Mris 2

1Chapter 12 Understanding Computers, 11th
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What Is an Information System?
 System: collection of elements and procedures that
interact to accomplish a goal
 Information system: system used to generate
information to support users in an organization
 System development: process of designing and
implementing a new or modified system

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Who Uses Information Systems?
 Executive managers: strategic decisions
 Middle managers: tactical decisions
 Operational managers: operational decisions geared
toward meeting short-term objectives
 Nonmanagement workers: on-the-job decisions

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Types of Information Systems
 While hundreds of specific types of information
systems exist, many fall into one of eight
categories

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Office Systems
 Office system: A system in which office automation
hardware, software, and other resources are used to
facilitate communications and enhance productivity
 Office automation: computer-based office-
oriented technologies, such as word processing,
e-mail, workgroup computing, and the like
 Document processing systems (create, distribute,
store, and manage documents

Formats need to be considered for archived
documents so they can be read at a later date
 Communications systems (e-mail, messaging,
online conference, workgroup computing, etc.)

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Transaction Processing Systems
 Transaction processing system: System
that processes and records data created by
an organization’s business transactions
 Order entry systems

E-commerce systems

Point-of-sale (POS) systems
 Check processing systems
 Payroll systems
 Accounting systems

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Management Information Systems
(MISs)
 Management information system (MIS): system
that provides decision makers with preselected
information
 Usually provides information in the form of
computer-generated reports
 Much of the time, this information is generated
from data obtained from transaction processing
 Most frequently used to make moderately
structured, middle-management decisions

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Decision Support Systems (DSSs)
 Decision support system (DSS): provides people
with the tools and capabilities to organize and
analyze their decision making information
 Provides information on demand and incorporate
data from both internal and external sources
 Tailored to help with specific types of decisions;
typically used by middle and upper management
 Special type of DSS targeted to upper
management = executive information system (EIS)

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Geographic Information Systems
(GISs)
 Geographic information system (GIS): system that
combines geographical information with other types
of data to provide a better understanding of
relationships among the data
 Commonly used
to make decisions
about locations
(e.g. new facility
locations, disaster
risk, geographical
crime patterns)

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Enterprise-Wide and Inter-Enterprise
Systems
 Enterprise-wide system: integrates activities
throughout an entire enterprise
 Inter-enterprise system: links multiple enterprises,
such as a business and its customers, suppliers, and
partners
 Types of enterprise-wide and inter-enterprise
systems
 Electronic data interchange (EDI): transfers
data between different companies using the
Internet or another network

Often used to automate reordering materials and
products

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systems, cont’d
 Enterprise resource planning (ERP): large
integrated system that ties together all of a
business’s activities
 Enterprise application integration (EAI):
exchanging information from an ERP or other
internal system among different applications and
organizations
Systems, Cont’d

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systems, cont’d
 Customer
relationship
management (CRM):
a system designed to
build and manage
good relationships with
customers
 Often implemented via
the Web today (eCRM)
Systems, Cont’d

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 Types of enterprise-wide and inter-enterprise systems,
cont’d
 Supply chain management (SCM): the oversight
of materials, information, and finances as they
move from the original supplier to the consumer

Value chain management systems (maximize
the flow of products, goods, services, and
information through a value-added network of
suppliers
 Just-in-time (JIT) systems (resources are limited
to the right amount at the right time to fill orders)

Inventory management systems (track and
manage inventory)
Systems, Cont’d

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systems, cont’d
 Product lifecycle management (PLM): organizes
and correlates all information about a product to
help companies improve products and better track
costs and profits
 Price optimization systems: determine the optimal
price to maximize product profitability

Requires complex calculations so more
possible today than in the past
Systems, Cont’d

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systems, cont’d
 Price optimization systems, cont’d

Markdown optimization software: times
markdown of products that are still unsold at the
end of the product life cycle

Electronic shelf labels (ESLs): used to always
display the price in the product database
 Enterprise architecture: a comprehensive
framework used to describe and manage an
organization’s business functions and systems
Systems, Cont’d

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Design and Manufacturing Systems
 Design and manufacturing systems (use computers
to automate the design or manufacturing process
 Computer-
aided design
(CAD)
 Computer-
aided
manufacturing
(CAM)

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Artificial Intelligence Systems
 Artificial intelligence (AI) system: a system in
which a computer performs in ways that would be
considered intelligent if observed in humans
 Turing Test
 Initial advances
in AI made
through
chess-playing
programs

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 Intelligent agents: programs that
perform specific tasks to help to make a
user’s work environment more efficient or
entertaining and that typically modifies its
behavior based on the user’s actions

Application assistants

Search agents

Shopping bots

Entertainment bots

Chatterbots
Artificial Intelligence Systems, Cont’d

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 Expert system: provides the type of advice that
would be expected from a human expert
 Knowledge base: database containing facts
provided by human experts and rules the system
should use to make decisions based on those
facts
 Inference engine: program that applies the rules to
the data stored in the knowledge base, in order to
reach decisions
 Is only as good as the knowledge base and
inference engine; also needs honest, correct
information from the user in order to work correctly

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 Neural network: expert systems in which the human
brain’s pattern-recognition process is emulated by the
computer system
 Used in :

Handwriting, speech, and image recognition

Geographical mapping

Medical imaging

Crime analysis

Biometric identification

Vision systems (quality checks in
manufacturing, recognizing postage stamps,
etc.)

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 Robotics: the study of robot technology
 Robot: A device, controlled by a human operator or a
computer, that can move and react to sensory input
 Used in situations:

That are dangerous or impossible for people to
perform

Where immense precision is needed

To perform monotonous tasks

To assist individuals

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 Types of robots
 Military robots (unmanned planes and vehicles,
devices to initially investigate locations,
exoskeleton suits, etc.)
 Business robots (monitoring facilities,
implementing videoconferencing, etc.)
 Personal robots (entertainment, perform
communications tasks, perform household tasks,
etc.)

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Responsibility for System
Development
 Information systems (IS) department: includes most,
if not all, of the computer and networking personnel
for an organization including:
 Data processing personnel
 Systems analyst: studies systems in order to
determine what works needs to be done and how
this work may best be achieved
 Business analyst
 System analysis and design group
 Programmers
 Operations personnel

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Responsibility for System
Development
 Outsourcing companies: outside vendors used to
process specific business tasks
 Use growing, primarily due to cost
 Offshore offsourcing = outsourced to another
country
 Captive offshoring = companies setting up their
own facilities in another country
 Need to consider appropriateness of outsourcing,
as well as security and privacy
 System development team is typically led by systems
analyst; team should include users

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The System Development Life Cycle
(SDLC)
 System development life cycle (SDLC): process
consisting of size phases of system development

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Preliminary Investigation
 Preliminary investigation: the phase of the system
development life cycle in which a brief feasibility
study is performed to assess whether or not a full-
scale project should be undertaken
 Purpose is to define and evaluate the problem and
see if it is worthy of further study
 Documentation: Feasibility report (includes
recommendation regarding whether or not the project
should move on to the next stage in the SDLC)

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System Analysis
 System analysis: the phase of the system
development life cycle in which a problem area is
thoroughly examined to determine what should be done
 Data collection: gathering information about the
system (organizational chart, observation,
interviewing users, etc.)
 Data analysis: analyzing information to determine
requirements for the new systems

Tools include data flow diagrams, decision tables,
checklists, etc.
 Documentation: any instruments used for data
gathering; any tools developed

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System Design
 System design: the phase of the system
development life cycle in which a model of the new
system and how it will work is formally established
 Helpful to develop a model of the new system

System flowcharts

Input/output designs

Data dictionary
 Most companies will also perform a cost/benefit
analysis (should consider both tangible and intangible
benefits)
 Documentation: Specifications of new system

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System Acquisition
 System acquisition: the phase of the system
development life cycle in which hardware, software, and
other system components are acquired
 Need to determine if needed products will be purchased or
developed in house
 Software to be developed moves into the program
development process (covered in Chapter 13)
 Products to be purchased need to be identified and a
vendor selected

Can use RFP and/or RFQ

Bids need to be evaluated; vendor rating systems and
benchmark tests can be helpful
 Documentation: RFPs, RFQs, any vendor evaluation
materials, etc.

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System Implementation
 System implementation: the phase of the system
development life cycle that encompasses activities
related to making the system operational
 Direct conversion (old system deactivated; new system
installed)
 Parallel conversion (both old and new operated for a
period of time)
 Phased conversion (new system implemented by
module)
 Pilot conversion (new system installed at a pilot location
initially)
 Documentation: Implementation schedule, test data,
test results, etc.

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System Maintenance
 System maintenance: the phase of the system
development life cycle in which minor adjustments are
made to the finished system to keep it operational until
the end of the system’s life or until the time that the
system needs to be redesigned
 One of the first activities is the post-implementation
review (identifies any glitches in the new system that
need to be fixed)
 An ongoing-process
 When a major change is needed, the project goes
through the SDLC again
 Documentation: Completed project folder

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Approaches to System Development
 Traditional system development: SDLC phases are
carried out in the preset order
 Used primarily when system requirements are
easy to determine, when the system is very
familiar, or when management requests it
 Time-consuming
 Prototyping: a small model, or prototype, of the
system is built before the full-scale development
effort is undertaken
 Prototype can be revised as needed before full
system is developed
 End-user development: user is primarily responsible
for the development of the system

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Summary
 What Is an Information System?
 Who Uses Information Systems?
 Types of Information Systems
 Responsibility for System Development
 The System Development Life Cycle (SDLC)
 Approaches to System Development

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