Enterprise Information Systems

Lecture 1

Lecture Focus:
 Enterprise
 Information
 System
en ?
Wh
 Enterprise Information Systems
 Enterprise Information Systems
Lecture 1

Previous Lecture:
 Data
 Information
 System

 Enterprise
 Enterprise Information Systems

What is an
ENTERPRISE?

YOUR DEFINITION OF ENTERPRISE ?

 Enterprise Information Systems

What is an ENTERPRISE ?
 A business
 A company
 Enterprises are economic organizations
responsible for production, distribution or
another function

 Entrepreneurship ?
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What is an ENTERPRISE ?

 Entrepreneurship:
 The practice of starting
new organizations,
particularly
new businesses
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What is an ENTERPRISE ?

 Enterprise software:
 Business oriented computer application / SW

 Enterprise storage:
 The storage, protection, and retrieval of data in

large-scale environments
 Enterprise Information Systems

What is an ENTERPRISE ?

 Enterprise Resource Planning (ERP):

 An Information Technology term referring to a

hardware or software system that serves all

departments within an enterprise

 Windows 8 Enterprise:
 A marketing edition of Windows 8
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Data vs. Information

 Data: raw facts

 Information: collection of facts organized

in such a way that they have value beyond
the facts themselves
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Data vs. Information

Types of Data
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Data vs. Information

The Process of Transforming Data into Information

Process
 A set of logically related tasks performed to

achieve a defined outcome.

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Data vs. Information

Defining and Organizing Relationships Among Data Creates Information

 Enterprise Information Systems

The Characteristics of Valuable Information

Characteristics Definitions
Information should be easily accessible by authorized
Accessible users so they can obtain it in the right format and at the
right time to meet their needs.
Accurate information is error free. In some cases,
inaccurate information is generated because inaccurate
Accurate data is fed into the transformation process.
10% ( Garbage in, garbage out [GIGO].)

Complete Complete information contains all the important facts.

For example, an investment report that does not include
?APP? all important costs is not complete.
 Enterprise Information Systems

The Characteristics of Valuable Information

Characteristics Definitions
Information should also be relatively economical to
produce. Decision makers must always balance the
Economical
value of information with the cost of producing it.

Flexible information can be used for a variety of

purposes. For example, information on how much
inventory is on hand for a particular part can be used by
Flexible a sales representative in closing a sale, by a production
manager to determine whether more inventory is
needed, and by a financial executive to determine the
total value the company has invested in inventory.
 Enterprise Information Systems

The Characteristics of Valuable Information

Characteristics Definitions
Relevant information is important to the decision maker.
Information showing that lumber prices might drop
Relevant
might not be relevant to a computer chip manufacturer.

Reliable information can be trusted by users. In many

cases, the reliability of the information depends on the
reliability of the data-collection method.
Reliable
In other instances, reliability depends on the source of
the information. A rumor from an unknown source that
oil prices might go up might not be reliable.
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The Characteristics of Valuable Information

Characteristics Definitions
Information should be secure from access by
Secure unauthorized users.

Information should be simple, not overly complex.

Sophisticated and detailed information might not be

Simple needed. In fact, too much information can cause
information overload, whereby a decision maker has too
much information and is unable to determine what is
really important.
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The Characteristics of Valuable Information

Characteristics Definitions
Timely information is delivered when it is needed.
Timely Knowing last week’s weather conditions will not help
when trying to decide what coat to wear today.

Information should be verifiable.

Verifiable This means that you can check it to make sure it is

correct, perhaps by checking many sources for the
same information.
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System and Modeling Concepts

System :
A set of elements or components that interact to
accomplish goals

 Input
 Processing mechanism
 Feedback
 Output
 System boundary
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System and Modeling Concepts

Components of a System :
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System and Modeling Concepts

ELEMENTS
SYSTEM GOAL
INPUTS PROCESSING OUTPUTS

Students, Teaching, Educated Students, Acquisition

Professors, Research, Meaningful of
Administrators, Service Research, Service to knowledge
COLLEGE
Textbooks community, state,
and nation
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System Performance and Standards

Efficiency is a measure of what is produced divided by

what is consumed.
It can range from 0 to 100 percent.
For example, the efficiency of a motor is the energy
produced (in terms of work done) divided by the energy
consumed (in terms of electricity or fuel).

 Efficiency:
 Output / Input
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System Performance and Standards

Effectiveness is a measure of the extent to which a system

achieves its goals. It can be computed by dividing the goals
actually achieved by the total of the stated goals.

For example, a company might want to achieve a net profit of

$100 million for the year using a new information system.
Actual profits, however, might only be $85 million for the year.
In this case, the effectiveness is 85 percent (85/100 = 85%).

 Effectiveness:
 Extent to which system attains its goals
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Systems Classification
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Modeling a System

 A model is an abstraction that is used to represent

reality
 4 major types of models

 A narrative model is based on words

 Logical, not physical

 A physical model is tangible

 A schematic model is a graphic representation
 Graphs and charts

 A mathematical model is an arithmetic

representation
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Modeling a System
Enterprise Information Systems
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Organizational Information Requirement

Organizations require information for various

purposes:

Information for planning

Information for controlling
Information for recording transactions
Information for performance measurement
Information for decision making
 Enterprise Information Systems

Organizational Information Requirement

Planning:

Planning requires a knowledge of the

available resources, possible time-scales
and the likely outcome under alternative
scenarios.
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Organizational Information Requirement

Controlling:
Information is required to assess whether it
is proceeding as planned or whether there is
some unexpected deviation from the plan.

It may consequently be necessary to take

some form of corrective action.
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Organizational Information Requirement

Recording Transactions:

Information about each transaction or event

is required, i.e. (a) for documentation of
transactions, (b) record transactions, for
example for accounting, audit and Tax
purposes, and (c) permit the necessary
controlling action to be taken.
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Organizational Information Requirement

Performance measurement:
Comparisons against budget or the business
plan are able to be undertaken.
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Organizational Information Requirement

Decision making:

Just as decision making can be analyzed

into three levels, so information necessary
to make decisions within an organization
can be analyzed in the same way.