Nature and Development of Information systems
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This document defines information systems and their components. It discusses how information systems have developed over time from the introduction of punch cards to today's cloud computing systems. It identifies the key components of information systems as people, hardware, software, data, input, processing, output, storage and feedback. It also describes different types of information systems like transaction processing systems, decision support systems, executive information systems and management information systems. Finally, it outlines the five eras in the evolution of management information systems from mainframes to personal computers to today's cloud computing models.
Nature and Development of Information systems
- 1. Nature and Development of Information System John Pros B. Valencia BLIS Instructor
- 2. At the end of this unit, students should be able to: Define the terms information system and computer information system Identify the components of information systems Familiarize with the history and development of information system
- 3. Information System IS, can be any organized combination of People, Hardware, Software and data resources that collects transformation or screening the information in an organization. Input Processing Output Storage FeedBack
- 4. What Is an Information System? a set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective. (Star & Reynolds, 2011). is an academic study of systems with a specific reference to information and the complementary networks of hardware and software that people and organizations use to collect, filter, process, create and also distribute data.
- 5. Functions of an information system
- 10. Components of Information System
- 11. Type of Information System Transaction Processing Systems. These systems have been designed to collect, process and store transactions that occur in the day to day operations of a company. Example: inventory questions, granting credit to customer, performing deposits & withdrawals – Monitor status of internal operations and firm’s relationship with external environment. – Major producers of information for other systems. – Highly central to business operations and functioning.
- 12. Decision Support Systems These systems help decision makers to make the best decisions by generating statistical projections from analyzed data.
- 13. Executive Information Systems Also known as Executive Support System, this is a tool used for reporting enterprise-wide data to top executives.
- 14. Management Information Systems These systems make use of information technology to help managers ensure a smooth and efficient running of the organization.
- 15. Historical Perspective The history of information management can be traced back to the industrial exhibition of Paris in 1801. There, Joseph Marie Charles Jacquard introduced the world to punch cards.
- 16. The Emergence of MIS in Computers When computers began to emerge in the 1940s and 1950s, punch cards were still a big part of information systems. They continued to play a role until the 1970s when they were replaced by magnetic storage media like tapes and disks. These storage devices greatly increased the speed of calculating data Consequently, MIS began to develop for accounting. Calculating data and compiling it into reports could now be done in a fraction of the time it would have taken before.
- 17. Evolution of Punch Cards By 1911, IBM emerged, then called the Computing-Tabulating- Recording Company. By this time, punch cards were used for recording and storing all sorts of information, including time tracking and recording weights on scales
- 18. MIS Developing Beyond Accounting From the 1970s to the early 1990s, as computers became smaller, faster and more affordable, MIS developed beyond accounting to other business areas, like inventory systems, sales, marketing, manufacturing processes and engineering.
- 19. The Five Eras of MIS First Era (mid-1960s to mid-1970s) Mainframe and minicomputer computing Technology included third- generation mainframe computers, like the IBM 360. Languages included Assembler, Fortran, COBO and, Database e. Ethernet networks were developed during this time.
- 20. The Five Eras of MIS Second Era (mid-1970s to mid- 1980s) PERSONAL COMPUTERS minicomputer technology gave way to personal computers 1980 - proliferation of the low-cost Apple I and II and the IBM personal computer (PC) Introduction of VisiCalc spreadsheet software
- 21. The Five Eras of MIS Third Era (mid-1980s to late 1990s) CLIENT/SERVER NETWORKS 1989 - World Wide Web was created by Tim Berners-Lee Computer information sharing Intranets – a network operating like the World Wide Web (www) but having access restricted to a limited group of authorized users (such as employees of a company)
- 22. The Five Eras of MIS Fourth Era (late 1990s to today) ENTERPRISE COMPUTING • consolidated disparate single- application software applications used by different departments • Enterprise software solutions integrate essential business operations – Marketing and sales – Accounting – Finance – Human resources – Inventory and manufacturing
- 23. The Five Eras of MIS Fifth Era (today forward) CLOUD COMPUTING • Distributed computing on internet • Delivery of computing service over the internet E.g. Yahoo, Gmail, Hotmail, facebook, twitter • According to Cisco Systems, worldwide Internet traffic is expected to reach 2 zettabytes annually by 2019
- 24. References Laudon, K. and Laudon, J. (2013). Essentials of Management Information Systems. NewYork: Pearson. Star, R. and Reynolds, G. (2011). Principles of Information Systems, Tenth Edition. Cengage Learning, USA.
Editor's Notes
- #5: The term information system is frequently used to refer to the interaction between people, processes, data and technology. This interaction can occur within or across organizational boundaries. An information system is not only the technology an organization uses, but also the way in which the organizations interact with the technology and the way in which the technology works with the organization’s business processes. Information systems are distinct from information technology in that an information system has an information technology component that interacts with the processes components.
- #9: Components of Information Systems Resources of people: (end users and IS specialists, system analyst, programmers, data administrators etc.). Hardware: (Physical computer equipments and associate device, machines and media). Software: (programs and procedures). Data: (data and knowledge bases), and Networks: (communications media and network support).
- #12: Transaction Processing Systems : – Transaction: Any business-related exchange, such as payments to employees and sales to customers – Transaction Processing System (TPS): Organized collection of people, procedures, software, databases, and devices used to record completed business transactions – Serve operational managers. – Principal purpose is to answer routine questions and to track the flow of transactions through the organization. – Example: inventory questions, granting credit to customer, performing deposits & withdrawals – Monitor status of internal operations and firm’s relationship with external environment. – Major producers of information for other systems. – Highly central to business operations and functioning.
- #13: These systems compile information from several sources for purposes of aiding in decision making. Examples of these systems include computer supported cooperative work, group decision support systems, logistics systems and financial planning systems.
- #15: Information collected by these systems is structured so that the managers can easily evaluate the company’s current performance vis-à-vis previous outputs. Some of the common types of Management Information Systems include process control systems, human resource management systems, sales and marketing systems, inventory control systems, office automation systems, enterprise resource planning systems, accounting and finance systems and management reporting systems.
- #16: These cards, which were similar to the computer punch cards used through much of the 20th century, were used in weaving looms to make intricate patterns in cloth. Thus, for the first time, Jacquard's punch cards could automate the storage and management of the information used to specify how a loom was to be operated.
- #19: Most of these systems ran independently of each other, each using different software on different computers. For a large company to get a complete picture of its progress, reports from different departments would be re-entered into another system, often in a mainframe computer. Small businesses simply didn't have the resources to complete such an endeavor and would have to compile different reports manually, often on paper. Even as computers could be connected in networks in the 1990s, the different software systems were often not compatible. Companies then began upgrading their systems so that different department systems could communicate with each other. By the end of the 1990s, even small businesses could afford integrated information systems and even connect different office systems together using the internet.
- #21: While MIS was still mainly concerned with governance and the needs of management, more departments were beginning to benefit from the technology. In many companies, steering committees and user-led initiatives determined the shape and scope of additional IS projects. Technology included the first personal computers (PCs), minicomputers and mid-range computers.
- #22: • This protocol HTML, used over the existing Internets that had been constructed opened up a new era of EDI the world had never seen
- #23: During the current era, information systems are still tightly tied to governance and management, however the systems are widely distributed, within the reach of nearly every employee who needs it across multiple platforms. Many information systems are integrated between different companies, so that a client business can readily access supplier information and their customers, in turn, can access that information. Technology now includes social media, search engines and ubiquitous computing through a variety of platforms including laptops, tablets and smartphones.
- #24: The increase in internet bandwidth over recent years has led to a substantial reliance on cloud computing. As a result, some maintain that this marks a new era in worker's ascendancy and that we are now in a fifth era for management information systems. Today, practically any employee is now in a position to make informed decisions with tools that are readily available across multiple platforms. Furthermore, the line between who produces and who consumes MIS information is increasingly blurred.