G0 B00 OC.
Content
Lecture 3
Components of IS
System & Sub-Systems
Logical Components of a Business Process
Information System Output Flow and Users
Information Qualities
Key Takeaways
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Components of IS
ire
Se
coo
Communications
Systems
development
and operation
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What is an Information System
System & Sub-Systems.
+ Asystem is a set of
interdependent elements that
together accomplish specific
objectives.
+ Asystem must have
organization,
interrelationships, integration,
and central objectives
+ Inexample picture system
4,0. as. NMIMS university
and system 1.2 as the School
of Business Mgmt (SBM)
** Interrelationship F might be 2
finance student being sent by
the Finance Department
(0 Sem 10 b) Systems 12 (1.2.1) to the Department of
Slime: 13,12,13,14 Slieyae: 121,122,123 Accountancy (1.2.2) fora
itereatonsis: A. 8, 0,0, € inerestorspe FG minor in accounting
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What Is an Information System
Hierarchical Structure
* Figure depicts the hierarchical
organization structure inherent
in any system.
= Any Systems (even IS) has a
basic objective or function
* Asystem’s basic objectives
depend on its type—natural,
biological, or human-made—.
= For example, the human
circulatory system is a biological
system whose objective is to
carry blood containing oxygen
and carbon dioxide to and from
the organs and extremities of
the body.
(6) System 1.0 organization
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What is an Information System
Information System
= The most basic function of an IS is to transform data into information that is
useful in decision making
* An Information System consists of an integrated set of computer-based and
manual components established to facilitate an organization's operational
functions and to support management decision making by providing information
that managers can use to plan and control the activities of the firm.
= Example : Shoe Stose - Inventory Management System
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. Business Processes & Information Systems
Functional Model ofan Information System
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Functional Model of an Information System
NOTE:
| ‘System outputs result in user actions. Some actions (e., feedback) in tun become
subsequent system inputs,
‘Scanned with CamScannerExample: |S to maintain
inventory balances in a
shoe store.
Storage
> Inputs: might be
receipts of new shoes
or sales of shoes;
Processing > Process: might be to
update (in storage) the
T inventory records for
1 } the particular shoe;
i TA 1 >» Output: might be a
listing of all the various
-4i0e kinds and sizes of
shoes and their
ate npn acre
NOTE:
System outputs result in user actions. Some actions, ie
subsequent system inputs,
ARs
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Logical Model of a Business Process for Ordering Books Online
ee
—Shipaing acknowledgement
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Logical Model of a Business Process for Ordering Books Online
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Information System Output Flow and Users
> The information process supports all
Ni layers through horizontal and vertical
on information flows.
Strategie \ \%,
management \\&
¥
Figure depicts data flow from business
events - the vertical information flows
upward & other data, such as budgets,
would flow downward.
c
Horizontal flows relate to specific business
or ‘such as one shipment, or to
iiMividual inventory items which
progresses through different stages at a
given level
Operations
management
(Operations and business event
processing
Horizontal information tows, °
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Information System Output Flow and Users
Horizontal Flows
> At the level of operations events processing, the flows are horizontal as the
information moves through operational units such as sales, the warehouse, and
accounting.
» Horizontal flows relate to specific business events, such as one shipment, or to
individual inventory items.
Vertical Flows
> The vertical infc. mation flow is useful to management
> Information useful to operations management personnel is often an aggregate of
data related to several business events.
> The data captured at the operations and business event processing level
constitute the foundation for the vertical information flows that service a multilevel
management function
EDW constitures the organization wide data reposito
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AHierarchy of Information Qualities
epceen makes Qualities of Information
teens > Effectiveness
> Efficiency
> Confidentiality
> Integrity
> Availability
> Compliance i
> Reliability of Information
In the real world maximizing
Business objective, rather
than obtaining the "best
quality” of information is a
strategic choice!
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