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Chapter 1 Why Information Systems Matter

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1 Chapter 1 Why Information Systems Matter www.pearsoned.ca/jessup
Bring out 2 copies of BW Get camera and pens Learn names Pad of yellow stickies Robert Riordan, Carleton University

2 Introduction Survey of majors Why in this class?
Want to be a business person, how can this class help you First job, someone asks your opinion on how to improve the company’s CRM What's a CRM? What does CRM do? What makes a good CRM? Personalize the material How this class relates to your goal of becoming a business professional Define Information Systems (IS) 2. Explain the technology, people, and organizational components 3. Describe the types of jobs and career opportunities in Information Systems and related fields 4. Describe the various types of Information Systems (IS) Describe the dual nature of Information Systems in the success and future of modern organizations 6. Understand and plan for the future of managing IS

3 Why Learn about Information Systems
Bring out 2 copies of BW and put yellow stick its in one , then do an easy bake oven trick and bring out one done already Information technology revolution is pervasive in everything we do and represent the engine underlying business productivity and success

4 Story of quaterback at Notre dame five flies flew off the kitchen table
Cant give you the math but can give you the logic of why info systems

5 Value of IS Knowledge in Different Careers
Accounting Use IS more than any other non IS field Finance Access to funds Where to invest ----Can be heavily analytical Marketing Sales force automation SFA Geographic IS CRM HR HRM , payroll, benefits Operations SCM CAD/CAM Media & Communications Intranets Digital rights management systems

6 Chips take 5 minutes to discuss
What is a system? What is a system University Body Car Chips take 5 minutes to discuss Earth Buddy Case Start a chip company

7 Chips case I have some capital and I like chips
Help me start a chip company

8 What is an Information System?
Combinations of hardware, software, and telecommunications networks that people build and use to collect, create and distribute useful data, typically in organizational settings. Input of Data Resources Processing Output of Information Products Control of System Performance Storage of Data Resources Describe some The university grades, financial, maintence, computer, etc Retail business system margin sales etc Input read barcode Process add up total scanned Output cash register receipt may be input into another system Feedback form to correct price reactive – oerder inventory proactive -forcasting How long have info systems been around Bible or pyramids Canada treaties Look at sytems as technical or behavoril or both sociotechnical

9 Information Systems: Turn Data into Information
Raw material Unformatted information Generally has no context Processed material Formatted information Data given context Individual time cards for factory workers entered into the payroll system Examples Department Labour Report, Project Status Report, Employee Payroll Checks

10 What are Computer Based Information Systems?
- A combination of technical components - Built and used by people to collect, create, and distribute useful data - Used typically in organizational settings but are evolving for personal use

11 How Levi’s Got Its Jeans into Wal-Mart
The Levi’s case offers a great business example of the successful SCM partnership between Levi’s and Wal-Mart Let your students know that you will be addressing the opening case throughout the text as the opening case questions are found at the end of each chapter in the Unit UNIT ONE OPENING CASE – Additional Case Information How Levi’s Got Its Jeans into Wal-Mart Wal-Mart is becoming more of a fashion retailer as the sluggish economy and changing priorities have forced families to become more price-conscious. Wal-Mart is expected to strengthen that reputation during the back-to-school season, powered by a deal with Levi Strauss & Co. that puts discount denim men's, women's, and children's lines into Wal-Mart stores. The partnership marks Levi's debut at a discount chain. The Levi's addition, along with Wal-Mart's makeover of its teen and preteen fashion areas, puts even more pressure on department and specialty stores that have lost back-to-school business to mass merchants. "Levi's will help identify us as a destination for credible fashion," said Celia Clancy, Wal-Mart's senior vice president of general merchandise and apparel. The Signature Levi's jeans are priced from $18 to $24. That is about 15 to 35 percent less than the $30 to $35 price for Levi's most popular basic jeans called The Red Tab. Besides adding Levi's, Wal-Mart has spruced up No Boundaries, its store brand for teens; expanded its Mary-Kate and Ashley label tied to the teenage TV celebrity Olsen twins; and brought in underwear that is more stylish. It soon will be adding a line of apparel linked to the Disney Channel's animated series "Kim Possible." Levi Strauss & Co. stated that its new relationship with Wal-Mart Stores Inc. is off to a healthy start -- enough so that the jeansmaker's new Signature brand being sold at Wal-Mart boosted Levi's overall third-quarter 2003 sales in line with expectations. Levi's profit nearly doubled during the quarter, to $26.7 million from $13.7 million last year, helped by currency fluctuations and decreased marketing and incentive-compensation costs.

12 High Flyers What existing information systems can you Identify?
What additional information systems would be beneficial?

13 What is the Data component of the IS?
People ATM Information Systems Hardware Telecommunications SIN Software The raw inputs for entry into information systems Organized, processed and stored by an IS to support user information needs Provides basis for qualitative/quantitative analysis Data vs Information Data is the raw material – recorded , unformatted info such as words and numbers – has no meaning in itself Information what does it mean nothing But format with dashes and put in field labelled SIN SIN all transactions for a given month – not eal useful Break it down bank customers vs non bank customers, time of day, amounts, type of transactions Knowledge gives info context ie sin # is unique to one individual Wisdom

14 Information Systems Components: Hardware
Data People Information Systems Hardware Telecommunications Software The physical components of information systems Hardware components include processors, input and output devices, and storage devices

15 Information Systems Components: Software
Data People Information Systems Hardware Telecommunications Software The instructions that operate the information system System software controls the hardware (e.g. Windows XP) Application software allows users to perform specific tasks to increase productivity (e.g. MS Word)

16 Information Systems Components: Telecommunications
Data People Information Systems Telecommunications Hardware Software The communication mechanism of information systems Allows two or more computers to communicate (Internet) Utilizes standard protocols for IS communication

17 Information Society Evolution: Terms and Issues
Knowledge Worker 1960 2000 Knowledge Worker (Peter Drucker 1959) Professionals that create, modify and/or synthesize information as a fundamental part of their job They will require higher education levels and received higher compensation than workers in agriculture or manufacturing At least 25% of all workers in Canada are knowledge workers

18 Information Society New Economy (Wired Magazine - Late 1990s)
1960 2000 New Economy (Wired Magazine - Late 1990s) Similar to “knowledge society” but more descriptive Describes a society where people use their brains more than their hands in their work and personal lives Where communications technology and other IT systems will create global competition for all products and services Other names: Digital Economy, Network Era, Internet Era

19 The New Economy (NE): Societal Perspectives
Perspective 1: Sims –Taylor The new economy creates risks for Knowledge Workers Knowledge workers will be the first to be replaced by automation with information technology Perspective 2: Rikfin The over reliance on information technology has caused society to act hastily The result has been a loss of perspective Perspective 3: THE DIGITAL DIVIDE Those with access to information technology have great advantages over those that don’t IT access will further polarize society

20 Executive Roles in Information Technology
Manages External Stakeholder Relationships Sets Strategic Direction Defines High Level IT Needs for the Future CEO Chief Executive Officer COO Chief Operations Officer CFO Chief Financial Officer CIO Chief Information Officer Manages Operations Allocates Resources Primary Consumer of IT within the Organization Manages Accounting & Finance Forecasts Needs and Secures Financial Resources Allocates Budget for IT Expenditures

21 Executive Roles in Information Technology
CEO Chief Executive Officer COO Chief Operations Officer CFO Chief Financial Officer CIO Chief Information Officer Manages IT Organization and Operations Forecasts IT Needs from Business Strategy Sets Direction for IT Architecture and Organization Plans, Designs and Delivers IT throughout the firm

22 Three Distinct Competencies of IS Professionals
Technical Knowledge of hardware, software, networking, and security Most IS professionals are not deep technical experts but can direct/manage others with the required technical skills Business Understand the nature of business including process, management, social, and communication domains Unique skills over those with only technical skills Systems Knowledge of approaches and methods, also possess critical thinking and problem solving skills necessary to build and integrate large information systems Unique skills over those with only technical skills

23 Levels of the Organization and Traditional Systems
Executive Information Systems Management Information Systems Unstructured EIS Semi structured MIS Structured - TPS Transaction Processing Systems

24 Traditional Information System Functions
Transaction Processing Systems Management Information Systems Executive Decision Support Systems Expert Systems Functional Area Process day-to-day business event data in an organization (Operational level) Produce detailed information to help manage a firm or part of a firm (Managerial) Provide very high-level, aggregate information to support decisions (Executive) Provide analysis tools and databases to support quantitative decision making (Multiple) Mimic human expert in a particular area and provide answers or advice (Operational) Support the activities within a specific functionalarea of the firm (All)

25 Other Information Systems - Not as Easy to Categorize
Office Automation System Collaboration System Customer Relationship Management Electronic Commerce Enterprise Resource Planning System Support a wide range of predefined, daily work activities of individuals or groups (e.g. MS Word) Enable people to communicate, collaborate, and coordinate with each other (e.g. ) Support the interaction between the firm and its customers (e.g. sales force automation or call center technology) Enable customers to buy goods and services from a firm’s website. ( Support and integrate all facets of the business (e.g. planning, manufacturing, sales, etc.)

26 IS Competitive Advantage Perspectives: Who is Right?
“IT Doesn’t Matter” - Carr 2003 As IT becomes more pervasive, technology becomes more standardized and ubiquitous The result is that the same technologies are available to all competitors in an industry This produces no competitive advantage “The Engine that Drives Success: The Best Companies have the Models Because they Have the Best IT Strategies” - Lundberg 2004 Companies with bad business models fail regardless of IT systems or other capabilities Companies with good business models use IT to execute successful business models and succeed

27 Competitive Advantage: Dual Nature of Systems
FedEx Customer Website versus Denver International Airport Baggage System IS that works (FedEx) IS gone wrong (DIA) Evaluation Factors Strategic in Nature Established Technology Capable Suppliers Structured Implementation Capable IS Support Yes Yes No ??

28 Organizational IT Roles
Central IT Organization Responsible for IT Planning Coordinates implementations Establishes organization’s IT methods and standards IT Business Unit Support Liaison between Central IT and the Business Unit Spends much time onsite at the Business Unit Reports to both orgs Business Unit Responsible for determining IS business requirements Supply budget and personal resources for implementations

29 The Future of Information Systems: Trends
Ownership and Control (Old School IS) Large backlogs of user requests…very poor service Arrogance and feeling of ownership and control of IT Can’t do attitude…told users why they couldn’t do things Resulted in a very poor relationship with users T H E N Business managers became technology savvy Systems evolved and became easier to develop Business organizations developed their own systems Consulting and Service Mentality (New School IS) IS is taking on an IT consulting role “Service Mentality”…users are customers to be served Proactively support and problem solve for their customers Fundamentally believe that customers own the technology

30 IS Role in Change: Trends and Terms
Downsizing (Sometimes called Rightsizing) Reducing organizational headcount to meet the financial goals of the organization IS is viewed as the lever to provide the systems necessary to increase productivity Outsourcing Transferring business functions outside the organization to increase service levels and/or reduce operating cost IS is not immune to this trend. Certain commodity IS technical jobs will be increasingly transferred overseas IS must find better methods to manage offshore work

31 The Future for IS IS needs will continue to grow as technology developments advance Although outsourcing will continue, there will be strong demand for IS professionals There is a need for personnel that can speak the language of technology and business and the skills to manage projects and people Characteristics for success include: continuous learning and growth, finding new ways to add value, flexibility, and developing unique skills

32 Edible Arrangements Edible Arrangements List and define four systems that you think are or have been critical to this organizations’ success? Production systems Financial systems Inventory systems Marketing systems E-commerce

33 S1--Passwords & Password Etiquette
What makes a strong password Make it lengthy. 8 or more characters in length Do not use name, real name, or company name No complete dictionary word in any language Different from other passwords you have used Upper and lower case, numbers & Symbols examples of good ones Qw37>T1bb?at or 3B47qq<3>57b Problem is “who can remember them?” Make it lengthy. Each character that you add to your password increases the protection that it provides many times over. Your passwords should be 8 or more characters in length; 14 characters or longer is ideal. Many systems also support use of the space bar in passwords, so you can create a phrase made of many words (a "pass phrase"). A pass phrase is often easier to remember than a simple password, as well as longer and harder to guess. Combine letters, numbers, and symbols. The greater variety of characters that you have in your password, the harder it is to guess. Other important specifics include: •The fewer types of characters in your password, the longer it must be. A 15-character password composed only of random letters and numbers is about 33,000 times stronger than an 8-character password composed of characters from the entire keyboard. If you cannot create a password that contains symbols, you need to make it considerably longer to get the same degree of protection. An ideal password combines both length and different types of symbols.•Use the entire keyboard, not just the most common characters. Symbols typed by holding down the "Shift" key and typing a number are very common in passwords. Your password will be much stronger if you choose from all the symbols on the keyboard, including punctuation marks not on the upper row of the keyboard, and any symbols unique to your language.Use words and phrases that are easy for you to remember, but difficult for others to guess. The easiest way to remember your passwords and pass phrases is to write them down. Contrary to popular belief, there is nothing wrong with writing passwords down, but they need to be adequately protected in order to remain secure and effective. In general, passwords written on a piece of paper are more difficult to compromise across the Internet than a password manager, Web site, or other software-based storage tool, such as password managers.

34 S1--Passwords & Password Etiquette cont.
One technique 1st letter of each word of a memorable phrase I was born in Lethbridge Alberta in 1980 IwbiLAi1980 Better yet -- I was born before 12:00 in Lethbridge Alberta in 1980 Iwb<12:00iLAi1980 Once created, your password needs to be protected Never write it down Do not share with others, don’t ask someone for theirs and never give yours to someone else Swap chairs, don’t let someone else type for you Look in another direction, when others typing


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