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Introduction The domain of business information systems

Business Information Systems

Foundation Concepts: Information Systems and Technologies

Business Information Systems

Information technology (IT)

(abbreviated IT) refers to all of the computer-based information systems used by organizations and their underlying technologies.
related terms: it architecture & it infrastructure

Business Information Systems

Information system (IS) A set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective Examples: ATMs, airline reservation systems, course reservation systems

Business Information Systems

IS are more then a computers

perspectives on information systems

Business Information Systems

IS vs. IT

Payroll System

INFORMATION TECHNOLOGY Hardware Software Databases are used to build INFORMATION SYSTEMS

Inventory System

Other related components

Marketing System

Customer Service System

Business Information Systems

DaimlerChrysler Agile Supply Chain Case Intro

Includes Chrysler group, The Mercedes , Small Passenger Car Group & Commercial Vehicles Unit More than 120 plants(45 countries), 20,000 suppliers & 15,000 sales outlets (210 countries) Auto Industry
Tough Competition Fickle Customers

Bring new models rapidly & economically

Business Information Systems

DaimlerChrysler Agile Supply Chain Case Through IS Glass

Series of IS: Automate & Streamline
Transactions with its suppliers

Integrated Volume Planning System

Gathers Sales Data Production Planning Systems Suppliers (Adjust delivery of parts & Prod) Dealers (Right amount of vehicle models)

Business Information Systems

DaimlerChrysler Agile Supply Chain Case What IS has changed

Quality Specialist store quality issues paper binders from part designing companies Any prod error 3 weeks to notify Supplier for changes

Powerway (Web-Enabled Portal, Paperless) Designers Track parts thru nine QC gates Prod Identify potential design & engineering problems b4 parts are constructed

Design new cars faster Remain Competitive

Business Information Systems

DaimlerChrysler Agile Supply Chain Case Sketch

Business Information Systems

Business Information Systems

A look at IPL Cricket

Business Information Systems

What IS a system?
A group of interrelated or interacting elements forming a unified whole, OR A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system). Three basic interacting components:
Input Processing (transformation process) Output
Business Information Systems

What IS a system? components of a system

Business Information Systems

Add Feedback and Control Loops..

And the system, now called a cybernetic system, becomes even more useful. Selfmonitoring Selfregulating
Business Information Systems

Components of an Information System

Business Information Systems

Data Versus Information

Monthly Sales Report for West Region

Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100

Business Information Systems

Data, Information, and Systems

Data vs. Information
A given, or fact; a number, a statement, or a picture Represents something in the real world The raw materials in the production of information

Data that have meaning within a context Data in relationships Data after manipulation

Business Information Systems

Data, Information, and Systems

Data Manipulation
Example: customer survey
Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful. When manipulated, the surveys may provide useful information.

Business Information Systems

Information in Context

Figure 1.2 Characteristics of useful information

Business Information Systems

Data, Information and Systems

Generating Information
Computer-based ISs take data as raw material, process it, and produce information as output.

Figure 1.1 Input-process-output

Business Information Systems

DIKW Quartet

Symbols Signs Represent: Stimuli Signals

Symbolic Subjective Represent: Structural Functional

Processed Represent: Procedural Propositional

Wisdom Evaluated Understanding Represent: Judgments Decisions

Business Information Systems

DIKW Flow Diagram

Business Information Systems

Business Information Systems

Information LS

Business Information Systems

classification of information systems

organizational structure

functional area

activity supported

support provided

system architecture
mainframe, standalone, distributed (networking)

Business Information Systems

interrelated support systems

transaction process



Non computer support

External information

Data warehouse


Internet & Other computer support

The TPS collects information that is used to build the DSS and EIS. The information in the data warehouse and DSS can be used as an input to EIS

Business Information Systems

growing impact of IT/IS: factor 1. internet growth and technology convergence

e-business, e-commerce, e-government

2. transformation of the business enterprise

flattening, decentralization, flexibility, collaborative work
Organizations have discovered that they can cut huge amounts of indirect costs by limiting travelabout a $100 million annual expense for a $10 billion companyand reducing square footage dedicated to the individual worker. They are replacing expensive face-to-face meetings with remote technologies, and combining centralized workplaces with alternative workplace programs.

Business Information Systems

growing impact of IT/IS: factor

3. growth of a globally connected economy
global delivery systems, management control in a global marketplace

4. growth of knowledge and information based economies

k-economy, time based competition core business processes accomplished using digital network

5. emergence of the digital firm

Business Information Systems

Data, Information, and Systems

The Benefits of Human-Computer Synergy
When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately

Allows human thought to be translated into efficient processing of large amounts of data

Business Information Systems

ex: emergence of the digital firm

Business Information Systems

IS Perspectives - Interdependence

Business Information Systems

Information Systems Framework

Business Information Systems

Information Systems Concepts (Continued)

Foundation Concepts
Fundamental concepts about the components and roles of information systems.

Information Technologies
Major concepts, developments, and management issues in information technology.

Business Information Systems

Information Systems Concepts (Continued)

Business Applications
The major uses of information systems for operations, management, and competitive advantage.

Development Processes
How business professionals and information specialists plan, develop, and implement information systems.

Management Challenges
The challenge of managing ethically and effectively.
Business Information Systems

Approaches to IS
Technical Behavioral
Management Sciences Computer Sciences Operations Research & Mgmt Economics Sociology Psychology


Avoiding Pure Technical Approach Optimize Social & Technical Systems

Business Information Systems

Need of IS
Respond changes in Marketplace quickly

Agility to Monitor & React to Data

See into systems & make changes on the fly

Align Manufacturing & Delivery with Cust needs

Business Information Systems

Elements of BIS
BIS is made up of a number of interdependent areas These areas overlap with other disciplines, which provide academic frames of reference

Figure 1.1: Elements of the Field

Business Information Systems

Figure 1.2: Reference disciplines

Business Information Systems

Building a model for the domain of BIS

An organisation is a series of inter-dependent activity systems which in combined action produce value

Value is the key flow between an organisation and actors in its environment
Businesses deliver value through products or services provided to customers Business receive value from suppliers or partners A business organisation is a value-creating system which interacts with a wider value network making up its environment see Figure 1.3

Business Information Systems

Figure 1.3: Organisation, activity systems and environment

Business Information Systems

Organisations require activity systems to function Activity systems in-turn rely on information systems An information system is a system of communication between a group of people to coordinate the action of individuals.

Figure 1.4: Information systems Business Information Systems

Information is data interpreted in some context A datum (a unit of data) is one or more symbols used to represent something On the basis of information supplied by the information system, decisions are made about appropriate actions to take

Figure 1.5: Data and information

Business Information Systems

Data is supplied to the information system by its ICT system

Figure 1.6: ICT systems and infrastructure

Business Information Systems

Business information systems have to be developed This is referred to as the information systems development process

Figure 1.7: Information systems development

Business Information Systems

After an information system is introduced, it begins to have effects:

First order effects concern issues of use Second order effects concern the impact of the information system

Figure 1.8: Use and impact

Business Information Systems

Effective planning and management are necessary to ensure information systems are successful and aligned with organisational strategy

Figure 1.9: Planning, management and operations

Business Information Systems

Case example: Goronwy Galvanising

Inputs into the Goronwy Galvanising system consist of black products Rito metals also supply zinc as raw material for the galvanising process Outputs consist of white products Transformation in this system is the process of galvanisation. The information flow consists of documents detailing deliveries and dispatches The physical flow of black material is received from the steel fabrication customer, the major actor in the environment

Business Information Systems

Figure 1.10: Goronwy Galvanising as a system

Business Information Systems

An organisation consists of a number of inter-dependent activity systems An activity system is a social system (or soft system) It consists of a logical collection of activities, processes or tasks in pursuit of some goal The precedence or order of activities is normally critical as this determines the flow necessary for the coordination of work In terms of our case, Goronwys activity systems are likely to consist of processes for: Receiving unfinished products Galvanising these products Dispatching finished products back to customers

Business Information Systems

Figure 1.11: The activity system at Goronwy

Business Information Systems

Goronwy has a manual information system - it relies on the flow of documents to inform the coordination of activity The delivery advice note supplied with BlackWalls products is identified by a delivery advice number specific to this manufacturer Each batch is identified on the delivery advice note by an order number generated by BlackWalls

Figure 1.12: Sample delivery advice note Business Information Systems

After checking, details from the delivery advice notice are transcribed to a job sheet A separate job sheet is filled in for each order-line on the delivery advice note

Figure 1.13: Sample job sheet Business Information Systems

When the shop-floor has treated a series of jobs a dispatch advice note is issued Each trailer for dispatch will have an associated dispatch advice note detailing the white material on the trailer Because of discrepancies, partial despatches may be made from one job - so the information on delivery advices need not correspond precisely with the information on dispatch advices.

Figure 1.14: Sample dispatch advice note Business Information Systems

Figure 1.15: The information system at Goronwy

Shows: Physical transformation Information handling activities Stores of records

Business Information Systems

Information models
Information models show the structure of information, particularly the information of relevance to decision-making. Boxes indicate individual elements of information or information classes Connecting lines indicate an association between information classes Symbols attached to each line represent a number of rules governing the behaviour of the association between classes

Business Information Systems

Figure 1.16: Information model for Goronwy Galvanising

Business Information Systems

ICT systems in focus

An ICT system Is an organised collection of hardware, software, data and communication technology Takes data as input, manipulates it and outputs manipulated data for interpretation Is a technical system Is a hard system (i.e. consists of an assembly of designed artefacts)
Business Information Systems

Figure 1.17: An ICT system, information system and activity system

Business Information Systems

ICT systems consist of three inter-dependent layers : Data management Business Interface

Figure 1.18: Layers of an ICT system

Business Information Systems

ICT systems rely on a database (which is a repository for the data used within the system) The database is controlled by the data management layer The design for the structure of the database is referred to as a data model The data model defines what data will be stored within the system and in what form

Business Information Systems

Figure 1.19: Order lines data structure

Business Information Systems

Figure 1.20: Part of the proposed interface for the Goronwy ICT system

Business Information Systems

System Software & Types

Def Types

Designed to operate the computer hardware Platform for running App Software

BIOS/Device Firmware Loaders/Linkers OS Utility Software Shells Hypervisors DBMS

Business Information Systems

Business Application Softwares

Comes on Top of Middleware & System Software Enterprise Software: ERP, CRM, SCM, IT Helpdesk - Salesforce, SAP, SAS, SPSS, Oracle, Compiere

Accounting Software: Tally

Office Suites: Netsuites, Office 2010, Open Office

Graphics Softwares: Adobe CS5, Maya, 3DMax

Enterprise Infra Software: Business workflow s/w, Digital Asset Management, DBMS & GIS

Business Information Systems

Integration Packages
Combining various Business Functionalities using S/w Packaging MS Visual Studio; SAP SWIFT Integration Package; HP OpenView; CISCOWorks; MS SQL Server Integration

Business Information Systems

Database & Its Management


Coll of Ordered data Create, Maintain & Use


Relational: Attributes & their relationships RDBMS Oracle, MySQL, SQL Server Network: Objects & their relationships OODBMS

Query Control Data Access, Enforce Data Integrity, Use & Scope Manage Concurrency and Backup & Restore
Business Information Systems