BEA2005BEA2005

• Website: www.people.ex.ac.uk/gaharris

• Textbook: Management Information Systems, 8th edn, O’Brien and Marakas.

• Lecture and tutorial

• Assessment is Group Assignment and Exam (Essays, 4 from 6)

• Additional reading and case study will be provided.

• Lecture notes downloadable from website

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Foundation ConceptsFoundation Concepts

• Why study information systems and information technology?• Vital component of successful businesses• Helps businesses expand and compete• Improves efficiency and effectiveness of

business processes• Facilitates managerial decision making and

workgroup collaboration

COMPONENTS- TRENDS – CHALLENGES – BENEFITS

Now… and the near future!Now… and the near future!

• Rapid change

• Web 2.0 supports better interaction.

• New web, new mode of production. Enables querying of multiple stored resources, updating of data and production of new information in real time.

• New structure (requires new architecture)

• New platform for innovation

• Web is a new resource from which to gain intelligence

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New deliverablesNew deliverables

• Smart communications devices

• Pervasive ambient computing

• Geospatiality (location based services)Devices generate information in real time. Signalling supports triangulation.

• Results in opportunities for movement sensing, position related information in real time, Dig, tag objects.

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OutcomeOutcome

• Rise of web services

• Old and original- was HTML – a standard language for defining web based content presentation.

• New – is XML – a platform for online computation, data driven services, interaction and collaboration.

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Effect on workEffect on work

• Data availability and analysis were two separate operations.

• New model: Web can be a platform that supports real-time computation, time and cost-saving services and opportunity!

• Not your parent’s internet!

• Your generation grew up digitised.

• Bathed in “bits”

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Life changing – Industry changingLife changing – Industry changing

• Time online not wasted

• Computing not simply a hobby. (essential resource)

• TV no longer main focus (advertising revenues?)

• Activity is non-passive

• Collaboration. Reading, researching, exercising the mind, processing information.

• Youth is an authority on these practices.

• It’s your experience that is being adopted by the modern workplace.

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The Role of Information SystemThe Role of Information System

Information systems support a firm’s• Business processes• Managerial decision making• Strategies for competitive advantage

• INFORMATION SYSTEMS ARE THE BUSINESS

• Your task is to understand IS at the correct level of granularity.

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1. The Concept of Systems2. Information systems as important tools for

business professionals3. What areas of information systems knowledge do

you need.3. Need to recognize the structure and purpose of

information systems observed within business organizations in the real world

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BEA2005 ObjectivesBEA2005 Objectives

4 Identify ethical and logical challenges that management faces when information technology and systems are in place.

5. Appreciate related career opportunities within your chosen field.

6. Participate in decisions when IS are being considered as a strategic tool.

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Why get involvedWhy get involved

• Information Society

• Understand the “commercial and competitive power” of information

• Technical knowledge not required

• Curiosity, creativity, and confidence to ask question are required.

• Probable participation in strategic planning.

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Business ImperativesBusiness Imperatives

• IT is an expensive and critical resource

• Investment in IT must return value (Return on Investment) or can be invested elsewhere..

• Business managers decide how financial resources are allocated.

• Business managers evaluate RISK

• Business managers evaluate investment performance and expectations.

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Benefits from Investment in ISBenefits from Investment in IS

• IS enable change in the way people work together

• IS integrate with almost every aspect of the business

• IS enable business opportunities and new strategies

• IS can be used to combat business challenges from competitors

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Management IssuesManagement Issues

• Manager requires ability to manage “change”

• Benefits must be balanced against cost

• IS place information in the hands of decision makers – closer to point of contact with customer

• Business environment is constantly changing

• Decisions about IS impact profitsPROFIT=REVENUE-EXPENSES

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Wrong StrategyWrong Strategy

• Wrong IS strategy can destroy a business strategy . (example: wrong type of website)

• IS must support organizational systems. (example: new systems but no staff training

(example: telecommuting requires appropriate hardware and communications services in appropriate locations)

• Now an issue of Governance and Responsibility

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What is an Information System?What is an Information System?

IS is…• People• Hardware and software• Communication networks• Data resources• Policies and procedures

• Example: An Accounting System…• Records, stores, retrieves, transforms, and makes

available information about an organization to internal and external users,

• What are the limits of an accounting sustem?

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IT / IS ???IT / IS ???

• Information Systems• Deliver specified information to

authorized users.• Could be paper based

• Information Technologies• Hardware, software, networking, data

management

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Span of KnowledgeSpan of Knowledge

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5 AREAS of INTEREST

Growth of IS in BusinessGrowth of IS in Business

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Stages of development

Trends in Information SystemsTrends in Information Systems

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Trends in Information SystemsTrends in Information Systems

Recognisable “Stages of Development”

1. pre-defined reports

2. Communication between “Front” and “Back Office”.

3. Ad-hoc and interactive querying

4. Enterprise wide “dashboard” displays.

5. Independence of distance.

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Along came ….E-Business?Along came ….E-Business?

• Using Internet technologies to empower…• Business processes• Electronic commerce• Collaboration within a company• Collaboration with customers, suppliers, and other

business stakeholders

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How E-Business is Being UsedHow E-Business is Being Used

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E-Business Use and “Stages of Growth”E-Business Use and “Stages of Growth”

• 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

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Types of Information SystemsTypes of Information Systems

• Operations Support Systems• Efficiently process business transactions• Control industrial processes• Support communication and collaboration• Update corporate databases

• Management Support Systems• Provide information as reports and displays• Give direct computer support to managers during

decision-making

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Purposes of Information SystemsPurposes of Information Systems

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Operations Support SystemsOperations Support Systems

• What do they do?• Efficiently process business

transactions• Control industrial processes• Support communications and

collaboration• Update corporate databases

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Types of Operations Support SystemsTypes of Operations Support Systems

• Transaction Processing Systems• Record and process business transactions• Examples: sales processing, inventory systems,

accounting systems

• Process Control Systems• Monitor and control physical processes• Example: using sensors to monitor chemical

processes in a petroleum refinery

• Enterprise Collaboration Systems• Enhance team and workgroup communication• Examples: email, video conferencing

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When are transactions processed?When are transactions processed?

• Batch Processing• Accumulate transactions over time and process

periodically• Example: a bank processes all checks received in a

batch at night

• Online Processing• Process transactions immediately• Example: a bank processes an ATM withdrawal

immediately

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FURTHER POSSIBILITY IS The ZERO Time Organisation

Systems that support ManagementSystems that support Management

• What do they do?

Provide information and support for effective decision making by managers

• Management information systems• Decision support systems• Executive information systems

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Types of Management Support SystemsTypes of Management Support Systems

• Management Information Systems (MIS)• Reports and displays • Example: daily sales analysis reports

• Decision Support Systems (DSS)• Interactive and ad hoc support• Example: a what-if analysis to determine where to

spend advertising £££££$$$$

• Executive Information Systems (EIS)• Critical information for executives and managers• Example: easy access to actions of competitors

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additional types of Information Systemsadditional types of Information Systems

• Expert Systems• Clone the advice of experts• Example: credit application advisor

• Knowledge Management Systems• Support creation, organization, and

dissemination of business knowledge throughout company

• Example: intranet access to best business practices

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Information Systems can be…Information Systems can be…

• Strategic Information Systems• Help get a strategic advantage over

customer• Examples: shipment tracking, e-

commerce Web systems

• Functional Business Systems• Focus on operational and managerial

applications of basic business functions• Examples: accounting, finance, or

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IT Challenges and OpportunitiesIT Challenges and Opportunities

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Good Systems don’t just appear!Good Systems don’t just appear!

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The “Good” and “Bad” The “Good” and “Bad”

• Application of IT• Customer relationship management• Human resources management• Business intelligence systems

• Potential Harm• Infringements on privacy• Inaccurate information• Collusion

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Good Intentions – Bad OutcomesGood Intentions – Bad Outcomes

• Potential Risks• Consumer boycotts• Work stoppages• Government intervention

• Possible Responses• Codes of ethics• Incentives• Certification

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Ethical ResponsibilitiesEthical Responsibilities

• What uses of IT might be considered improper or harmful to other individuals or society?

• Acceptable use of the Internet or a company’s IT resources?

• Protecting information assets from computer crime?

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Summary of the IS FunctionSummary of the IS Function

• The IS function is…• A major functional area of business• An important contributor to operational efficiency,

employee productivity, morale, customer service and satisfaction

• A major source of information and support for decision making

• A vital ingredient in developing competitive products and services in the global marketplace

• A dynamic and challenging career opportunity• A key component of today’s networked business

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Again…What is a System?Again…What is a System?

• A system is…

• A set of interrelated components

• Working together as planned….

• To achieve a common set of objectives

• By accepting inputs and producing outputs

An organized transformation process

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Basic Functions of a SystemBasic Functions of a System

• Input• Capturing and assembling elements that enter the

system to be processed

• Processing• Transformation process that converts input into

output

• Output• Transferring transformed elements to their ultimate

destination

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Cybernetic SystemCybernetic System

• All systems have input, processing, and output• A cybernetic system, a self-monitoring, self-

regulating system, adds feedback and control:• Feedback is data about the performance of

a system• Control involves monitoring and evaluating

feedback to determine whether a system is moving toward the achievement of its goal

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A Cybernetic SystemA Cybernetic System

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A Business as a SystemA Business as a System

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Other System CharacteristicsOther System Characteristics

• If a system is one of the components of a larger system, it is a subsystem• The larger system is an environment

• Several systems may share the same environment• Some may be connected via a shared boundary, or

interface

• Types of systems…• Open• Adaptive

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Components of an ISComponents of an IS

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Information System ResourcesInformation System Resources

• People Resources• Specialists• End users

• Hardware Resources• Machines• Media

• Software Resources• Programs• Procedures

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Information System ResourcesInformation System Resources

• Data Resources• Product descriptions, customer records, employee

files, inventory databases

• Network Resources• Communications media, communications

processors, network access and control software

• Information Resources• Management reports and business documents using

text and graphics displays, audio responses, and paper forms

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