Introduction to Information Systems

1. Introduction to Information Systems IBM: Five in 5: http://www.youtube.com/watch?v=tuisda1q6ns

2. The Plan • Me: MadhuRao • The Course: MBA560: Management of IT • The Course Structure and Requirements • Introductions • Break • Introduction to Information Systems

3. MBA560: Management of Information Technology PEOPLE 1. Recruit, Train, and Retain World Class IT Employees If all of these five principles are addressed it is easier to… Enables IT to… INFRASTRUCTURE 2. Build and Maintain a Robust IT Infrastructure EXTERNAL PARTNERSHIPS 5. Develop a Collaborative Relationship with External Partners Sustainable IT Excellence Fosters an understanding about which non-strategic aspects can be addressed by third parties to…. Create ability to…. IT AND BUSINESS PARTNERSHIPS 4. Ensure Partnerships within the Department and with the Business PROJECT AND PORTFOLIO MANAGEMENT 3. Manage Projects and Portfolios Effectively Provides IT credibility to…. Source: High, P (2009), World Class IT

4. Peer Introductions • Introduce one other person to the rest of the class • Name • Preferred name • How far along into the MBA program • Where are they from • Work • Family • Hobbies

5. Data Vs. Information 392: Chocolate Chip Cookies 342: Coffee Powder 341: Red Curry Paste 392: Chocolate Chip Cookies 391: Keebler Fudge Sticks … … Data • Region:Redmond • Store:QFC Store 32 • Item#DescriptionUnits Sold • Choc Chip Ck 2397 • YTD Sales • $6972.78 Information

6. Data vs. Information • The eternal question • Data • “Streams of raw fact representing events occurring in organizations or their environments before they have been organized and arranged into a form suitable for human interpretation” • Information • “Data that have been shaped into a form that is meaningful and useful” • What then is “knowledge”

7. The Transformation: From Data to Wisdom • Data is transformed into information • Resources used to organize data into categories • Examples include monthly reports, regional summaries, etc. • Information is transformed into knowledge • Knowledge is understanding patterns, rules and contexts. • Knowledge is transformed into wisdom • Collective and individual experience in applying knowledge to solve a problem • Wisdom is where, when and how to apply knowledge

8. The transformation…Data, Information, Knowledge, Wisdom Where is the Life we have lost in living? Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information? -T.S. Eliott, “The Rock”, 1934

9. Information? What’s the big deal? • Globalization • Transformation of Industrial Economies • The Changing Organization

10. Emergence of Global Economy • Management and control in a global marketplace • Competition in global markets • Global workgroups • Global delivery systems

11. From Industrial to Post-Industrial Societies • Knowledge- and information-based economies • Productivity • New products and services • Shorter product life-cycle • Turbulent operating environment

12. Transformation of the Organization • Flattening • Decentralization • Flexibility • Location independence • Low transaction and coordination costs • Empowerment • Collaborative work and team activities

13. So, what is an Information System, anyway?

14. What is a System?

15. A System

16. A System Input

17. A System Process Input

18. A System Process Output Input

19. A System Process Output Input feedback

20. A System Competitors Customers Process Output Input feedback Suppliers Government

21. What is an Information System? • a set of interrelated components that • collect (or retrieve) • process • store • distribute information in order to support • decisionmaking • coordinationandcontrol

22. Approaches to Information Systems Technical Approaches Computer Science Operations Research Management Science Information Systems Sociology Psychology Economics Behavioral Approaches

23. Information Architecture • Levels within a firm • Functional Areas • Types of Systems • Foundation of technology

24. Levels and Functions within an Organization • Levels • Operational • Management • Strategic • Functions • Sales and Marketing • Manufacturing and Production • Finance and Accounting • Human Resources

25. Organization structure strategic management oper Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting

26. strategic Information Architecture management oper Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting Hardware Software Data and Storage Networks IT Infrastructure

27. Level of the System • Operational-level systems • Keep track of elementary activities and transactions • Sales, receipts, payroll, etc. • Purpose is to answer routine questions and track flow of transactions

28. Level of the System • Management-level systems • Keep track of monitoring, controlling decision making, and administrative work of middle management • Periodic reports • Some may be used for non-routine decisions • What-if analysis • Typically draws information from operational systems • Strategic-level systems • Assist senior management in making long-term decisions • Typically non-routine, unstructured decision making activities

29. Information System Integration Strategic Level Management Level Management Level Operational Level

30. Information System Integration Strategic Level Management Level Management Level TPS Operational Level

31. Information System Integration Strategic Level Management Level Management Level DSS MIS TPS Operational Level

32. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

33. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

34. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

35. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

36. Business Processes and IS • BPs are a set of interrelated activities aimed at achieving a specific result. • Examples • Manufacturing and Production • Checking quality • Assembling a product • Sales and Marketing • Identifying customers • Selling a product • Some processes go across functional areas

37. Cross-functional business process Order Fulfillment Process Sales Submit Order Generate Order Accounting Check Credit Approve Credit Generate Invoice Manufacturing And Production Assemble Product Ship Product

38. Enterprise Applications • Various systems described earlier operate within their level and functional area • Operational: TPS • Management: MIS and DSS • Strategic: ESS • But what about information systems that go across multiple levels and functions? • Known as Enterprise Applications • For example, SCM and CRM

39. Enterprise Resource Planning Systems Suppliers, other Business partners Customers, distributors Enterprise Systems Processes CRM Systems SCM Systems Processes Knowledge Management Systems Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting Hardware Software Data and Storage Networks

40. The old way…. Functional Areas Manufacturing and Production Finance and Accounting Sales and Marketing HR Manufacturing and Production Finance and Accounting Sales and Marketing HR Information Systems

41. The new way…. Manufacturing and Production Finance and Accounting Enterprise-wide Business Processes Sales and Marketing HR Enterprise System

42. Next Class Value of IT Read Nicholas Carr Article!