1. MIS INFORMATION SYSTEMS: AN OVERVIEW TJX Credit Card Breach Fed Ex
CHAPTER 1
INFORMATION SYSTEMS: AN OVERVIEW
TJX Credit Card Breach
Hossein BIDGOLI
Fed Ex
Cyrus
NFL Coaches

2. Chapter 1 Information Systems: An Overview
l e a r n i n g o u t c o m e s
LO1 Discuss common applications of computers and information systems.
LO2 Explain the differences between computer literacy and information literacy.
LO3 Define transaction processing systems and management information systems.
LO4 Describe the four major components of an information system.
LO5 Discuss the differences between data and information.

3. l e a r n i n g o u t c o m e s (cont’d.)
Chapter 1 Information Systems: An Overview
l e a r n i n g o u t c o m e s (cont’d.)
LO6 Explain the importance and applications of information systems in functional areas of a business.
LO7 Discuss how information technologies are used to gain a competitive advantage.
LO8 Explain the Five Forces Model and strategies for gaining a competitive advantage.
LO9 Summarize the future outlook of information systems.

4. Value of IS Knowledge in Different Careers
Accounting
Use IS more than any other non IS field
Finance
Access to funds
Where to invest ----Can be heavily analytical
Marketing
Sales force automation SFA
Geographic IS CRM HR
HRM , payroll, benefits
Operations
SCM
CAD/CAM
Media & Communications
Intranets
Digital rights management systems

5. What is a system?

6. What is an Information System?
Combinations of hardware, software, and telecommunications networks that people build and use to collect, create and distribute useful data, typically in organizational settings.
Input of
Data
Resources
Processing
Output of
Information
Products
Control of System Performance
Storage of Data Resources
Describe some
The university
grades, financial, maintence, computer, etc
Retail business system margin sales etc
Input read barcode
Process add up total scanned
Output cash register receipt may be input into another system
Feedback form to correct price reactive – oerder inventory proactive -forcasting
How long have info systems been around
Bible or pyramids
Canada treaties
Look at sytems as technical or behavoril or both sociotechnical

7. Knowledge Worker Knowledge Worker (Peter Drucker 1959)
1960
2000
Knowledge Worker (Peter Drucker 1959)
Professionals that create, modify and/or synthesize information as a fundamental part of their job
They will require higher education levels and received higher compensation than workers in agriculture or manufacturing
At least 35% of all workers in Canada are knowledge workers
As a knowledge worker of the future, computers and information technology will help you be more effective and productive, no matter what profession you choose.

8. Computers and Information Systems in Daily Life
Computers and information systems are all around you
Online classes
Grading
Grocery and retail
PDA and smartphones
Internet
“Information systems” versus “information technology”

9. TJX Companies, Inc.: Credit Card Breach
January 2007
Identity thieves stole more than 46.5 million credit cards
Used sophisticated hacking techniques to break through security systems
Stored the stolen information on servers in Eastern Europe and the United States
Shows the international nature of cybercrime
TJX Credit Card Breach

10. Computer Literacy and Information Literacy
Having skills in using productivity software
Information literacy
Understanding the role of information in generating and using business intelligence
Business intelligence (BI)
Provides historical, current, and predictive views of business operations and environments
Gives organizations a competitive advantage in the marketplace

11. The Beginning: Transaction Processing Systems
Transaction processing systems (TPSs)
Focus on data collection and processing,
Cost reduction
Operations repetitive
Human involvement minimal
Fed Ex

12. Management Information Systems
Management information system (MIS)
Organized integration of hardware and software technologies, data, processes, and human elements
Designed to produce timely, integrated, relevant, accurate, and useful information
For decision-making purposes
Include:
Hardware components
MIS software
Processes

13. Management Information Systems (cont’d.)
Designing an MIS
Define objectives
Collect and analyze data
Provide information in useful format
Used in both the private and public sect
Many organizations use information systems to gain a competitive advantage

14. Major Components of an Information System
Data
Database
Process
Information

15. Data Data Sources of data Time orientation
Input to the system
Sources of data
External
Internal
Time orientation
Can be collected in different forms
Aggregated
Disaggregated
SIN
ATM

16. Database Database Essential for the success of any information system
Heart of an information system
Collection of all relevant data organized in a series of integrated files
Essential for the success of any information system
Managed with database management system (DBMS): e.g., Oracle
Reduces personnel time needed to gather, process, and interpret data manually

17. Process
Process
Generates the most useful type of information for decision making
Generally includes transaction-processing reports and models for decision analysis
Includes a wide range of models to support all levels of decision making
The purpose of an information system's process  component is generating the most useful type of information for decision making. This component generally includes transaction-processing reports and models for decision analysis that can be built into the system or accessed from external sources.
An information system can include a wide range of models to support all levels of decision making. Users should be able to query an information system and generate a variety of reports. In addition, an information system should be able to grow with the organization so that users can redefine and restructure models and incorporate new information into their analyses.

18. Information Information Quality of information
Output of an information system
Facts that have been analyzed by the process component
Quality of information
Timeliness
Integration with other data and information
Consistency and accuracy
Relevance

19. Information (cont’d.) User interface
Must be flexible and easy to use
Graphical user interfaces (GUIs)
Ultimate goal of an information system
Generate business intelligence (BI)

20. Example of Information Systems
a university
The university stores all student data in a database
Built-in query capability
Other types of analysis can be done

21. six major roles and goals of IT
1. Increase employee productivity by reducing time, errors and costs using
2. Enhance decision making
3. Improve team collaboration
4. Create business partnerships and alliances
5. Enable global reach all over the world taking into consideration the culture of each nation or society.
6. Facilitate organizational transformation as the organization evolves and responds to the ever-changing marketplace.

22. Using Information Systems and Information Technologies
Achieve goals of information systems
Examples
Internet
Databases
POS Systems
RFID tags

23. Information Technologies at Home Depot
POS system
Fast customer service
Improved inventory management
Wireless network
Efficient in-store communication
Web site
Communicate with customers
Increase sales with online orders
RFID tags
Better manage inventory

24. The Importance of Information Systems
Second most important resource in any organization
Four Ms of resources:
Manpower >> Personnel info system
Machinery >> Manufacturing Info System
Materials >> Logistics info system
Money >> Financial Info system

25. Competitive advantage
1831
Cyrus McCormick
Competitive advantage
Significant, long-term benefit to a company over its competition
Ability to establish and maintain a competitive advantage is vital to a company’s success
Went on to become International harvester

26. NFL Coaches
NFL Coaches
What sources of competitive advantage can you identify the New England Patriots have by using information technology?
Are these long term, sustainable competitive advantages?
From our list of Roles and goals of Technology, what does the IS of the NFL do?

27. Using Information Technologies for a Competitive Advantage
Michael Porter
Professor at Harvard Business School
Identified three strategies for competing in the marketplace successfully
Overall cost leadership
Differentiation
Focus

28. Using Information Technologies for a Competitive Advantage
Differentiation strategies
Make products and services different from competitors
Examples: Apple, Amazon.com
Focus strategies
Concentrate on a specific market segment
Attempt to achieve a cost or differentiation advantage
Examples: Apple, Abercrombie & Fitch, Nordstrom

29. Porter’s Five Forces Model: Understanding the Business Environment
Michael Porter
For analyzing an organization, its position in the marketplace, and how information systems could be used to make it more competitive
Buyer power
Supplier power
Threat of substitute products or services
Threat of new entrants
Rivalry among existing competitors

30. THE FIVE FORCES MODEL – analyze competitive forces in an Industry
How IS can have a factor in the industry

31. The IT Job Market Chief Technology Officer
Manager of Info System Services
Systems Analyst
Network Administrator
Database Administrator
Computer Programmer
Webmaster

32. Future Outlooks Hardware and software costs continue to decline
Processing information less expensive in the future
Artificial intelligence and related technologies will continue to improve and expand
Computer literacy will improve
Networking technology will improve
Personal computers will continue to improve in power and quality

33. Future Outlooks (cont'd.)
Internet growth and acceptance will continue
Computer criminals will become more sophisticated
Protecting personal identity information will become more difficult

34. Summary Examples of uses for computers and information systems
Difference between computer literacy and information literacy
Management information system (MIS)
Data, database, process, and information
Porter
Three competitive strategies
Five Forces Model