Discovering Information Systems by Jean-Paul Van Belle, Jane Nash, et al - HTML preview

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DEDICATIONS

To my parents, Roger and Monique

for showing me how to live

And to my own family

Eva, Anneke, Jonathan and Sylvia

For showing me why to live

JPVB

To my wife Stella

For being such a wonderful person

ME

To my students of the past, present and future

JN

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TABLE OF CONTENTS

Foreword .................................................................................................................... i Why Study Information Systems? ........................................................................... i The Importance of Information Systems................................................................. ii Information Systems and Related Disciplines......................................................... ii Contents of This Book ..........................................................................................iii Section I: What is “Information Systems”? ................................................................ 1

1.

The Role of IS in Business ................................................................................. 2

1.1

Classification of Information Systems ........................................................ 2

1.2

Office Automation Systems (OAS)............................................................. 5

1.3

Groupware ................................................................................................. 6

1.4

South African Perspective .......................................................................... 8

1.5

Beyond the Basics ...................................................................................... 8

1.6

Exercises .................................................................................................... 9

2.

Transforming Data into Information................................................................. 10

2.1

Data.......................................................................................................... 10

2.2

Information .............................................................................................. 16

2.3

Knowledge and Wisdom........................................................................... 18

2.4

Producing Business Information ............................................................... 19

2.5

South African Perspective ........................................................................ 20

2.6

Beyond the Basics .................................................................................... 20

2.7

Exercises .................................................................................................. 21

3.

How Systems Function..................................................................................... 22

3.1

What is a System? .................................................................................... 22

3.2

Elements of a System ............................................................................... 23

3.3

Systems Concepts..................................................................................... 26

3.4

South African Perspective ........................................................................ 29

3.5

Beyond the Basics .................................................................................... 29

3.6

Exercises .................................................................................................. 30

CASE STUDY: GREENFINGERS GARDEN SERVICES...................................... 31

Section II: IS Technologies ...................................................................................... 33

4.

Hardware ......................................................................................................... 35

4.1

Input devices ............................................................................................ 35

4.2

Central Processing Unit (CPU) ................................................................. 39

4.3

Main Memory .......................................................................................... 42

4.4

Secondary Storage Devices ...................................................................... 43

4.5

Output Devices......................................................................................... 46

4.6

South African Perspective ........................................................................ 50

4.7

Beyond the Basics .................................................................................... 50

4.8

Exercises .................................................................................................. 50

5.

Software........................................................................................................... 52

5.1

The User Interface .................................................................................... 52

5.2

Application Software................................................................................ 55

5.3

System Development Software................................................................. 56

5.4

Operating Systems.................................................................................... 62

Discovering Information Systems

5.5

South African Perspective ........................................................................ 64

5.6

Beyond the Basics .................................................................................... 64

5.7

Exercises .................................................................................................. 65

6.

Networks & Telecommunications .................................................................... 66

6.1

Computer Networks ................................................................................. 66

6.2

Telecommunication Devices..................................................................... 67

6.3

SA Public Telecommunications Services.................................................. 69

6.4

The Internet .............................................................................................. 70

6.5

South African Perspective ........................................................................ 75

6.6

Beyond the Basics .................................................................................... 75

6.7

Exercises .................................................................................................. 76

7.

Databases......................................................................................................... 77

7.1

From File-based Systems to the Database Approach................................. 77

7.2

Data Structures ......................................................................................... 79

7.3

Database Models ...................................................................................... 81

7.4

Database management .............................................................................. 84

7.5

Database Architectures ............................................................................. 85

7.6

South African Perspective ........................................................................ 87

7.7

Beyond the Basics .................................................................................... 87

7.8

Exercises .................................................................................................. 88

CASE STUDY: GREENFINGERS GARDEN SERVICES...................................... 90

Section III: IS Applications ...................................................................................... 91

8.

Business Support Systems................................................................................ 93

8.1

The Decision-Making Process .................................................................. 93

8.2

Batch vs Online Processing ...................................................................... 94

8.3

Applications at Different Management Levels .......................................... 95

8.4

Strategic Systems ..................................................................................... 98

8.5

Intelligent Systems ................................................................................... 99

8.6

Data Mining and OLAP.......................................................................... 100

8.7

South African Perspective ...................................................................... 102

8.8

Beyond the Basics .................................................................................. 102

8.9

Exercises ................................................................................................ 103

9.

E-Commerce .................................................................................................. 104

9.1

B2C e-Commerce ................................................................................... 104

9.2

B2B e-Commerce ................................................................................... 105

9.3

C2C e-Commerce ................................................................................... 106

9.4

Electronic funds transfer......................................................................... 106

9.5

Current issues in e-commerce ................................................................. 107

9.6

South African Perspective ...................................................................... 108

9.7

Beyond the Basics .................................................................................. 108

9.8

Exercises ................................................................................................ 109

10.

Security and Social Issues .......................................................................... 110

10.1

Security Within the Organisation............................................................ 111

10.2

Security Beyond the Organisation........................................................... 113

10.3

Operational Problems and Errors ............................................................ 115

10.4

Computer Monitoring and Privacy.......................................................... 116

10.5

Computers and Unemployment .............................................................. 118

10.6

South African Perspective ...................................................................... 119

10.7

Beyond the Basics .................................................................................. 119

Discovering Information Systems

10.8

Exercises ................................................................................................ 120

CASE STUDY: CREAM ADVERTISING ............................................................ 122

Section IV: IS Management.................................................................................... 124

11.

IS Planning & Acquisition.......................................................................... 125

11.1

Frameworks for Analysing Information Systems .................................... 125

11.2

IS Planning............................................................................................. 127

11.3

Software Acquisition Options................................................................. 128

11.4

Project Management............................................................................... 129

11.5

People Aspects of Systems Development................................................ 131

11.6

South African Perspective ...................................................................... 132

11.7

Beyond the Basics .................................................................................. 132

11.8

Exercises ................................................................................................ 133

12.

System Development.................................................................................. 134

12.1

Systems Development Life Cycle (SDLC).............................................. 134

12.2

Development of Structured Methodologies............................................. 140

12.3

Alternative approaches to developing systems ........................................ 142

12.4

Critical success factors ........................................................................... 146

12.5

South African Perspective ...................................................................... 146

12.6

Beyond the Basics .................................................................................. 147

12.7

Exercises ................................................................................................ 147

13.

Using Information Systems ........................................................................ 149

13.1

Change Management .............................................................................. 149

13.2

Ergonomics ............................................................................................ 150

13.3

Ethics ..................................................................................................... 150

13.4

Data Processing Controls........................................................................ 152

13.5

Disaster Recovery .................................................................................. 152

13.6

How IS Affects You ............................................................................... 153

13.7

South African Perspective ...................................................................... 154

13.8

Beyond the Basics .................................................................................. 154

13.9

Exercises ................................................................................................ 155

CASE STUDY: CREAM ADVERTISING ............................................................ 156

INDEX .................................................................................................................. 157

Discovering Information Systems

Foreword

Why Study Information Systems?

Why did you enrol for this course in information systems? It is probably a mix of pragmatism and idealism. For many of you, this course is not an elective, so you have to endure and pass it in order to obtain your degree. On the other hand, many of you chose to study this degree, and perhaps even selected information systems as a major. This choice was probably inspired by practical considerations such as the desire to have at least a reasonable fighting chance on the job market a couple of years from now, and the hope of earning the typical above average salary which graduates with an “IS” course (or better even: IS major) on their academic

record tend to earn. But hopefully, you also have some interest in and positive expectations about this course. You may already have quite a bit of exposure to computers, be it from hacking away on the Internet or playing Doom. And you have definitely already encountered information systems in many different areas of your lives: they may have been responsible for the late publication of your test results, your (in-)ability to withdraw money from the ATM, or they enabled you to get great marks for your school projects.

Unfortunately, we cannot promise that this course will make you better Doom or PacMan players. (We are not very good Doom players ourselves.) But we do hope to keep at least some of the fun and excitement in the course. Let us give you some motivation for giving this course an extra effort.

Money. IS graduates are amongst the best paid of all graduates. In fact, to our annoyance, many of our graduates walk into a job with a higher starting salary than

we, their lecturers, earn after many years!

Importance. University graduates must expect to work in an environment where

information systems play an important, if not critical, role in their day-to-day

activities. The ability to use personal productivity tools, and a working knowledge of

the fundamental concepts underlying today’s, and more importantly, tomorrow’s

information systems, are no longer “nice to have” skills from a career perspective:

they have become essential minimum requirements.

Change and dynamism. Unlike many other academic disciplines, the pace and rate of change in our field is extremely fast. You will already be familiar with the rate at

which the computer and communication technologies are changing, perhaps best

illustrated by how quickly personal computers become out-dated. But many of our

(academic) theories, views and commercial practices also have to be revised on an

almost annual basis. As a young science, we constantly have to re-examine our body

of knowledge. This continuing renewal may scare off the casual-type persons, but it

should excite people like you: dynamic, energetic and thriving on change.

Fun and challenge. In our most humble opinion, there is more fun and challenge to be had in IS than in all other disciplines combined. (Hmm, maybe we do sound a tiny bit biased here!) In building up your skills in the literacy component, you will be

challenged to discover new tricks and short-cuts all the time. You may have to push

yourself to the limit to cope with the amount of power and capabilities presented to

Discovering Information Systems

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you by the software. But also in the more conceptual sections, we hope that this will

be the one course where you will have to use some critical thinking skills and, above all, accept that there is no one correct solution to each question. In fact, we often do not yet know what the right question to ask is.

If you delve a little deeper in the curricula vitae of the academic staff in the department, you will notice that many of your lecturers have non-IS backgrounds: accounting, engineering, management, or even the liberal arts. What made them change was (typically) not boredom

with their original fields of endeavour but the excitement, change and dynamism that comes with information systems. We hope that you will discover this for yourself and share some of our excitement!

The Importance of Information Systems

Since many of you may have had limited exposure to the way large organisations work, the following facts may be of interest:

• Globally, the annual capital (fixed) investment in information technology (computers, telecommunications) currently exceeds the investment in all other productive capital

assets (buildings, equipment, machinery, tractors etc.) combined.

• In the developed countries, more than half of the labour force can be classified as knowledge workers i.e. it spends most of its time processing information.

• The amount of new knowledge is said to double every five years i.e. in the next five years we will create as much new knowledge as was created in mankind’s entire

previous history. (The quality of this new knowledge is of course an entirely different issue!)

• Each month the equivalent processing power of one of the early personal computers (half a million microchip transistors) is being produced for each human on the entire planet.

• The information systems of many large organisations would be able to store and

process the curriculum vitae of every single human being that lives and ever lived on the Earth, assuming that this information was available in electronic format.

• Four years after graduating from UCT, Mark Shuttleworth sold his IT business for a

billion rands – sufficient to generate an hourly income of about R30 000!

Information Systems and Related Disciplines

IS, which is normally considered one of the commercial sciences along with management and accounting, has its “cousins” in the other major groups of scientific disciplines.

Computer Science, typically part of the natural and exact sciences such as (applied) mathematics, is concerned with the scientific basis of software and hardware

technologies which underlie information systems: computers and communications.

Sample research areas include computer architectures, programming languages,

efficient algorithms, artificial intelligence, computability, etc. These, together with

innovative electronic engineers and material scientists, are often responsible for

ii [Free reproduction for educational use granted]

© Van Belle, Eccles & Nash

fundamental advances in the technology and are usually five to ten years ahead of the

commercial application of these technologies. However, they tend to pay far less

attention to the organisational and human context in which computers are used e.g.

market viability, cost, project management, system effectiveness, organisational

change management. Computer science also has little to say about non-computerised

information systems, though this also applies to many information systems curricula

and research agendas.

Information Science has grown out of library science, typically considered part of the liberal arts discipline. It is far more philosophical in approach than computer science

and information systems. Many of its findings apply equally well to computer and

non-computer based systems alike. The main emphasis is on the storage and retrieval

in large databases (libraries) of information. This includes issues such as

classification, indexing, abstracting.

If the above gives you the impression that there is little overlap between the fields, we have to state that the converse is in fact true. There are many overlapping fields of research and undergraduate curricula often cover similar topics. (This sometimes results in some

demarcation or “turf” disputes, despite the fact that “some of our best friends are computer and information scientists!”) On the other hand, each discipline has its own perspective on even the most common topics of interest. IS has a very strong organisational bias, usually taking the commercial business enterprise as the implicitly assumed context of our studies.

This is reflected in research into project management, procurement issues, audit and control principles, management issues, IS professionals’ profiles and the like.

Rather than looking at undergraduate syllabi, a good feel for the differences in scope and emphasis between the disciplines can be obtained by browsing some of the prominent

scientific journals of each discipline.

Contents of This Book

This text consists of thirteen chapters, which have