mris 2
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1Chapter 12 Understanding Computers, 11th Edition
What Is an Information System? System: collection of elements and procedures that
interact to accomplish a goal
Information system: system used to generate information to support users in an organization
System development: process of designing and implementing a new or modified system
2Chapter 12 Understanding Computers, 11th Edition
Who Uses Information Systems? Executive managers: strategic decisions
Middle managers: tactical decisions
Operational managers: operational decisions geared toward meeting short-term objectives
Nonmanagement workers: on-the-job decisions
3Chapter 12 Understanding Computers, 11th Edition
Types of Information Systems While hundreds of specific types of information
systems exist, many fall into one of eight categories
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Office Systems Office system: A system in which office automation
hardware, software, and other resources are used to facilitate communications and enhance productivity Office automation: computer-based office-
oriented technologies, such as word processing, e-mail, workgroup computing, and the like
Document processing systems (create, distribute, store, and manage documents
Formats need to be considered for archived documents so they can be read at a later date
Communications systems (e-mail, messaging, online conference, workgroup computing, etc.)
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Transaction Processing Systems Transaction processing system: System that
processes and records data created by an organization’s business transactions Order entry systems
E-commerce systems Point-of-sale (POS) systems
Check processing systems
Payroll systems
Accounting systems
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Management Information Systems (MISs)
Management information system (MIS): system that provides decision makers with preselected information Usually provides information in the form of
computer-generated reports
Much of the time, this information is generated from data obtained from transaction processing
Most frequently used to make moderately structured, middle-management decisions
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Decision Support Systems (DSSs) Decision support system (DSS): provides people
with the tools and capabilities to organize and analyze their decision making information
Provides information on demand and incorporate data from both internal and external sources
Tailored to help with specific types of decisions; typically used by middle and upper management
Special type of DSS targeted to upper management = executive information system (EIS)
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9Chapter 12 Understanding Computers, 11th Edition
Geographic Information Systems (GISs)
Geographic information system (GIS): system that combines geographical information with other types of data to provide a better understanding of relationships among the data
Commonly used to make decisions about locations (e.g. new facility locations, disaster risk, geographical crime patterns)
10Chapter 12 Understanding Computers, 11th Edition
Enterprise-Wide and Inter-Enterprise Systems
Enterprise-wide system: integrates activities throughout an entire enterprise
Inter-enterprise system: links multiple enterprises, such as a business and its customers, suppliers, and partners
Types of enterprise-wide and inter-enterprise systems Electronic data interchange (EDI): transfers
data between different companies using the Internet or another network
Often used to automate reordering materials and products
11Chapter 12 Understanding Computers, 11th Edition
Types of enterprise-wide and inter-enterprise systems, cont’d Enterprise resource planning (ERP): large
integrated system that ties together all of a business’s activities
Enterprise application integration (EAI): exchanging information from an ERP or other internal system among different applications and organizations
Enterprise-Wide and Inter-Enterprise Systems, Cont’d
12Chapter 12 Understanding Computers, 11th Edition
Types of enterprise-wide and inter-enterprise systems, cont’d Customer
relationship management (CRM): a system designed to build and manage good relationships with customers
Often implemented via the Web today (eCRM)
Enterprise-Wide and Inter-Enterprise Systems, Cont’d
13Chapter 12 Understanding Computers, 11th Edition
Types of enterprise-wide and inter-enterprise systems, cont’d Supply chain management (SCM): the oversight
of materials, information, and finances as they move from the original supplier to the consumer
Value chain management systems (maximize the flow of products, goods, services, and information through a value-added network of suppliers
Just-in-time (JIT) systems (resources are limited to the right amount at the right time to fill orders)
Inventory management systems (track and manage inventory)
Enterprise-Wide and Inter-Enterprise Systems, Cont’d
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15Chapter 12 Understanding Computers, 11th Edition
Types of enterprise-wide and inter-enterprise systems, cont’d Product lifecycle management (PLM): organizes
and correlates all information about a product to help companies improve products and better track costs and profits
Price optimization systems: determine the optimal price to maximize product profitability
Requires complex calculations so more possible today than in the past
Enterprise-Wide and Inter-Enterprise Systems, Cont’d
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Types of enterprise-wide and inter-enterprise systems, cont’d Price optimization systems, cont’d
Markdown optimization software: times markdown of products that are still unsold at the end of the product life cycle
Electronic shelf labels (ESLs): used to always display the price in the product database
Enterprise architecture: a comprehensive framework used to describe and manage an organization’s business functions and systems
Enterprise-Wide and Inter-Enterprise Systems, Cont’d
17Chapter 12 Understanding Computers, 11th Edition
Design and Manufacturing Systems Design and manufacturing systems (use computers
to automate the design or manufacturing process Computer-
aided design (CAD)
Computer-aided manufacturing (CAM)
18Chapter 12 Understanding Computers, 11th Edition
Artificial Intelligence Systems Artificial intelligence (AI) system: a system in
which a computer performs in ways that would be considered intelligent if observed in humans Turing Test Initial advances
in AI made through chess-playing programs
19Chapter 12 Understanding Computers, 11th Edition
Intelligent agents: programs that perform specific tasks to help to make a user’s work environment more efficient or entertaining and that typically modifies its behavior based on the user’s actions
Application assistants Search agents Shopping bots Entertainment bots Chatterbots
Artificial Intelligence Systems, Cont’d
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Expert system: provides the type of advice that would be expected from a human expert Knowledge base: database containing facts
provided by human experts and rules the system should use to make decisions based on those facts
Inference engine: program that applies the rules to the data stored in the knowledge base, in order to reach decisions
Is only as good as the knowledge base and inference engine; also needs honest, correct information from the user in order to work correctly
Artificial Intelligence Systems, Cont’d
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22Chapter 12 Understanding Computers, 11th Edition
Neural network: expert systems in which the human brain’s pattern-recognition process is emulated by the computer system Used in :
Handwriting, speech, and image recognition Geographical mapping Medical imaging Crime analysis Biometric identification Vision systems (quality checks in
manufacturing, recognizing postage stamps, etc.)
Artificial Intelligence Systems, Cont’d
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Robotics: the study of robot technology Robot: A device, controlled by a human operator or a
computer, that can move and react to sensory input Used in situations:
That are dangerous or impossible for people to perform
Where immense precision is needed To perform monotonous tasks To assist individuals
Artificial Intelligence Systems, Cont’d
24Chapter 12 Understanding Computers, 11th Edition
Types of robots Military robots (unmanned planes and vehicles,
devices to initially investigate locations, exoskeleton suits, etc.)
Business robots (monitoring facilities, implementing videoconferencing, etc.)
Personal robots (entertainment, perform communications tasks, perform household tasks, etc.)
Artificial Intelligence Systems, Cont’d
25Chapter 12 Understanding Computers, 11th Edition
26Chapter 12 Understanding Computers, 11th Edition
27Chapter 12 Understanding Computers, 11th Edition
Responsibility for System Development
Information systems (IS) department: includes most, if not all, of the computer and networking personnel for an organization including: Data processing personnel Systems analyst: studies systems in order to
determine what works needs to be done and how this work may best be achieved
Business analyst System analysis and design group Programmers Operations personnel
28Chapter 12 Understanding Computers, 11th Edition
Responsibility for System Development
Outsourcing companies: outside vendors used to process specific business tasks Use growing, primarily due to cost Offshore offsourcing = outsourced to another
country Captive offshoring = companies setting up their
own facilities in another country Need to consider appropriateness of outsourcing,
as well as security and privacy System development team is typically led by systems
analyst; team should include users
29Chapter 12 Understanding Computers, 11th Edition
The System Development Life Cycle (SDLC)
System development life cycle (SDLC): process consisting of size phases of system development
30Chapter 12 Understanding Computers, 11th Edition
Preliminary Investigation Preliminary investigation: the phase of the system
development life cycle in which a brief feasibility study is performed to assess whether or not a full-scale project should be undertaken Purpose is to define and evaluate the problem and
see if it is worthy of further study Documentation: Feasibility report (includes
recommendation regarding whether or not the project should move on to the next stage in the SDLC)
31Chapter 12 Understanding Computers, 11th Edition
System Analysis System analysis: the phase of the system
development life cycle in which a problem area is thoroughly examined to determine what should be done Data collection: gathering information about the
system (organizational chart, observation, interviewing users, etc.)
Data analysis: analyzing information to determine requirements for the new systems
Tools include data flow diagrams, decision tables, checklists, etc.
Documentation: any instruments used for data gathering; any tools developed
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33Chapter 12 Understanding Computers, 11th Edition
System Design System design: the phase of the system
development life cycle in which a model of the new system and how it will work is formally established Helpful to develop a model of the new system
System flowcharts Input/output designs Data dictionary
Most companies will also perform a cost/benefit analysis (should consider both tangible and intangible benefits)
Documentation: Specifications of new system
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35Chapter 12 Understanding Computers, 11th Edition
System Acquisition System acquisition: the phase of the system
development life cycle in which hardware, software, and other system components are acquired
Need to determine if needed products will be purchased or developed in house Software to be developed moves into the program
development process (covered in Chapter 13) Products to be purchased need to be identified and a
vendor selected Can use RFP and/or RFQ Bids need to be evaluated; vendor rating systems and
benchmark tests can be helpful Documentation: RFPs, RFQs, any vendor evaluation
materials, etc.
36Chapter 12 Understanding Computers, 11th Edition
System Implementation System implementation: the phase of the system
development life cycle that encompasses activities related to making the system operational
Direct conversion (old system deactivated; new system installed)
Parallel conversion (both old and new operated for a period of time)
Phased conversion (new system implemented by module) Pilot conversion (new system installed at a pilot location
initially) Documentation: Implementation schedule, test data, test
results, etc.
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38Chapter 12 Understanding Computers, 11th Edition
System Maintenance System maintenance: the phase of the system
development life cycle in which minor adjustments are made to the finished system to keep it operational until the end of the system’s life or until the time that the system needs to be redesigned One of the first activities is the post-implementation
review (identifies any glitches in the new system that need to be fixed)
An ongoing-process When a major change is needed, the project goes
through the SDLC again Documentation: Completed project folder
39Chapter 12 Understanding Computers, 11th Edition
Approaches to System Development Traditional system development: SDLC phases
are carried out in the preset order Used primarily when system requirements are
easy to determine, when the system is very familiar, or when management requests it
Time-consuming Prototyping: a small model, or prototype, of the
system is built before the full-scale development effort is undertaken Prototype can be revised as needed before full
system is developed End-user development: user is primarily responsible
for the development of the system
40Chapter 12 Understanding Computers, 11th Edition
Summary What Is an Information System?
Who Uses Information Systems?
Types of Information Systems
Responsibility for System Development
The System Development Life Cycle (SDLC)
Approaches to System Development