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1. Chapter. Business Information Systems in Your Career. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career. STUDENT LEARNING OBJECTIVES. How are information systems transforming business and what is their relationship to globalization?

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  1. 1 Chapter Business Information Systems in Your Career

  2. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career STUDENT LEARNING OBJECTIVES • How are information systems transforming business and what is their relationship to globalization? • Why are information systems so essential for running and managing a business today? • What exactly is an information system? How does it work? What are its people, organization, and technology components?

  3. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career STUDENT LEARNING OBJECTIVES (Continued) • How will a four-step method for business problem solving help you solve information system-related problems? • How will information systems affect business careers and what information systems skills and knowledge are essential?

  4. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career NBA Teams Make a Slam Dunk with Information Technology • Problem: Escalating salaries and travel costs, difficulty of increasing revenue by improving employee performance. • Solutions: High resolution, organized video allows teams to review games and scout new players more efficiently.

  5. Video about NBA

  6. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career NBA Teams Make a Slam Dunk with Information Technology http://news.cnet.com/A-TiVo-for-NBA-insiders/2100-1008_3-6034908.html

  7. Synergy Sports Technology’s tools help collect, organize, and distribute video of NBA games. Demonstrates IT’s role in reducing cost, organizing data, and increasing efficiency. Illustrates the emerging digital firm landscape where businesses can use tools to analyze critical data. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career NBA Teams Make a Slam Dunk with Information Technology

  8. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career NBA Teams Make a Slam Dunk with Information Technology http://www.synergysportstech.com/

  9. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career NBA Teams Make a Slam Dunk with Information Technology http://www.zdnet.com/videos/tech-news/every-play-counts/155734 http://videos.wittysparks.com/id/2679374662/

  10. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career NBA Teams Make a Slam Dunk with Information Technology

  11. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today How Information Systems Are Transforming Business • In 2007, more wireless phone accounts were opened than telephone land lines installed • More than 95 million people receive their news online; 55 million Americans read blogs • Internet advertising continues to grow at more than 15 percent per year • New laws require businesses to store more data for longer periods • Changes in business result in changes in jobs and careers

  12. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today How Information Systems Are Transforming Business

  13. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today How Information Systems Are Transforming Business

  14. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today How Information Systems Are Transforming Business

  15. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today How Information Systems Are Transforming Business

  16. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today How Information Systems Are Transforming Business

  17. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today How Information Systems Are Transforming Business • Briefly, it is a new world of doing business, one that will greatly affect your future business career.

  18. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Globalization Challenges and Opportunities: A Flattened World • Internet and global communications has greatly reduced economic and cultural advantages of developed countries • Drastic reduction of costs of operating and transacting on global scale • Competition for jobs, markets, resources, ideas • Dependence on imports and exports • Requires new understandings of skills, markets, opportunities

  19. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Business Drivers of Information Systems • Businesses invest in IT to achieve six important business objectives • Operational excellence • New products, services, and business models • Customer and supplier intimacy • Improved decision making • Competitive advantage • Survival

  20. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Business Drivers of Information Systems • Businesses invest in IT to achieve six important business objectives • Operational excellence • New products, services, and business models • Customer and supplier intimacy • Improved decision making • Competitive advantage • Survival

  21. Improved efficiency results in higher profits Information systems and technologies help improve efficiency and productivity E.g. Wal-Mart: Power of combining information systems and best business practices to achieve operational efficiency—and $348 billion in sales in 2007 Most efficient store in world as result of digital links between suppliers and stores Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Operational Excellence:

  22. Video About Wal-Mart

  23. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Business Drivers of Information Systems • Businesses invest in IT to achieve six important business objectives • Operational excellence • New products, services, and business models • Customer and supplier intimacy • Improved decision making • Competitive advantage • Survival

  24. 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 • Business model: How a company produces, delivers, and sells its products and services • E.g. Music industry • Drastic changes in business models in recent years • Apple: Successful innovations – iPod, iTunes, etc.

  25. 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: With its stunning multitouch display, full Internet browsing, digital camera, and portable music player, Apple’s iPhone set a new standard for mobile phones. Other Apple products have transformed the music and entertainment industries.

  26. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Business Drivers of Information Systems • Businesses invest in IT to achieve six important business objectives • Operational excellence • New products, services, and business models • Customer and supplier intimacy • Improved decision making • Competitive advantage • Survival

  27. 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 • Mandarin Oriental hotel • Uses IT to foster an intimate relationship with its customers, keeping track of preferences, etc. • Close relationships with suppliers result in lower costs • JCPenney • IT to enhance relationship with supplier in Hong Kong

  28. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Business Drivers of Information Systems • Businesses invest in IT to achieve six important business objectives • Operational excellence • New products, services, and business models • Customer and supplier intimacy • Improved decision making • Competitive advantage • Survival

  29. 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 is not timely or helpful, forcing them to use guesswork • Real-time data improves ability of managers to make decisions • Verizon: Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages

  30. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Information Builders’ digital dashboard delivers comprehensive and accurate information for decision making. The graphical overview of key performance indicators helps managers quickly spot areas that need attention.

  31. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today

  32. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today

  33. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today

  34. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today

  35. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Business Drivers of Information Systems • Businesses invest in IT to achieve six important business objectives • Operational excellence • New products, services, and business models • Customer and supplier intimacy • Improved decision making • Competitive advantage • Survival

  36. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Competitive advantage: • Often results from achieving previous business objectives • Advantages over competitors: • Charging less for superior products, better performance, and better response to suppliers and customers • Toyota: Uses TPS (Toyota Production System) to achieve high levels of efficiency and quality

  37. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today In a Toyota factory, the assembly line produces a superior product in less time, using less inventory, and having fewer defects than the competition. Toyota uses information systems to monitor inventory levels and manage production scheduling.

  38. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career The Role of Information Systems in Business Today Business Drivers of Information Systems • Businesses invest in IT to achieve six important business objectives • Operational excellence • New products, services, and business models • Customer and supplier intimacy • Improved decision making • Competitive advantage • Survival

  39. 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; simply the cost of doing business • Keeping up with competitors • Citibank’s introduction of ATMs • Federal and state regulations and reporting requirements • Toxic Substances Control Act and the Sarbanes-Oxley Act

  40. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career Perspectives on Information Systems and Information Technology Some questions? • What is information technology? • What is information system? • What is data? • What is information? • What is the difference between Data and Information?

  41. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career Perspectives on Information Systems and Information Technology What Is an Information System? • Information technology: The hardware and software a business uses to achieve objectives • Information system: Interrelated components that manage information to: • Support decision making and control • Help with analysis, visualization, and product creation • Data: Streams of raw facts • Information: Data shaped into meaningful, useful form

  42. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career It Isn’t Simply Technology: The Role of People and Organizations Data and Information Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. Figure 1-1

  43. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career Perspectives on Information Systems and Information Technology What Is an Information System? • Activities in an information system that produce information: • Input • Processing • Output • Feedback • Sharp distinction between computer and computer program vs. information system

  44. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career It Isn’t Simply Technology: The Role of People and Organizations Functions of an Information System Figure 1-2 An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output— produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems.

  45. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career It Isn’t Simply Technology: The Role of People and Organizations The Role of People and Organizations • Information systems literacy • Includes behavioral and technical approach • Computer literacy • Focuses mostly on knowledge of IT • Management information systems (MIS) • Focuses on information systems literacy • Issues surrounding development, use, impact of information systems used by managers and employees

  46. 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 • Three dimensions of information systems • Organizations • People • Technology

  47. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career It Isn’t Simply Technology: The Role of People and Organizations Information Systems Are More Than Computers Using information systems effectively requires an understanding of the organization, people, and information technology shaping the systems. An information system provides a solution to important business problems or challenges facing the firm. Figure 1-3

  48. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career It Isn’t Simply Technology: The Role of People and Organizations Information Systems Are More Than Computers Using information systems effectively requires an understanding of the organization, people, and information technology shaping the systems. An information system provides a solution to important business problems or challenges facing the firm. Figure 1-3

  49. 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 • Coordinate work through structured hierarchy and business processes • Business processes: Related tasks and behaviors for accomplishing work • E.g. Fulfilling an order • May be informal or include formal rules • Culture embedded in information systems • E.g. UPS’s concern with placing service to customer first

  50. Essentials of Business Information Systems Chapter 1 Business Information Systems in Your Career It Isn’t Simply Technology: The Role of People and Organizations Information Systems Are More Than Computers Using information systems effectively requires an understanding of the organization, people, and information technology shaping the systems. An information system provides a solution to important business problems or challenges facing the firm. Figure 1-3

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