1. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved Chapter 1 Business Driven Technology

2. 1-2 Learning Outcomes Compare management information systems (MIS) and information technology (IT) Describe the relationships among people, information technology, and information

3. 1-3 Learning Outcomes Identify five different departments in a typical business and explain how technology helps them to work together Compare the four different types of organizational information cultures and decide which culture applies to your school

4. 1-4 What is an information system? A system is a group of components that interact to achieve some purpose An information system (IS) is a group of components that interact to produce information Five fundamental components of computer-based information systems are: 1.Computer hardware 2.Software 3.Data 4.Procedures 5.People

5. 1-5 Five Components of an Information System

6. 1-6 Data: Streams of raw facts representing events before they have been organized into form that people can understand, such as business transactions Information: data that has been processed in some way to be meaningful and useful to human beings in processes such as making decisions Definitions

7. 1-7 DATA vs. INFORMATION Raw facts Represent events E.g. sales from a cash register Organized data Meaningful to people E.g. sales trends, comparison of brands

8. 1-8 Example of Data vs Information

9. 1-9 Data vs. Information Information has some context, data does not Information allow one or more questions to be answered Data Information

10. 1-10 Knowledge Knowledge is information that has been input to, perceived by, and stored by a human brain. Knowledge only exists inside a human brain. Information exists outside of human brains and exists whether any human perceives the information or not, and so do data. Data  Information  Knowledge

11. 1-11 Organizations Major Business Functions Organizations perform core functions: –Sales and marketing Selling the products and services –Manufacturing Producing products and services –Finance Managing financial assets (cash, stocks, bonds,…) –Accounting Maintaining financial records (receipts, paychecks, …) –Human resources Attracting, developing labor force

12. 1-12 Information Technology’s Impact on Business Operations

13. 1-13 Information Technology’s Impact on Business Operations

14. 1-14 Information Technology’s Impact on Business Operations

15. 1-15 Information Technology’s Impact on Business Operations Organizations typically operate by functional areas or functional silos Functional areas are interdependent

16. 1-16 Information Technology Basics Management information systems (MIS) – a general name for the business function and academic discipline covering the application of people, technologies, and procedures to solve business problems MIS is a business function, similar to Accounting, Finance, Operations, and Human Resources

17. 1-17 Enroll in Course: 10 years ago StudentProfessorRegistrar Select Courses Reg. Form Wait in line, usually in rain. Line up for professor Registration open yet? Need another course? Y N Y Review request Determine if prereqs. met met Determine if space available in sections) taught sections) taught Can student enroll? Reg. Form N Enroll student, update form Reg. Form Y N Bring completed form to registrar table Review forms for issues/errors Reg. Form Y N Key registratio n data into computer Reg. Form Form OK?

18. 1-18 Example of MIS Enroll in Course: Banner StudentBanner Select Courses (online) Sit at computer. Sip coffee. Supply user name and password Registration open yet? Y N Authenticat e user Input requested courses Check that student has prereqs Check availability in requested sections Present student results of course requests Need more courses? Y N Record results in database

19. 1-19 Information Technology Basics Information technology (IT) – a field concerned with the use of technology in managing and processing information Information technology is an important enabler of business success and innovation

20. 1-20 Information Technology Basics When beginning to learn about information technology it is important to understand –Data, information, and business intelligence IT resources –IT cultures

21. 1-21 Information Data - raw facts that describe the characteristic of an event Information - data converted into a meaningful and useful context Business intelligence – applications and technologies that are used to support decision-making efforts

22. 1-22 Data, Information, and BI Data in an Excel Spreadsheet

23. 1-23 Data, Information, and BI Data turned into information

24. 1-24 Data, Information, and BI Information turned into Business Intelligence

25. 1-25 INPUTOUTPUTPROCESS FEEDBACK Activities in an Information System Store (data)

26. 1-26 Definitions: Input: The collection of raw data from within the organization or from its external environment for processing in an information system. Processing: The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans. Output: The distribution of processed information to the people who will use it or to the activities for which it will be used. Feedback: Output that is returned to the appropriate members of the organization to help them evaluate or correct input or processing.

27. 1-27 Functions of an Information Systems

28. 1-28 Systems view of IS Input-process-output

29. 1-29 Information Systems are more than computers

30. 1-30 IT Cultures Organizational information cultures include: –Information-functional culture –Information-sharing culture –Information-inquiring culture –Information-discovery culture

31. 1-31 Tools managers use to cope with change: Hardware: Physical equipment Software: Detailed preprogrammed instructions Storage: Physical media for storing data and the software Communications Technology: transfers data from one physical location to another Networks: link computers to share data or resources Information Technology

32. 1-32 Putting Things in Context

33. 1-33 Bottom-line IT = Hardware + Software IS = IT + People + Procedures