1. 1 - 1 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Foundations of Information Systems in Business Chapter 1

2. 1 - 2 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Why Study Information Systems? Information technology can help all kinds of businesses improve the efficiency and effectiveness of their business processes, managerial decision making, and workgroup collaboration, thus strengthening their competitive positions in a rapidly changing marketplace.

3. 1 - 3 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Information Systems vs. Information Technology Information Systems (IS) – all components and resources necessary to deliver information and information processing functions to the organization Information Technology (IT) – various hardware components necessary for the system to operate

4. 1 - 4 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Types of Information Technologies Computer Hardware Technologies including microcomputers, midsize servers, and large mainframe systems, and the input, output, and storage devices that support them Computer Software Technologies including operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management

5. 1 - 5 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Types of Information Technologies Telecommunications Network Technologies including the telecommunications media, processors, and software needed to provide wire-based and wireless access and support for the Internet and private Internet-based networks Data Resource Management Technologies including database management system software for the development, access, and maintenance of the databases of an organization

6. 1 - 6 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Trends in Information Systems

7. 1 - 7 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Types of Information Systems

8. 1 - 8 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Examples of Operations Support Systems Transaction Processing Systems (TPS) – process data resulting from business transactions, update operational databases, and produce business documents. Process Control Systems (PCS) – monitor and control industrial processes. Enterprise Collaboration Systems – support team, workgroup, and enterprise communications an collaboration.

9. 1 - 9 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Management Support Systems Management Information Systems (MIS) – provide information in the form of pre-specified reports and displays to support business decision making. Decision Support Systems (DSS) – provide interactive ad hoc support for the decision making processes of managers and other business professionals. Executive Information Systems (EIS) – provide critical information from MIS, DSS, and other sources tailored to the information needs of executives.

10. 1 - 10 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Operational & Managerial IS Expert Systems – provide expert advice for operational chores or managerial decisions Knowledge Management Systems – support the creation, organization, and dissemination of business knowledge to employees and managers

11. 1 - 11 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. IS Classifications by Scope Functional Business Systems – support basic business functions Strategic Information Systems – support processes that provide a firm with strategic products, services, and capabilities for competitive advantage Cross-functional Information Systems – integrated combinations of information systems

12. 1 - 12 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Measures of Success Efficiency Minimize costs Minimize time Minimize the use of information resources Effectiveness Support an organization’s business strategies Enable its business processes Enhance its organizational structure and culture Increase the customer business value of the enterprise

13. 1 - 13 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Developing IS Solutions

14. 1 - 14 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. System Components Input – capturing and assembling elements that enter the system to be processed Processing – transformation steps that convert input into output Output – transferring elements that have been produced by a transformation process to their ultimate destination

15. 1 - 15 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. IS Resources & Activities

16. 1 - 16 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Information System Resources People – end users and IS specialists Hardware – physical devices and materials used in information processing including computer systems, peripherals, and media Software – sets of information processing instructions including system software, application software and procedures

17. 1 - 17 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Information Systems Resources (con’t) Data – facts or observations about physical phenomena or business transactions Network – communications media and network infrastructure

18. 1 - 18 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Recognizing Information Systems Fundamental Components of IS People, hardware, software, data and network resources used Types of information products produced Input, processing, output, storage and control activities performed

19. 1 - 19 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Competing with Information Technology Chapter 2

20. 1 - 20 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Porter’s Competitive Forces Model To survive and succeed, a business must develop and implement strategies to effectively counter the: Rivalry of competitors within its industry Threat of new entrants into an industry and its markets Threat posed by substitute products which might capture market share Bargaining power of customers Bargaining power of suppliers

21. 1 - 21 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Competitive Strategies Cost Leadership Differentiation Innovation Growth Alliance

22. 1 - 22 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Other Competitive Strategies Locking in customers or suppliers by building valuable new relationships with them. Building switching costs so a firm’s customers or suppliers are reluctant to pay the costs in time, money, effort, and inconvenience that it would take to switch to a company’s competitors. Raising barriers to entry that would discourage or delay other companies from entering a market.

23. 1 - 23 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Other Competitive Strategies Leveraging investment in information technology by developing new products and services that would not be possible without a strong IT capability.

24. 1 - 24 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Value Chain

25. 1 - 25 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Agility Definition: The ability of a company to prosper in rapidly changing, continually fragmenting global markets for high-quality, high performance, customer-configured products and services.

26. 1 - 26 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Virtual Company Definition: An organization that uses information technology to link people, organizations, assets, and ideas.

27. 1 - 27 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Knowledge-Creating Companies Definition: Consistently creating new business knowledge, disseminating it widely throughout the company, and quickly building the new knowledge into their products and services.

28. 1 - 28 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Types of Knowledge Explicit Knowledge – data, documents, things written down or stored on computers Tacit Knowledge – the “how-tos” of knowledge, which reside in workers

29. 1 - 29 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Computer Hardware Chapter 3

30. 1 - 30 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Microcomputer Systems Personal Computer (PC) – microcomputer for use by an individual Professional Workstation – a powerful, networked PC for business professionals Laptop – small, portable PC

31. 1 - 31 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Microcomputer Systems Network Server – more powerful microcomputers that coordinate telecommunications and resource sharing in small local area networks and Internet and intranet websites Computer Terminals – depend on servers for software, storage and processing power

32. 1 - 32 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Midrange Systems Definition: Primarily high-end network servers and other types of servers that can handle the large-scale processing of many business applications.

33. 1 - 33 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Supercomputer Systems Definition: Extremely powerful computer systems specifically designed for scientific, engineering, and business applications requiring extremely high speeds for massive numeric computations

34. 1 - 34 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Hardware Organized by System Functions Input Devices convert data into electronic form for direct entry or through a telecommunications network into a computer system Processing Components primarily the Central Processing Unit (CPU) Arithmetic-Logic Unit (ALU) - perform arithmetic and logic functions required to execute software instructions

35. 1 - 35 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Hardware Organized by System Functions Output Devices convert electronic information produced by the computer system into human- intelligible form for presentation to end users Storage Devices store data and software instructions needed for processing Control Components primarily the CPU’s Control Unit which interprets software instructions and transmits directions that control the activities of the other components of the computer system

36. 1 - 36 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Computer Peripherals Definition: Generic name given to all input, output, and secondary storage devices that are part of a computer system, but are not part of the CPU.

37. 1 - 37 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Input Technologies Keyboard Pointing Devices Pen-Based Computing Speech Recognition Systems Optical Scanning

38. 1 - 38 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Printed Output Inkjet Printers – spray ink onto the page Laser Printers – use an electrostatic process similar to a photocopying machine

39. 1 - 39 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Bit vs. Byte Bit – binary digit, which can have a value of either zero or one Byte – basic grouping of bits that the computer operates as a single unit, typically eight bits

40. 1 - 40 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Storage Capacities Kilobyte (KB) – one thousand bytes Megabytes (MB) – one million bytes Gigabytes (GB) – one billion bytes Terabytes (TB) – one trillion bytes Petabytes (PB) – one quadrillion bytes

41. 1 - 41 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Direct vs. Sequential Access Direct (or Random) Access – Each storage position has a unique address. Each storage position can be individually accessed without having to search through other storage positions. Sequential Access – Data are recorded one after another in a predetermined sequence. Locating an individual item of data requires searching the recorded data until the desired item is located.

42. 1 - 42 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Semiconductor Memory Characteristics: Small Fast Shock Resistant Temperature Resistant Volatile – contents of memory is lost when power is interrupted Used for Primary Storage

43. 1 - 43 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Types of Magnetic Disks Floppy Disks – single disk inside a protective jacket Hard Disk Drives – several disks, access arms and read/write heads in a sealed module Redundant Arrays of Independent Disks (RAID) - disk arrays of interconnected microcomputer hard disk drives