Introduction to Business
Information Systems
Dr Sherif Kamel
The American University in Cairo
Copyright © 2001 Whitten, Bentley and Dittman
Copyright © 2003 Sherif Kamel
Outline
Difference between data and information.
Categories of information.
What an information system (IS)?
Components of information system.
How users use information systems?
Benefits of information systems
Information technology and information systems
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Copyright © 2003 Sherif Kamel
It is important to note that…
[SYST 305] - Why study Information Systems?
[Technology]
[SYST 406] - Why study Management Information
Systems?
[Management]
[SYST 430] - Why study Business Information Systems?
[Development]
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Information concepts
Bank statement
Sales forecast
Profit and loss report
Order form
Airline ticket
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Data representation
Alphanumeric
Characters such as numbers and letters
Image
Graphical images and pictures
Audio
Sound and noise
Video
Moving pictures and images
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Data in a context
Interpretation of data.
Data that has been processed to be meaningful.
Data put into context – dissemination of knowledge.
Information created depend on the relationship defined.
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Data versus Information
Information is created by
defining and organizing
relationship among data.
Defining different
relationships results in
different information.
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Information creation
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Data processes
Classification
Sorting
Data
Aggregating
Information
Calculating
Selecting
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Exercise
Data
Date
Bank statement
The number 1355.76
Balance sheet
Bus timetable
Car registration plate
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Information
X
X
X
X
X
X
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Quality of information
Time
Timely, frequent, current
Content
Accurate, concrete, relevant, reliable
Form
Presentation, detail, clarity
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Value of information
Tangible
Can be measured in terms of financial value
Intangible
Not possible to calculate the value
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Exercise
Tangible
Improved Inventory Control
Enhanced customer service
Increased production
Reduced administration cost
Greater customer loyalty
Enhanced public image
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Intangible
T
I
T
T
I
I
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Information categories
Strategic information
Annual report
Business plan
Tactical information
Monthly sales report
Bank statement
Operational information
Daily weather forecast
Attendance sheet
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Information pyramid
Strategic
information
Tactical information
Operational information
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What is an information system?
An organised collection of components that interact to
accomplish a goal.
A group of interrelated components working together
towards a common goal by accepting inputs and
producing outputs in an organised transformation
process.
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What is a sub-system?
A component of a system - that is a system in its own
right is called a subsystem.
A systems often consists of numerous subsystems.
Each subsystem has elements, interactions with other
subsystems, and objectives.
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What is a sub-system?
A component of a
system
element
Sub-systems
element
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Sub-systems
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IT/IS in a business context
Business environment
Organisation
Business process
Information system
Information
technology
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Systems and sub-systems
In business, functions such as marketing, finance, and
manufacturing are subsystems.
Subsystems perform specialised tasks for the overall
system.
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Environment – A system model
Input
Output
A boundary, interrelated sub systems, interface
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Systems boundaries
Defines the system.
Distinguishing it from everything else [the environment].
Defines what is inside and what is outside the system
Boundaries depict the scope of activities for a system.
Boundaries delineate areas of responsibility.
Boundaries for business systems should be defined.
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Systems environment
Components of the system’s environment are, things
which are outside the system but have relevance to it
and interact with it.
It is always important to identify the strengths and the
limitations of the system.
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Information systems functions
Input
Capturing and gathering raw data
Processing
Converting or transforming data into useful outputs
Output
Useful information, usually in the form of documents, reports, and
updated records
Feedback
Output that is used to make changes to input or processing activities
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Input, processing, output and feedback
Information systems are never complete, continuous
upgrading and amendments are required to be able to
capitalize on the competitive edge of using information
technology.
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An Organization with 5 Sub-systems
Purchased
parts
Supplier
Order to
Supplier
The Firm
Finished goods
Produce
Design
Product
Design
Sell
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Service
Actual and
forecasted
orders
orders
preferences
Deliver
Finished
goods
Customer
Service
request
Equipment
information
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An organization as a system
Orders
Customer
Preferences
Sell
Finished
Service
goods
request
Design
Product
design
Actual and
forecasted
orders
Service
Produce
Deliver
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Order to
Supplier
Supplier
Purchased
parts
Finished
goods
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IS are more than computers
Information
system
Management
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Information systems roles
Management
Support
Systems
Support of
strategic
advantage
Support of
managerial decision
making
Support of business
operations
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MSS
Organizationa
l
Information
Systems
OIS
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Types of information systems
Operations Support Systems
Transaction
Processing
Systems
Enterprise
Collaboration
Systems
Management Support Systems
MIS
DSS, GDSS
EIS
Operations
Management
Expert Systems
AI Systems
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An integrated view of the role of IS within an Organization
Organizational
problem
Strategic
Tactical
Knowledge
Operations,
Production,
Service
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Organizational
level
Senior
management
General or Middle
management
Knowledge and
Data workers
Production and
Service workers
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Potential benefits of IS
Increased market share
Increased revenue
Reduced costs
Increased customer service
Wider market exposure
Market visibility
Edging competition
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IS in functional business areas
Functional areas are the operating divisions of business
Financial information systems
Accounting information systems
Marketing information systems
Manufacturing information systems
Human resources management information systems
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Information systems in the industry
Airline industry
Investment firms
Banks and savings and loan companies
Transportation industry
Publishing companies
Health care organisations
Retail companies
Power management and utility companies
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It is important to note that…
Computer and information systems are constantly
changing the way organisations conduct business.
The value of information is directly linked to how it helps
decision makers achieve the organisation's goals.
The goal of information systems architecture is to enable
the organisation to achieve its business goals.
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Copyright © 2003 Sherif Kamel
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Information systems and information technology
An information system (IS) is an arrangement of
people, data, processes, communications, and
information technology that interact to support and
improve day-to-day operations in a business, as well as
support the problem-solving and decision-making needs
of management and users.
Information technology is a contemporary term that
describes the combination of computer technology
(hardware and software) with telecommunications
technology (data, image, and voice networks).
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Stakeholders: players in the systems game
A stakeholder is any person who has an interest in an
existing or new information system. Stakeholders can be
technical or non-technical workers.
For information systems, the stakeholders can be
classified as:
System owners
System users
Systems analysts
System designers
System builders
IT vendors and consultants
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Information versus knowledge workers
Information workers are
those workers whose jobs
involve the creation,
collection, processing,
distribution, and use of
information.
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Knowledge workers are a
subset of information
workers whose
responsibilities are based on
a specialized body of
knowledge.
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System owners
System owners are the information system’s sponsors
and chief advocates. They are usually responsible for
funding the project to develop, operate, and maintain the
information system.
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System users
System users are the people who use or are affected by
the information system on a regular basis—capturing,
validating, entering, responding to, storing, and
exchanging data and information. A common synonym is
client. Types include:
Internal users
–
–
–
–
Clerical and service workers
Technical and professional staff
Supervisors, middle managers, and executive managers
Remote and mobile users (internal but disconnected)
External users
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System designers and system builders
System designers translate system users’ business
requirements and constraints into technical solutions.
They design the computer files, databases, inputs,
outputs, screens, networks, and programs that will meet
the system users’ requirements.
System builders construct the information system
components based on the design specifications from the
system designers. In many cases, the system designer
and builder for a component are one and the same.
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Systems analysts
A systems analyst studies the problems and needs of
an organization to determine how people, data,
processes, communications, and information technology
can best accomplish improvements for the business.
When information technology is used, the analyst is
responsible for:
The efficient capture of data from its business source,
The flow of that data to the computer,
The processing and storage of that data by the computer, and
The flow of useful and timely information back to the business
and its people.
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Variations on the systems analysts title
A business analyst is a systems analyst that specializes
in business problem analysis and technologyindependent requirements analysis.
A programmer/analyst (or analyst/programmer)
includes the responsibilities of both the computer
programmer and the systems analyst.
Other synonyms for systems analyst include:
Systems consultant
Systems architect
Systems engineer
Information engineer
Systems integrator
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Problem-solving scenarios
True problem situations, either real or anticipated, that
require corrective action
Opportunities to improve a situation despite the absence
of complaints
Directives to change a situation regardless of whether
anyone has complained about the current situation
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General problem-solving approach
1. Identify the problem.
2. Analyze and understand the problem.
3. Identify solution requirements or expectations.
4. Identify alternative solutions and decide a course of
action.
5. Design and implement the “best” solution.
6. Evaluate the results. If the problem is not solved, return to
step 1 or 2 as appropriate.
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Where systems analysts work
In traditional businesses
Working in traditional information services organizations
(permanent project teams)
Working in contemporary information services organizations
(dynamic project teams)
In outsourcing businesses
Contracted to traditional businesses
In consulting businesses
Contracted to traditional businesses
In application software businesses
Building software products for traditional businesses
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Traditional IS services organization
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Contemporary IS services organization
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Business trends and drivers
Total quality management (TQM)
Continuous process improvement (CPI)
Globalization of the economy
Information technology problems and opportunities
Enterprise resource planning (ERP)
Electronic commerce
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Total Quality Management
Total quality management (TQM) is a comprehensive
approach to facilitating quality improvements and
management within a business.
Information systems quality standards:
ISO 9001, Quality systems – Model for quality assurance in
design/development, production, installation, and servicing.
Capability Maturity Model (CMM) is a framework to assess the
maturity level of an organization’s information systems
development and management processes and products. It
consists of five levels of maturity as measured by a set of
guidelines called the key process areas.
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Business process redesign
Business process redesign (BPR) is the study,
analysis, and redesign of fundamental business
processes to reduce costs and/or improve value added
to the business.
Usually complemented by continuous process improvement
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Continuous process improvement
Continuous process improvement (CPI) is the
continuous monitoring of business processes to effect
small but measurable improvements to cost reduction
and value added.
Essentially the opposite of business process redesign;
however,
CPI can and frequently does complement BPR.
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Legacy systems
Legacy systems are older information system
applications that have become crucial to the day-to-day
operation of a business and that may use technologies
considered old or outdated by current standards.
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Enterprise resource planning
An Enterprise resource planning (ERP) software
product is a fully integrated information system that
spans most basic business functions required by a major
corporation. An ERP product is built around a common
database shared these business functions. Examples of
ERP software vendors include.
Baan
J. D. Edwards
Oracle
Peoplesoft
SAP
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Electronic commerce
Electronic commerce (eCommerce) involves
conducting both internal and external business over the
Internet, intranets, and extranets.
Electronic commerce includes the buying and selling of goods
and services, the transfer of funds, and the simplification of dayto-day business processes – all through digital communications.
Three basic types of electronic commerce applications include:
– Marketing
– Business-to-consumer (B2C)
– Business-to-business (B2B)
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The systems analyst as a facilitator
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Skills required by systems analysts
Working knowledge of information technology
Computer programming experience and expertise
General business knowledge
Problem-solving skills
Interpersonal communication skills
Interpersonal relations skills
Flexibility and adaptability
Character and ethics
Systems analysis and design skills
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Computer ethics – 10 commandments
1.
2.
3.
4.
5.
6.
7.
Not use a computer to harm other people.
Not interfere with other people's computer work.
Not snoop around in other people's computer files.
Not use a computer to steal.
Not use a computer to bear false witness.
Not copy or use proprietary software for which you have not paid.
Not use other people's computer resources without authorization or
proper compensation.
8. Not appropriate other people's intellectual output.
9. Think about the social consequences of the program you are writing
or the system you are designing.
10. Always use a computer in ways that insure consideration and
respect for your fellow human
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