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 Engineering
POSTECH
Contents
※
Discussion Questions
1
Information Systems
2
3
1)
Introduction
2)
Components of IS
3)
General role of IS
Information Systems in Management
1)
Problem types
2)
The relationship between IS and Management
3)
The role of IS in Management
Case Study
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) problem 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?
3
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 improved
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 generally, 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?
4
1. Information Systems
What is Information?
1) Introduction
■ 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)
Data
The transformation process
■ Attributes of information
–
–
–
–
–
–
–
–
–
Accuracy
Timeliness
Relevance
Completeness
Reliability
Simplicity
Verifiability
Flexibility
Economy
5
Information
1. Information Systems
What is a System?
1) Introduction
■ 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
Processing
Input
• Capturing and
• Transformation
Output
• Transferring
assembling
process
transformed
elements that
converts input
elements to
enter the
into output
their ultimate
system to be
destination
processed
6
1. Information Systems
What is an Information System?
1) Introduction
■ 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 organization
Information
System
7
1. Information Systems
What Does an Information System Do?
1) Introduction
■ 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 data
Information generating
Output
First Step
Second Step
Third Step
8
Components of Information System (1/3)
1. Information Systems
2) Components of IS
■ 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 assistance
9
Small size
management
Components of Information System (2/3)
1. Information Systems
2) Components of IS
A set of people, data, procedure to provide useful information
People
Communication
of information
Information System
Data
Management
of activities
Decision
making
Procedure
10 / 13
10
Components of Information System (3/3)
1. Information Systems
2) Components of IS
■ E.g. Components of a Loan Information System
• Fund on deposit
• Loan balance
• Balance financial plan
• Loan portfolio
Banking database
Processor
Computer based
loan information
systems
Information supplied by
applicant for loan
• Financial status
• Loan details
• Employment status
Economic database
• Employment data
• Economic data
11
Why do we study Information Systems?(1/2)
Collect, distribute, analyze Data
Why?
Get information
Why?
Remove uncertainty
Why?
Make a good decision
Why?
Store knowledge
12
1. Information Systems
3) General role of IS
Why do we study Information Systems?(2/2)
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
13
1. Information Systems
3) General role of IS
Benefits and Uses of Information Systems
1. Information Systems
3) General role of IS
Product
•
•
Added Value to Products (Goods & Services)
Higher-quality Products
Labor
•
•
Improved health care & communications
Reduced labor requirements & costs
Management
Quality
• Increased efficiency & productivity
• Superior financial decision making,
control over, operations,
and managerial decision making
• Fewer errors
• Greater accuracy
• Better Safety & Service
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2. Information Systems in Management
Problem Types
Structured Problem
Unstructured Problem
Semi-structured Problem
1) Problem types
Input
Problem
Structure
Definite
Output
Input
Problem
Structure
Fuzzy
Output
Input
Problem
Structure
User dependent
Output
User Interaction
User
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What types of Information Systems Exist?
2. Information Systems in Management
2) The relationship between IS and Management
IS
Recognition
about
Information
The advent
TPS(Transaction
Processing System)
Efficiency
Computer
To process data about transactions
MIS(Management
Information System)
Control
Database
To enable people to make
decision(action)
DSS(Decision Support
System)
Decision
PC and
Model based
ESS(Executive Support
System)
Strategic
Resource
Executive
Support
ES(Expert System)
Knowledge
AI
To mimic the decision process of a
human expert
ERP(Enterprise
Resources Planning)
Management
IT
To integrate management information
across an entire organization
Work Group Support
System
Communication
Communication
16
Explanation
To assist managers with unique
strategic decisions that relatively
unstructured
To assist top-level executive
To exchange information
(ex: EDI, WP)
2. Information Systems in Management
Evolution of IS
1950
2) The relationship between IS and Management
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 Planning)
WGSS(Work Group Support System)
17
A Business Perspective on Information Systems
Organizations
2. Information Systems in Management
3) The role of IS in Management
Technology
Information
Systems
Management
18
Technical & Behavioral Approaches to MIS
2. Information Systems in Management
3) The role of IS in Management
Technical
Approaches
Operations
Research
Computer
Science
Management
Science
Sociology
MIS
Political
Science
Psychology
19
Behavioral
Approaches
Case Study
■ Domestic Case
 Click Here
20
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)
21