Chapter 1 What is an Information System?

Learning Objectives Upon successful completion of this chapter, you will be able to: Define what an information system is by identifying its major components Describe the basic history of information systems; and Describe the basic argument behind the article "Does IT Matter?" by Nicholas Carr

Information Systems People – to help support decision making, coordination, control, analysis, and visualization in an organization Process – collects, processes, stores, and disseminates information Technology – hardware, software, and networks that support the business processes and people An Information System has all 3 dimensions working together

Information Systems in Organizations The table below shows a small list of information systems you can find in a variety of businesses: OrganizationPurposeDescription American ApparelPoint-of-Sale (POS) System POS data (the data recorded when merchandise is sold) is integrated with an inventory database, so more merchandise can be ordered. Orange County Department of EducationEmployee Hiring System Web based system that posts job opportunities and lets people apply online. Hiring systems often filter resumes using the digital keywords from the online application. Hiring systems also manage the application through the hiring process. Sales Dashboard The digital dashboard gives a quick view of revenue earned this year compared to last, number of new leads generated, top 5 products, sales per rep and regional sales. Sports AnalyticsAny professional team Consultants and specialists to look at various data to make a team more successful and recruit players that add to the team’s success. Coursera.comOnline education. “Take the world’s best courses, online, for free.” Video lectures and online assignments are offered for free. It costs a nominal fee for a certificate of completion. Boeing CorporationSAP System Integrated enterprise-wide information system that handles procurement, manufacturing, marketing, sales, employee benefits, accounting, finance…and just about every business function you can think of. ObamacareNational healthcare system for the United States Individual exchanges for each state in which people are required to register to insurance. Waze.comGeographic information system. App that provides mapping, traffic reporting and routing to avoid traffic. WireSharkNetwork Analyzer Software that helps users to examine network traffic to identify problems. AS-Software.comSonograms (ex. Seeing a fetus inside the mother’s womb)Specialized software for ultrasound reporting and image management, reporting and consultation.

Anthony’s Triangle Strategic Tactical Operational Transaction Processing Systems (TPS) for daily transactions of the business Management Information Systems (MIS) for decision making by middle management Executive Information Systems (EIS) for senior management decision making Convenient way to categorize and understand the purpose of different information systems in organizations:

Information System Components Several components work together to add value to an organization: 1.Hardware 2.SoftwareTechnology Related 3.Data 4.People 5.Process Roles

Technology Hardware – physical components Software – instructions that tell the physical components what to do – Operating systems – interacts with the hardware – Application software – interacts with the user Data – collection of facts Networks – allows the transmission and sharing of data

People Also known as users Person who uses and operates the computer or other machine All levels of the organization Can be your outside partners such as suppliers

Process Series of steps to achieve a desired outcome Benefits: – Increased productivity – Better decision making ability – Improved processes using available data Within the company Externally with suppliers and customers – Continuous improvement using technology – Competitive advantage

Information System History Mainframes Manufacturing Resource Planning Systems First microcomp uter (PC) Windows operating system Mid 1980s to early 1990s Client Server Networki ng ERP Mid 1990s to early 2000s World Wide Web Post early 2000s Web 3.0 now Mobile Computing Cloud Computing

Does IT Matter? Question posed by Nicholas Carr in Harvard Business Review: Information technology has become a commodity – Similar to a utility – Cost of doing business, not an investment What IT needs: – Managed to reduce costs – Ensure that it is always running – Risk-free as possible

Walmart’s Use of Information Systems Source: YouTube

Summary Defined what an information system is by identifying its major components Described the basic history of information systems; and Described the basic argument behind the article "Does IT Matter?" by Nicholas Carr