© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ralph M. Stair | George W. Reynolds © 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ralph M. Stair | George W. Reynolds © 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ralph M. Stair | George W. Reynolds Chapter 1 An Introduction to Information Systems

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Principles and Learning Objectives: Working Knowledge Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career and in organizations that reach their goals –Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver 2

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Principles and Learning Objectives: Realizing the Benefits Information systems must be applied thoughtfully and carefully so that society, businesses, and industries can reap their enormous benefits –Identify key issues and challenges that must be overcome to be successful in the global marketplace 3

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Principles and Learning Objectives: Benefits and Problems Information systems must be applied thoughtfully and carefully so that society, businesses, and industries can reap their enormous benefits –Identify significant benefits as well as problems and issues associated with information systems 4

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information systems must be implemented in such a manner that they are accepted and work well within the context of an organization and support its fundamental business goals and strategies –Define the term “value chain” and describe the role that information systems play in an organization’s supply chain Principles and Learning Objectives: Support Business Goals 5

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information systems must be implemented in such a manner that they are accepted and work well within the context of an organization and support its fundamental business goals and strategies –Identify and briefly describe two change models that can be used to increase the likelihood of successfully introducing a new information system into an organization Principles and Learning Objectives: Working Within the Organization’s Context 6

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Principles and Learning Objectives: Competitive Advantage Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage –Define the term “competitive advantage” and identify the factors that lead firms to seek competitive advantage 7

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Principles and Learning Objectives: Assessing an IS Project Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage –Describe three methods for assessing the financial attractiveness of an information system project 8

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Principles and Learning Objectives: Worker Functions The information system worker functions at the intersection of business and technology and designs, builds, and implements solutions that allow organizations to effectively leverage information systems –Define the types of roles, functions, and careers available in the field of information systems 9

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Learn About Information Systems? Information systems are used in almost every profession, including: –Entrepreneurs –Small companies to large multinationals –Accounting, marketing, management Information systems are indispensable tools to help you to achieve your career goals 10

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Introduction Information system (IS): a set of interrelated components that collect, manipulate, and disseminate data and information and provide feedback to meet an objective Information system feedback can help organizations: –Achieve their goals –Increase revenues and reduce costs 11

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Concepts Information –One of an organization’s most valuable resources –Often confused with the term data 12

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Data, Information, and Knowledge Data: raw facts Information: collection of facts organized in such a way that they have value beyond the facts themselves Process: set of logically related tasks performed to achieve a defined outcome 13

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Data, Information, and Knowledge (cont’d.) Knowledge: awareness and understanding of a set of information and the ways it can be made useful to support a task 14

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table 1.1 Types of Data 15 DataRepresented By Alphanumeric data Numbers, letters, and other characters Audio dataSounds, noises, or tones Image dataGraphic images and pictures Video dataMoving images or pictures

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Process of Transforming Data into Information 17

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Characteristics of Valuable Information The value of information is directly linked to how it helps decision makers achieve their organization’s goals Accuracy and completeness are critical for data used in accounting for the management of company assets, e.g., cash, inventory, and equipment 18

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table 1.2 Characteristics of Valuable Information CharacteristicsDefinitions Accessible Information should be easily accessible by authorized users so they can obtain it in the right format and at the right time to meet their needs. Accurate Accurate information is error free. In some cases, inaccurate information is generated because inaccurate data is fed into the transformation process. This is commonly called garbage in, garbage out (GIGO). Complete Complete information contains all the important facts. For example, an investment report that does not include all important costs is not complete. Economical Information should also be relatively economical to produce. Decision makers must always balance the value of information with the cost of producing it. Flexible Flexible information can be used for a variety of purposes. For example, information on how much inventory is on hand for a particular part can be used by a sales representative in closing a sale, by a production manager to determine whether more inventory is needed, and by a financial executive to determine the total value the company has invested in inventory. Relevant Relevant information is important to the decision maker. Information showing that lumber prices might drop might not be relevant to a computer chip manufacturer. 19

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table 1.2 Characteristics of Valuable Information (cont’d.) CharacteristicsDefinitions Reliable Reliable information can be trusted by users. In many cases, the reliability of the information depends on the reliability of the data-collection method. In other instances, reliability depends on the source of the information. A rumor from an unknown source that oil prices might go up might not be reliable. SecureInformation should be secure from access by unauthorized users. Simple Information should be simple, not complex. Sophisticated and detailed information might not be needed. In fact, too much information can cause information overload, whereby a decision maker has too much information and is unable to determine what is really important. Timely Timely information is delivered when it is needed. Knowing last week’s weather conditions will not help when trying to decide what coat to wear today. Verifiable Information should be verifiable. This means that you can check it to make sure it is correct, perhaps by checking many sources for the same information. 20

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What is an Information System? An information system (IS) is a set of interrelated elements that: –Collect (input) –Manipulate (process) –Store –Disseminate (output) data and information –Provide a corrective reaction (feedback mechanism) to meet an objective 21

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Input, Processing, Output, Feedback Input: activity of gathering and capturing raw data Processing: converting data into useful outputs Output: production of useful information –Usually in the form of documents and reports Feedback: information from the system –Used to make changes to input or processing activities 23

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Computer-Based Information Systems (CBIS) Single set of hardware, software, databases, telecommunications, people, and procedures –Configured to collect, manipulate, store, and process data into information Increasingly, companies are incorporating CBIS into their products and services –Example: investment tools for clients of Fidelity Investments 24

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Technology Infrastructure All the hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information A set of shared resources that form the foundation of each CBIS 25

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CBIS: Hardware, Software, and Databases Hardware: computer equipment used to perform input, processing, storage, and output activities Software: computer programs that govern the operation of the computer Database: organized collection of facts and information –Typically consists of two or more related data files 27

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CBIS: Telecommunications, Networks, and the Internet Telecommunications: electronic transmission of signals for communications Networks connect computers and equipment enabling electronic communication Internet: world’s largest computer network –Thousands of interconnected networks 28

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CBIS: Cloud-Computing and the Web Cloud-computing environment: –Provides software and data storage via the Internet in order to: Run services on another organization’s computer hardware Easily access software and data World Wide Web (WWW or Web) –Network of links on the Internet to documents containing text, graphics, video, and sound 29

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CBIS: Intranets and Extranets Intranet: internal network that allows people within an organization to exchange information and work on projects Extranet: network based on Web technologies –Allows selected outsiders, e.g., business partners and customers, to access authorized resources of a company’s intranet 30

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CBIS: People and Procedures People are the most important element in most computer-based information systems Procedures: strategies, policies, methods, and rules for using a CBIS 31

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Business Information Systems Most common types of information systems: –Systems for electronic and mobile commerce, transaction processing, management information, and decision support Special-purpose systems are utilized by some companies –Example: virtual reality 32

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Electronic and Mobile Commerce E-commerce: business transactions executed electronically –Business-to-business (B2B) –Business-to-consumer (B2C) –Consumer-to-consumer (C2C) –Between business and the public sector –Between consumers and the public sector 34

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mobile Commerce, E-commerce, and Electronic Business Mobile commerce (m-commerce): the use of mobile, wireless devices to place orders and conduct business E-commerce offers many advantages for streamlining work activities Electronic business (e-business) uses information systems and the Internet to perform all business-related tasks and functions 35

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Enterprise Systems: Transaction Processing Systems Transaction –Any business-related exchange, such as payments to employees and sales to customers Transaction processing system (TPS) –An organized collection of people, procedures, software, databases, and devices –Used to perform and record completed business transactions 38

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Enterprise Systems: Enterprise Resource Planning Enterprise resource planning (ERP) system –A set of integrated programs –Manages the vital business operations for an entire multisite, global organization Most ERP systems provide integrated software to support manufacturing and finance 40

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information and Decision Support Systems Management information system (MIS) –Organized collection of people, procedures, software, databases, and devices –Provides routine information to managers and decision makers –Focuses on operational efficiency –Provides standard reports generated with data and information from the TPS or ERP 41

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Decision Support System (DSS) An organized collection of people, procedures, software, databases, and devices that support problem-specific decision making –Focus is on making effective decisions A DSS can include the following: –Model base –Database –User interface or dialogue manager 43

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Specialized Business Information Systems: Knowledge Management Knowledge management systems (KMSs) –An organized collection of people, procedures, software, databases, and devices –Create, store, share, and use the organization’s knowledge and experience 45

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Specialized Business Information Systems: Artificial Intelligence (AI) A computer system takes on characteristics of human intelligence Examples of AI applications: games, medical diagnoses, and automobile operation 47

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Artificial Intelligence Subfields Robotics: machines take over complex, dangerous, routine or boring tasks Vision systems allow devices to see, store and process images Natural language processing involves computers understanding and acting on verbal or written commands 49

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Artificial Intelligence Subfields (cont’d.) Learning systems allow computers to learn from past mistakes or experiences Neural networks allow computers to recognize and act on patterns or trends 50

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Expert Systems and Virtual Reality Expert systems give computers the ability to make suggestions and function like an expert in a particular field –Knowledge base contains data, rules, procedures, and relationships used by expert system Virtual reality: simulation of a real or imagined environment that can be experienced visually in three dimensions 51

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Systems Development The activity of creating or modifying existing business systems Future projects in systems development –Applying analytics to large amounts of data –Leveraging advantages of cloud computing –Creating more mobile applications Companies may outsource some or all of a systems development project 52

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Systems Development: Investigation, Analysis, and Design Systems investigation: gain clear understanding of the specifics of the problem to be solved or the opportunity to be addressed Systems analysis –Study the existing system to uncover its strengths and weaknesses –Identify what the new system must do to meet the needs of the users and the organization 54

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. System Design Determine how the new system must work Identify what inputs are required Ascertain what outputs must be produced 55

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Systems Development: Development Convert the system design into an operational information system –Acquire and install hardware and software –Code and test software programs –Create and load data into databases –Perform initial program testing 56

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Systems Development: Integration and Testing Link together all the components of the system –Demonstrates that the system as a whole does indeed meet the user and business requirements 57

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Systems Development: Implementation Install the new system into the actual production computer environment in which it is expected to run Resolve any problems uncovered in integration and testing 58

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Systems Development: Operation, Maintenance, and Disposition Operation and maintenance: identify and make necessary changes to the system Disposition: activities at the end of the useful life of the system –Extract data from the system’s database –Convert data to new format for the replacement system 59

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizations and Information Systems Organization: a group of people that is structured and managed to meet its mission or set of group goals An organization constantly uses money, people, materials, machines and other equipment, data, information, and decisions 60

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizations and Information Systems: Value Chain Value chain: a series (chain) of activities that an organization performs to transform inputs into outputs –The value of the input is increased Supply chain: key value chain in a manufacturing organization 62

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. A catalyst for the growth and success of an organization Innovation and change are absolutely required in today’s highly competitive global environment Types of innovation –Sustaining innovation –Disruptive innovation Innovation 64

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Diffusion of Innovation Theory A theory developed by E.M. Rogers Explains how a new idea or product gains acceptance and diffuses (or spreads) through a specific population or subset of an organization 65

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table 1.3 Five Categories of Innovation Adopters Adopter Category CharacteristicsStrategy to Use InnovatorRisk takers, always the first to try new products and ideas Simply provide them with access to the new system and get out of their way Early adopterOpinion leaders whom others listen to and follow, aware of the need for change Provide them assistance getting started Early majorityListen to and follow the opinion leaders Provide them with evidence of the system ’ s effectiveness and success stories Late majoritySkeptical of change and new ideasProvide them data on how many others have tried this and have used it successfully LaggardsVery conservative and highly skeptical of change Have their peers demonstrate how this change has helped them and bring pressure to bear from other adopters 67

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Change Organizational change: How for-profit and nonprofit organizations plan for, implement, and handle change Causes leading to change –Internal factors, e.g., those initiated by employees –External factors, e.g., economic conditions –Merging of two or more organizations

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Change: Leavitt’s Diamond A theory that proposes that every organizational system is made up of four main components—people, tasks, structure, and technology—with an interaction among the four components –Any change in one of these elements will necessitate a change in the other three elements 69

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Competitive Advantage Significant and ideally long-term benefit to a company over its competition Firms that gain a competitive advantage often emphasize the alignment of organizational goals and IS goals 71

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors That Lead Firms to Seek Competitive Advantage The five forces model identifies five key factors: 1.Rivalry among existing competitors 2.Threat of new entrants 3.Threat of substitute products and services 4.The bargaining power of buyers 5.The bargaining power of suppliers 72

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Rivalry and New Entrants Rivalry among existing competitors –Industries characterized by high fixed costs of entering or leaving the industry, low degrees of product differentiation, and many competitors Threat of new entrants occurs when: –Entry and exit costs to an industry are low –Technology needed to start and maintain a business is commonly available 73

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Substitute Products and Services The more consumers can obtain similar products and services that satisfy their needs, the more likely firms are to try to establish competitive advantage 74

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bargaining Powers of Customers and Suppliers When customers have a lot of bargaining power, companies increase their competitive advantage to retain their customers When the bargaining power of suppliers is strong, companies need to improve their competitive advantage to maintain their bargaining position 75

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategic Planning for Competitive Advantage Strategies to attain competitive advantage –Cost leadership –Differentiation –Niche strategy –Altering the industry structure, e.g., forming a strategic alliance (strategic partnership) –Creating new products and services –Improving existing product lines and service 76

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategic Planning for Competitive Advantage (cont’d.) Other strategies –Growth in sales –First to market –Customizing products and services –Hiring the best people –Having agile information systems –Combine two or more strategies 77

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cash flow: takes into account all the increases and decreases in cash flow associated with the project Time value of money: takes into account the fact that a dollar today is worth more than a dollar paid in the future Financial Evaluation of Information System Projects 78

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Table 1.4 Examples of Increases and Decreases in Cash Flow TypeExamples (not exhaustive) Increases in cash flow Any new revenue, such as additional sales generated and capture of income earned but not collected under the old methods Any cost savings associated with the project, such as savings from reduction in staff, equipment rental fees, and outsourcing fees Tax reduction generated from depreciation associated with any capital expenditures Decreases in cash flow Any capital investment required to buy equipment, software, or office space All ongoing operating costs such as equipment rental, software, office space, additional staff required to operate or support the system, and training of personnel All ongoing maintenance costs for equipment and software 79

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Payback period: takes into account all the increases and decreases in cash flow associated with the project Problems with this evaluation –Time value of money is not considered –Cash flows beyond the payback period are not included Financial Evaluation: Payback Period 80

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal rate of return: the rate of return that makes the net present value of all cash flows (benefits and costs) generated by a project equal to zero Most organizations set a “hurdle rate” for evaluating projects Financial Evaluation: Internal Rate of Return 81

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Challenges in Information Systems Cultural challenges and language Time and distance challenges State, regional, and national laws 82

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Systems in Business and Society Benefits –Increased profits –Improved goods and services –Improved quality of life Problems and issues –Computer waste and mistakes –Computer crime and privacy issues –Work environment issues and ethical issues

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Careers in Information Systems Successful IS workers must: –Enjoy working in a fast-paced, dynamic environment –Meet deadlines and solving unexpected challenges –Possess good communication skills –Have solid analytical and decision-making skills 84

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Successful IS Workers’ Traits (cont’d.) –Develop effective team and leadership skills –Be adept at implementing organization change –Be prepared to engage in life-long learning 85

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Important Skills for IS Workers Mobile applications for smartphones, tablet computers, and other mobile devices Program and application development Help desk and technical support Project management Networking 86

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Important Skills for IS Workers (cont’d.) Business intelligence Security Web 2.0 Data center Telecommunications 87

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Occupational Outlook for Selected Information Systems Positions 88

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Roles, Functions, and Careers in IS In addition to technical skills, IS professionals need: –Skills in written and verbal communication –An understanding of organizations and the way they operate –The ability to work with people and in groups 89

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Three Primary Functions of the Information Systems Organization 90

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Typical IS Titles and Functions Chief information officer (CIO) employs the IS department’s equipment and personnel to help the organization attain its goals Senior IS Managers –Vice president of information systems –Manager of information systems –Chief technology officer (CTO) 91

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Typical IS Titles and Functions: Operations Roles Data center managers are responsible for the maintenance and operation of the organization’s computing facilities Operations group includes: –Data center managers –System operators –Information system security analysts –LAN administrators 92

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The development group implements the new information systems required to support the organization’s existing and future business The development group includes: –Software developers –Systems analysts –Programmers –Web developers Typical IS Titles and Functions: Development Roles 93

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Provides customer service for the employees, customers, and business partners The support group includes: –Database administrators (DBAs) –Help desk support specialists Typical IS Titles and Functions: Support 94

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Certification A process for testing skills and knowledge –Results in a statement by the certifying authority that confirms an individual is capable of performing particular tasks Frequently involves specific, vendor- provided or vendor-endorsed coursework 95

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. IS Careers in Technology Organizations Consulting opportunities Computer training Computer and computer-equipment sales Computer repair and maintenance Many other related careers 96

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Working in Teams Most IS careers involve working in project teams that can consist of many of the positions and roles It is always good for IS professionals to have good communications skills and the ability to work with other people 97

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Finding a Job in IS Developing an online résumé can be critical to finding a good job The Internet –Online job sites –Company Web sites –Social networking sites Informal networks of colleagues or business acquaintances 98

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary – Principle 1 Information systems are sets of interrelated elements that collect (input), manipulate and store (process), and disseminate (output) data and information The components of a computer-based information system (CBIS) include: –Hardware, software, databases, telecommunications, people, and procedures

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary – Principle 1 (cont’d.) E-commerce involves any business transaction executed electronically between parties Transaction processing system (TPS) –Handles the large volume of business transactions that occur daily within an organization A management information system (MIS) uses the information from a TPS

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary – Principle 2 Systems development: creating or modifying existing business systems Effective information systems can have a major impact on corporate strategy and organizational success Success in global markets is imperative today –Along with opportunities, global markets also present obstacles, issues, and challenges

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary – Principle 3 Organizations are systems with inputs, transformation processes, outputs, and feedback data used to monitor and control The value chain is a series of activities that an organization performs to transform inputs into outputs –The value of the input is increased Innovation is the catalyst for the growth and success of any organization

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary – Principle 3 (cont’d.) Organizational change deals with how organizations successfully plan for and implement change Diffusion of innovation theory –Adoption of any innovation does not happen all at once for all people Organizations use information systems to support their goals

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary – Principle 4 Competitive advantage is a significant and ideally long-term benefit to a company over its competition Financial analysis is performed to determine whether a specific information system project is worth doing

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary – Principle 5 Successful information system workers need to have a variety of personal characteristics and skills Technology is one of the fastest growing areas in the U.S. economy, which has a strong demand for IS workers The IS organization has three primary functions: operations, development, and support

© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Presentation on theme: "© 2016 Cengage Learning ®. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part."— Presentation transcript:

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About project

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