pre 4 chapter 1

• • Transaction processing systems (TPSs) 
  • Focus on data collection and processing
  • Cost reduction
  • Operations repetitive
  • Human involvement minimal
• • Management information system (MIS)
  • Organized integration of hardware and software technologies, data, processes, and human elements
  • Designed to produce timely, integrated, relevant, accurate, and useful information 
  • For decision-making purposes
  • Include:
  • Hardware components
  • MIS software
  • Processes
• • Designing an MIS
  • Define objectives
  • Collect and analyze data
  • Provide information in useful format
  • Used in both the private and public sector
  • Many organizations use information systems to gain a competitive advantage
• Information Technology at Hertz Car Rental Company

  • Mainframe-based decision support system (DSS)
  • Executive information system (EIS)
  • Analyze essential information from both external and internal sources
  • Manipulate and refine data to make it more meaningful
• system - A set of elements that interact to accomplish goals
• Systems consist of:

  • Input(s) 
  • Processing
  • Output(s)
  • Feedback: output used to make changes to inputs or processing
  • Other system terms:
  • System boundary: distinguishes the system from its environment
  • A configuration: the way system elements are organized or arranged.
• Major Components of an Information System

  • Data
  • Database
  • Process
  • Information
• • Data
  • Input to the system
  • Sources of data
  • External
  • Internal
  • Time orientation
  • Can be collected in different forms
  • Aggregated 
  • Disaggregated
• • Database
  • Heart of an information system
  • Collection of all relevant data organized in a series of integrated files
  • Essential for the success of any information system
  • Managed with database management system (DBMS): e.g., Oracle
  • Reduces personnel time needed to gather,  process, and interpret data manually
• • Process 
  • Generates the most useful type of information for decision making
  • Generally includes transaction-processing reports and models for decision analysis
  • Includes a wide range of models to support all levels of decision making
• • Information
  • Output of an information system
  • Facts that have been analyzed by the process component
  • Quality of information 
  • Timeliness
  • Integration with other data and information
  • Consistency and accuracy
  • Relevance
• Information (cont’d.)

  • User interface
  • Must be flexible and easy to use
  • Graphical user interfaces (GUIs)
  • Ultimate goal of an information system 
  • Generate business intelligence (BI)
• Examples of Information Systems

  • Example 1: a university
  • State university stores all student data in a database
  • Built-in query capability
  • Other types of analysis can be done
  • Example 2: Teletech
  • International textile company
  • Database stores data on products, suppliers, sales personnel, costs
  • Process components
  • Forecasting models
• MIS include:

  hardware components

  MIS software

  processes
• system consists of

  input

  processing

  output

  feedback
• System boundary: distinguishes the system from its environment
• • A configuration: the way system elements are organized or arranged.
• • Sources of data
  • External
  • Internal
• • Can be collected in different forms
  • Aggregated 
  • Disaggregated
• • Quality of information 
  • Timeliness
  • Integration with other data and information
  • Consistency and accuracy
  • Relevance