HR Training systems, clerical systems,

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IS Classification ct’d
II. According to Management Levels

Source: Kendall & Kendall,


12 2011

Computer-Supported Collaborative Work Systems


Example Systems Summary

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Transaction Processing Systems
► Handle large amounts of data for routine business
transactions
► Eliminate the tedium of necessary operational
transactions
► Reduce the time to perform operations manually.
► Enable organizations to interact with external
environments.
► Their smooth running without interruption is critical.

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OAS

► Office automation systems (OAS) support data


workers,
► Data workers analyze information before
disseminating it throughout
► OAS include word processing, spreadsheets,
desktop publishing, electronic scheduling, and
communication through voice mail, email
(electronic mail), and teleconferencing.

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KWS

► Knowledge work systems (KWS) support


professional workers such as engineers
► Support knowledge creation
► Facilitate knowledge exchange

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Management Information Systems
► Incorporate TPS to support users in accomplishing a broader
spectrum of organizational tasks than TPS
► Support decision analysis and decision making.
► Usually employ databases, e.g. Inventory control, annual
budgeting.
► Database stores both data and models that help the user
interact with, interpret, and apply that data.

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Decision Support Systems
► DSS emphasizes the support of decision making in all
its phases; i.e.
► Problem identification – Solution alternatives – Choosing
best solution – Solution testing
► More closely tailored to the person or group using them
► Examples include; cost analysis, production scheduling
systems.
► Also known as systems that focus on business
intelligence (infrastructure for
warehousing, integrating, reporting, and analyzing data
that comes from the
business environment).
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DSS Taxonomies
► Power (2002) differentiates five types for DSS:
► model-driven DSS.
► data-driven DSS,
► communication-driven DSS,
► document-driven DSS,
► knowledge-driven DSS, and
Model-driven DSS
► A model-driven DSS emphasizes access to and manipulation of a
statistical, financial, optimization, or simulation model.
► Model-driven DSS use data and parameters provided by users to
assist decision makers in analyzing a situation; they are not
necessarily data intensive.
► Dicodess (https://www.openhub.net/p/dicodess) is an example of an
open source model-driven DSS generator

► Other examples: -
► A spread-sheet with formulae in cells
► An optimum routing model (Formulation of a delivery route)
Data-driven (retrieval) DSS
► A data-driven DSS or data-oriented DSS emphasizes access to and
manipulation of a time series of internal company data and, sometimes,
external data.
► Simple file systems accessed by query and retrieval tools & provide the
elementary level of functionality.
► Data warehouses provide additional functionality.
► OLAP provides highest level of functionality.

► Examples:
► Accessing NUST data base for all plumbing maintenance within the period
Jan20-Jul20 by a certain service provider

► Accessing INTERPOL database for crimes by SMoyo

► Accessing border patrol database for all incidents illegal immigrants


Communication-driven DSS
► A communication-driven DSS uses network and
communications technologies to facilitate collaboration on
decision making. It supports more than one person working on a
shared task.
► Examples include integrated tools like Microsoft's NetMeeting,
Video conferencing.
► It is related to group decision support systems.
Document-driven DSS
► A document-driven DSS uses storage and processing
technologies for document retrieval and analysis. It manages,
retrieves and manipulates unstructured information in a
variety of electronic formats.
► Documents in the database may include: Scanned documents,
hypertext documents, images, sound and video.
► A search engine is a primary tool associated with document
driven DSS.
Knowledge-driven DSS
► A knowledge-driven DSS provides specialized
problem solving expertise stored as facts, rules,
procedures, or in similar structures. It suggests or
recommends actions to managers.
► e.g. MYCIN: A rule based reasoning program which
helps physicians diagnose blood disease.
Characteristics and Capabilities of DSS
► The key DSS characteristics and capabilities are as follows:
1. Support for decision makers in semi-structured and unstructured
problems.
2. Support managers at all levels.
3. Support individuals and groups.
4. Support for interdependent or sequential decisions.
5. Support intelligence, design, choice, and implementation.
6. DSS should be adaptable and flexible.
7. DSS should be interactive ease of use.
8. Complete control by decision-makers.
9. Ease of development by end users.
10. Support modeling and analysis
AI and Expert Systems
► AI aims at developing machines that behave intelligently
► Aims are:
(1) understanding natural language and
(2) analyzing the ability to reason through a problem to its
logical conclusion.
► An expert system (also called a knowledge based system)
effectively uses the knowledge of a human expert(s) for
solving a particular problem experienced in an organization.
► An expert system selects the best solution to a problem
► or a specific class of problems on behalf of the human.
► ES basic components are:
► knowledge base, an inference engine and the user 26

interface..
ES Components
► Knowledge base - a declarative representation of the
expertise, often in IF THEN rules, cases, semantic networks
► Working memory - the data which is specific to a
problem being solved
► Inference engine - the code at the core of the system
► Derives recommendations from the knowledge base and
problem-specific data in working storage
► User interface - the code that controls the dialog
between the user and the system
► Domain database facts – Pertain to the whole area for
which the expert system has been built. This should be a
narrow domain.

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Executive Support Systems
► ESS help executives organize their interactions with the
external environment
► ESS rely on the information generated by TPS and MIS
► Help their users address unstructured decision problems
► ESS extend and support the capabilities of executives,
permitting them to make sense of their environments.

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Why Invest in IS ?
► Achieve operational excellence through higher levels of
efficiency, quality, and productivity
► Create new products, services, and business models
► Raise revenue and profits while lowering costs by
increasing customer and supplier intimacy
► Improve decision making for managers and employees
► Increase competitive advantages
► Ensure survival caused by business environment
changes

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