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Introduction to Information Systems

Introduction to Information Systems. Yong Choi BPA CSUB. What is an Information System?. An Information System (IS) is interrelated components to collect, process, store and distribute information to support mainly decision makings in an organization.

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Introduction to Information Systems

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  1. Introduction to Information Systems Yong Choi BPA CSUB

  2. What is an Information System? • An Information System (IS) is interrelated components to collect, process, store and distribute information to support mainly decision makings in an organization. • Information technology (IT) describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks). • CBIS vs. Manual IS

  3. Why study MIS? • Information Age • Bill Gates (how much rich?), List of GDP • Major TANGIBLE product of Microsoft • Information age phenomena • Population of “facebook.com” : 800 million active user • US: 310 million

  4. Why study MIS? (con’t) • Find a job or business that complies with rules of information age…. • Structured • small independent travel agencies • Routine & Repetitive • Problems are predictable • Problems can be solved by applying standard solutions

  5. Why study MIS? (con’t) • Sarbanes-Oxley Act of 2002 • Mandates strict reforms to improve financial disclosures from corporations and prevent accounting fraud (such as WorldCom). Section 409 – • Requires disclosure to the public on a “rapid and current” basis of material changes in an organization’s financial condition. • impossible w/o MIS

  6. WorldCom scandal • Fierce competitors to AT&T and Sprint • Used to have: • 88,000 employees • 60,000 miles of telephone lines around the world • Revenue of $40 billion • Collapsed because of the accounting fraud • $11 billion • One of the biggest (second: Lehman Brothers, ENRON) • A main trigger • Simple: failure integration of four different billing DB • Kaiser: Northern, CA and Southern, CA

  7. Why study MIS? (con’t) • 1) Globalization (Nike Corporation) • Global management thru IS • 2) Organizational Change • Less traditional middle management : collect, process, store and distribute information for various decision makings • Cross functional (project based – virtual team or organization)

  8. Downside of information age • $490 – credit card number and PIN • $147 – driver’s license number • $147 – birth certificate • $6 – PayPal logon and password • $78-$294 – billing data including account number, address, birth date, etc

  9. What’s ahead? • Post information age • IBM Watson • MOOC: massive open online course • Udacity • khan Academy

  10. Functions of an information system

  11. Background of MIS TECHNICAL COMPUTER SCIENCE OPERATIONS RESEARCH MANAGEMENT SCIENCE MIS SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY BEHAVIORAL

  12. Competitive Advantage Thru MIS • Definition of competitive advantage • Competitive advantage is a significant benefit (ideally long term) to a business over its competitors because of the quality or superiority of products or services which will persuade customers to buy from them rather than from competitors. • Initiative # 1: Cost leadership • Achieve competitive advantage by providing lower cost than competitors • Wal-Mart: Always Low Price (read this article!): lower price using computerized purchasing and inventory system

  13. Competitive Advantage Thru MIS • Initiative # 2: Differentiation • Achieve competitive advantage by providing more unique and value added products/services than competitors • First ATM system by Citibank • Initiative # 3: Focus (Cost leadership + Differentiation) • Achieve competitive advantage by providing lower cost + unique and value added products/services • Amazon.com (others: SW, DVD, games and extra value added information for each product)

  14. Competitive Advantage Thru MIS • Initiative #4: Enhance products and services • First Online Order Tracking system by FedEx • Initiative #5: Create new products and services • E*Trade.com

  15. Risks of IS or IS success • IS can be easily copied by competitors. • IS can bring on litigation or regulation • SABRE by AA: first computer-based online reservation system. • Monopolization of the entire market by monopolizing information • Bad timing • on-line home banking in the early 1980s by chemical bank • Fail to integrate system: WorldCom

  16. Manager’s job in information age • Monitorcompetitors IS usage • Monitor change of government regulations • Review competitor’s web sites • Information about new products and projects • Trend in budgeting (e.g., annual report) • Advertising strategies • Analyze competitor’s newsgroup on the Internet • Newsgroup participants discuss what they like or dislike about competitor’s products or services

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