Why Study Information Systems?

1. Why Study Information Systems? • Information technologies are playing an expanding role in business. • Improving efficiency and effectiveness • managerial decision making • workgroup collaboration → The end result is that businesses can strengthen their competitive position in the rapidly changing marketplace

2. Why Study Information Systems? • Efficiency • Minimize Costs • Minimize Time • Minimize Use of Information Resources • Effectiveness • Support an organization’s business strategies • Enable its business processes • Enhance organizational structure and culture • Increase customer business value

3. Why Study Information Systems? • Internet-based systems have become a necessary ingredient for business success • How many of you: • Purchased products on line that you would have not considered buying 5 years ago? • Make airline reservations on line? • Gotten product/service information on line? → Information technologies are playing an expanding role in business.

4. But why a required principles course? • Why do you have required accounting, marketing, management, economics and finance courses? → Because these are all basic business functions (As are Information Systems) • It wasn’t always that way, however. • Let’s consider a typical Organization Table from the late 1970’s/early 1980’s

5. CEO VP Finance VP Marketing VP Production Accounting EDP Depart. • A (Simplified) Organizational Table (c. 1960)

6. VP Finance CIO VP Marketing VP Production CEO • A (Simplified) Organizational Table (c. 1990) Why the difference? • Information Systems are no longer viewed merely as tools • They have moved from a STAFF position to a LINE position

7. What will we be studying in this course? • The Conceptual Framework of IS Knowledge • Fundamental behavioral, technical, business and managerial concepts about IS components and IS roles Chapters 1 & 2

8. What constitutes an information system? • The Conceptual Framework of IS Knowledge • Major concepts, developments and management issues in issues in IS Technology • Hardware • Data Management • Internet Technologies • Software • Networks Chapters 3 - 6

9. What constitutes an information system? • The Conceptual Framework of IS Knowledge • The challenges of effectively and ethically managing information systems at the end-user, enterprise, and global levels of the business Chapters 13 & 14

10. What constitutes an information system? • The Conceptual Framework of IS Knowledge • The major uses of Information Technologies for operations, management and competitive advantages Chapters 8 - 10

11. What constitutes an information system? • The Conceptual Framework of IS Knowledge • How information professionals and specialists plan, develop and implement information systems to meet business opportunities Chapters 11 & 12

12. So what is an information system? • ALL the components must work together toward a single goal • In fact it is many different and related systems that appear to be only one system • It is a term that we use everyday, without thought to what it really means: “I don’t understand why they chose the new inventory system instead of an SAP system”

13. So what is an information system? • Information systems should be viewed the same as any other system • The solar system • A railway system • An ecological system • An economic System • (The European Community) • They are: “a group of independent but interrelated elements comprising a unified whole” • ALL the components work together toward a single goal

14. So what is an information system? • A basic system can be represented as capturing and assembling elements that enter the system to be processed

15. So what is an information system? transformation steps that convert input into output

16. So what is an information system? transferring elements that have been produced by a transformation process to their ultimate destination

17. So what is an information system? monitoring and evaluating feedback to determine whether a system is moving toward its goal

18. So what is an information system? data about the performance of a system

19. So what is an information system? Adjustment to improve system performance

20. What does this have to do with real life?

21. To use a refrigerator you turn it on and set the temperature. After that you can forget about monitoring the temperature because it is done automatically. What types of systems are there? • Closed Systems: • Mechanical systems are generally closed systems • You might consider a prison system as a closed system (especially if a prisoner is locked-up in isolation) • A simple computer program which always returns the same result may be considered a closed system

22. People are open systems since they must interact with their environment in order to take in food, water, and obtain shelter What types of systems are there? • Open Systems: • Living Organisms • Some mechanical systems, such as thermostats, which rely on inputs from the environment and produce affects affecting the environment

23. What constitutes an information system? The Systems Trinity: • Managers • Users • System’s Designers As well as: • Customers • and others

24. What constitutes an information system? • microcomputers, midsize servers, and large mainframe systems • the input, output, and storage devices that support them

25. What constitutes an information system? • operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management

26. What constitutes an information system? • operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management

27. What constitutes an information system? • Data Versus Information

28. Data versus Information? • While information systems rely on data, they must provide information What’s the difference??? • Data (pl) is a non-random sequence of symbols Fernandez, Juan A19 1211 83 77 81 • Information, while generally based on data, is something that increases our knowledge Juan Fernandez is an Accounting Major and has a 80.3 average in Principles of Accounting (Based on analysis of the above data)

29. Data versus Information? • While information systems rely on data, they must provide information What’s the difference??? • Data (pl) is a non-random sequence of symbols Fernandez, Juan A19 1211 83 77 81 • Information, while generally based on data, is something that increases our knowledge Juan Fernandez is an Accounting Major and has a 80.3 average in Principles of Accounting (Based on analysis of the above data)

30. Aren’t Information Systems and Information Technology the same thing? • Information Systems (IS): all components and resources necessary to deliver information and information processing functions to the organization • Information Technology (IT): various hardware components necessary for the system to operate

31. What are the Fundamental Roles of IS in Business? • Let’s first talk about the fundamental roles of management Anthony’s Hierarchy of Management • Focus is on the Long term future Top Mgt. (e.g., New Products) (CEO) Middle or Tactical Mgt. • Focus is on the short term future (e.g., Budgeting) (Plant Manager) Operational Management • Focus is on the present (e.g., Meeting Production Schedule) (Production Manager)

32. What are the Fundamental Roles of IS in Business? Anthony’s Hierarchy of Management Top Mgt. (CEO) Middle or Tactical Mgt. (Plant Manager) Operational Management (Production Manager)

33. What types of information do we need? • That depends on what you need • Let’s look at some of the dimensions of information

34. Information needs and Management Levels Anthony’s Hierarchy of Management • Semi-accurate • Unscheduled • Dated • Semi-relevant • Infrequent • Incomplete Top Mgt. • Future Orientation • Concise • Predictive • Broad Scope (CEO) Form of presentation is a function of the manager’s preference Middle or Tactical Mgt. (Plant Manager) • Very Timely • Narrow Scope Operational Management • Very current • Detailed • Often needed • Complete • Present Data • Very Relevant (Production Manager) • Historical Data • Very Accurate

35. What types of information do we need? Anthony’s Hierarchy of Management • Strategic Information Systems Top Mgt. • Competitive Advantage Systems • Long term Planning (CEO) • Management Support Systems Middle or Tactical Mgt. • Management decision support • Management reporting systems (Plant Manager) • Operations Support Systems Operational Management • Transaction Processing • Process Control (Production Manager) • Collaboration Systems

36. What types of information do we need?

37. What types of information do we need? Operations Support Systems Transaction Processing Systems process data resulting from business transactions, update operational databases, and produce business documents.

38. Process Control Systems What types of information do we need? Operations Support Systems Transaction Processing Systems • monitor and control industrial processes. • Process control systems use electronic sensors linked to computers to continually monitor processes and make instant (real-time) adjustments that control the process.

39. Process Control Systems What types of information do we need? Operations Support Systems Transaction Processing Systems Enterprise Collaboration Systems • support team, workgroup, and enterprise communications and collaboration. • Enterprise collaboration systems enhance team and workgroup communications and productivity, and include applications that are sometimes called office automation.

40. What types of information do we need? Management Support Systems Management Information Systems provide information in the form of pre-specified reports and displays to support business decision making.

41. Decision Support Systems What types of information do we need? Management Support Systems Management Information Systems provide interactive ad hoc support for the decision making processes of managers and other business professionals.

42. Decision Support Systems Executive Information Systems What types of information do we need? Management Support Systems Management Information Systems provide critical information from MIS, DSS, and other sources tailored to the information needs of executives. EIS systems are management information systems which are tailored to meet the strategic information needs of top management.  

43. What types of information do we need? • Other Information Systems • Expert Systems • Attempts to apply the logic used by “Experts” in a specific field • Knowledge Management Systems • Systems that support the creation, organization, and dissemination of business knowledge to employees and managers • Functional Business Systems • Information Systems that focus on operational and managerial applications of business functions

44. What types of information do we need? • Other Information Systems • Strategic Information Systems • Systems that support the creation, organization, and dissemination of business knowledge to employees and managers • Cross-functional Information Systems • Computer systems developed in order to help knowledge workers create, organize, and share important business knowledge wherever and whenever needed.

45. How have information systems evolved?

46. How have information systems evolved? • Network Configurations • Local Area Networks (LANS) Short Range – within the same building • Wide Area Networks (WANS) Long Range – May be world-wide • Intranets Within a business – may be world-wide • Extranets A network between an enterprise and its trading partners • Internets Available to anyone – world-wide

47. How do we develop an information system? What’s the problem? What are you doing? I think this is what you should be doing! (This is also known as the planning phase) How are we doing? Let’s keep up the good stuff, and improve where we can! Let’s do it! Who should be Involved? Everyone!

48. What is E-Business? • Using Internet technologies to empower: • Business processes • Electronic commerce • Collaboration within a company • Collaboration with customers, suppliers, and other business stakeholders • In essence, an online exchange of value

49. How is E-Business Being Used?

50. E-Business Use • Reengineering • Internal business processes • Enterprise collaboration systems • Support communications, coordination and coordination among teams and work groups • Electronic commerce • Buying, selling, marketing, and servicing of products and services over networks