1 An Essential Field of Study in Business What are the differences among the following fields: –Management Information Systems (MIS) –Computer Information Systems (CIS) –Information Technology (IT) –Computer Sciences (CS) –Computer Engineering

2 Why an MBA or Engineering Student needs to know MIS/CIS/IT? The role of IT in business Use a IT as a tool Understand how to use IT as a competitive weapon Understand the impact of IT on business –Good or bad –Predicate next wave of the technologies Become IT/IS/CS literacy Know how to deal with IT people While you may know/use some of the IT technologies, the course provides a systematic review for the theory or practices.

3 Real World Case - Amazon.Com “In the physical world, it’s old saw: location, location, location” “Three most important things are for us are Technology, Technology, and Technology” Jeff Bezos, CEO of Amazon Computerized Warehouse at Fernley, Nevada Turnover rate for the warehouse is 20 times

4 Real World Case - Amazon.Com (Continue) “The trouble with most companies is that they make judgment-based decisions when data-based decision can be made.”

5 Roles of IS in Business Support Business Processes and Operations Support Business Decision Making Support Strategies for Competitive Advantage

6 Roles of e-Business in Business Suppliers and Other Business Partners The Internet Extranets Company Boundary Consumers and Business Customers Extranets Supply chain management: Procurement, Distribution, and Logistics Customer relationship management: Marketing Sales Customer Service Engineering and Research Manufacturing and Production Accounting and Finance Intranets Intranets

7 Trends in Information Systems Data Processing: 1950s – 1960s Electronic Data Processing Systems Management Reporting: 1960s – 1970s Management Information Systems Decision Support: 1970s – 1980s Decision Support Systems Electronic Business & Commerce: 1990s – 2000s Internet-Based E-Business and E- Commerce systems Strategic and End User Support: 1980s – 1990s End User Computing Systems Executive Information Systems Expert Systems Strategic Information Systems Expanding Participation of End Users and Managers in IS Expanding Roles of IS in Business and Management

8 Types of Information Systems Enterprise Collaboration Systems Management Information Systems Process Control Systems Transaction Processing Systems Decision Support Systems Executive Information Systems Operations Support Systems Management Support Systems Information Systems ProcessingBusinessTransactions Control of Industrial Processes Team and WorkgroupCollaboration PrespecifiedReporting for Managers InteractiveDecisionSupport Information Tailored for Executives Support of BusinessOperations Managerial Decision Making

9 Other Information Systems Expert Systems (ES) Knowledge Management Systems Functional Business Systems Strategic Information Systems (SIS) Cross-Functional Information Systems

10 Problems with ERP Software $112 Million Project – –Order Processing Problems –Multiple Vendor Applications Being Installed Simultaneously Initial Problems to Implement Recent Success with Upgrades Hershey Foods: Failure & Success with IT Managerial Challenges of IT

11 Distributor of Electrical Products and Supplies –Over 6,000 Employees –5 Distribution Centers –360 Branches Worldwide –Over 100,000 Customers New E-Business Ordering System Increased Sales and Cut Costs Est. $12 million Savings Annually WESCO International E-Business Sales and Supplier System Roles of e-Business in Business

12 Developing IS Solutions Investigate Analyze Design Implement Maintain

13 Challenges of Ethics and IT Ethical Responsibilities Be a Responsible End-User Applications of IT Potential Harms Potential Risks Possible Responses CustomerRelationshipManagement HumanResourcesManagement BusinessIntelligenceSystems Infringe- ments on Privacy InaccurateInformation Collusion CustomerBoycotts WorkStoppages GovernmentIntervention Codes of Ethics Incentives Certification

14 Systems Concepts: A Foundation What is a System? Input Processing Output Feedback Control

15 Information System Model Stakeholders in the Business Environment The Community Competitors Financial Institutions Labor Unions Government Agencies Suppliers Customers Stockholders Management Information Systems Input Processing Output Control Feedback Economic Resources Business Resources Goods & Services

16 Components of an Information Systems 1. People Resources -End Users -- IS Specialists 2.Hardware -Machines -Media 3.Software -Programs -Procedures 4.Data Resources - Data and Knowledge Bases 5.Network Resources - Communications Media and Networks

17 Kodak, HP, and Amersham Biosciences Silo syndrome - The Cost of Employee Time Spent on Research, Preparing Reports and Developing Support for the Sales Staff Without an Easy Way to Access the Information Data is Being Collected, but Kodak and HP are not Good at Sharing and Updating the Data Unused Valuable Marketing Information and Other Intellectual Property Challenges would include:

18 Kodak, HP, and Amersham Biosciences Ability to Deliver a Full Range of Product Information –Includes Text, Synchronized Video, Graphics, Audio and Search Capabilities to Globally Dispersed Sales Organizations Allowing People to get More Done and Spend More Face Time with Customers as Opposed to Calling on the Phone to Kodak How successful is the Eloquent software tool is described by Kodak and HP:

19 End of Lecture Read the Syllabus Orient yourself to the course requirements and expectations