Information Systems in Business (Chapters 1 and 2)

Starter Questions In what types of companies is IT important? In what types of companies is IT not important? What types of IT do businesses use? Is IT good or evil?

How much money are we talking about? Figure 1-1, Capital Investment text section 1.1

Scope In U.S.A. in 2008 $840B on IS hardware and software 60 million businesses on the web 138 million people shopped online 34 million per day researched products 64 million got their news online internet advertising grew 25% to $28B

IS Activities (what IS does) Supply Chain Management Customer Management Planning Controlling Modeling and Decision Making

Strategic Business Objectives of Information Systems (why use an IS?) operational excellence new products and services customer and supplier intimacy improved decision making competitive advantage survival text section 1.1

Return on IT Investment Figure 1-8 in textbook

Exercises Chapter 1, Management Decision Problems page 31 Problem #1 - Snyders Snacks 1. Assess the impact of the current situation. 2. Suggest a simple solution and assess the potential ROI. Problem #2 - Dollar General 1. Would an additional system produce a positive ROI? Why or why not?

Types of Information Systems Transaction Processing Systems ◦ records the routine daily business transactions Management Information Systems ◦ uses TPS data to create standard reports Decision Support Systems ◦ models MIS data to allow analysis and answering what-if questions Executive Support Systems ◦ adds external info to DSS info

Type of SystemInformation InputsInformation OutputsUsers Transaction Processing Systems (TPS) Transactions; daily events Detailed reports; lists; summaries Operations personnel; first- line supervisors Management Information Systems (MIS) Summary transaction data; high-volume data; simple models Summary and exception reports Middle managers Decision Support Systems (DSS) Optimized for data analysis, analytic models and data analysis tools. Interactive; simulations; analysis Professionals, staff managers Executive Support Systems (ESS) Aggregate data; external, internal Projections; responses to queries Senior managers Types of Information Systems

Enterprise Applications ERP - Enterprise Resource Planning SCM - Supply Chain Management CRM - Customer Relationship Management KMS - Knowledge Management Systems

Misc Notes Interface Design ◦ TPS often uses text interfaces or hand-held scanners ◦ DSS are always heavy on graphics and help Importance of Info Systems ◦ 41% of jobs are "interaction" jobs  also the fastest growing sector ◦ 25% are "transaction" jobs ◦ 15% are blue-color "production"

The IS Department Chief Information Officer IS Managers Systems Analysts Programmers

Exercise Chapter Two, Management Decision Problem #2, page 67, Henry's Hardware 1. What is the business impact of current situation? 2. How could an Info System help? 3. What data needs to be input? 4. What info does the IS need to output?

Assignment Debate Groups ◦ Start organizing tonight