Chapter 10 Information Systems (IS)

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20 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

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Chapter 10

Information Systems

(IS)


Learning objectives:

In this chapter we will discuss the following topics:



History of IS



Study of IS



Applications of IS



Types of IS



IS Research and Development



Learning Outcomes:

After going through this lesson, you should be able to:

1.

Describe the
History of IS

2.

Explain the
Study of IS

3.

Provide examples of IS
Applications

4.

Illustrate the different types o
f
IS

5.

Highlight some research topics in IS research and development


10.0

Introduction

Information systems

(IS)

is

the study of how businesses and other organizations use and
manage information resources and apply computer and communication technologies to
business problems.

Students study
IS
because they want to pursue a career to be:



eBusiness

Managers
--

students who hope to exploit the capabilities of information
systems in large or small companies but do not want to specialize in information
systems



Web Specialists
--

students who want to be involved in the design and implementation
of web
-
based applications



Business Technologists
--

students who want to have a deep understanding of both
technology and business so that they may be facilitators of the adoption and
implementation of technology to the furtherance of a company’s strategy



Progr
ammer Analysts.
--

students who are interested in learning current programming
languages and subsequently leveraging those skills in a business environment


10.1

History of IS

The study of information systems originated as a sub
-
discipline of computer science in an
attempt to understand and rationalize the management of technology within organizations. It
has matured into a major field of
management, which

is increasingly being
emphasized as an
important area of research in management studies, and is taught at all major universities and
business schools in the world. Many companies have created a position of
Chief Information
Officer

(CIO) that sits on the executive board with th
e
Chief Executive Officer

(CEO),
Chief
Financial Officer

(CFO),
Chief Operating Officer

(COO) and
Chief Technical Officer

(CTO).The CTO
may also serve as CIO, and vice versa.


The history of information systems (IS) only span five decades. Yet from its inc
eption, IS has
done more to expand business and industry into global markets than any other convention in
history. Today the backbone of IS is know
n

as the World Wide Web, Internet, or with a business
a Local Area Network, along with lists of acronym buzz
word; EDI, EIS, ERP, SCM and host of
others to describe new ways in which IS can be employed to grow business.


The use of computer in business and industry usually started off in the accounting departments.
It was assumed that this area would know the mo
st about using numerical machines and the
lack of understanding in how important databases could be other areas of the business. By this
time a number of business school began developing Management Information System (MIS)
programs to meet the growing need

of IS managers.


During the seventies more upper management recognized the importance of IS and the
flexibility it was bring to business. The TELEX became the standard of information transfer and
the mainframe computer became the standard for database cr
eation. As the need for organized
and easy access to data became apparent, information based businesses began moving the
mainframes from under the accounting management to it
s

own department.


As IS begins to receive its own autonomy and large budgets in
corporations, many technical
savvy managers of these new departments begin spending huge amount of money on systems
and software at their own discretion and many time out spend all other departments without
any returns to the business. These were troubling

and risky times for CEO's deciding to direct
the business into IS based
systems.
The systems and software were complex, continually
changing, and the people that knew the systems tended have their own agendas. Out of this
turmoil came the basis of how IS
develops with in businesses.


This new rush in what is now referred to as e
-
mail, was brought about by the invention of the
mini and micro computer, which could put an entire system on an executives desk for a very
low price compared to mainframes and the

ability to have an autonomous system
without

pay
ing

huge amounts of money to process information. Once again turmoil enters the
relationships of IS and businesses, where software and hardware vendors begin making
demands on businesses to switch th
ei
r styl
e of business to fit the computer systems. There was
little standardization of software and hardware with many
startup

companies that went under
there after leaving business
without

any technical or system support, resulting in spending
above budgets to in
stall entirely new systems. As the desire to support different departments
of a corporation with IS and the new affordability of hardware and software each department
began to put IS programs together independently of MIS department. This result in a new
p
osition in companies: Chief Information Officer (CIO), a position that in many companies at
this time rivaled the CEO. The need for this position was to standardize all of the electronic data
interfaces (EDI) between all departments so information could be

more efficiently.

The mid
-
eighties were the time most manufacturing companies began to shift to IS to forecast
sales, take orders, and manage distribution of products. Time Berners
-
Lee developed the World
Wide Web in 1989. This protocol HTML used over th
e existing Internets that had been
constructed opened up a new era of EDI the world had never seen. Where by the mid
-
1990's it
became apparent that there is no way for a corporation to efficiently do business without a
solid functioning IS setup inside its

own walls as well as connected with its supply
-
chain vendors
and distributors. EDI once known as Electronic Data Processing (EDP) have now brought profit
margins so low that any business that does not prepare itself will be out of business in the next
fiv
e years.


IS is a technology driven system.
Without

it, business would not be what it is today. It has
evolved over the past forty years to being the back bone of business, yet the simple application
rules created in the 1960s and 1970s are still very rel
evant in any application where data or
information is transferred in
whatever

business model it is applied to no matter the complexity.


10.2

Study of IS

T
he study of
Information Systems is about exploring

the direct application of software design
and development to the business domain.
In the University, students joining the

Information
Systems
program
will minor in either Business Management or Business Accountancy, making
for a unique blend of technical
and business disciplines. Completing a degree in Information
Systems affords
the students
a sense of personal accomplishment, career satisfaction, and a
future of endless possibilities.


With an Information Systems degree
graduates
might become an applicat
ion developer,
systems analyst, or technology liaison.
The study of Information System can be
broaden by
further exploring the fields of database integration, data mining, and enterprise resource
planning.

A
cademic research and industrial software developm
ent require significant
understanding of both large systems development and maintenance.
In a typical Information
Systems study program students
will learn to work in teams on projects that foster team work
and group accomplishments, as well as enhance
the
ir
individual ability and comprehension of
the material. Because of the rapid change in technology and constant shifting in the corporate
landscape,
students
will also come to understand the importance of
lifelong

learning and self
-
education as
they

develo
p as

professional
s
.


10.3

Applications of IS

Information systems deal with the development, use and management of an organization's IT
infrastructure.

In the post
-
industrial information age, the focus of companies has shifted from
being product
-
oriented
to knowledge
-
oriented in the sense that market operators today
compete in process and innovation rather than in products: the emphasis has shifted from the
quality and quantity of production to the production process itself
--
and the services that
accompany

the production process.

The biggest asset of companies today is their information
--
represented by people, experience, know
-
how, innovations (patents, copyrights,
and trade

secrets)
--
and for a market operator to be able to compete, he or she must have a st
rong
information infrastructure, at the heart of which lies the information technology infrastructure.
Thus the study of information systems focuses on why and how technology can be put into best
use to serve the information flow within an organization.


1
0.4

Types of IS

Transaction processing systems
: These

systems
record and track an organization's transactions,
such as sales transactions or inventory items, from the moment each is first created until it
leaves the system. This helps managers at the day
-
t
o
-
day operational level keep track of daily
transactions as well as make decisions on when to place orders, make shipments, and so on.


Management information and reporting systems
: These systems provide mid
-
level and senior
managers with periodic, often s
ummarized, reports that help them assess performance (e.g., a
particular region's sales performance in a given time period) and make appropriate decisions
based on that information.

Decision support systems
:

These systems are designed to help mid
-
level and

senior managers
make those difficult decisions about which not every relevant parameter is known. These
decisions, referred to as
semi structured decisions
, are characteristic of the types of decisions
made at the higher levels of management. A decision o
n whether or not to introduce a
particular (brand new) product into an organization's product line is an example of a semi
structured decision. Another example is the decision on whether or not to open a branch in a
foreign country. Some of the parameters
that go into the making of these decisions are known.
However, there are also many unknown factors

hence the "semi structuredness" of these
decisions. The value of a decision support system (DSS) is in its ability to permit "what
-
if"
analyses (e.g., What i
f interest rates rose by 2 percent? What if our main competitor lowered its
price by 5 percent? What if import tariffs are imposed/increased in the foreign country in which
we do, or plan to do, business?). That is, a DSS helps the user (decision maker) to

model and
analyze different scenarios in order to arrive at a final, reasonable decision, based on the
analysis. There are decision support systems that help groups (as opposed to individuals) to
make consensus
-
based decisions. These are known as group de
cision support systems (
GDSS
).

A type of decision support system that is geared primarily toward high
-
level senior managers is
the
executive information system

(EIS) or
executive support system

(ESS). While this has the
capability to do very detailed analy
ses, just like a regular DSS, it is designed primarily to help
executives keep track of a few selected items that are critical to their day
-
to
-
day high
-
level
decisions. Examples of such items include performance trends for selected product or customer
grou
ps, interest rate yields, and the market performance of major competitors.


Expert systems
: An expert system is built by modeling into the computer the thought processes
and decision
-
making heuristics of a recognized expert in a particular field. Thus, this type of
information system is
theoretically

capable of making decisions for a user, base
d on input
received from the user. However, due to the complex and uncertain nature of most business
decision environments, expert system technology has traditionally been used in these
environments primarily like decision support systems

that is, to help
a human decision maker
arrive at a reasonable decision, rather than to actually
make

the decision for the user.

10.5

IS Research and Development

Research and development in the field of Information System is very

much active and lively. It is
so wide and v
aried that it has attracted researchers and students from various educational
backgrounds. There are hundreds of academic journals and International conferences organized
annually all over the world that provide a platform for researchers to meet, publish
their work
and exchange ideas. Amongst the areas of active research in Information System include:



Accounting Information Systems (SIGASYS)




Analytical Modeling (SIGMAS)




Data and Information Quality (SIGDQIQ)



Decision Support, Knowledge and Data
Management Systems (SIGDSS)



Design Theory and Research: From Design Science to Positive Design



Diffusion of IT (SIGADIT)



E
-
Government (SIGe
-
Gov)



Ecommerce and Ebusiness (SIGeBiz)



Emerging Information Technologies



Emerging Issues in IS Research



End
-
user Inf
ormation Systems (SIGOSRA)



Enterprise Systems (SIGEntSys)



Gender Issues in IT



HCI Studies in Information Systems (SIGHCI)



ICTs in Global Development (SIGGlobDev)



Intelligent Systems



International and Cross Cultural (SIGCCRIS)



IS in Education (SIGED)



IS
Outsourcing



IT for Latin America (in Spanish, Portuguese, or English)



IT in Health Care (SIGHealth)



IT Innovation in Asia (in Asian languages or English)



IT Project Management (SIGITProjMgmt)



IT Services (SIGSVC)



Organizational Issues in IS



Performance and

Measurement



Philosophical Perspectives in IS



Security, Assurance and Privacy (SIGSEC)



Social Issues in IS



Strategic Use of IT



Systems Analysis and Design (SIGSAND)



Ubiquitous Computing



Virtual Worlds


Summary:

Information systems (IS) is

the study of how businesses and other organizations use and
manage information resources and apply computer and communication technologies to
business problems.
The history of information systems only spans five decades. Yet from its
inception, IS has don
e more to expand business and industry into global markets than any other
convention in history. The study of Information Systems is about exploring the direct
application of software design and development to the business domain. There are five t
ypes of
I
S:
Transaction processing systems, Management information and reporting systems, Decision
support systems and Expert systems.
Research and development in the field of Information
System is very much active and lively. It is so wide and varied that it has a
ttracted researchers
and students from various educational backgrounds.


Exercises:

Fill in the blanks:

1.

The …… technology has traditionally been used in these environments primarily like
decision support systems.

2.

The ……… is designed primarily to help
executives keep track of a few selected items that
are critical to their day
-
to
-
day high
-
level decisions.

3.

A ……… helps the user (decision maker) to model and analyze different scenarios in
order to arrive at a final, reasonable decision, based on the analy
sis.

4.


……..
systems provide mid
-
level and senior managers with periodic, often summarized,
reports that help them assess performance (e.g., a particular region's sales performance
in a given time period) and make appropriate decisions based on that informat
ion.

5.

…….

systems record and track an organization's transactions, such as sales transactions
or inventory items, from the moment each is first created until it leaves the system.


Answer:

1.

expert system

2.

executive information system

(EIS)

3.

DSS

4.

Management
information and reporting


5.

Transaction processing


Short Essay question:

1.

What is Information System?

2.

Describe briefly, the history of information system.

3.

List down five new research areas in Information System.

4.

What is the role of Information System to a
business organization?

5.

What is the study of IS focusing on?