Abacus 1886 – Punch-cards  Used in 1890 for US Census 1945 – ENIAC 1947 – EDVAC/UNIVAC 1971 – Intel released first microprocessor (CPU) 1975 – Apple Computer (Steve Jobs and Steve Wozniak) – Microsoft (Paul Allen and Bill Gates) History of Computers

Information Systems Definition from book: – An information system is a set of interrelated components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

Organization Structure Any Company, USA. IT Accounting Marketing FinanceSales Operations CIO Levels of Mgmt. Systems Analyst, Programmers DBA LAN Administrator

The value of information is directly linked to how it helps decision makers achieve the organizations goals Data vs. Information – Data: Raw facts – Information: Processed Data Knowledge: need to process the data to get meaningful, useful, valuable information

Valuable Information Accurate (GIGO) Economical Secure Reliable Accessible Simple Verifiable Complete Flexible Timely Relevant

Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, an organization that reaches its goals and a society with a higher quality of life E–commerce Transaction Processing Systems (TPS) Management Information System (MIS) Decision Support System (DSS) Artificial Intelligence Expert Systems Virtual Reality

Information Systems add value to an organization and its process Primary Goal of any organization: Provide value to stakeholders (customer, supplier, manager, or employee) Value Chain Inbound logistics Marketing, sales Customer Service Outbound logistics Warehouse, storage Finished product storage Production

Because Information Systems are so important, businesses need to be sure that improved or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage

Five-Force Model Factors that lead firms to seek a competitive advantage 1. Rivalry among existing competitors 2. Threat of new entrants 3. Threat of substitute products and services 4. Bargaining power of customers 5. Bargaining power of suppliers

Strategies for a Competitive Advantage Altering the industry structure Creating new products and services Improve existing product lines and services Use of information systems throughout the strategies above

Business Use of IS 1 st Stage – 1960’s Cost Reduction/Productivity 2 nd Stage – 1980’s Gaining a competitive advantage 3 rd Stage – Current Performance-based – Strategic advantage, cost – Productivity, quality, return on investment

3 rd Stage: Performance-based Productivity Output achieved / Input required Quality Ability of a product to meet or exceed customer expectations Return on Investment Earnings growth Market share Customer awareness & satisfaction Total cost of ownership