1. Introduction to Information Systems

2. What is an information system? An information system is an organized combination of people, hardware, software, and data resources that collects, transforms, and disseminates information in an organization. Information system is an organizational and management solution, based on information technology, to a challenge posed by the environment.

3. Why study information systems? An end-user perspective –Enhance personal productivity, and the productivity of their work groups and department. –Increase your opportunities for success: be aware of the management problems and opportunities presented by the information technology.

4. Why study information systems? An enterprise perspective: Information systems play a vital role in the business success of an enterprise. –Efficient operations –Effective management –Competitive advantage

5. Information System is a major functional area of business A major part of the resources of an enterprise and its cost of doing business. An important factor affecting operational efficiency, employee productivity, customer service, etc. A major source of information needed to promote effective decision making. An important ingredient in developing competitive products and services that give an organization a strategic advantage in the marketplace. A challenge career opportunity.

6. Business Are Becoming Internetworked Enterprises The internet and Internet-like networks (intranets and extranets) have become the primary information technology infrastructure that supports the business operations of many organizations. Electronic commerce: –The buying and selling, and marketing and servicing of products, services, and information over a variety of computer networks. Globalization: –Global markets, global production facilities, global partners, global competitors, global customers.

7. Techies might finally be able to move into top management More Chief Information Officers (CIOs) are reporting directly to CEOs. More CIOs are being included on management committees. In a recent survey of executives at capital market firms, 89% believed that technology managers would assume greater responsibilities.

8. What Is Information System? Fundamental roles of information systems Types of Information Systems Information System Activities Components of an Information System

9. Fundamental roles of information systems Support of business operations. Support of managerial decision making. Support of strategic competitive advantage: –Business process reengineering. –Competitive strategies: cost strategies differentiation strategies etc

10. Functional Business Information Systems Production Operations Production Operations Marketing Human Resource Management Human Resource Management Finance Accounting Functional Business Systems

11. Targeted Marketing on the Web p 233 Community: virtual communities Content: advertising banner placed on various website pages Context: advertising appears only in web pages that are relevant to the product Demographic/Psychogrphic: income, age, education Online behaviors: tracking techniques such as cookies

12. Push/Pull Internet push marketing: –Email marketing –Web page personalization Internet pull marketing –Product web page

13. Customer Relationship Management It costs six times more to sell to a new customer than to sell to an existing one. A typical dissatisfied customer will tell eight to ten people about his or her experience. A company can boost its profit 85% by increasing its annual customer retention by only 5%. The odds of selling a product to a new customer are 15%, whereas the odds of selling to an existing customer are 50%. 70% of complaining customers will do business with the company again if it quickly takes care of a service snafu.

14. Customer Relationship Management Sales Cross-Sell Up-Sell TeleSales Store Front and Field Service Marketing and Fulfillment Customer Service and Support Retention and Loyalty Programs Customer Contact Management

15. Cross-Functional Enterprise Systems Systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all cross the enterprise. –Share information resources –Improve the efficiency and effectiveness of business processes.

16. Enterprise Resource Planning ERP is a cross-functional enterprise system that integrates many of the business processes that must be accomplished within the manufacturing, logistics, distribution, accounting, finance, and human resources functions of a business.

17. Enterprise Resource Planning Sales Distribution, Order Management Accounting and Finance Production Planning Human Resources Integrated Logistics Customer/ Employee

18. Support of Managerial Decision Making Structured decision –The information requirements are known precisely –The criteria for making decision are known –The quality of a decision can be measured precisely Unstructured decision

19. Manager + Computer (DSS) Solution Computer Solution Manager Solution Structured Semistructured Unstructured DEGREE OF PROBLEM STRUCTURE The DSS Focuses on Semistructured Problems

20. Information Systems for Strategic Advantage Competitive forces model by Michael Porter Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Customers Rivalry among Existing Competitors Threat of Substitute Products

21. Competitive Strategies Cost leadership strategy. Product differentiation strategy. Innovation strategy: Finding new way of doing business. Alliance strategy: Establish alliances with customer, suppliers, competitors, other company. Growth strategy: expanding, diversifying, integrating.

22. Strategic Roles for Information Systems Improving business operations Promoting business innovation Locking in customers and suppliers –Interorganizational IS, EDI, automatic inventory replenishment system Creating switching costs –make customers dependent on the continued use of innovative IS. Raising barriers to entry –discourage competitors from entering a market

23. Strategic Uses of Information Technology Improving Business Process Promote Business Innovation Locking in Customers and Suppliers Use IT to reduce costs of doing business Use IT to improve quality Use IT to link business to customers and suppliers Use IT to create new products or services Enhance Efficiency Create New Business Opportunities Maintain Valuable Customers and Relationships Strategy IT Role Outcome

24. Types of Information Systems Operations support systems –Transaction processing systems –Office automation systems Management support systems –Management information systems –Decision support systems –Executive support systems Strategic information systems –Can be TPS, MIS, DSS, etc. –Systems that help an organization to meet strategic objectives

25. Transaction Processing Systems Support day-to-day business operations batch processing, online processing large amount of data, high processing speed, high reliability, accuracy, and security (fault tolerant) Data: internal, historical, detailed

26. Examples of TPS Order entry system Billing system Accounts receivable system Accounts payable system Payroll system General ledger system

27. Management Information Systems (Information Reporting Systems) Facilitate management control by producing summarized reports that compare actual performance against planned performance on a regular and recurring basis. Management control: Ensuring that performance meets established standards.

28. Information System Activities Input of data resources Processing of data into information –calculating, comparing, sorting, classifying, and summarizing Output of information products Storage of data resources

29. Components of an Information System Hardware Software People Database

30. Hardware Input devices CPU and primary storage –RAM - temporary storage –Processor Control Unit - decoder Arithmetic & Logic Unit (ALU) –Machine cycle: fetch instruction decode instruction execute instruction place results in memory

31. Hardware Output devices Secondary storage Communication devices

32. Hardware Microcomputers –personal computing, workstation,network server. Minicomputers –Departmental and workgroup systems, network server, workstation. Mainframes –Enterprisewide systems, transaction processors Networked computer systems

33. Local area network Peer-to-peer network: –no dedicated server –allow file sharing with password protection Client/Server network –at least one computer as dedicated server –improved security, performance –Network Operating System (NOS), Windows NT Server –Downsizing: replacing mainframes by networked micro/minicomputers. –Upsizing: replacing PC based systems by networked micro/minicomputers. –Distributed processing. –Client/Server computing.

34. Hardware Trends CPU: Parallel processor systems. Storage: –RAID (Redundant Arrays of Inexpensive Disks): Arrays of disk drives that provides a fault tolerant capability by storing multiple copies of data on several disks. RAID hardware/RAID software, Mirroring. –Erasable optical disk. Input/output: video and multimedia input/output, voice recognition and response, optical and magnetic recognition. Hand-held devices

35. Software System software –Operating system Application software –University’s registration system Application development software

36. Operating system functions –User interface –Resource management (managing hardware) –Task management (managing the accomplishment of tasks) –File management (managing data and program files) –Utilities (providing a variety of supporting services)

37. Application development software Low level language High level language –Third generation –Fourth generation –Fifth generation

38. Compiler Translator: Translate the source program to machine executable code. Interpreter: Translate one command at a time. –VBScript, JavaScript

39. Object-oriented development tools –graphics-oriented user interface – component programming –event-driven programming –codes are reusable, –Examples, C++, JAVA, VisualBasic.

40. Portability Java: Write Once Run Anywhere Java Source Code Java Byte Code (Intermediate Code) Java Byte Code Java Virtual Machine (JVM) Executable Code

41. Microsoft’s.Net Language must compliance with Common Language Specification, CLS. Compile the language into Microsoft Intermediate Language (MSIL) code. The MSIL code is then executed in the Common Language Runtime (CLR), which conceptually is same as the JVM, where it is translated into machine code by a compiler.

42. Microsoft.Net: a new monopoly? Web services: –A web service is a collection of functions packaged as a single entity, published to the network for other application to use. Microsoft passport: –An internet authentication service that provides single sing-on to passport-enabled web sites and services. Microsoft hailstorm: –A consumer-oriented, subscription-based internet services.

43. Groupware Electronic messaging. Information sharing –Users can access the information, change it, comment on it, and add new information (at different times) –Example: Lotus Note. Document conferencing (WhiteBoard or Application conferencing) –Allow group members to confer on a document at the same time.

44. Groupware Audio/video conferencing Electronic conferencing –Combining document conferencing with videoconferencing. Group scheduling.

45. People Information specialists –programmer, system analyst, database administrator, etc. End-user: –Menu-level end users –Command-level end users –End-user programmer End-user computing

46. What Stimulated End-User Computing? An increase in computing literacy The information services backlog Low-cost hardware User-friendly software –General-purpose productivity software –Office automation applications –Group wares –Application development software

47. Traditional Communications Chain Database Administrator User Systems Analyst Programmer Operator Computer Network Specialist

48. IS and EUC The End-User Computing Communication Chain User Computer Information Specialists Support Communication

49. EUC Risks Poorly aimed systems Poorly designed/ documented systems Inefficient use of information resources Loss of data integrity Loss of security

50. Controls for end-user applications Thorough documentation of user- developed systems. A formal process for evaluating and acquiring new hardware and software. Formal testing, security control for access, backup and recovery procedures for all user systems.

51. Office Ethics Confusion Technology Is Changing the Rules of Conduct on the Job

52. Do you think it is wrong to Copy company’s software for use at home? 35 % say no. Use company equipment like computers to search for a new job? 34% say no. Blame your own personal errors on technological glitches? 39% say no. Use office computers to do personal shopping on the Internet? 46% say no.

53. Workplace PCs May Not Be Very Private Don’t be fooled: it may be personal, but it is not private. Cyber-surveillance: the person most likely to be spying on you is your boss. 27% of businesses surveyed by the American management association said they review employee email. Reasons: –Productivity –Liability –Network performance

54. Database A group of related files –Support business operations –Provide information

55. An example of database application Lucky NEWS (Lucky ad.) Lucky presents another great way to save with your Lucky Rewards Card! You can get up to 4 FREE movie tickets! From May 13 through June 9, 1998, use your Lucky Rewards Card every time you shop at Lucky. When you accumulate between $250 - $399.99 in groceries during the qualifying period, you get 2 FREE movie tickets! And if you purchase $400 or more during the same period you get 4 FREE movie tickets!

56. Major Functions of Database Management Creating a database –Analysis: Entity-Relationship Diagram –Design: Design file structure –Implementation Accessing a database Updating a database

57. Database Security Logical protection: –Illegal access –Illegal update –Virus Physical protection

58. Internet firms flocks to store data in blast-proof British bunker Some of Britain’s biggest companies are running their Internet operations on systems installed in a 300-foot-deep nuclear blast- proof bunker. –IRA bombings –Anti-Capitalists

59. Database Application An organized set of menus, forms, reports, business rules, and the database it operates on. An example: –C:\Program Files\Microsoft Office\Office\Samples\Northwind.mdbC:\Program Files\Microsoft Office\Office\Samples\Northwind.mdb