Foundations of Information

Science

CHAPTER TWO
Information Systems
 Systems and Concepts of
Information
• A system is a group of interrelated components working
together toward a common goal by accepting inputs and
outputs in an organized transformation process.
 …continued
• Three Components of a System
– Input
– Involves capturing and assembling elements
that enter the system to be processed
– Processing
– Involves transformation processes that
convert input into output
– Output
– Involves transferring elements that have been
produced by a transformation process to their
ultimate destination
 …continued
• Two Additional Components of the System Concept
– Feedback

– Data about the performance of a system

– Control

– Involves monitoring and evaluating feedback to determine

whether a system is moving toward the achievement of its
goals.

– Control function makes necessary adjustments to a system’s

input and processing components to ensure that it produces
proper output
 System Characteristics
• A system does not exist in a vacuum, rather, it exists
and functions in an environment containing other
systems.
• Other System Characteristics
– Subsystem:
– A system that is a component of a larger system
– Boundary:
– A system separated from its environment
– Interface:
– Several systems may share the same environment
– Open System:
– A system that interacts with other systems
– Adaptive System:
– Modify themselves to meet the demands of a changing
environment
 …continued
• System Classification and Their Primary Characteristics

– Simple

– Has few components, and the relationship or

interaction between elements is uncomplicated and
straightforward

– Complex

– Has many elements that are highly related and

interconnected
 …continued
– Open
– Interacts with its environment
– Closed
– Has no interaction with its environment
– Stable
– Undergoes very little change over time
– Dynamic
– Undergoes rapid and constant change over
time
 …continued
– Adaptive
– Is able to change in response to changes in the
environment
– Non-adaptive
– Is not able to change in response to changes in the
environment
– Permanent
– Exists for a relatively long period of time
– Temporary
– Exists for only for a relatively short period of time
 The Role of Information Systems
• Essential communication and analytical tools
for conducting trade and managing businesses
• Provide a foundation for new products/
services
• Allow businesses to adopt flatter, more
decentralized structures and more flexible
arrangements of employees and management
• Organizations are trying to become more
competitive and efficient by transforming
themselves into firms where nearly all core
businesses and relationships with customers
are digitally enabled.
 …continued
• What Exactly Does an IS Do?
• Provides an organizational and management
solution based to address a challenge posed by
the environment
• Transforms raw data into useful information
• Collect, store, and disseminate information from
an organization’s environment and internal
operations and to support organizational
functions and decision making, communication,
coordination, control, analysis and forecasting.
The Roles of Information Systems
Provide an organization with the support
for:
– business operations
– managerial decision making and
– strategic advantage.
Components of Information System

• All information systems use the resources of people,

hardware, and software to perform input, processing,
output, storage, and control activities that convert data
resources into information products.
 …continued
• Components of a Computer Based
Information System
– People Resources
– End users are people who use an information system
or the information it produces.
– IS specialists are people who develop and operate
information systems.
– Hardware Resources
– Machines are physical devices (computers,
peripherals, telecommunication networks).
– Media are all tangible objects on which data are
recorded (paper, magnetic disks).
 …continued
– Software Resources
– A program is a set of instructions that cause a
computer to perform a particular task.
– Procedures are a set of instructions used by
people to complete a task.
– Data Resources
– Databases are a collection of logically related
records or files and consolidate many records
previously stored in separate files.
 Types of Information System
• Ways to Organize Information Systems
– By the groups they serve
• Operational level
• Management level
• Strategic level
– By functional area
• Sales and marketing
• Manufacturing and production
• Finance and accounting
• Human resources
 …continued
• The Four Major Types of Information
Systems
– By the Groups They Serve:
– Transaction Processing Systems (TPS)
– Management Information System (MIS)
– Decision Support System (DSS)
– Executive Support Systems (ESS)
 …continued
– By Functional Area:
– Sales and marketing
– Manufacturing and production
– Finance and accounting
– Human resources
• All classified under TPS
 …continued
• Other Information Systems
• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
• Specialized Systems (AI-based)
– Expert Systems
– Neural Systems
– Learning Systems
– Vision systems
– Robotics
 …continued
• Transactions
• Basic business operations such as customer
orders, purchase orders, receipts, time cards,
invoices, and payroll checks in an organization
• Transaction processing systems (TPS)
• Computer-based systems that perform routine
operations and serve as a foundation for other
systems
• Used to be called Electronic Data Processing
Systems (EDPS)
 …continued
• Batch vs. On-Line Transaction Processing
• TPS process transactions in two basic ways:
– Batch processing
• A system whereby business transactions are
accumulated over a period of time and prepared
for processing as a single unit or batch
– On-line transaction processing (OLTP)
• A system whereby each transaction is processed
immediately, without the delay of accumulating
transactions into a batch
 …continued
• Objectives of TPS
– Process data generated by and about transactions

– Maintain a high degree of accuracy

– Ensure data and information integrity and accuracy

– Produce timely documents and reports

– Increase labor efficiency

– Help provide increased and enhanced service

– Help build and maintain customer loyalty

– Achieve competitive advantage

 …continued
TPS – Subsystems

• Finance & Accounting systems

– Examples: cost accounting, accounts

receivable/payable; and payroll

• Process Control Systems (PCS) –

– Examples: petroleum refineries; assembly lines of

automated factories
 Management Information Systems
(MIS)
• Serve the management level of the organization,
providing managers with reports and online
access to the organization’s current performance
and historical records.
– Inputs: High-volume data

– Processing: Simple models

– Outputs: Summary reports

– Users: Middle managers

• Example: Annual budgeting
 Decision Support Systems (DSS)

• Serve the management level and help managers

make decision that are unique, rapidly changing,
and not easily specified in advance (use of
mathematical models)

– Inputs: Low-volume data

– Processing: Interactive

– Outputs: Decision analysis

– Users: Professionals, staff

 Executive Support System (ESS)
• Provides executives information in a readily accessible,
interactive format.
• Support strategic level managers to help make decisions
that are non-routine requiring judgment, evaluation, and
insight.
• Are a form of MIS intended for top-level executive use.
– Inputs: Aggregate data
– Processing: Interactive
– Outputs: Projections
– Users: Top level (strategic) management
• Example: 5-year operating plan
 …continued
• TPS, MIS, DSS, and AI/ES Hierarchy:
 …continued
• Interrelationships Among Systems

– TPS are typically a major source of data for other

systems

– MIS are sources for DSS and ESS

– DSS is a source for ESS

 …continued
• Relationship of Systems to One Another

– Different types of systems exist in organizations.

– Not all organizations have all of the types of

systems described here. Many organizations may
not have knowledge work systems, executive
support systems or decision support systems.
 Office Automation Systems (OAS)

• Support general office work for handling and managing

documents and facilitating communication.
• Text and image processing systems evolved from word
processors to desktop publishing, enabling the creation
of professional documents with graphics and special
layout features.
• Spreadsheets, presentation packages like Powerpoint,
personal database systems and note-taking systems
(appointment book, notepad, cardfile) are part of OAS.
• In addition OAS include communication systems for
transmitting messages and documents (e-mail ) and
teleconferencing capabilities.
Thank you