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INTRODUCTION TO CORPORATE
INFORMATION SYSTEMSIS524
BY
CHANDRA S. AMARAVADI
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INTRODUCTION (PART I) Definition of Corporate Systems Types of IS & Evolution Roles of IS Characteristics
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DEFINITION OF CORPORATE INFORMATION SYSTEMS
Corporate Information Systems:A collection of systems designed to fulfill the information/information processing needs of an organization.
Information processing: collect, store, process, disseminate
ORGANIZATIONSYSTEM
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CUSTOMER
PRODUCTION
INFORMATION PROCESSING IN ORGANIZATIONS
orders
order fulfillment
ACCOUNTING/FINANCE
rawmaterials
SUPPLIERS
SALES/MARKETING INVENTORY
availability
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THE EVOLUTION OF INFORMATIONSYSTEMS
Transaction processingReporting systems
Database management systemsDecision supportOffice information systems
Database systemsAI based systemsExecutive information systemsStrategic systems
Enterprise information systemsE-Commerce systemsKnowledge Management systemsBI systems (EIS)
1950’s
1970’s
1980’s
1990’s
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THE EVOLUTION OF INFORMATIONSYSTEMS..1950’s 1960’s 1970’s 1980’s
TP Systems
1990’s-2000’s
Reporting Systems
DatabaseSystems
Enterprise Systems
ExpertSystems
DSS Exec. info.Systems
BI Systems
E-commerce Systems
KMSystems
OIS
introduced because of problems with reporting
integrated
converted
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AN OVERVIEW OF THE DIFFERENTINFORMATION SYSTEMSTransaction processing systems: process business transactionsReporting systems: summarize transaction informationDatabase management systems: systems to manage informationDecision support systems: support analysis of data to aid in d.m.Executive information systems: systems to support executive d.m.BI: systems to provide execs with business intelligence (same as EIS)Office information systems: provide support to office workers (OIS)AI & expert systems: use artificial intelligence to duplicate human activity (in organizations).Strategic systems:systems which support the strategy of the organization and improve competitive advantage.Enterprise information systems: systems which support all functional areas, from marketing to production. E-commerce systems: systems for browsing, ordering, payment etc.
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ACRONYMS
AI – Artificial IntelligenceTP – Transaction Processing DSS – Decision Support SystemsEIS -- Executive Information SystemsBI – Business IntelligenceES -- Expert SystemsERP – Enterprise Resource Planning (same as Enterprise Systems)KM – Knowledge management SystemsMSS – Management Support SystemsOIS -- Office Information Systems
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ROLES OF IS
POS – point of sale; dm – decision making
Support Operations example POS, ATM
Provide information/knowledgeexample KM systems
Support decision makingexample DSS
Support organization work (other than d.m)example KM system (same as above)
Support strategy, organizational design/redesign
example conferencing systems
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CLASSIFICATION OF CORPORATESYSTEMS
BI – Business Intelligence; DSS – Decision Support Systems; EIS – Executive Information Systems; ERP – Enterprise resource planning; GDSS – Group Decision Support Systems; KM – Knowledge Management; TP – Transaction processing;
Type of Information System – Systems that:
Examples
Support operations TP, ERP, E-Commerce
Provide information/knowledge DB/reporting, BI, KM
Support decision making DSS, BI, GDSS
Support organizational work (otherthan decision making)
KM, Expert Systems, OIS
Strategic and organizational (org. design) Workflow systems, strategic systems
Artificial Intelligence
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CHARACTERISTICS OF IS
Used in all organizations Majority of applications are operational systems Rest are DSS etc. Most IS have database as a back end Type of users depend on type of system
TP systems are being phased out (legacy systems) AI is becoming part of every other system DSS, BI, OIS customized from generic software
Note: GL stands for Generation Language
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FOR DISCUSSION
IT consists of information systems: T/F? DSS are most common IS: T/F? E-commerce systems are operational systems? Office Systems support decision making: T/F? What type of systems supply information? DSS evolved from EIS: T/F? A collection of systems to fulfill information processing needs is called __________ Following chart shows a “gas tax map” of the U.S. It illustrates an example of a display in a (an) __________ system.
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Perspectives on information systems Role of information systems IS strategy Development of IS
INTRODUCTION (PART II)
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DEFINING INFORMATION SYSTEMS: PERSPECTIVES
Systems, STS, Work System, Strategic Systems
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Any set of related elements (which are under consideration) working together towards the common purpose of transforming inputs into outputs Examples: transportation network, education, building...
In the IS context: a system is any part (or whole) of the organization which satisfies the definition above
THE SYSTEM CONCEPT
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SYSTEM CHARACTERISTICS
boundaries inputs, processes & outputs subsystems life cycle
Systems have characteristics:
The systems concept is used to: understand systems analyze systems
ProcessesInputs Outputs
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SYSTEMS PERSPECTIVE
How can we view a harbor as a system? A bank?
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INFORMATION SYSTEMS FROM SYSTEMSPERSPECTIVE
data inputs/outputs
Outputs:reports/Screens/ files
BUSINESSPROCESSING
Inputs:screens/files
The systems perspective provides a template for studying information systems.
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THE STS APPROACH Socio-technical system: A system based on reciprocal inter-relationships between humans and machines.
To be successful, any IS implementation must consider the impact on work and power relationships.
Org consists of systems. What systems? IS implementations can cause disruptions to ???? when implementing IS need to consider ??? any definition of a system should include ______ system systems should fit workplace rather than vice versa
Organization
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‘IS’ FROM STS PERSPECTIVE
ProcessesInputs Outputs
Information System
Above is a model of information systems based on STS.
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THE WORK SYSTEM PERSPECTIVE
“Custo-mers”
“Products and Services”
Business Process
Participants
Context IT Resources
Information Technology
Information SystemAnother perspective of an information system.
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THE WORK SYSTEM PERSPECTIVE Customers – beneficiaries of the IS i.e. users and their management. Products/services – the physical products/services provided by the IS. Processes – the steps performed within the IS e.g. taking orders. Participants – the people who perform the steps in the processes. Information – information used to perform the work. Technology – hardware, software etc. Context – the organizational, competitive, technical and regulatory realm within which the system operates IT Resources – refers to the IT department and leadership
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THE STRATEGIC SYSTEM PERSPECTIVE
IS as a competitive weapon Started with classic cases of SABRE & AHS
SABRE -- reservation system of AA AHS (BAXTER) -- system now classified as SCM.
IS should support org. strategies
Note: AA – American Airlines; AHS – American Hospital Supply, now Baxter
AHSHOSPITAL
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DISCUSSIONHow do we view an ERP system from the system’s perspective?How do you compare system’s with STS?When does the STS perspective come into play?How is it applied? How do you compare STS with Work System perspective?Which is the most comprehensive perspective? Which perspective is applicable if Merck wants to use IT for
its drug delivery process to get drugs faster to market than competitors? Why?
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IS STRATEGY & IMPACTS
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IS Strategy is to support corporate strategy e.g. use CRM systems to monitor customers e.g. use robots to cut mfg. costs
IS implementations can have strategic impacts Such systems are called strategic systems Model of IT/IS impacts can be used to
predict impacts identify IS that can cause them.
IS STRATEGY & IMPACTSIS has many different roles most important is strategic
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Infrastructure Leadership Personnel
InformationSystems
Improvemgmt. proc.
Improveproduct/Svc.
Improveadmin. proc.
COSTS, FIRM SIZE, CUST. BASE ETC.
GENERAL MODEL OF IT/IS IMPACTS
Improveoperations
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GENERAL MODEL OF IT IMPACTSIT could be utilized to improve management, administrativeand manufacturing processes or it could be used to impactthe product itself or the “reach” of the organization.
Improve operations – use IT to support the firm’s operations Improve product – primarily where information-based product/ service is possible, e.g. on-line car-service records. Improve management processes -- through “better information” to management via EIS, data mining etc. Improve administrative processes – through streamlining them via customized applications or through workflow automation (OIS).
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IS DEVELOPMENT
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IS development is an organized process for developing an information system. Consists of many stages and many actors.
INFORMATION SYSTEMS DEVELOPMENT
IS development refers to software development
Stages in the development cycle (SDLC) are: planning, analysis, design, implementation, maintenance.
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THE IS DEVELOPMENT PROCESS
Developers
Users
BusinessAnalysts
ProjectManager (PM)
System
specs code
Project plan
Sr. Analyst or PM
design
Planning/feasibility
Analysis Design Implementation
Note: actors are shown in black, outputs in blue and stages in green
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DISCUSSION
How can we analyze ‘order processing’ in an org.? Who are “customers”? Company uses IT to support drug development process. Company uses web technologies to develop an online store What happens to an organization if an ERP system is
implemented? What activity/activities take place when specs are received? What is the role of a developer?
Identify the framework that answers these questions and then answer each of the following questions:
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WHAT DOES THIS ILLUSTRATE?
Management
Organization(design)
informationD
ecisions.D
ecisions.
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THE END