2. Sheu 1 L Ch1: LEARNING OBJECTIVES n What is an information system? n COMPUTER LITERACY versus INFORMATION SYSTEMS LITERACY n Understand impact of information systems on organization & management n Understand MAJOR MANAGEMENT CHALLENGES TO BUILDING, USING INFORMATION SYSTEMS n DESCRIBE ELECTRONIC COMMERCE & ELECTRONIC BUSINESS, RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGY

3. Sheu 2 Some Terms n COMPUTER-BASED INFORMATION SYSTEMS (CBIS) Formal systemsFormal systems Fixed definition of data, proceduresFixed definition of data, procedures Collecting, storing, processing, dissemination, using dataCollecting, storing, processing, dissemination, using data Information system may not be computer-basedInformation system may not be computer-based CBIS is broader than MISCBIS is broader than MIS n Data vs Information vs Knowledge Data: stream of raw facts before they have been organized into a meaningful formData: stream of raw facts before they have been organized into a meaningful form Information: data that have been shaped into a form that is meaningful & useful to humanInformation: data that have been shaped into a form that is meaningful & useful to human Knowledge: abstracted / generalized understanding of information. Organized body of informationKnowledge: abstracted / generalized understanding of information. Organized body of information n KNOWLEDGE- AND INFORMATION-INTENSE PRODUCTS PRODUCTS THAT REQUIRE A GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCEPRODUCTS THAT REQUIRE A GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCE

4. Sheu 3 More Terms n Knowledge workers: n Data Workers: n Production (or service) Workers: n Internet /Intranet /Extranet

5. Sheu 4 BUSINESS ENVIRONMENT n GLOBALIZATION –Management & Control –Competition in world markets –Global work group –Globally delivered –Future dep on ability to operate globally n INDUSTRIAL ECONOMIES –Industrial eco => knowledge/info – based econ. –Knowledge-and-info-intense product –Time-base competition –Shorter product life (NB MKT life / R&D cycle time) n TRANSFORMATION OF THE ENTERPRISE –Centralized => DECENTRALIZATION –Structured org. / specialist => FLEXIBLE / GENERALIST –Location dependent => LOCATION INDEPENDENCE –LOW TRANSACTION COSTS

6. Sheu 5 FUNCTIONS OF AN INFORMATION SYSTEM INPUTOUTPUTPROCESS FEEDBACK INFORMATION SYSTEM ENVIRONMENT Customers Suppliers Regulatory Stockholders Competitors Agencies ORGANIZATION

7. Sheu 6 New Roles of Information Systems in Org n Technical changes => managerial control => Institutional core activities (fg 1.7) n Interdependence with org & business strategies (fg 1.6) n Creating great impacts and opport. –Enabling new business model Fewer levels / more power for lower-levelFewer levels / more power for lower-level Manage employee globallyManage employee globally Redefine Org. boundary: Virtual org. (fg 1.9)Redefine Org. boundary: Virtual org. (fg 1.9) (mfg driven) Mass production => (Customer-driven) Customization / (technology-enable) Mass customization(mfg driven) Mass production => (Customer-driven) Customization / (technology-enable) Mass customization –Network revolution & internet What you can do on internet tbl 1.3What you can do on internet tbl 1.3 –Changing management process ERP (Skip hierarchical reports)ERP (Skip hierarchical reports) EC & EB (tbl 1.5, fg 1.11)EC & EB (tbl 1.5, fg 1.11)

8. Sheu 7 ELECTRONIC COMMERCE vs ELECTRONIC BUSINESS EC: n INTERNET LINKS BUYERS, SELLERS n LOWERS TRANSACTION COSTS n GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED WORLDWIDE n BUSINESS-TO-BUSINESS TRANSACTIONS INCREASING EB: n INTRANET: BUSINESS BUILDS PRIVATE, SECURE NETWORK E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS EFFECTIVE COMMUNICATION & CONTROLE-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS EFFECTIVE COMMUNICATION & CONTROL VIRTUAL ORGANIZATION (fg 1.9)VIRTUAL ORGANIZATION (fg 1.9)

9. Sheu 8 ENTERPRISE RESOURCE PLANNING SOFTWARE INTEGRATES ALL FACETS: SOFTWARE INTEGRATES ALL FACETS: n PLANNING, MANUFACTURING, INVENTORY, SALES, FINANCE, ACCOUNTING n TRANSACTIONS ALERT ALL INVOLVED FACTORS n UPDATES FILES, SPEEDS ACTION, CUTS COST *

10. Sheu 9 CHALLENGE OF INFO SYSTEMS n STRATEGIC: –The power of IT grown much rapidly than the ability of org to take adv of the IT. –How can org. use IT to enhance competitiveness & effectiveness n GLOBALIZATION: –How can firm understand the business & sys req. of a global environment. n INFO ARCHITECTURE & CULTURAL INERTIA –How can org. design info sys architecture to fully support business goal. –How to overcome organizational inertia. (Often require re-design org and change many people ’ s job and work behaviors) n INVESTMENT: –A new system costs a lot. Is the investment worthwhile? n RESPONSIBILITY & CONTROL: –How can org design system that people can control & understand –How can we ensure that IS is used ethically & responsibly?