Information System for Managers

Prof. Sudarshan IBS Gurgaon 1

Information System Concepts

Understanding Data and Information, System Concepts,
Open System, Closed System,

Business as a System, What is Information System, Classification of IS in organization, Attributes of Information Quality

Data & Information

Data Information System Information System

System
Group of Interrelated components working
3 Basic components in a dynamic system are - Input, Processing & Output Data.
2 Additional components to have a cybernetic or self regulatory system are Feedback and Control Data.

Within a clearly defined boundary Towards a common goal or objective.

Biological System Human body Technological System Thermal Power Plant Socio Economic System Business organization

Systems
Closed Systems

Open Systems

What is Information System?

Input data resources ->Information -> Product or Service KPI Output Database IS Resources
People Hardware Software Data Network Information products

Why to study Information System?

Objective: Control and Performance Improvement More important is to survive in competition. IS Functions
Business functional area Contributor to operational efficiency Decision making support Strategic advantage for an organization in global market Networked business enterprise

A schematic representation of an Information System

Data Source
External Database Internal Operations Suppliers Customers

Database / Data Warehouse

Processing / Analytics

Presentation of Information

Interpretation
Program of Action Control Feedback Decision

Schematic Representation of Information System

Source:

Business as a System
A business is an organizational system where -economic resources (input) are transformed by -various business processes (processing) into -goods or services (output). Information system provides information (Feedback) on the operations of the system to management for direction and maintenance of the system (Control).

What Is Business?
An organization that provides goods and services to earn profits
Profits:

The positive difference between revenues and expenses

Factors of Production
Labor Capital

Information Resources

Entrepreneurs

Physical Resources

Circular Flow in Market Economy

SUPPLY OUTPUT MARKETS DEMAND

Goods Services
FIRMS HOUSEHOLDS

Supply products in output markets Demand resources in input markets

DEMAND

INPUT MARKETS

Demand products in output markets Supply resources in input markets

SUPPLY

Labor Capital Entrepreneurs Physical Resources Information Resources

Copyright 2003 Prentice Hall, Inc.

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Looking to the Future

Three Major Forces:
The information revolution will continue to boost productivity Technological breakthroughs will create new industries Increasing globalization will create larger markets and tougher competition

IS in Organization
Information System Classification
Executive Support Systems
Management Information Systems

Decision-Support Systems Knowledge Management Systems Transaction Processing Systems Office Automation Systems

Information Quality
Software Quality Attributes [Trade Offs]
Performance

I
Security Reliability

Case 1
Aviall Inc.: From failure to success with Information Technology
[Refer: MIS by James A. O. Brian and George M Marakas]