information systems (is) rev: feb, 2012 euiho (david) suh, ph.d. postech strategic management of...
TRANSCRIPT
Information Systems (IS)Rev: Feb, 2012
Euiho (David) Suh, Ph.D.
POSTECH Strategic Management of Information and Technology Laboratory(POSMIT: http://posmit.postech.ac.kr)
Dept. of Industrial & Management EngineeringPOSTECH
Contents※ Discussion Questions
1 Information Systems
1) Introduction
2) Components of IS
3) General role of IS
2 Information Systems in Management
1) Problem types
2) The relationship between IS and Management
3) The role of IS in Management
3 Case Study
3
Discussion Questions (1/2)
■ Explain the difference between data and information.
■ In a larger extent, what is the difference among data, information, decision aids, and knowledge ? (Refer to No. 6 PPT)
■ Refer to THREE key attributes of information. Are the attributes of information mutually independent ?
■ What is the least important component of IS among 6 components?
■ What is the ultimate purpose of information systems ?
■ DSS more focuses on solving (structured, semi-structured, unstructured) prob-lem than (structured, semi-structured, unstructured). Justify your answer.
■ Take an example of a semi-structured model and suggest how to solve it using an IS.
■ By using IS, what were benefits E-mart gained?
4
Discussion Questions (2/2)
■ Case 1 in textbook (pp. 5~6, Chapter 1)– How do information technologies contribute to the business success of the companies
depicted in the case? • Provide an example from each company, explaining how the technology implemented led to im-
proved performance
– The Bryan Cave law firm used BI technology to improve the availability, access, and presentation of existing information; this allowed them to provide tailored, innovative services to customers• What other professions could benefit from a similar use of these technologies, and how?
■ Discussion questions in textbook (p. 39, Chapter 1)– Refer to the Real Word Case on eCourier, Cablecom, and Bryan Cave in the chapter. Jay
Bregman, CTO and cofounder of eCourier, notes the company hopes their innovative use of technology will become a differentiator in their competitive market. More gen-erally, to what extent do specific technologies help companies gain an edge over their competitors? How easy or difficult would be to imitate such advantages?
– Why do big companies still fail in their use of information technology? What should they be doing differently?
5
What is Information?
■ Definition of Data– Raw facts, typically about physical phenomena or business transactions
• Specifically, objective measurements of the attributes of entities such as number, name, etc.
■ Definition of Information Facts that are organized and arranged in a meaningful manner.
■ Data vs. Information (statistical analysis)
■ Attributes of information– Accuracy– Timeliness– Relevance – Completeness– Reliability– Simplicity– Verifiability– Flexibility– Economy
Data InformationThe transformation process
1. Information Systems1) Introduction
6
What is a System?
■ Definition of System– A set of interrelated components, with a clearly defined boundary, working together to
achieve a common set of objectives by accepting inputs and producing outputs in an organized transformation process
Input
• Capturing and assem-bling ele-ments that enter the sys-tem to be processed
Processing
• Transforma-tion process converts in-put into out-put
Output
• Transferring transformed elements to their ultimate destination
1. Information Systems1) Introduction
7
What is an Information System?
■ Definition of Information System– A set of interrelated components which are to collect, process, store, and
distribute information to support decision making and control in an organi-zation
Information System
Information System
1. Information Systems1) Introduction
8
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
■ Information System Process
Input of dataInput of data Information generatingInformation generating OutputOutput
Third StepFirst Step Second Step
1. Information Systems1) Introduction
9
Components of Information System (1/3)
■ 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 as-
sistance
Small size manage-ment
1. Information Systems2) Components of IS
1010 / 13
Components of Information System (2/3)
A set of people, data, procedure to provide useful informa-tion
A set of people, data, procedure to provide useful informa-tion
Information SystemInformation System
People
Data
Procedure
Communication of information
Management of activities
Decision making
1. Information Systems2) Components of IS
11
Components of Information System (3/3)
Computer based loan information systems
Computer based loan information systems
Banking database
Economic database
• Fund on deposit • Loan balance • Balance financial plan• Loan portfolio
• Employment data• Economic data
Processor
Information supplied by applicant for loan• Financial status• Loan details• Employment status
1. Information Systems2) Components of IS
■ E.g. Components of a Loan Information System
12
Why do we study Information Systems?(1/2) 1. Information Systems3) General role of IS
Collect, distribute, analyze DataCollect, distribute, analyze Data
Get informationGet information
Remove uncertaintyRemove uncertainty
Make a good decisionMake a good decision
Store knowledgeStore knowledge
Why?
Why?
Why?
Why?
13
Why do we study Information Systems?(2/2) 1. Information Systems3) General role of IS
Vital component of successful
businesses
Improves efficiency and effectiveness of business processes
Strengthens competitive position in rapidly changing
marketplaces
Facilitates managerial
decision making &
workgroup collaboration
14
Benefits and Uses of Information Systems 1. Information Systems3) General role of IS
• Added Value to Products (Goods & Services)• Higher-quality Products
• Improved health care & communications• Reduced labor requirements & costs
• Increased efficiency & productivity• Superior financial decision making,
control over, operations, and managerial decision making
• Fewer errors• Greater accuracy• Better Safety & Service
Product
Labor
Quality
Manage-ment
15
Problem Types
Input ProblemStructure
DefiniteOutput
Input ProblemStructure
FuzzyOutput
Input ProblemStructure
User dependentOutput
User
User Interaction
2. Information Systems in Management1) Problem types
Structured Problem
Unstructured Problem
Semi-structured Problem
16
What types of Information Systems Exist?
ISRecognition about Infor-
mationThe advent Explanation
TPS(Transaction Pro-cessing System)
Efficiency ComputerTo process data about transac-tions
MIS(Management In-formation System)
Control DatabaseTo enable people to make deci-sion(action)
DSS(Decision Support System)
Decision PC and
Model based
To assist managers with unique strategic decisions that relatively unstructured
ESS(Executive Sup-port System)
Strategic Re-source
Executive Sup-port
To assist top-level executive
ES(Expert System) Knowledge AITo mimic the decision process of a human expert
ERP(Enterprise Re-sources Planning)
Management ITTo integrate management infor-mation across an entire organiza-tion
Work Group Support System
CommunicationCommunica-
tionTo exchange information(ex: EDI, WP)
2. Information Systems in Management2) The relationship between IS and Management
17
Evolution of IS
1950 1960 1970 1980 1990 2000~
TPS(Transaction Processing System)
MIS(Management Information System)
DSS(Decision Support System)ESS(Executive Support System)
ES(Expert System)
ERP(Enterprise Resources Plan-ning)WGSS(Work Group Support Sys-tem)
2. Information Systems in Management2) The relationship between IS and Management
18
A Business Perspective on Information Systems
Organizations Technology
Management
InformationSystems
2. Information Systems in Management3) The role of IS in Management
19
Technical & Behavioral Approaches to MIS
ComputerScience
OperationsResearch
Sociology
PoliticalScience
Psychology
ManagementScience MIS
BehavioralApproaches
Technical Approaches
2. Information Systems in Management3) The role of IS in Management
20
Case Study
■ Domestic Case
Click Here
21
Reference
■ O’Brien & Marakas, “Introduction to Information Systems – Fifteenth Edition”, McGraw – Hill, Chapter 1, pp. 3~42
■ Euiho Suh, “Introduction to Information Systems (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)
■ Euiho Suh, “Information & Management (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)