1. Announcement
This is BISI 3230 Management Information Systems session 01.
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Course materials:

2. Business Information Systems in Your Career
Chapter 1
Business Information Systems in Your Career

3. Introduction Information system (IS)
Set of interrelated components: collect, manipulate, disseminate data and information
Provide feedback to meet an objective
Examples: ATMs, airline reservation systems, course reservation systems

4. What Is an Information System?
The Components of an Information System

5. Computer-Based Information Systems
Manual versus computerized information systems
Computer-based information system (CBIS)
Hardware, software, databases, telecommunications, people, and procedures
Collect, manipulate, store, and process data into information

6. Computer-Based Information Systems (continued)
The Components of a Computer-Based Information System

7. Information Concepts: Data Versus Information
Data: raw facts
Alphanumeric, image, audio, and video
Information
Organized collection of facts
Have value beyond the facts themselves

8. Data Versus Information (continued)
Defining and Organizing Relationships Among Data Creates Information

9. Data Versus Information (continued)
The Process of Transforming Data into Information

10. Business Objectives of Information Systems
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Business Objectives of Information Systems
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival

11. Operational Excellence:
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Operational Excellence:
Improved efficiency results in higher profitability
Information systems and technologies help to improve higher levels of efficiency and productivity
Wal-Mart is the champion of combining information systems and best business practices to achieve operational efficiency—and $285 billion in sales in 2005
Wal-Mart is the most efficient store in the world as a result of digital links between its suppliers and stores

12. New products, services, and business models:
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
New products, services, and business models:
Information systems and technologies enable firms to create new products, services, and business models
A business model includes how a company produces, delivers, and sells its products and services
The music industry has seen drastic changes in business models in recent years
Apple has been very successful at introducing new products and adopting a new business model

13. Customer and supplier intimacy:
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Customer and supplier intimacy:
Customers who are served well become repeat customers who purchase more
Close relationships with suppliers result in lower costs
The Mandarin Oriental in Manhattan uses information systems and technologies to foster an intimate relationship with its customers including keeping track of their preferences
JCPenney uses information systems to enhance its relationship with its supplier in Hong Kong

14. Improved decision making:
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Improved decision making:
A company’s bottom line can be hurt by managers being swamped with data that are neither timely nor helpful, forcing them to use guesswork
Real-time data have improved the ability of managers to make decisions
Verizon uses a Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages

15. Competitive advantage:
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Competitive advantage:
Achieving the previously mentioned business objectives often leads to competitive advantage
Advantages over competitors include charging less for superior products, better performance, and better response to suppliers and customers
Dell Computer is one of the best examples of establishing competitive advantage as the company has continued to be profitable during a time when PC prices have been falling steadily

16. Businesses may need to invest in information systems out of necessity
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Survival:
Businesses may need to invest in information systems out of necessity
Necessity arises from keeping up with competitors, such as when Citibank introduced ATMs
Necessity also arises from federal and state regulations, such as the Toxic Substances Control Act and the Sarbanes-Oxley Act

17. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
A Business Perspective on Information Systems
Information systems literacy: Broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information systems as well as technical knowledge about computers.
Computer literacy: Knowledge about information technology, focusing on under-standing how computer-based technologies work

18. Dimensions of Information Systems
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
It Isn’t Simply Technology: The Role of People and Organizations
Dimensions of Information Systems
Organizations
People
Technology
Information Systems Are More Than Computers

19. The Problem-Solving Approach
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
The Problem-Solving Approach
Few business problems are simple or straightforward
Most business problems involve a number of major factors that can be categorized as organization, technology, and people

20. A Model of the Problem-Solving Process
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
A Model of the Problem-Solving Process
Problem identification
Solution design
Choice
Implementation
Problem solving is a process, not an event

21. Problem Solving Is a Continuous Four-Step Process
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
Problem Solving Is a Continuous Four-Step Process
During implementation and thereafter, the outcome must be continually measured and the information about how well the solution is working is fed back to the problem solvers. In this way, the identification of the problem can change over time, solutions can be changed, and new choices made, all based on experience.
Figure 1-4

22. The Role of Critical Thinking in Problem Solving
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
The Role of Critical Thinking in Problem Solving
Four elements of critical thinking:
Maintaining doubt and suspending judgment
Being aware of different perspectives
Testing alternatives and letting experience guide
Being aware of organizational and personal limitations

23. The Connection Between Business Objectives, Problems, and Solutions
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
The Connection Between Business Objectives, Problems, and Solutions
When firms cannot achieve their business objectives, these objectives become challenges
Information systems often present solutions to these challenges

24. Success in today’s job market requires a broad set of skills
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Information Systems and Your Career
Success in today’s job market requires a broad set of skills
Job candidates must have problem-solving skills as well as technical skills so that they can carry specific tasks
The service sector will account for 95 percent of the new jobs that are created or open up by 2012

25. How Information Systems Will Affect Business Careers
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Information Systems and Your Career
How Information Systems Will Affect Business Careers
Accounting
Finance
Marketing
Operations Management in Services and Manufacturing
Information Systems
Outsourcing

26. Discussion Questions:
Chapter 1
Discussion Questions:

27. Why is it important to understand the difference between computer literacy and information literacy?
Answer:
Information literacy is more concerned with creating information useful to an organization and its employees, whereas computer literacy addresses the simple use of computers. As technology uses spread beyond traditional computers, information literacy enables employees and organizations to meet the business objectives.

28. Discuss the three elements of an information system (hardware, software and persware) that managers must consider. Which of the three do you consider the most important?
Answer:
Hardware is centered mostly on the input and output components of an information system. Software is centered mostly on the processing component. Persware is centered on the feedback component and on how employees can effectively use an information system. Opinions vary on which element is most important; this text stresses the importance of the persware element.

29. Which of the six business objectives do you think is the most important? How can information systems help a business meet these objectives?
Answer:
Recall
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival

30. Discuss the three different perspectives of viewing problems–organizations, people, and technology–in relationship to critical thinking skills.
Answer:
From critical thinking skills the same problem can be viewed from three different perspectives.
The organization perspective includes business processes, structure, culture, and politics of the business.
The people perspective considers all employees, managers, and executives and the interrelationship of the groups.
The technology perspective focuses on the firm’s IT infrastructure and how the various components work together.

31. Review Questions
Information systems are too important to be left to computer specialists. Do you agree? Why or why not?
Answer sketch:
information systems are more than just technology
Information systems development and usage involves organization, management, and technology dimensions ….. Discuss these dimensions to further your answer

32. Review Questions
If you were setting up the Web sites for Major League Baseball, what people, organization, and technology issues might you encounter?
Answer sketch:
A good starting point is to use Table 1.1 on page 19 to flush out some suggestions.

33. Review Questions
List and describe six reasons why information systems are so important for business today.
Answer sketch:
Six reasons why information systems are so important for business today include:
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
A brief description of each will improve your answer

34. Review Questions
What is an information system? What activities does it perform?
Answer sketch:
a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.

35. Review Questions What is the difference between data and information?
Answer sketch:
Data are streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use.
Information is data that have been shaped into a form that is meaningful and useful to human beings.