Presentation on theme: "Introduction to Information Systems Lecture 01"— Presentation transcript:
1 Introduction to Information Systems Lecture 01 Foundations of IS in BusinessJaeki Song
2 Learning ObjectivesUnderstand the concept of a system and how it relates to information systems.Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business.Become familiar with the myriad of career opportunities in information systems.
3 Why study Information Systems and Information Technology? Vital component of successful businessesHelps businesses expand and competeBusinesses use IS and ITTo improve efficiency and effectiveness of business processesFor managerial decision makingFor workgroup collaboration
4 What is an Information System? A systemIs a set of interrelated componentsWith a clearly defined boundaryWorking together to achieve a common set of objectivesIS can be any organized combination ofPeople, hardware, software, communications networks, data resources, and policies and proceduresThat stores, retrieves, transforms, and disseminates information in an organization
5 Information System (IS) versus Information Technology (IT) IS is all the components and resources necessary to deliver information and functions to the organizationIT is hardware, software, networking and data managementIn theory, IS could be paper basedWe will focus on Computer-Based Information Systems (CBIS)
6 Key QuestionsHow does the management of IT differ in scope and complexity from the other business functions?Why does the view of IT by IT executives differ form the views of other business executives?What has to be done to better manage the IT resource?What are some of the key issues in the management of IT organizations?Why is the successful management of IT important?
7 Primary Purpose of ITIT is important and necessary for a successful organizationAs will be argued throughout the course/semester, successful management of IT is necessary for competitive advantage
8 Management of IT Strategic Tactical Operational Pertinent to long-term attainment of goals and business as a wholeTacticalNeeded to achieve strategic plans and goals to produce changes for successOperationalProcess and actions that must be performed on a day-to-day basis to maintain performance level
9 Role of IT Traditional view Emerging views Supporting function No longer just serves a businessEmerging viewsIntegral in business strategyImpacts every area of businessComplexity increasesHow does IT function vis-à-vis the entire organizationResponsible for the integration of information
10 E-Biz and Globalization Enabler All aspects of IT are more externally visibleServe as mediator among various functionsDisintermediation, Reintermediation (Insurance, banking), Hypermediation (Internet service provider), InfomediationGlobalizationExpands business presence beyond bordersIT maintenance of Infrastructure and Technologies
11 Gap Between IT and Business IT/Business alignment criticalAlignmentApplication of IT in an appropriate and timely manner, in harmony with business goals, strategies, and needs
12 IT vs. Other Functions Encompasses entire enterprise Affects all business functionsExtends beyond business boundariesAffects every level of managementImpact affects entire value chain, including suppliers and customersCreates synergy between departments
13 IS Knowledge Framework for Business Professionals
14 What should a Business Professional know about IS? Foundation Concepts: fundamental behavioral, technical, business and managerial conceptsInformation Technology: Hardware, software, networks, data management and Internet-based technologyBusiness Applications: Major uses of the IS in the organizationDevelopment Processes: How to plan, develop and implement IS to meet business opportunitiesManagement Challenges: The challenges of effectively and ethically managing IT
15 What does IS do for a business? Examples of business processes: record purchases, track inventory, pay employees, etc. Business would stop without such IS.Examples of decision making: what lines of merchandise need to be added, what kind of investment required.Examples of competitive advantage: put kiosk in store to connect to e-commerce website. Help gain advantage over competitor without such a kiosk.
16 Business Applications expanding role over time Note that while IS has expanded, they are still doing the same basic things that they’ve been doing.What has changed is: more integration of functions, greater connectivity across components, better use for maximum advantage of business and strategic opportunities
17 What is E-business? The use of Internet technologies to work and empower business processes, electronic commerce, and enterprise collaborationwithin a company and with its customers, suppliers, and other business stakeholders.An online exchange of value.
19 E-business use Reengineer internal business processes Enterprise collaboration systems: support communications, coordination and collaboration among teams and work groups, e.g., virtual teamsElectronic commerce: buying, selling, marketing and servicing of products and services over computer networks
21 Operations support systems What are they?Efficiently process business transactionsControl industrial processesSupport communications and collaborationUpdate corporate databases
22 Types of Operations Support Systems Transaction Processing SystemsRecord and process data from business transactionsExamples: sales processing, inventory systems, accounting systemsProcess Control SystemsMonitor and control physical processesExample: in a petroleum refinery use sensors to monitor chemical processesEnterprise Collaboration SystemsEnhance team and work group communicationsExamples: , videoconferencing
23 Two ways to process transactions Batch Processing:Accumulate transactions over time and process periodicallyExample: a bank processes all checks received in a batch at nightOnline Processing:Process transactions immediatelyExample: a bank processes an ATM withdrawal immediately
24 Management Support Systems What are they?Provide information and support for effective decision making by managers
25 Types of Management Support Systems Management Information Systems (MIS)Provide reports and displays to managersExample: daily sales analysis reportsDecision Support Systems (DSS)Provide interactive ad hoc support for decision makingExample: A what-if-analysis to determine where to spend advertising dollarsExecutive Information Systems (EIS)Provide critical information for executives and managersExample: easy access to actions of competitors
26 Operational or Management Systems Expert SystemsProvide expert adviceExample: credit application advisorKnowledge Management SystemsSupport creation, organization and dissemination of business knowledge throughout companyExample: Intranet access to best business practicesSupport either operations or management applications
27 Classifications of IS by scope Functional business systemsFocus on operational and managerial applications of basic business functionsExamples: support accounting, finance or marketingStrategic information systemsHelp get a strategic advantage over its customersExamples: shipment tracking, e-commerce web systemsCross-functional information systemsSystems that are combinations of several types of information systemsProvide support for many functionsIn reality most systems are Cross-functional
29 Measuring success of an IS EfficiencyMinimize cost, time and use of information resourcesEffectivenessSupport business strategiesEnable business processesEnhance organizational structure and cultureIncrease the customer and business value
32 Ethical responsibilities What uses of IT might be considered improper or harmful to other individuals or society?What is the proper business use of the Internet or a company’s IT resources?How can you protect yourself from computer crime?What uses of IT might be considered improper or harmful to other individuals or society? Improper uses might include collecting data that you don’t need, not protecting personal customer data, etc.What is the proper business use of the Internet or a company’s IT resources? Is it proper to use the company’s computers to surf the web, send personal , etc.How can you protect yourself from computer crime? Virus and spam protection, never replying to phishing, etc.
33 IT CareersOutsourcing of basic programming to India, the Middle-East and Asia-Pacific countriesStrong employment opportunities in other areas in ISShortage of qualified IS personnelLong-term job outlook positive and exciting
35 Job growth Among the fastest growing occupations through 2012 Systems Analyst,Database administrators,Other managerial-level positionsNetwork specialistsInformation security
36 What is a system? A system Is a set of interrelated components With a clearly defined boundaryWorking together to achieve a common set of objectivesBy accepting inputs and producing outputs in an organized transformation processRepeating definition from earlier but adding accepting inputs, producing outputs, and transformation
37 Systems have three basic functions: Input involves capturing and assembling elements that enter the system to be processedProcessing involves transformation process that convert input into outputOutput involves transferring elements that have been produced by the transformation process to their ultimate destination
38 A business as a systemA business can be viewed as a system. This system does not operate in a vacuum rather it functions in an environment containing other systems. A business is an open system in that it interacts with other systems in the environment. It is also an adaptive system in that it can change itself or its environment in order to survive.
39 Information systems model Major components of an information: people, hardware, software, data and networks.These components perform input, processing, output, storage, and control activities.
40 Components of an IS People Hardware Resources Software Resources End users: the people who use the IS or the information from the ISIS specialists: the people who develop and operate ISHardware ResourcesAll physical devices used in information processingMachines, data media, peripheralsSoftware ResourcesAll information processing instructions including programs and proceduresSystem software, application software and proceduresHardware:Peripherals include keyboard, mouse, video screen, printer
41 Components of an IS (cont.) Data ResourcesFacts about the business transactionsProcessed and organized informationDatabases of organized dataNetwork ResourcesCommunications mediaNetwork infrastructure: hardware and softwareThe Internet, intranets and extranetsCommunications media: twisted pair wire, coaxial cable, wireless technologies
42 Data versus Information Data are raw facts about physical phenomena or business transactionsInformation is data that has been converted into meaningful and useful context for end usersExample:Sales data is names, quantities and dollar amountsSales information is amount of sales by product type, sales territory or salesperson
43 IS Activities Input of data resources Data entry activitiesProcessing of data into informationE.g., calculate, compare, sort, classify, summarizeOutput of information productsMessages, reports, forms and graphic imagesStorage of data resourcesData elements and databasesControl of system performanceMonitoring and evaluating feedback
44 Recognizing ISAs a business professional, you should be able to look at an IS and identifyThe people, hardware, software, data and network resources they useThe type of information products they produceThe way they perform input, processing, output, storage and control activities
45 Management Concerns Rankings IT and business alignment IT strategic planningSecurity and privacyRetaining IT professionalsMeasuring the value of IT investmentMeasuring the performance of ITCreating an information architectureComplexity reductionsSpeed and agilityIT governance
46 Management Concerns Rankings BPR Introducing rapid business solutions Evolving CIO leadership roleIT asset managementManaging outsourcing readershipLeveraging the legacy investment…GlobalizationOffshore outsourcingSocietal implication of IT