information technology and types of IS

8/9/2019 information technology and types of IS

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INFORMATIONTECHNOLOGY FORMANAGEMENT

BY: Asst.Prof. DIPTI PUROHIT


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UNIT 1I. Information technology

II. What is management

III. Definition of information

and data

IV. System and subsystem

V. Information system

VI. Types of information

VII. Trends in informationsystem


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Information Technology

Information Technology is a broad term which

covers all aspects of the use of computer

technology. It includes not only hardware and

software, but also communication technologyapplied to linking computer systems, software

engineering, and the administration and use

of computer systems.


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What is

management?


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Henri Fayol defines Management

as

The concept, the techniques andprocess that enables goals to be

achieved efficiently andeffectively


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Definition of data

and informationData is a collection of facts, figures and statistics

related to an object. Data can be processed to createuseful information. Data is a valuable asset for an

organization. The manipulated and processed form of

data is called Information. It is more meaningful than

data. It is used for making decisions.


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What is system?

A System is a set of interacting components

that operate together to accomplish a

purpose. System that plays a role in our

every day lives includes our bodies'circulatory & digestive system as well as

society's transportation & communication

system.


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What is Subsystem?

It is a component of system, even though it

can also be considered a system in its own

right. The systems with which we are

concerned are always subsystem of largersystems and typically contain subsystem that

perform different part of the work.


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To understand system andsubsystem we take anexample of a manufacturingfirmsupplier

Product

designproducti

on

sales

delivery

service

customer

Product

design

actu

al

fore

cast

ord

er

Finished goods

Ord

ertos

uppl

ier

Product

information

Servic

ereque

st

Fi

ni

she

d

Pu

rc

h as

ed

pa

rts

or

de

r


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INTRODUCTION:

INFORMATION SYSTEMIn a general sense , the term Information SystemInformation System (IS)(IS)refers to a system of people, Combination ofhardware,software,communications networks, and dataresources that stores and retieves,trasforms anddisseminates information in an organization and it includes

the organization's manual and automated processes.

In a narrow sense, the term information system (orcomputer-based information system) refers to the

specific application software that is used to store datarecords in a computer system and automates some of theinformation-processing activities of the organization.
http://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/System


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Definition of BIS

A business information system is a groupof interrelated components that work

collectively to carry out input, processing,

output, storage and control actions inorder to convert data into information

products that can be used to support

forecasting, planning, control,

coordination, decision making and

operational activities in an organisation


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Computer Based InformationSystemA computer-based information system (CBIS) is an

information system in which the computer plays

a major role.

Such a system consists of the following elements:

Hardware: The term hardware refers to machinery.This category includes the computer itself, which is often referred to as

the central processing unit (CPU), and all of its support equipments.Among the support equipments are input and output devices,

storage devices and communications devices.


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Cont.Software: The term software refers to computer programs and

the manuals (if any) that support them. Computer programs aremachine-readable instructions that direct the circuitry within the

hardware parts of the CBIS to function in ways that produce useful

information from data. Programs are generally stored on some

input / output medium-often a disk or tape.

Data: Data are facts that are used by program to produce usefulinformation. Like programs, data are generally stored in machine-

readable from on disk or tape until the computer needs them.


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Cont

Procedures: procedures are the policies that govern theoperation of a computer system. "Procedures are to people what

software is to hardware" is a common analogy that is used to

illustrate the role of procedures in a CBIS.

People: Every CBIS needs people if it is to be useful. Oftenthe most over-looked element of the CBIS is the people: probably

the components that most influence the success or failure of

information system.


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Types of InformationTypes of Information

SystemsSystems


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Levels of Management

Upper or Top or Strategic Management

Middle or Tactical Management

Lower level Management

Three levels of management

Strategic

Tactical

Operational


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Lower or Operational levelManagement They make structured decisions (Operational decisions).

Structured decision Its a predictable decision that can be made

following a well defined set of routine procedures.

Most decisions at this level require easily defined information that relates to

the current status and activities within the basic business functions.

Information is gained from detailed reports which contain information about

routine activities.

Detailed tasks defined by middle management are carried out by people at

operational level.


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Middle or TacticalManagement Acquire and arrange the resources (Computers, people etc) to meet the

goals of an organization. Define the detailed tasks to be carried out at the operational level. Information needed involves review, summarization and analysis of data

to help plan and control operations and implement policy that has beenformulated by upper management.

Information is usually given to middle managers as summarized reports. Deals with semi structured decisions. (Tactical decisions)

Semi structured decisions that must be made without a base of clearlydefined informational procedures. In most cases a semi structured decisionis complex, requiring detailed analysis and extensive computations.


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Upper or Top or StrategicManagement

Decides on the broad objectives of an

organization.

Make unstructured decisions. (Strategic

decision). Unstructured decisions are the most complex

type of decisions and are rarely based on

predetermined routine procedures. They involve

subjective judgments of the decision maker.


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Types of Information Systems

Transaction processing systems (TPS)

Management Information Systems (MIS)

Decision support Systems (DSS)

Executive Information Systems (EIS)

Expert Systems (ES)


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Transaction ProcessingSystems (TPS)These systems capture and process data about businesstransactions.

Some times called as data processing systems

Mostly used at operational levelUsually creates detailed reports of daily transactions or

future transactions

Reports generated are useful only to lower level managers

One functional area of a business consists of an TPS


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Management InformationSystems (MIS)Provides middle level management with reports thatsummarize and categorize information derived from

company databases. (In pre determined format)

Supplements Transaction processing Systems

Able to produce detailed information, summary

information, exception information

Information produced is based on accepted management

or mathematical/statistical models


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Decision Support Systems(DSS)

Provides its users with decision oriented informationwhenever a decision-making situation arises

Analyses information already captured by TPS and MIS in

order to support unstructured decision making at top

management level

Facts

DSS does not make decisions, it helps some one to

make a decision by providing informationTPS or MIS does not analyze information they produce


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Executive Information System(EIS)

Is a DSS which is especially meant for top level managementand specifically support unstructured decision making

Also called Executive Support Systems (ESS)

Information in an EIS are presented in charts and tables that

show trends, ratios and other managerial statistics and is

stored in data warehouses.

Draws data not only from the organization, able to drawinformation from outside sources such as news services and

marketing research databases.


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Expert Systems(ES)ES is an information system that captures and stores

the knowledge of human experts and then imitates

human reasoning and decision making processes for

those who have less expertise.

Captures knowledge expertise of a problem solver ordecision maker and then simulates thinking of that

expertise for those who have less expertise.

Includes logic and reasoning within there respective

fieldsEmerged from the filed of artificial intelligence (Creating

computer systems that simulate human reasoning and

sensation)


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TRENDS IN IT EVOLUTION

Until the 1960s, the role of most information systems was simple. They

were mainly used for electronic data processing (EDP),purposes

such as transactions processing, record-keeping and accounting.

EDP is often defined as the use of computers in recording,

classifying, manipulating, and summarizing data. It is also called

transaction processing systems (TPS), automatic data processing,

or information processing.


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Cont.In the 1960s, another role was added to the use of

computers: the processing of data into usefulinformative reports. The concept of management

information systems (MIS) was born. This new

role focused on developing business

applications that provided managerial end users

with predefined management reports that would

give managers the information they needed for

decision-making purposes.


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Cont.By the 1970s, these pre-defined management

reports were not sufficient to meet many of thedecision-making needs of management. In order

to satisfy such needs, the concept of decision

support systems (DSS) was born. The new role

for information systems was to providemanagerial end users with ad hoc and

interactive of their decision-making processes.


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Cont

In the 1980s, the introduction of microcomputers into the workplace ushered ina new era, which led to a profound effect on organizations. The rapid

development of microcomputer processing power (e.g. Intels Pentium

microprocessor), application packages (e.g. Microsoft Office), and

telecommunication networks gave birth to the phenomenon of end user

computing. End users could now use their own computing resources to

support their job requirements instead of waiting for the indirect support of acentralized corporate information services department. It became evident

that most top executives did not directly use either the MIS reports or the

analytical modeling capabilities of DSS, so the concept of executive

information systems (EIS) was developed. Executive information systems

provide critical information from


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Cont..Moreover, breakthroughs occurred in the development and application of

artificial intelligence (AI) techniques to business information systems. With

less need for human intervention, knowledge workers could be freed up tohandle more complex tasks. Expert systems (ES) and other knowledge

management systems (KMS) also forged a new role for information

systems. ES can serve as consultants to users by providing expert advice in

limited subject areas.

The mid- to late 1990s saw the revolutionary emergence of enterprise resourceplanning (ERP) systems. This organization-specific form of a strategic

information system integrates all facets of a firm, including its planning,

manufacturing, sales, resource management, customer relations, inventory

control, order tracking, financial management, human resources and

marketing virtually every business function.

The primary advantage of these ERP systems lies in their common interface forall computer-based organizational functions and their tight integration and

data sharing needed for flexible strategic decision making.


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information technology and types of IS