1. MIS INFORMATION SYSTEMS: AN OVERVIEW TJX Credit Card Breach
CHAPTER 1
INFORMATION SYSTEMS: AN OVERVIEW
TJX Credit Card Breach
Hossein BIDGOLI
Fed Ex
Knowledge Workers
Cyrus
NFL Coaches
Herrs chips

2. Chapter 1 Information Systems: An Overview
l e a r n i n g o u t c o m e s
LO1 Discuss common applications of computers and information systems.
LO2 Explain the differences between computer literacy and information literacy.
LO3 Define transaction processing systems and management information systems.
LO4 Describe the four major components of an information system.
LO5 Discuss the differences between data and information.

3. l e a r n i n g o u t c o m e s (cont’d.)
Chapter 1 Information Systems: An Overview
l e a r n i n g o u t c o m e s (cont’d.)
LO6 Explain the importance and applications of information systems in functional areas of a business.
LO7 Discuss how information technologies are used to gain a competitive advantage.
LO8 Explain the Five Forces Model and strategies for gaining a competitive advantage.
LO9 Summarize the future outlook of information systems.

4. 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

5. 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

6. 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

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

8. Chips take 5 minutes to discuss
Chip Factory
What is a system?
What is a system
University
Body
Car
Chips take 5 minutes to discuss

9. 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

10. Knowledge Worker Knowledge Workers
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 35% of all workers in Canada are knowledge workers
As a knowledge worker of the future, computers and information technology will help you be more effective and productive, no matter what profession you choose.

11. Computers and Information Systems in Daily Life
Computers and information systems are all around you
Online classes
Grading
Grocery and retail
PDA and smartphones
Internet
“Information systems” versus “information technology”
the terms “information systems” and “information technologies” are used interchangeably.
Information systems are broader in scope than information technologies, but the two overlap in many areas. Both are used to help organizations be more competitive and improve their overall efficiency and effectiveness. Information technologies offer many advantages for improving decision making but involve some challenges, too, such as security and privacy issues. The information box on TJX Companies is an example of potential challenges.

12. TJX Companies, Inc.: Credit Card Breach
January 2007
Identity thieves stole more than 46.5 million credit cards
Used sophisticated hacking techniques to break through security systems
Stored the stolen information on servers in Eastern Europe and the United States
Shows the international nature of cybercrime
TJX Credit Card Breach

13. Computer Literacy and Information Literacy
Having skills in using productivity software
Information literacy
Understanding the role of information in generating and using business intelligence
Business intelligence (BI)
Provides historical, current, and predictive views of business operations and environments
Gives organizations a competitive advantage in the marketplace
Computer literacy is having skills in using productivity software, such as word processing, spreadsheet, database management systems, and presentation software, and having a basic knowledge of hardware and software, the Internet, and collaboration tools and technologies. Information literacy, on the other hand, is understand-ing the role of information in generating and using business intelligence. Business intelligence ( BI) is more than just information. It provides historical, cur-rent, and predictive views of business operations and environments and gives organizations a competitive advantage in the marketplace.

14. The Beginning: Transaction Processing Systems
Transaction processing systems (TPSs)
Focus on data collection and processing,
Cost reduction
Operations repetitive
Human involvement minimal
for the past 60 years, transaction processing systems ( TPSs) have been applied to structured tasks such as record keeping, simple clerical operations, and inventory control. Payroll, for example, was one of the fi rst applications to be auto-mated. TPSs focus on data collection and processing, and the major reason for using them is cost reduction. Computers are most beneficial in transaction processing operations. These operations are repetitive, such as printing numerous checks, or involve enormous volumes of data, such as inventory control in a multi-national textile company. When these systems are automated, human involvement is minimal. For example, in an automated payroll system, there’s little need for managerial judgment in the task of printing and sending checks, which reduces personnel costs.
Fed Ex

15. Management Information Systems
Management information system (MIS)
Designed to produce timely, integrated, relevant, accurate, and useful information
For decision-making purposes
Used in both the private and public sect
Many organizations use information systems to gain a competitive advantage
( MIS) is an organized integration of hardware and software technologies, data, processes, and human elements designed to produce timely, integrated, relevant, accurate, and useful information for decision- making purposes.
The hardware include input, output, and memory devices and vary depending on the application and the organization. MIS software,, can include commercial programs, software developed in- house, or both. The application or organization determines the type of software used.
Processes are usually methods for performing a task in an MIS application. The human element includes users, programmers, systems analysts, and other technical personnel. This book emphasizes users of MISs.

16. Major Components of an Information System
Data
Database
Process
Information

17. Data Data Sources of data Time orientation
Input to the system
Sources of data
External
Internal
Time orientation
Can be collected in different forms
Aggregated
Disaggregated
SIN
ATM
external data sources:
Customers, competitors, and suppliers
Government agencies and financial institutions
Labor and population statistics
Economic conditions
Typically, data has a time orientation, too. For example, past data is collected for performance reports, and current data is collected for operational reports. In addition, future data is predicted for budgets or cash flow reports

18. Database Database Essential for the success of any information system
Heart of an information system
Collection of all relevant data organized in a series of integrated files
Essential for the success of any information system
Managed with database management system (DBMS): e.g., Oracle
Reduces personnel time needed to gather, process, and interpret data manually
A database, the heart of an information system, is a collection of all relevant data organized in a series of integrated fi les.
A comprehensive database is essential for the success of any information system. To create, orga-nize, and manage databases, a database management system ( DBMS) is used, such as Microsoft Access or FileMaker Pro for home or small- office use. In a large organization, a DBMS, such as Oracle or IBM DB2, might be used.
Databases are also important for reducing person-nel time needed to gather, process, and interpret data manually. With a computerized database and a DBMS, data can be treated as a common resource that’s easy to access and use.

19. Process
Process
Generates the most useful type of information for decision making
Generally includes transaction-processing reports and models for decision analysis
Includes a wide range of models to support all levels of decision making
The purpose of an information system's  process  component is generating the most useful type of information for decision making. This component generally includes transaction-processing reports and models for decision analysis that can be built into the system or accessed from external sources.
An information system can include a wide range of models to support all levels of decision making. Users should be able to query an information system and generate a variety of reports. In addition, an information system should be able to grow with the organization so that users can redefine and restructure models and incorporate new information into their analyses.

20. Information Information Quality of information
Output of an information system
Facts that have been analyzed by the process component
Quality of information
Timeliness
Integration with other data and information
Consistency and accuracy
Relevance
The quality of information is determined by its usefulness to users, and its usefulness determines the success of an information system. Information is useful if it enables decision makers to make the right decision in a timely manner. To be useful, information must have the following qualities: • Timeliness • Integration with other data and information • Consistency and accuracy • Relevance If information lacks any of these qualities, the results are incorrect decisions, misallocation of resources, and overlooked windows of opportunity. If the system can’t give users a minimum level of confidence in its reliability, it won’t be used or users might dismiss the reports it generates. Information must provide a base for users to explore different options or gain insight into tasks. Another factor affecting the usefulness of informa-on is the information system’s user interface. Because this interface must be flexible and easy to use, most information systems make use of graphical user interfaces ( GUIs), with features such as menus and buttons. To be useful, informa-tion systems should also produce information in different formats, including graphics ( pie charts and bar graphs, for example), tables, and exception reports, which highlight data that is outside a specified range

21. Information (cont’d.) User interface
Must be flexible and easy to use
Graphical user interfaces (GUIs)
Ultimate goal of an information system
Generate business intelligence (BI)
. Supplying information in a variety of formats increases the likelihood of users understanding and being able to use the information. Note that in addition to the formal information that an information system gener-ates, users need to be able to make use of informal information, such as rumors, unconfi rmed reports, and stories, when solving problems.
The ultimate goal of an information system is to generate business intelligence ( BI), described earlier in this chapter. As you’ll learn throughout this book, many different tools, techniques, and types of information system technologies are used to generate BI.

22. Example of Information Systems
a university
The university stores all student data in a database
Built-in query capability
Other types of analysis can be done
A state university stores all student data in a database. The collected data includes each student’s first name, last name, age, gender, major, nationality, and so forth. The process component of the information system performs all sorts of analysis on this data. For example, the university’s DBMS has a built- in query capability that can generate the following information:
• How many students are in each major? • Which major is the fastest growing? • What is the average student age? • Among the international students, which country represents the highest number of students? • What is the ratio of male to female students in each major? Many other types of analysis can be done. A fore-casting model ( part of the process component) could be used to generate the estimated number of students for 2015, for instance.

23. Using Information Systems and Information Technologies
Achieve goals of information systems
Examples
Internet
Databases
POS Systems
RFID tags

24. Information Technologies at Home Depot
POS system
Fast customer service
Improved inventory management
Wireless network
Efficient in-store communication
Web site
Communicate with customers
Increase sales with online orders
RFID tags
Better manage inventory
Information Technologies at Home Depot Home Depot revolutionized the do- it- yourself home improvement industry in the United States. Its stores use a POS system4 for fast customer service and improved inventory management and a wireless network for effi cient in- store communication. Home Depot also has a Web site to communicate with customers and increase sales with online orders and uses RFID tags to better manage inven-tory and improve the effi ciency of its supply chain network. Home Depot maintains a high- speed network connecting its stores throughout the United States and Canada and uses a data warehousing application to analyze variables aff ecting its success— customers, competitors, products, and so forth. 5 The information system gives Home Depot a competitive advantage by gathering, analyzing, and using information to better serve customers and plan for customers’ needs.

25. The Importance of Information Systems
Second most important resource in any organization
Four Ms of resources:
Manpower >> Personnel info system
Machinery >> Manufacturing Info System
Materials >> Logistics info system
Money >> Financial Info system
Personnel information system (PIS) or human resource information system (HRIS)
Designed to provide information that helps decision makers in personnel carry out their tasks more effectively
Use Web technologies
Logistics information system (LIS)
Designed to reduce the cost of transporting materials
Maintains safe and reliable delivery
Manufacturing information system (MFIS)
Manages manufacturing resources
Companies can reduce manufacturing costs, increase product quality, and improve inventory decisions

26. six major roles and goals of IT
1. Increase employee productivity by reducing time, errors and costs using
2. Enhance decision making
3. Improve team collaboration
4. Create business partnerships and alliances
5. Enable global reach all over the world taking into consideration the culture of each nation or society.
6. Facilitate organizational transformation as the organization evolves and responds to the ever-changing marketplace.

27. Competitive advantage
1831
Cyrus McCormick
Competitive advantage
Significant, long-term benefit to a company over its competition
Ability to establish and maintain a competitive advantage is vital to a company’s success
CLASSROOM OPENER
GREAT BUSINESS DECISIONS – Cyrus McCormick’s Reaper
On a hot summer day in 1831, several dozen farmers and hired laborers gathered in a wheat field in Virginia to watch a horse-drawn wood-and-iron device mow down rows and rows of golden wheat. On this day, twenty-two-year-old Cyrus McCormick demonstrated the reaper that his father invented and changed history as the mechanization of farming began. Soon the process of industrialization began, which turned the nation’s economy into the world’s most productive workforce. As the historian William Hutchinson noted, “Of all the inventions during the first half of the nineteenth century which revolutionized agricultures, the reaper was probably the most important.”
Interestingly, the McCormicks were not the only individuals to build and develop a reaper. In fact, many other companies and individuals developed similar technology; however, Cyrus McCormick invented the business of making reapers and selling them to the farmers of America and foreign countries. His real genius was in the area of gaining and protecting patents for his technology. McCormick turned the reaper into a commercially viable product and introduced many new business practices including free trials, money-back guarantees, and installment payment plans.
Went on to become International harvester

28. NFL Coaches
NFL Coaches
What sources of competitive advantage can you identify the New England Patriots have by using information technology?
Are these long term, sustainable competitive advantages?
From our list of Roles and goals of Technology, what does the IS of the NFL do?

29. Using Information Technologies for a Competitive Advantage
Michael Porter
Professor at Harvard Business School
Identified three strategies for competing in the marketplace successfully
Overall cost leadership
Differentiation
Focus

30. Using Information Technologies for a Competitive Advantage
Amazon.com
Wal-mart
Differentiation strategies
Make products and services different from competitors
Examples: Apple, Amazon.com
Focus strategies
Concentrate on a specific market segment
Attempt to achieve a cost or differentiation advantage
Examples: Apple, Abercrombie & Fitch, Nordstrom
La Quinta
Nordstom

31. Porter’s Five Forces Model: Understanding the Business Environment
Michael Porter
For analyzing an organization, its position in the marketplace, and how information systems could be used to make it more competitive
Buyer power
Supplier power
Threat of substitute products or services
Threat of new entrants
Rivalry among existing competitors

32. THE FIVE FORCES MODEL – analyze competitive forces in an Industry
How IS can have a factor in the industry
Switching costs
Buyer power – high when buyers have many choices of whom to buy from and low when their choices are few
Loyalty programs
Supplier power – high when buyers have few choices of whom to buy from and low when their choices are many
Business-to-Business (B2B) marketplace catapillar
Threat of substitute products or services – high when there are many alternatives to a product or service and low when there are few alternatives from which to choose
Switching costs – costs that can make customers reluctant to switch to another product or service
-- HP inkjets
Threat of new entrants – high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market
ATM
Rivalry among existing competitors – high when competition is fierce in a market and low when competition is more complacent
B2B marketplace
Loyalty programs
Ex ATM

33. The IT Job Market Chief Technology Officer
Manager of Info System Services
Systems Analyst
Network Administrator
Database Administrator
Computer Programmer
Webmaster

34. UTZ Chips case Answer the following
Analyze the industry that UTZ is in using the porter five forces model, is it a good industry to be in?
What competitive advantage do you feel Utz has? ( which generic strategy) How does information play into that competitive advantage
After maybe talk about personal competitive advantage

35. THE FIVE FORCES MODEL – analyze competitive forces in an Industry
How IS can have a factor in the industry
Buyer power – high when buyers have many choices of whom to buy from and low when their choices are few
Loyalty programs
Supplier power – high when buyers have few choices of whom to buy from and low when their choices are many
Business-to-Business (B2B) marketplace catapillar
Threat of substitute products or services – high when there are many alternatives to a product or service and low when there are few alternatives from which to choose
Switching costs – costs that can make customers reluctant to switch to another product or service
-- HP inkjets
Threat of new entrants – high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market
ATM
Rivalry among existing competitors – high when competition is fierce in a market and low when competition is more complacent

36. Herrs chips
Strategy

37. Summary Examples of uses for computers and information systems
Difference between computer literacy and information literacy
Management information system (MIS)
Data, database, process, and information
Porter
Three competitive strategies
Five Forces Model