Types of Information Systems

PGDM Trimester I, 2012

Types of Information Systems

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Operation Support Systems

Definition: Information systems that process data generated by and used in business operations Goal:
efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases
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Examples of Operations Support Systems

Transaction Processing Systems (TPS) record and process data resulting from business transactions, update operational databases, and produce business documents. Sales and inventory processing, accounting system Process Control Systems (PCS) monitor and control industrial processes. Power generation, steel production, refinery Enterprise Collaboration Systems support team, workgroup, and enterprise communications and collaboration. E-mail, chat, videoconferencing
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Management Support Systems

Definition: Information systems that focus on providing information and support for effective decision making by managers Types:
MIS DSS EIS/ESS
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Management Support Systems

Management Information Systems (MIS) provide information in the form of prespecified reports and displays to support business decision making.
Sales analysis, Production performance

Decision Support Systems (DSS) provide interactive ad hoc support for the decision making processes of managers and other business professionals.
Product pricing, risk analysis systems, profitability forecasting

Executive Information Systems (EIS) provide critical information from MIS, DSS, and other sources tailored to the information needs of executives.
Systems to easy access to analysis of business performance Actions of competitors and economic applications in Management, 2012 developments to IT support strategic planning.

MIS Report

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Operational & Managerial IS

Expert Systems provide expert advice for operational chores or managerial decisions
Process Monitor, diagnostic maintenance systems

Knowledge Management Systems support the creation, organization, and dissemination of business knowledge to employees and managers
Sales proposal strategies Intranet access Best practices Customer problem resolution system

IT applications in Management, 2012

IS Classifications by Scope
Functional Business Systems support basic business functions
Accounting, marketing, finance, operations, HR

Strategic Information Systems support processes that provide a firm with strategic products, services, and capabilities for competitive advantage
Online stock trading, shipment tracking, e-commerce web systems

Cross-functional Information Systems integrated combinations of information systems

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INFORMATION ARCHITECTURE
Mainframe Environment PC Environment Distributed Processing Client Server architecture Legacy Systems Peer-to-peer Web-based system
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The IT architecture of an e-business

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Mainframe environment
One or more mainframe computers(providing both storage and computational capabilities) connected with terminals. Earlier, the users work with passive (or dumb) terminals, which are used to enter or change data and access information from the mainframe and are controlled by it. Later, replaced with smart terminals( or intelligent terminals) This was the dominant architecture until the mid-1980s. Drawbacks:
inflexibility and poor price-to performance ratio.
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Legacy Systems
Legacy systems typically are housed in a secured and costly computer (or data) center, operated by IS professional staff rather than by end users. Much of their work is repetitive, mainly in transaction processing. Some legacy systems are very large, including hundreds or even thousands of remote terminals networked to the mainframe processor. An emerging way to integrate legacy systems with Web based systems is by using Web Services.
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PC Environment
In the PC configuration, only PCs provide the computing power in the information system.
Standalone PC PC-LANs. Wireless LANs.

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Distributed Processing
Distributed processing (distributed computing) divides the processing work between two or more computers, using a network for connection. Cooperative processing is a type of distributed processing in which two or more geographically dispersed computers are teamed together to execute a specific task. It is the dominant architecture of most organizations.

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Distributed Processing
This architecture permits intra- and inter-organizational cooperation in computing; accessibility to vast amounts of data, information, and knowledge; and high efficiency in the use of computing resources. The concept of distributed computing drives todays new architectures, including client/server and those that are Web based.
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Client Server architecture

The most important configuration of distributed processing is the client/server architecture, where several computers share resources and are able to communicate with many other computers via networks. The Internet, intranets, and extranets are based on the client/server model of distributed computing. Client/server architecture divides distributed computing units into two major categories, clients and servers, all of which are connected by a network of some sort. A client is a computer such as a PC attached to a network, which is used to access shared network resources. A server is a machine that is attached to this same network and provides clients with some services.
database server that provides a large storage capacity, communication server that provides connection to another network, to commercial databases, or to a powerful processor.
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Client Server Architecture

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Client Server architecture

The Benefits of Client/Server Architecture. The purpose of client/server architecture is to maximize the use of computer resources. Client/server architecture provides a way for different computing devices to work together, each doing the job for which it is best suited.
For example, large storage and heavy computation power is more cost-effective on a mainframe than on a PC. Common office computing, such as word processing, is more conveniently handled by a PC. The role of each machine need not be fixed. A PC, for example, can be a client in one task and a server in another. Another important element is sharing. The clients, which are usually inexpensive PCs, share more expensive devices, the servers.

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 Legacy systems are older, usually mature, information systems. Although legacy systems are normally less desirable than and less compatible with modern equivalents. They are still, in some cases, part of the backbone of the overall IT infrastructure within an organization. They are usually part of a pure mainframe system or a distributed system in which the mainframe plays the major role. Newer legacy systems may include one or more LANs and even client/server implementations. Legacy systems were developed from the late 1950s through the 1980s for general-purpose business use in medium- to large-size companies. They were the primary mechanism for high-volume processing applications. Because companies invested lots of money and expertise in building legacy systems, many companies try to reengineer these systems rather than to replace them.

Legacy Systems

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Peer-to-peer
A special client/server architecture that provides some additional new and useful functionalities. Peer-to-peer (P2P) architecture is a type of network in which each client computer shares files or computer resources (like processing power) directly with others but not through a central server. This is in contrast with the traditional client/sever architecture.

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Peer-to-peer
Advantages:
offer better security, reliability, and availability of content no need for a network administrator, fast and inexpensive to set up and maintain

P2P architecture is the basis of file sharing over the Web. P2P is also the underlying architecture of Bit Torrents .

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Web-based Systems
Applications or services that are accessible using a Web browser. Features
Applications must conform to the Internet protocols Generated content/data can be easily updated in real time Systems are universally accessible via the Web to the users.
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Management Challenges & Opportunities

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Measures of Success
Efficiency
Minimize costs Minimize time The use of information resources

Effectiveness
Support an organizations business strategies Enable its business processes Enhance its organizational structure and culture Increase the customer business value of the enterprise

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Developing IS Solutions

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Ethical Challenges of IT

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The IS Function represents

A major functional area of business equally as important to business success as the functions of accounting, finance, operations management, marketing, and human resource management. An important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction.
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The IS Function represents

A major source of information and support needed to promote effective decision making by managers and business professionals. A vital ingredient in developing competitive products and services that give an organization a strategic advantage in global marketplace.
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The IS Function represents

A dynamic, rewarding, and challenging career opportunity for millions of men and women. A key component of the resources, infrastructure, and capabilities of todays networked business enterprise.

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Summary
There is no longer a distinction between an IT project and a business initiative. Information systems are an important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction.

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Summary
Information systems are a major source of information and support needed to promote effective decision making by managers and business professionals. Information systems can be categorized based on their intended purpose.

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Summary
Managing and using information systems can pose several challenges including the development process and ethical responsibilities.

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