صفحه 1:
Chapter 2
Information
Technologies:
Concepts &
Management
صفحه 2:
Learning Objectives
Describe various information systems and their
evolution, and categorize specific systems you
۱۰ وت
Describe transaction processing and functional
information systems.
Identify the major support systems, and relate them to
managerial functions.
Discuss information infrastructure and architecture.
صفحه 3:
Learning Objectives (cont.)
Compare client/server architecture, enterprisewide
computing, and legacy systems, and analyze their
interrelationship.
Describe the major types of Web-based information
systems and understand their functionality.
Describe how information resources are managed.
Describe the role of the information systems
department and its relationship with end-users.
صفحه 4:
Case: Building an e-Business at
Problem: Fed Ex
" FedEx has kept looking ahead at every stage for opportunities to
عاطة3]00 لمة ,عاطذاع؟ غدة؟ ه؟ دلععم '5اع7مغكبء غععمم
overnight deliveries.
Solution:
» In addition to e-Shipping Tools, FedEx is now providing
integrated solutions to address the selling & supply chain needs
01 15 كناء 015.
Laoag كنا
e-business model facilitates better communication and هی
collaboration between the various parties along the supply
ینت
Y It promotes efficiency gains by reducing costs & speeding up the
order cycle.
Y It transforms organizations into high performance e-businesses.
صفحه 5:
Characteristics of Information
<۱5
Y Several different Y Interorganizational
information systems can information systems ۱
exist in one organization. involve information flow in
two or more organizations.
¥ A particular information
icin uite ل An enterprisewide system
of several separate or interorganizational
ان AAU Cole ماع 5
composed of large & small
computers & hardware
connected by different
12065 0۶6 ۰
۱
connected by means of
electronic networks.
صفحه 6:
Data, Information & Knowledge
One of the primary goals of Information Systems is to
economically process data into information or
knowledge.
Data items refer to an elementary description of things,
events, activities, and transactions that are recorded,
classified, and stored, but not organized to convey any
specific meaning.
Information is data that have been organized so that
they have meaning and value to the recipient.
Knowledge consists of data or information that have
been organized and processed to convey understanding,
experience, accumulated learning, and expertise.
صفحه 7:
Classifications of Information
<۱5
Information Systems can be
classified according to;
2 ها
تالف كنا
» Functional Area
0-0
» System
Architecture
lati 8 aN) eee
صفحه 8:
Classification by Organizational
Structure
° Departmental information systems. Frequently,
an organization uses several application programs
in one functional area or department.
* Enterprise information systems (EIS). While a
departmental IS is usually related to a functional
area, the collection of all departmental applications
when combined with other functions’ applications
comprises the enterprisewide information system.
۱ ارات رت رت
systems connect several organizations.
صفحه 9:
Classification by Functional Area
6 5/56۱5 ۴۵۳۱۳۱۵/۵۳ ۱6/0۳01 ۱۵۵۳ 716
:9 أنلاوااه؟ عا
>» The accounting information system
وراه درا ریا زورره
>» The manufacturing
(operations/production) information
system
» The marketing information system
» The human resources management
information system
صفحه 10:
Classification by Support Provided
The major types of systems under this
classification are:
> Transaction processing system (TPS)
> Management information system (MIS)
» Knowledge management system (KMS)
> Office automation system (OAS)
» Decision support system (DSS)
> Enterprise information system (EIS)
>» Group support system (GSS)
> Intelligent support system
10
صفحه 11:
Evolution of Support Systems
Transaction processing system
(TPS)
۵۵۵ ۱۷۱۵۵۵96۳۱۸۵۲
(11155) دتمعغولاد
011310119ناة عع 018
(OAS)
Decision support system (DSS)
11
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BR} Tl)
19605
1
Taha
1970s
صفحه 12:
Evolution of Support Systems
(cont.)
Early 1980s_ Executive information systems
ه۵ :۴0۲۵۲۵۲۱
(۶۱55) 5۷5۲6۳۴5
Group support systems (GSSs)
Mid- 1980s _ Expert systems (ES)
۱۱۵۷۱6۵9۶ ۲۱۵۳۱3۵96۲۱۵۱۲ ۵
(KMS)
وتا ات روا ۱۱
(ANNs)
12
صفحه 13:
Case: Detecting Bombs with
Problem: الام
* The Federal Aviation Administration (FAA) use statistical
analysis and expert systems to prevent terrorists from
sneaking bombs aboard airplanes. Yet, these
technologies cannot detect all types of explosives.
1۱۱۹
* Since 1993, artificial neural networks (ANN) have been
added to improve detection effectiveness.
* The ANN is exposed to a set of historical cases and is
then able to predict the existence of explosives in new
۰
Results:
* The FAA hopes to detect explosives more successfully
and also minimize false alarms.
13
صفحه 14:
صفحه 15:
Classification by System
Architecture
Information systems can be classified according
to three types of architecture:
» A mainframe-based system.
» A standalone personal computer (PC).
» A distributed or a networked
computing system (several variations
نت
15
صفحه 16:
16
Transaction Processing
° Transaction processing systems (TPS) support the
monitoring, collection, storage, processing, and
dissemination of the organization’s basic business
transactions.
¥ They provide the input data for many applications
involving other support systems.
¥ The transaction processing systems are considered
critical to the success of any organization.
¥ The TPS collects data continuously, frequently on a
daily basis, or even in “real time”.
صفحه 17:
17
Functional MISs
» Functional Management Information Systems (MISs) are
put in place to ensure that business strategies come to
fruition in an efficient manner.
» Typically a functional MIS provides periodic information
about such topics as operational efficiency, effectiveness,
and productivity by extracting information from the
corporate database and processing it according to the
needs of the user.
» MISs can be constructed in whole or in part by end-users.
» MISs are also used for planning, monitoring, and control.
صفحه 18:
18
صفحه 19:
Classification by the Activity
Supported
* Another important way to classify information
لإعاع لاأأناااع3 عطغ 01 عناوم عط لاط ذأ ولمع ولاك
support. Such support can be:
¥ Operational
- Day-to-day operations of an organization
¥ Managerial
- Middle-management activities such as short-
term planning, organizing, and control
¥ Strategic
- Decisions that significantly change the manner
in which business is being done
19
صفحه 20:
New Strategic Systems
° Electronic commerce (EC) has become a new way
of conducting business in the last decade or so.
Y¥ In this new model, business transactions take place
via telecommunications networks, primarily the
يت انا
2 ل with
innovative and strategic advantages, such as;
* Increased market share
* Better ability to negotiate with suppliers
* Better ability to prevent competitors from
entering into their territory
20
صفحه 21:
Manage ون وهی
PEOPLE SUPPORTED 7
=
knowiedge \
Staff Support
Managerial Systems. Middle Managers
ne Managers
Operational Systems om
‘Office Automation and Communication Systems:
Information Infrastructure and TPS
21
صفحه 22:
Information Infrastructure
There are five major components of the infrastructure:
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>» Development software
ee CMC tated) تان يا
facilities = (including the Internet and
intranets)
» Databases
tis 5 ان
personnel
22
صفحه 23:
Information Architecture
Information architecture is a high-level map or plan
of the information requirements in an organization.
In preparing information architecture, the designer
requires two kinds of information:
1. The business needs of the organization—that
is, its objectives and problems, and the
contribution that IT can make.
2. The information systems that already exist in
an organization and how they can be combined
among themselves or with future systems to
support the organization’s information needs.
23
صفحه 24:
Types of Information
Architecture
Mainframe environment. In the mainframe
environment, processing is done by a mainframe
.عنام ممع
The users work with passive (or “dumb”) terminals, لا
which are used to enter or change data and access
Lao شا ریت ای کت ریا ار
PC environment. In the PC configuration, only PCs
form the hardware information architecture.
Networked (distributed) environment. Distributed
processing divides the processing work between
two or more computers.
24
صفحه 25:
Case: Flexible IT Architecture at
Chase
Problem:
* When Chase Manhattan Bank & Chemical Bank merged in
1996, they faced the obstacle of merging different
information systems and creating a new IT architecture.
Solution:
* An innovative 3-layer architecture was constructed using the
ریت زیرف کت یت زرا
ا 0 0ت ا
Y¥ Second layer: distribution networks that route traffic
among business units
یار
Results:
* All of this massive networking has one goal: giving customers
extensive real-time access to accounts and a view of their
.كاع355
25
صفحه 26:
Client/Server Architecture
" A client/server architecture divides networked
computing units into two major categories; clients and
لت يفتكت
= A client is a computer such as a PC or a workstation
attached to a network, which is used to access shared
network resources.
ba ee Maen a ولط مغ معطعء م3 ذا غقط 300 cl
network and provides clients with these services.
" The purpose of client/server architecture is to
maximize the use of computer resources.
Client/server architecture gives a company as many
access points to data as there are PCs on the network.
26
صفحه 27:
Electronic Data Interchange (EDI)
» Electronic data interchange (EDI) is the electronic
movement of specially formatted standard business
documents, such as orders, bills, and confirmations sent
between business partners.
> In the past, EDI ran on expensive va/ue-added networks
(VANs).
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multiple organization to provide high capacity, security, and
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» The cost of VANS limited EDI to large business partners.
However, the situation is changing rapidly with the
emergence of /nternet-based EDI.
27
صفحه 28:
Web-based Systems
Two important features
of Web-based
functionality;
(1)The generated content/
data is updated in real
کزریت
)2( ۲۳۶ ۶
accessible via the Web
to users (dependent on
defined user-access
زیر
28
" Web-based systems refer
to those applications or
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on a server that is
یاهع
anywhere via the WWW.
= The only client-side
software needed to
-معثالا عأناءعكاء ممق 5وعع36
based applications is a
Web browser
environment.
صفحه 29:
Web-based Systems (cont.)
" The /nternet is a worldwide system of computer
networks--a network of networks in which users at
any one computer can, if they have permission, get
information from any other computer.
" An intranet is the use of WWW technologies to
create a private network, usually within one
enterprise.
¥ Asecurity gateway such as a firewall is used to segregate
اش ات یت رات رها allan ois
" An Extranet can be viewed as an external
extension of the enterprise intranet.
29
صفحه 30:
e-Commerce & StoreFronts
" One of the natural outcomes of the Internet and
مععط ذقط لاع للا عل ثانا لاعمللا عط es Le) IRR
= Web-based systems are the engines of e-
یت ییا رین
¥ They enable business and inventory transactions to be
conducted seamlessly over the Internet 24 hours a day, 7
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of a showroom.
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products.
30
صفحه 31:
Electronic Markets & Exchanges
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and relationships over which information, products,
services, and payments are exchanged.
» Electronic exchanges are central Web-based
locations where buyers and sellers interact
dynamically, with buyer and sellers going back and
forth on a price.
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31
صفحه 32:
Mobile-Commerce
" Mobile commerce or M-commerce is the buying and
selling of goods and services through wireless
handheld devices such as cellular telephone and
personal digital assistants.
= Known as “next-generation e-commerce,” m-commerce
enables users to access the Internet without a place to
plug in to.
* Wireless Application Protocol (WAP) is the emerging
technology behind m-commerce.
¥ Using Bluetooth technology, WAP-enabled smart phones
offer fax, e-mail, and phone capabilities all in one.
32
صفحه 33:
Managing Information Resources
= The responsibility for the management of information
resources is divided between two organizational
lalate tio
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= This division of responsibility raises important
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Y What are the relationships between the ISD and the end users?
33
صفحه 34:
Which Resources are Managed by
Whom?
= The responsibility for
managing these resources
depends on many things:
the size/ nature of the
organization, the amount/
type of IT resources, etc.
™ Generally speaking, the
ISD is responsible for
corporate-level and shared
resources, while the end
users are responsible for
departmental resources.
34
Major categories of
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صفحه 35:
What is the Role of the ISD?
» The role of the ISD is changing from purely technical
to more managerial and strategic.
» As aresult, the position of the ISD within the
organization tends to be elevated from a unit
reporting to a functional department, to a unit
reporting to a senior vice president of administration
or to the CEO.
» The role of the director of the ISD is changing from a
technical manager to a senior executive.
» The ISD can be centralized or decentralized or a
combination of the two.
» The ISD must work closely with external
organizations such as vendors, business partners,
ren
35
صفحه 36:
Managing Relationships with End
حا"
The ISD and the end-user units must be close partners.
Some mechanisms that build the required cooperation are:
ل ا reece
ae ا ates
application developments, and maintenance.
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صفحه 37:
37
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Managerial Issues
) كه
networked computing.
Converting the IT in
organizations to networked
computing may be a
complicated process.
2
Whether and when to move
from the legacy systems to
a client/server
enterprisewide architecture
is an important issue.
صفحه 38:
38
Managerial Issues (cont.)
A el Mee tie Eta ag Yd
Justifying information system applications is not an easy job
due to the intangible benefits and rapid changes in
technologies.
ل 401
End users play an important role in IT development and
management. The end users know best what their
information needs are and to what degree they are fulfilled.
soe
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advantages to certain individuals at the expense of others.
Chapter 2
Information
Technologies:
Concepts &
Management
1
Learning Objectives
Describe various information systems and their
evolution, and categorize specific systems you
observe.
Describe transaction processing and functional
information systems.
Identify the major support systems, and relate them
to managerial functions.
Discuss information infrastructure and architecture.
2
Learning Objectives
(cont.)
Compare client/server architecture, enterprisewide
computing, and legacy systems, and analyze their
interrelationship.
Describe the major types of Web-based information
systems and understand their functionality.
Describe how information resources are managed.
Describe the role of the information systems
department and its relationship with end-users.
3
Case: Building an e-Business at
Fed Ex
Problem:
FedEx has kept looking ahead at every stage for
opportunities to meet customers’ needs for fast, reliable,
and affordable overnight deliveries.
Solution:
In addition to e-Shipping Tools, FedEx is now providing
integrated solutions to address the selling & supply chain
needs of its customers.
Results:
FedEx’s e-business model facilitates better communication
and collaboration between the various parties along the
supply chains.
It promotes efficiency gains by reducing costs & speeding
up the order cycle.
It transforms organizations into high performance ebusinesses.
4
Characteristics of Information
Systems
Several different information
systems can exist in one
organization.
A particular information system
may be composed of several
separate information systems.
Information systems are
connected by means of electronic
networks.
Interorganizational
information systems
involve information flow in
two or more organizations.
An enterprisewide system
or interorganizational
information system is
composed of large & small
computers & hardware
connected by different
types of networks.
5
Data, Information & Knowledge
One of the primary goals of Information Systems is
to economically process data into information or
knowledge.
Data items refer to an elementary description of
things, events, activities, and transactions that are
recorded, classified, and stored, but not organized to
convey any specific meaning.
Information is data that have been organized so
that they have meaning and value to the recipient.
Knowledge consists of data or information that
have been organized and processed to convey
understanding, experience, accumulated learning,
and expertise.
6
Classifications of Information
Systems
Information Systems can be
classified according to;
Organizational
Structure
Functional Area
Support Provided
System
Architecture
Activity
Supported
7
Classification by Organizational
Structure
• Departmental information systems. Frequently, an
organization uses several application programs in one
functional area or department.
• Enterprise information systems (EIS). While a
departmental IS is usually related to a functional area,
the collection of all departmental applications when
combined with other functions’ applications comprises
the enterprisewide information system.
• Interorganizational systems. Some information
systems connect several organizations.
8
Classification by Functional Area
The major functional information systems are the
following:
The accounting information system
The finance information system
The manufacturing (operations/production)
information system
The marketing information system
The human resources management
information system
9
Classification by Support Provided
The major types of systems under this
classification are:
Transaction processing system (TPS)
Management information system (MIS)
Knowledge management system (KMS)
Office automation system (OAS)
Decision support system (DSS)
Enterprise information system (EIS)
Group support system (GSS)
Intelligent support system
10
Evolution of Support Systems
Early
1950s
Transaction processing system (TPS)
1960s
Office automation system (OAS)
Late
1960s
Decision support system (DSS)
Management information systems
(MISs)
Early
1970s
11
Evolution of Support Systems
(cont.)
Early 1980s
Executive information systems
Enterprise information
systems (EISs)
Group support systems
(GSSs)
Mid- 1980s
Expert systems (ES)
Knowledge management
systems (KMS)
1990s
Artificial neural networks (ANNs)
12
Case: Detecting Bombs with
ANN
Problem:
• The Federal Aviation Administration (FAA) use statistical
analysis and expert systems to prevent terrorists from
sneaking bombs aboard airplanes. Yet, these
technologies cannot detect all types of explosives.
Solution:
• Since 1993, artificial neural networks (ANN) have been
added to improve detection effectiveness.
• The ANN is exposed to a set of historical cases and is
then able to predict the existence of explosives in new
cases.
Results:
• The FAA hopes to detect explosives more successfully
and also minimize false alarms.
13
Interrelated Support Systems
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14
Classification by System
Architecture
Information systems can be classified according to
three types of architecture:
A mainframe-based system.
A standalone personal computer (PC).
A distributed or a networked computing
system (several variations exist).
15
Transaction Processing
• Transaction processing systems (TPS) support the
monitoring, collection, storage, processing, and
dissemination of the organization’s basic business
transactions.
They provide the input data for many applications
involving other support systems.
The transaction processing systems are considered
critical to the success of any organization.
The TPS collects data continuously, frequently on a daily
basis, or even in “real time”.
16
Functional MISs
Functional Management Information Systems (MISs) are put in
place to ensure that business strategies come to fruition in an
efficient manner.
Typically a functional MIS provides periodic information about
such topics as operational efficiency, effectiveness, and
productivity by extracting information from the corporate
database and processing it according to the needs of the user.
MISs can be constructed in whole or in part by end-users.
MISs are also used for planning, monitoring, and control.
17
Functional MISs
Sales forecast by region generated by marketing MIS.
18
Classification by the Activity
Supported
Another important way to classify information
systems is by the nature of the activity they
support. Such support can be:
Operational
– Day-to-day operations of an organization
Managerial
– Middle-management activities such as shortterm planning, organizing, and control
Strategic
– Decisions that significantly change the
manner in which business is being done
19
New Strategic Systems
• Electronic commerce (EC) has become a new way
of conducting business in the last decade or so.
In this new model, business transactions take place
via telecommunications networks, primarily the
Internet.
e-Commerce provides organizations with innovative
and strategic advantages, such as;
• Increased market share
• Better ability to negotiate with suppliers
• Better ability to prevent competitors from
entering into their territory
20
Information Systems & People
21
Information Infrastructure
There are five major components of the infrastructure:
Computer hardware
Development software
Networks and communication
facilities (including the Internet and intranets)
Databases
Information management personnel
22
Information Architecture
Information architecture is a high-level map or plan of
the information requirements in an organization.
In preparing information architecture, the designer
requires two kinds of information:
1. The business needs of the organization—that is,
its objectives and problems, and the contribution
that IT can make.
2. The information systems that already exist in an
organization and how they can be combined
among themselves or with future systems to
support the organization’s information needs.
23
Types of Information
Architecture
Mainframe environment. In the mainframe
environment, processing is done by a mainframe
computer.
The users work with passive (or “dumb”) terminals,
which are used to enter or change data and access
information from the mainframe.
PC environment. In the PC configuration, only PCs
form the hardware information architecture.
Networked (distributed) environment. Distributed
processing divides the processing work between two
or more computers.
24
Case: Flexible IT Architecture at
Chase
Problem:
• When Chase Manhattan Bank & Chemical Bank merged in
1996, they faced the obstacle of merging different
information systems and creating a new IT architecture.
Solution:
• An innovative 3-layer architecture was constructed using the
Internet & intranets.
First layer: global infrastructure
Second layer: distribution networks that route traffic
among business units
Third layer: numerous access networks
Results:
• All of this massive networking has one goal: giving
customers extensive real-time access to accounts and a
view of their assets.
25
Client/Server Architecture
A client/server architecture divides networked computing
units into two major categories; clients and servers.
A client is a computer such as a PC or a workstation 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 these services.
The purpose of client/server architecture is to maximize the
use of computer resources.
Client/server architecture gives a company as many access
points to data as there are PCs on the network.
26
Electronic Data Interchange
(EDI)
Electronic data interchange (EDI) is the electronic
movement of specially formatted standard business
documents, such as orders, bills, and confirmations sent
between business partners.
In the past, EDI ran on expensive value-added networks
(VANs).
These are private, data-only wide area networks used by
multiple organization to provide high capacity, security, and
economies in the cost of network service.
The cost of VANS limited EDI to large business partners.
However, the situation is changing rapidly with the
emergence of Internet-based EDI.
27
Web-based Systems
Web-based systems refer
to those applications or
services that are resident
on a server that is
accessible from anywhere
via the WWW.
Two important features of
Web-based functionality;
The only client-side
software needed to access
and execute Web-based
applications is a Web
browser environment.
(2) They are universally
accessible via the Web to
users (dependent on
defined user-access
rights).
(1) The generated content/
data is updated in real
time.
28
Web-based Systems
(cont.)
The Internet is a worldwide system of computer
networks--a network of networks in which users at any
one computer can, if they have permission, get
information from any other computer.
An intranet is the use of WWW technologies to create
a private network, usually within one enterprise.
A security gateway such as a firewall is used to segregate the
intranet from the Internet.
An Extranet can be viewed as an external extension of
the enterprise intranet.
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e-Commerce & StoreFronts
One of the natural outcomes of the Internet and
the World Wide Web has been e-Commerce.
Web-based systems are the engines of eCommerce.
They enable business and inventory transactions to be
conducted seamlessly over the Internet 24 hours a day, 7
days a week.
An electronic storefront is the Web-equivalent of a
showroom.
This is the Web site where an e-retail business displays its
products.
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Electronic Markets & Exchanges
Electronic markets are a network of interactions
and relationships over which information, products,
services, and payments are exchanged.
Electronic exchanges are central Web-based
locations where buyers and sellers interact
dynamically, with buyer and sellers going back and
forth on a price.
Vertical exchanges position themselves as the hub for all
buying, selling, and related services in a single market
category.
Horizontal exchanges focus on a specific function or need
applicable to many different industries.
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Mobile-Commerce
Mobile commerce or M-commerce is the buying and
selling of goods and services through wireless handheld
devices such as cellular telephone and personal digital
assistants.
Known as “next-generation e-commerce,” m-commerce
enables users to access the Internet without a place to
plug in to.
Wireless Application Protocol (WAP) is the emerging
technology behind m-commerce.
Using Bluetooth technology, WAP-enabled smart phones
offer fax, e-mail, and phone capabilities all in one.
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Managing Information Resources
The responsibility for the management of information
resources is divided between two organizational entities:
The information systems department (ISD) - a corporate entity.
The end-users - who are scattered throughout the organization.
This division of responsibility raises important questions:
Which resources are managed by whom?
What is the role of the ISD, its structure, and its place in the
organization?
What are the relationships between the ISD and the end users?
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Which Resources are Managed by
Whom?
Major categories of
Resources:
Hardware
Software
Databases
Networks
Procedures
Security facilities
Physical buildings
The responsibility for
managing these resources
depends on many things:
the size/ nature of the
organization, the amount/
type of IT resources, etc.
Generally speaking, the
ISD is responsible for
corporate-level and
shared resources, while
the end users are
responsible for
departmental resources.
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What is the Role of the ISD?
The role of the ISD is changing from purely
technical to more managerial and strategic.
As a result, the position of the ISD within the
organization tends to be elevated from a unit
reporting to a functional department, to a unit
reporting to a senior vice president of
administration or to the CEO.
The role of the director of the ISD is changing from
a technical manager to a senior executive.
The ISD can be centralized or decentralized or a
combination of the two.
The ISD must work closely with external
organizations such as vendors, business partners,
etc.
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Managing Relationships with End
Users
The ISD and the end-user units must be close partners. Some
mechanisms that build the required cooperation are:
A Steering committee that represents all end users and the ISD.
Joint ISD/end-users project teams for planning, budgeting,
application developments, and maintenance.
ISD representation on the top corporate executive committee.
Service agreements that define computing responsibilities and
provide a framework for services rendered by the ISD to end users.
Technical and administrative support (including training) for end
users.
A conflict resolution unit established by the ISD to handle end-user
complaints quickly and resolve conflicts as soon as possible.
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Managerial Issues
The transition to networked
computing. Converting the IT in
organizations to networked computing
may be a complicated process.
Legacy systems.
Whether and when to move from the
legacy systems to a client/server
enterprisewide architecture is an
important issue.
The role of the ISD. The role of the ISD can be extremely important, yet top
management frequently mistreats it.
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Managerial Issues (cont.)
How much infrastructure?
Justifying information system applications is not an easy job
due to the intangible benefits and rapid changes in
technologies.
The role of end users.
End users play an important role in IT development and
management. The end users know best what their information
needs are and to what degree they are fulfilled.
Ethical Issues.
IS systems may invade the privacy of the users or create
advantages to certain individuals at the expense of others.
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