1. Foundations of Information Systems in Business

2. System ® System  A system is an interrelated set of business procedures used within one business unit working together for a purpose  A system has nine characteristics  A system exists within an environment  A boundary separates a system from its environment environment Processing Input Storage Output System

3. Characteristics of a System  Components  Interrelated Components  Boundary  Purpose  Environment  Interfaces  Input  Output  Constraints

4. Information Concepts Data:  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:  Clusters of facts meaningful and useful to human beings in the processes such as making decisions ® Knowledge  Data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity. ® Characteristics of Information  Timely - has it arrived in time to affect a decision-making process?  Relevant - does it pertain to the problem at hand?  Concise - is it to the point?  Accurate - Is it “correct enough” to be used?  Complete - is it thorough and not lacking any components?

5. 5 What is an Information System? ® An organized combination of…  People  Hardware and software  Communication networks  Data resources  Policies and procedures ® This system…  Stores, retrieves, transforms, and disseminates information in an organization. Definition:  An information system (IS) is typically considered to be a set of interrelated elements or components that collect (input), manipulate (processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

6. Components of an IS People Resources End Users and IS Specialists Software Resources Programs and Procedures Hardware Resources Machines and media Network Resources Communications Media and Network Support Data Resources Data and Knowledge Bases Input of Data Resources Processing of Data’ into info Output of Info Products Storage of Data Resources Control of System Performance 6

7. Information System Resources ®People Resources  Specialists  End users ®Hardware Resources  Machines  Media ®Software Resources  Programs  Procedures ®Data Resources  Product descriptions, customer records, employee files, inventory databases ®Network Resources  Communications media, communications processors, network access and control software ®Information Resources  Management reports and business documents using text and graphics displays, audio responses, and paper forms

8. Information Systems and Component Parts

9. An Information System:

10. 10 Information Technologies ® Information Systems  All the components and resources necessary to deliver information and functions to the organization  Could be paper based ® Information Technologies  Hardware, software, networking, data management ® Our focus will be on computer-based information systems (CBIS)  The purpose of the computer based information system is to provide managers (and various categories of employees) with appropriate kind, of information to help them make decisions. It is used to collect and analyze data from all departments and is designed to provide an organization’s management with up to date information anytime. ® Formal System  System resting on accepted and fixed definitions of data and procedures, operating with predefined rules.

11. CBIS consists of following applications  Management Information Systems.  Decision Support Systems.  The Virtual Office.  Knowledge Based Systems. The fundamental work of CBIS is to manage information in an efficient way such that it can be utilized by the managers effectively to solve problems.

12. IS Vs IT INFORMATION TECHNOLOGY Hardware Software Databases Networks Other related components are used to build INFORMATIO N SYSTEMS Payroll System Inventory System Marketing System Customer Service System

13. INPUTOUTPUTPROCESS FEEDBACK Activities in an Information System

14. ® Input:  The capturing or 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 from which it will be used. ® Feedback:  Output that is returned to the appropriate members of the organization to help them evaluate or correct input Activities in an Information System

15. Why Information System? ® Globalization:  Management and control in a global marketplace  Competition in world market  Global Work groups  Global delivery systems ® Transformation of Industrial Economics  Knowledge and information based economics  New products and services  Knowledge: a central productive and strategic assets  Time based competition  Shorter product life  Turbulent or disordered environment  Limited employment knowledge base

16. ®Transformation of the Enterprise  Flattening  Decentralization  Flexibility  Location independence  Low transaction and coordination costs  Empowerment  Collaborative work teamwork ®Emergence of the Digital Firm  Digitally enabled relationship with customers, suppliers and employment  Core business processes accomplished via digital networks  Digital management  Rapid sensing and responding to environment changes Why Information System?

17. Functions of an Information System The IS function is…  A major functional area of business  An important contributor to operational efficiency, employee productivity, morale, customer service and satisfaction  A major source of information and support for decision making  A vital ingredient in developing competitive products and services in the global marketplace  A dynamic and challenging career opportunity  A key component of today’s networked business

18. 18 What Should Business Professionals Know? Business professionals should be able to look at an information system and identify…  The people, hardware, software, data, and network resources they use.  The type of information products they produce.  The way they perform input, processing, output, storage, and control activities.

19. Information Systems Framework

20. ® Foundation Concepts  Fundamental concepts about the components and roles of information systems. ® Information Technologies  Major concepts, developments, and management issues in information technology. ® Business Applications  The major uses of information systems for operations, management, and competitive advantage. ® Development Processes  How business professionals and information specialists plan, develop, and implement information systems. ® Management Challenges  The challenge of managing ethically and effectively.  Emphasizes the quality, strategic business value, and security of an organization’s information systems. Information Systems Framework

21. A Business as a System

22. Information systems relate to the following business objectives:  Achieving operational excellence  Developing new products and services  Attaining customer intimacy and service  Improving decision making  Promoting competitive advantage  Ensuring survival Fundamental Roles of IS in Business

23. Business Information Systems is:  The study of office suites, object oriented programming, data base management, and multimedia decision.  Understanding and mobilizing technology in business.  Applying analytical techniques to business problems.  Understanding business concepts, terminology and culture.

24. 24 Systems Development Life Cycles Systems Investigation Problems and opportunities are identified Systems Analysis Existing systems and work processes are studied Systems Design Defines how the information system will do what it must do to solve the problem.

25. Systems Development Life Cycles (Cont..) Systems Implementation System components are assembled and the new or modified system is placed into operation. Systems Maintenance and Review Ensures the system operates and is modified to keep up with business changes.

26. 26 Measuring IT Success ®Efficiency  Minimize cost, time, and use of information resources ®Effectiveness  Support business strategies  Enable business processes  Enhance organizational structure and culture  Increase customer and business value