INFORMATION SYSTEMS MODEL

INFORMATION SYSTEMS MODEL 

                                              

CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS 

• The study of information systems is a multidisciplinary field.  

• No single theory or perspective dominates.  

• Information systems are socio technical systems.  

• Though IS are composed of machines, devices, and “hard” physical technology, they require substantial social, organizational, and intellectual investments to make them work properly. 

• The contemporary approaches (the major disciplines that contribute problems, issues, and solutions in the study of information systems) to Information Systems development could be broadly categorised in to: 

• Technical approach  

• Behavioural approaches 

                            

1. Technical Approach to information systems   

• This approach emphasizes mathematically based models to study information systems, as well as the physical technology and formal capabilities of these systems.  

• The disciplines that contribute to the technical approach are computer science, management science, and operations research. 

• Computer science is concerned with establishing theories of computability, methods of computation, and methods of efficient data storage and access. 

• Management science emphasizes the development of models for decision-making and management practices.  

ROLE OF IS IN BUSINESS  

• Support its business processes and operations 

How you manage your company's operations depends on the information you have.  Information systems can offer more complete and more recent information, allowing you to operate your company more efficiently.  

E.g. record purchases, track inventory, pay employees, etc.  

• Support decision making by its employees and its managers 

The company IS can help you make better decisions by delivering all the information you need and by modelling the results of your decisions.  

A decision involves choosing a course of action from several alternatives and carrying out the corresponding tasks.  


E.g. what lines of merchandise need to be added, what kind of investment required, etc

• Support its strategies for competitive advantage 

You can use information systems to gain a cost advantage over competitors or to differentiate yourself by offering better customer service. 
Sales data give you insights about what customers are buying and let you stock or produce items that are selling well. 
With guidance from the information system, you can streamline your operations.  

• Control 

Monitoring and controlling the activities of employees is a core function of information systems. 

This is especially true of financial transactions in which management has a duty to prevent fraud and theft. 

The system imposes its control functions by allowing only authorized employees to log in and access the relevant functions.


• Information Storage and Analysis 

Through the adoption of information systems, companies can make use of sophisticated and comprehensive databases that can contain all imaginable pieces of data about the company.  
IS store, update and even analyse the information, which the company can then use to pinpoint solutions to current or future problems. 


• Communication 

Part of management is gathering and distributing information, and information systems can make this process more efficient by allowing managers to communicate rapidly. 

TYPES OF INFORMATION SYSTEMS 

                        

1. Operational-level systems 

• Support operational managers by keeping track of the elementary activities and transactions of the organization.  

• Examples: such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory.  

• Answer routine questions and track the flow of transactions.   

• Examples:How many parts are in inventory?, number of hours worked each day by employees on a factory floor. 

2. Management-level systems  

• Serve the monitoring, controlling, decision-making, and administrative activities of middle managers.  

• Provide periodic reports rather than instant information on operations.  

• Answer “what-if” questions. 
• Ex: What would be the impact on production schedules if we were to double sales in the month of December? 

3. Strategic-level systems  

• Help senior management tackle and address strategic issues and long-term trends, both in the firm and in the external environment.  

• Principal concern is matching changes in the external environment with existing organizational capability

MAJOR TYPES OF INFORMATION SYSTEMS 

                        


CHARACTERISTICS OF INFORMATION PROCESSING SYSTEMS 

                                 

WHY STUDY INFORMATION SYSTEMS? 

• An end-user perspective 

• Enhance personal productivity, and the productivity of their work groups and department. 
• Increase the opportunities for success: 
• be aware of the management problems and opportunities presented by the information technology. 


• An enterprise perspective 

• Information  systems play a vital role in the business success of an enterprise. 

• Efficient operations 
• Effective management 
• Competitive advantage 

CHALLENGES – IS MANAGER 

• IS investment challenge  
• Strategic business challenge 
• Globalization challenge 
• Ethics and security 
• Speed and flexibility requirements of product development,  manufacturing, and delivery cycles. 
• Reengineering and cross functional integration of business processes using internet technologies. 

• Globalization challenge 

• Changes in society as a result of increased international trade and cultural exchange, often called globalization, have always had a significant impact on organizations and their information systems.

•  Cultural challenges 
• Language challenges 
• Time and distance challenges 
• Currency challenges 
• Product and service challenges 
• Technology transfer issues 
• Trade agreements