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Table of Contents
  1. Introduction
    1. Silvers steps recommended for modelling
    2. Definitions
    3. Types of Information Systems
    4. System Development
  2. Organization and Organization Systems
    1. Overview
      1. Porter's "5 powers" model
    2. Designing Business Processes
      1. Value Chain Model
    3. Organizational Structures
      1. Creating a virtual team
    4. Definitions
    5. Technology Acceptance Model (TAM)
  3. E-Commerce
    1. Multistage Model
    2. Challenges
    3. Mobile-Commerce (M-Commerce)
    4. Advantage of E-&M-Commerce
  4. Decision Making Phase
    1. Stages of decision making
    2. Models
  5. Systems
    1. Transaction Processing Systems (TPS)
      1. Methods
      2. Objectives
      3. Activities
    2. Enterprise Resource Planning (ERP)
      1. Advantage
      2. Disadvantage
    3. Supply Chain Management (SCM)
    4. Customer Relationship Management (CRM)
    5. Management Information Systems (MIS)
      1. Characteristics
      2. Functional Aspects
    6. Decision Support System (DSS)
      1. Characteristics
      2. Capabilities
      3. Components
      4. Differs from MIS
    7. Group Support System (GSS)
      1. Characteristics
    8. Executive Support Systems (ESS)
    9. Knowledge Management System (KMS)
    10. Artificial Intelligence (AI)
      1. Objective
      2. Characteristics
      3. Brain Computer Interface (BCI)
      4. Major brances
    11. Expert systems
      1. Characteristics
      2. Capabilities
      3. When to use
      4. Components
    12. Virtual Reality (VR)
  6. Modeling of Information Systems
    1. Levels and main perspectives
      1. Levels:
      2. Perspectives:
    2. BPMN for process modeling
    3. Three Levels of Use:
      1. BPMN Level 1
  7. Enterprise Architecture
    1. Enterprise Architecture Frameworks
      1. Zachman
      2. TOGAF
    2. Enterprise Architecture Modeling
      1. ArchiMate
  8. Abbreviations | Glossary
‹

TDT4175: Information Systems

Tags:
  • informasjonssystemer
  • bpmn
  • informationsystems
  • tdt4175
+

Introduction

Silvers steps recommended for modelling

  1. Define process scope
  2. Create top-level diagram for happy path
  3. Add top-level excepton paths
  4. Expand subprocesses to show detail at child level
  5. Add intermediate message flows to external pools

Definitions

Information System (IS)
A set of components that collect (input), manipulate (process), store (output) and display data and information while providing feedback to meet an objective. (tools to help achieve career goals).
Data
Simple and raw facts; e.g. employee number and total hours worked. Each fact could be stored as a number, audio, image, video or text.
Information
A collection of facts (data) which are organized and processed so that they achieve a greater value/meaning. Keywords: Input, Process, Output and Feedback.
Process
Combining and converting data to useful information is called a process. set of logically related tasks
Knowledge
Awareness and understanding of a set of information, and the ways that information can be made useful to support a specific task or reach a decision.

It requires prior knowledge to be able to define relationships with the raw facts in order to process them in a meaningful way to get information about them. There are specialized knowledge workers (KWs) who works on finding those relationships.

Valuable Information (SCARFS ARE TV):

  • Secure: only accessible for authorized users
  • Complete: contains all important facts
  • Accessible: easily accessible in the right format and at the right time
  • Relevant: info must be applicable
  • Flexible: info can be used for a variety of purposes
  • Simple: info that is concise and not overloaded
  • Accurate: info without errors
  • Reliable: e.g. reliable sources and methods for collecting data
  • Economical: balance info value with production costs
  • Timely: info is delivered when needed
  • Verifiable: e.g. by checking many sources for same info
System:
set of elements/components that interact to accomplish goals
System Components:
inputs, processing mechanism, outputs, feedback. Knowledge is needed to define relationships among inputs and organize elements.

Types of Information Systems

IS can be manual or computerized.

Businesses can use IS to increase revenues and reduce costs, solve problems and make decisions

Computer Based Information System (CBIS) consist of:

  • Hardware
    • computer equipment used to perform input, processing, storage and output activities
  • Software
    • programs operating with computer
  • Databases
    • organized collection of facts and information
  • Telecommunications
    • carry out tasks through computer networks
  • People
    • are the most important element in most CBISs
  • Procedures
    • the strategies, policies, methods and rules for using a CBIS

Most common types of IS are those designed for electronic and mobile commerce, transaction processing, management information and decision support. They are often integrated in one product and delivered by the same software package.

(those with (chap x) behind can be read about later)

  • E-commerce (chap 8)
  • Transaction Processing Systems (TPS) (chap 9)
  • Workflow systems
    • management software that co-ordinates and monitors interrelated tasks
  • Enterprise Resource Planning (ERP) (chap 9)
  • Management Information Systems (MIS) (chap 10)
  • Decision Support Systems (DSS) (chap 10)
  • Artificial Intelligence (AI) (chap 11)
  • Virtual Reality (VR) (Chap 11)
  • Knowledge Management Systems (KMS) (chap 11)
  • Expert Systems (chap 11)

System Development

Creating/modifying business systems

Steps

  • Investigate
    • understand problem
  • Analysis
    • understand solutions
  • Design
    • select and plan best solution
  • Implementation
    • place solution into effect
  • Maintenance
    • evaluate results of solution
    • check & modify system

Computer literacy: Knowledge of computer systems & equipment.

IS literacy: Knowledge of how and why technology is applied in business.

Organization and Organization Systems

Define "Organization"

  • Formal collection of people and other resoures established to accomplish goals
  • A system
  • Constantly uses money, people, materials, machines and other equipment, data, information, and decisions.

Overview

A Business Strategy should match the Information Technology Strategy, usually the Business Strategy are done first. The Organizational Infrastructure need to be designed in a way to support the business strategy as well. The same goes for the Information Systems Infrastructure that needs to be designed to support the Information Technology Strategy. Finally, the Organizational Infrastructure needs to correspond with the Information Systems Infrastructure.

Porter's "5 powers" model

  1. Potential threat of new entrants
    1. Switching costs
    2. Access to distribution channels (e.g. app stores)
    3. Economy of scale
  2. Bargaining power of buyers
    1. Buyer selection
    2. Switching costs
    3. Differentiation (Tapping new markets, e.g. selling customizable shoes)
  3. Bargaining power of suppliers
    1. Selection of supplier
    2. Threat of backward integration
  4. Threat of substitute products
    1. Redefine products and services
    2. Improve price/performance
  5. Industry competitors
    1. Cost-effectiveness
    2. Market access
    3. Differentiation of product or service

Designing Business Processes

Value Chain Model

A series (chain) of activities that an organization performs to transform inputs into outputs in such a way that the value of the input is increased.

In a manufacturing organization, the supply chain is a key value chain. The supply chain is a series of activities that include inbound logistics, warehouse & storage, production and manufacturing, finished product storage, outbound logistics, marketing and sales, and customer service.

In the same way that a car is made in different steps on a conveyor belt, the business process can be modelled in steps with the Value Chain Model. All the processes can then be split in to components with different steps for different parts.

Cons: - It doesn't support the functional view of the business

Organizational Structures

The way organizational subunits relate to overall organization. Organizational structures are subunits of an organization, and in which way they relate to the overall organization

types of subunits:

  • Traditional
    • tree
    • major department heads report to a top-level manager
  • Flat
    • reduced level of management layers
    • empowers employees at lower levels of the organization
  • Project
    • structure centered on major products/services
  • Team
    • structure centered on work teams
  • Virtual
    • structure uses individuals, groups, business units in geographically dispersed areas

Creating a virtual team

Reason for changing the structure:

example:

Medical health organization. Instead of every patient having one doctor to relate to, they have multiple doctors or experts.

Reasons:

  • Increasing complex clinical care
  • More co-morbidity
  • More focus on pateint-centred care
  • Mode part-time healthcare professionals
  • Extramuralisation of care

Definitions

Organizational culture:
the major understanding and assumptions for a business
Organizational change:
how organizations plan for, implement, and handle change
Change model:
representation of change theories that identifies the phases of change
Unfreezing:
ceasing old habits and creating a climate receptive to change
Moving:
the process of learning new methods and systems
Refreezing:
reinforce changes to make the new process accepted
Organizational learning:
adapting to new conditions or altering practices over time
Continuous improvement:
constantly try to improve business processes
Reengineering:
make fundamental changes in the way a company does business (radical redesign)
Technology diffusion:
a measure of how widely technology is spread
Technology infusion:
a measure of how deeply imbedded technology is in an area
Quality:
ability of a product to meet or exceed customer expectations. Techniques used: total quality management and six sigma
Return of Investment (ROI):
profits generated as a percentage of the investment in IS
Earning growth:
the increase in profit

Technology Acceptance Model (TAM)

  • theory that models how users come to accept and use a technology.
  • specifies factors that can lead to better attitudes about the IS.

when users are presented with a new technology, two factors influence their decision about how and when they will use it:

  • Perceived usefulness (PU)
  • Perceived ease-of-use (PEOU)

Major stage in use of IS

  • Cost reduction and productivity
  • Competitive advantage
  • Performance-based management

E-Commerce

Business transactions executed electronically between companies, consumers or the public sector.

Multistage Model

  • Search & identification
  • Selection and negotiation
  • Purchasing products and services electronically
  • Product and service delivery
  • After-sales service

Challenges

  1. Define effective e-commerce model and strategy
    1. Components of successful e-commerce model
      1. Community
      2. Content
      3. Commerce
    2. Dealing with consumer privacy concerns
    3. Overcoming consumers lack of trust
    4. Overcome global issues

Mobile-Commerce (M-Commerce)

relies on use of wireless devices

Advantage of E-&M-Commerce

  • Reduce cost
  • Increase accuracy
  • Speed flow of goods and information
  • Improve customer service

Decision Making Phase

Stages of decision making

  • Intelligence stage
    • Identify and define potential problems or opportunities
  • Design stage
    • Develop alternative solutions to the problem and evalute their feasability
  • Choice stage
    • Select a course of action

Problem solving add 2 steps to decision making:

  • Implementation stage
    • Put solution into effect
  • Monitoring stage
    • Evaluate the implementation

Models

Programmed decision:
Made using a rule/procedure
Non-programmed (ad hoc):
Decisions deal with unusual/exceptional situations
Optimization model:
Finds the best solution
Satisficing model:
Finds good, not necessarily the best, problem solution
Heuristics:
Commonly accepted guidelines/procedures that usually find a good solution

Systems

Transaction Processing Systems (TPS)

Organized collection of people, procedures, software, databases and devices used to record completed business transactions.

Transaction: Any business-related exchange such as payments to employees, sales to customers, or payments to suppliers

Information concepts are applied to routing, repetible and ordinary business transactions. TPS functions are built into an ERP (enterprise resource planning) system.

Methods

  • Batch processing
    • transactions are accumulated and processed as a single unit
  • OLTP (on-line transaction processing)
    • Each transaction is processed immediately

Objectives

  • Process data generated by and about transactions
  • Maintaing a high degree of accuracy and integrity
  • Produce timely documents & reports
  • Increase labour efficiency
  • Help provide increased service
  • Help build & maintain customer loyalty
  • Achieve competitive advantage
  • Act as main link between the organization and external entities

Activities

Data collection:
Capture/gather data necessary to complete transaction
Data editing:
Check data for validity and completeness
Data correction:
Re-enter data not typed or scanned properly
Data manipulation:
Perform calculations on business transactions, classifying data, sorting, summarising
Data storage:
Update database with new transaction
Document production & reports:
Generate output

Enterprise Resource Planning (ERP)

Real-time monitoring of business functions. ERP configures all aspects of the IS environment to support how the firm runs its business.

ERP system:
a set of integrated programs that can replace many applications.

Advantage

  • Elimination of costly, inflexible legacy systems
  • Improvement of work processes
  • Increase in access to data for operational decision making
  • Upgrade of technology infrastructure

Disadvantage

  • Expense and time in implementation
  • Difficulty implementing change
  • Difficulty integrating with other systems
  • Risks in using one vendor
  • Risk of implementation failure

Supply Chain Management (SCM)

Plan, execute and control all activites involved in raw material sourcing and procurement. Convert raw materials to finished products, and warehousing and deliver finished product to customer. The processes included are: sales forecasting, sales and operations plan, demand management, detailed scheduling, materials requirement planning, purchasing, production and sales ordering.

Customer Relationship Management (CRM)

A system that helps a company manage all aspects of customer encounters, including marketing and advertising, sales, customer service after the sale, and programs to retain loyal customers. That is, understanding and anticipating the needs of current and potential customers.

Management Information Systems (MIS)

Organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers.

  • Provides info & support for effective decision-making and feedback on daily operations
  • The insight provided helps control, organize and plan more effectively and effeciently
  • Helps an organization to achieve its goals

Input TPS and ERP systems

Output

  • Scheduled reports
  • Demand reports
  • Drill down reports
    • provide detailed data about a situation

Characteristics

  • Provide reports with fixed and standard formats
  • Produce hard-&soft-copy reports
  • Use internal data stored in computer system
  • Allow end user to develop their own custom reports
  • Require user requests for reports developed by systems personnel

Functional Aspects

  • Financial MIS
    • provides financial information
  • Manufacturing MIS
    • monitor & control the process of converting raw materials to finished goods
  • Marketing MIS
    • supports product development, distribution, pricing decisions, promotions and sales forecasting
  • Human resource MIS
    • Concerned with activities related to employees and potential employees
  • Accounting MIS
    • Provides info on accounts payable, accounts receivable, payroll, etc.

Decision Support System (DSS)

Organized collection of people, procedures, software, databases and devices used to help make decisions that solve problems.

  • used for problem-specific decision making for semi-structured and structured problems
  • used at all levels in an organization

Characteristics

  • Provide rapid access to information
  • Handle large amounts of data from different sources
  • Provide report & presentation flexibility
  • Offer both textual and graphical orientation
  • Support drill-down analysis

Capabilities

  • Support for problem-solving phases
    • A specific DSS might support only one or few phases (See decision making phase)
  • Support for various decision frequencies
    • Ad Hoc DsS
      • concerned with situations that come up only a few times
    • Institutional DSS
      • Concerned with decisions that occur many times
  • Support for different problem structures
    • Highly structured problems
      • Straight forward, requiring known facts and relationships
    • Semistructured/unstructured problems
      • more complex
  • Support for various decision-making levels
    • DSS can provide help for managers at various levels within the organization

Components

  • At the core
    • Database management system
      • allows qualitative analysis on data
    • Model base
      • Allows quantitative analysis on onternal/external data
  • Dialogue manager
    • Allows users to access & manipulate a DSS using common business terms

Differs from MIS

  • Type of problems solved
  • Support given to users
  • Decision emphasis and approach
  • Type, speed, output and development of the system used

Comparison:

Factor DSS MIS
Problem type Unstructured problems Structured problems
Users Users have more control Users have less control
Support People still make the decisions Some MISs make automatic decisions
Emphasis Actual decision-making styles Emphasises info only
Approach Direct support system that provides interactive reports Indirect support system that uses regular reports
System The equipment is on-line and related to real time Weekly printed reports won't provide immediate results
Speed Less time to develpp and better able to respond Longer response time
Output Usually screen, with ability to generate printed reports Oriented towards printed reports
Development Users are more directly invovled in its development Often several years old

Group Support System (GSS)

Consists of most DSS elements + software for providing group support

Characteristics

  • Special design
    • special procedures, devices and approaches are needed
  • Ease of use
  • Flexibility
    • Support different approaches and integrate different perspective into a common view
  • Decision-making Support
    • Delphi approach
      • Group decision makers are geographically dispersed
    • Brainstorming

Executive Support Systems (ESS)

Special case of DSS, designed to support higher-level decisions (strategic planning)

Knowledge Management System (KMS)

Collection of people, procedures, software, databases and devices used to create, store, and use the organization's knowledge and experience. These systems are known as computer-based information systems (CBIS).

Effective KMS based on learning new knowledge and changing procedures and approaches as a result

KMS

Artificial Intelligence (AI)

computers with ability to mimic/duplicate the functions of the human brain

Objective

  • Achieve organizational objectives
  • Assist of medical diagnosis
  • Assist in designing and developing other computer systems

Characteristics

  • Learn from experience and apply knowledge acquired from experience
  • Handle complex situations
  • Solve problems when important information is missing
  • Determine what is important
  • React quickly and correctly to new situations
  • Understand visual images
  • Process & manipulate symbols
  • Be creative & imaginateive
  • Use heuristics

Brain Computer Interface (BCI)

directly connect the human brain to a computer and have human thought control computer activities, which will allow people to control computers and artificial arms/legs through thought alone.

Major brances

  • Expert systems
    • give the computer ability to make suggestions and act like an expert in a certain field
  • Robotics
    • mechanical devices perform tasks that require precision
  • Vision Systems
    • Permits computers to capture, store & manipulate visual images. fingerprints, identify people
  • Natural Language Processing
    • Allows computer to understand and react to statements and commands made in a "natural" language
  • Learning systems
    • computer changes how it functions/reacts to situations based on feedback it receives
  • Neural networks
    • simulate the functioning of a human brain
    • can process many pieces of data at once and learn to recognize patterns

Expert systems

use heuristics to arrive at conclusions and make suggestions

Characteristics

  • Explain their reasoning/suggested solution
  • Display intelligent behavior
  • Draw conclusions from complex relationships
  • Provide portable knowledge
  • Deal with uncertainty

Capabilities

  • Strategic goal setting
    • Expert systems can suggest strategic goals and explore the impact of adopting them
  • Planning
    • Can investiage the impact of plans
  • Design
    • Use design principles, understanding of procedures and design rules to assign in design
  • Decision making
    • Suggest alternatives ways of looking at problems and logical approaches to decision making
  • Quality control and monitoring
    • can monitor systems and propose solutions to system problems
  • Diagnosis
    • expert systems can anaylse test results and patient symptons

When to use

  • Provide high payoff/reduce downside risk
  • capture and preserve irreplaceable human expertise
  • Develop a system more consistent than human experts
  • Provide expertise needed at many locations at the same time
  • Provide expertise that is expensive/rare
  • Develop a solution faster than human experts can
  • Prodive expertise needed for traning and development

Components

expert systems consists of a collection of integrated and related components

  • Knowledge Base
    • stores all information, data, rules, cases and relationships used by expert system
    • the purpose is to hold relevant facts and information for the specific expert system
  • Inference Engine
    • Component delivering the expert advice
    • must find the right facts, interpretations and rules and assemble them
  • Explanation Facility
    • Indicates all facts and rules used in reaching conclusion
  • Knowlegde Acquisition facility
    • the part providing the means of capturing and storing components of the knowledge base
  • User interface
    • permite to develop and use own expert system to decision maker

Expert system components

Virtual Reality (VR)

enables users to move and react in a computer simulated environment

Modeling of Information Systems

A model highlights the essentials of the reality. It is quicker and cheaper to make than the full artifact, but still similar, so that it often is possible to spot consequences of decisions.

Levels and main perspectives

Levels:

  • Conceptual: Universe of Discourse
  • Logical: IS without reference to technology
  • Physical: IS with reference to technology

Perspectives:

  • Process (function)
  • Structure (data)

BPMN for process modeling

  • BPMN: Business Process Model and Notation. Leading standard for mdeling in BPM.
  • Business process: A set of activities performed in an organization, coordinated to jointly realize a business goal.

Three Levels of Use:

Level 1:
Descriptive modeling - geared towards simply documenting the process flow
Level 2:
Analytical modeling - more accurate with respect to exceptions and events. Supports qualitative and quantitative analysis
Level 3:
Executable modeling - graphical models that can be transformed into XML-based specifications that drive process engines

BPMN Level 1

Descriptive Modeling - our focus in this course

Steps:

  1. Determine Process Scope
  2. The High-Level Map
  3. Top-Level Process Diagram
  4. Child-Level Expansion
  5. Add Message Flows

Enterprise Architecture

The main reason to develop an Enterprise Architecture is to get an overview of data flow and IS, and to identify possible economic gains in the various process steps in the business.

Addresses two problems:

  • System complexity: Organizations were spending more and more money building IT systems

  • Poor business alignment: Organizations were finding it more and more difficult to keep those increasingly expensive IT systems aligned with business need.

Enterprise Architecture Frameworks

Zachman

Is a framework that provides a formal way of defining an enterprise. It consists of a matrix intersecting six communication questions with five levels of concretisation.

Aspects:

  • Data (what): Data needed for the enterprise to operate.
  • Function (how): Concerned with the operation of the enterprise.
  • Network (where): Concerned with the geographical distribution of the enterprise’s activities.
  • People (who): Concerned with the people who do the work, allocation of work and the people-to-people relationships.
  • Time (when): To design the event-to-event relationships that establish the performance criteria.
  • Motivation (why): – The descriptive representations that depict the motivation of the enterprise. It will typically focus on the objectives and goals.

Layers or views (players): Contextual, Conceptual, Logical, Physical, Detailed

The Zachman Framework is not a methodology because it does not specify methods for collecting and managing the information it describes. It is rather an ontology; a schema for organizing architectural artifacts.

TOGAF

Or The Open Group Architecture Framework, is a high level approach framework to designing, planning, implementating and governing an enterprise information architecture. It is modeled at 4 levels:

  • Business Architecture: describes the processes the business uses to meet its goals. (BPMN - Business Process Model and Notation)
  • Application Architecture: describes how specific applications are designed and how they interact with each other
  • Data Architecture: describes how the enterprise databastores are organized and accessed
  • Technology Architecture: describes the hardware and software infrastructure that supports applications and their interactions

Enterprise Architecture Modeling

ArchiMate

Is an enterprise architecture modelling language. It supports the description, analysis and visualization of architecture within business domains in an unambiguous way. It distinguishes itself from other languages, (UML) and (BPMN), by its enterprise modelling scope (?).

Abbreviations | Glossary

An alphabetical list of abbreviations used in the course.

AI Artificial Intelligence
ATM Automatic Teller Machine
B2B Business-to-business
B2C Business-to-consumer
BI Business Intelligence
BPR Business Process Reengineering
C2C Consumer-to-consumer
CA Certificate Authority
CAD Computer-Aided Design
CAM Computer-Assisted Manufacturing
CBIS Computer-Based Information System
CEO Chief Executive Officer
CFO Chief Financial Officer
CGI Computer-Generated Image
CIM Computer-Integrated Manufacturing
CIO Chief Information Officer
CKO Chief Knowledge Officer
COP Communities Of Practice
CRM Customer Relationship Management
CROSS Consensus Ranking Organizational-Support System
CTO Chief Technology Officer
DBMS DataBase Management System
DRM Digital Rights Management
DRP Disaster Recovery Plan
DSS Decision Support System
EIS Executive Information System
EMR Electronic medical record
EOQ Economic Order Quantity
ERM Electronic Records Management
ERP Enterprise Resource Planning
ESS Executive Support System
FMC Flexible Manufacturing System
FTC Federal Trade Comission
G2B Government-to-business
G2C Government-to-consumer
G2G Government-to-government
GIS Geographic Information System
GSS Group Support System
HMD Head-Mounted Display
HR Human Resource
HRMIS Human Resource MIS
ICU Intensive Care Unit
IM Instant Messaging
JIT Just-In-Time
KMS Knowledge Management System
KW Knowledge Worker
LAN Local Area Network
MIS Management Information System
MMS Model Management System
MRO Manufacturing, Repair and Operations
MRP Material Requirements Planning
OLTP Online Transaction Processing
ROI Return of investment
ROP ReOrder Point
S&OP Sales and Operation Plan
SaR Sense and Respond
SCM Supply Chain Management
SMEs Small and Medium-size Enterprises
SMS Short Message Service
SSL Secure Sockets Layer
TAM Technology Acceptance Model
TCO Total Cost of Ownership
TM Text Messaging
TOE Technology, Organization and Environment
TPS Transaction Processing System
TQM Total Quality Management
WAP Wireless Application Protocol
WML Wireless Markup Language

Written by

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Last updated: Sat, 21 Nov 2020 14:21:51 +0100 .
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