foundation of information systems
TRANSCRIPT
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Foundation of Information Systems
Reading:Laudon & Laudonchapter 1
Additional Reading:Brien & Marakaschapter 1
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OutlineInformation Systems
Definition, RoleFunctions of Information Systems in Business Today
Perspectives on Information Systems and Information Technology
Understanding Information SystemsA Business Problem-Solving Approach
Information Systems and your Career
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SolutionHigh resolution, organized video allows teams to review games and scout new players more efficiently.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 efficiencyIllustrates the emerging digital firm landscape where businesses can use tools to analyze critical data
Problem?Escalating salaries and travel costs, difficulty of increasing revenue by improving employee performance
NBA Teams make a Slam Dunk with IT
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Information SystemsSet of interrelated components that
Collect/retrieve, process, store, and distribute information toSupport decision making, coordination, control
Help managers and workersAnalyze problemsVisualize complex subjectsCreate new products
Not necessarily employ computersSmoke signals, Card storage in library, etc.
What is System?Set of Interrelated components, with clearly defined boundary, working together to achieve common set of objectives
Information System
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Information SystemsData → Stream of Raw factsInformation → Data shaped into useful/meaningful form
Information System
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as thetotal unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.
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Information TechnologyVarious hardware/software, networking, data management components necessary for IS to operate
PCs, disk drives, hand held PDA, iPodsOperating Systems - Windows, Linux,MS Office desktop productivity suite, programs, …
IS and IT often used interchangeably
Fundamental Roles of IS in BusinessSupport of business process and operations
Support of business decision making
Support of strategies for competitive advantage
Information System
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Role of People and OrganizationsInformation Systems Literacy
Behavioral and technical approach
Computer LiteracyFocuses on knowledge of IT
Management Information Systems (MIS)Focuses on Information System Literacy → COMP5131Issues surrounding development, use, impact of information systems, used by managers and employees
Information System
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ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY
PEOPLEPEOPLE
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
Dr. Chen, The Challenge of the Information Systems Technology TM TM --1010
Dimensions of Information Systems
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OrganizationsIntegral Part – Vice Versa
Coordinate work through structured hierarchy and business processes
Business processes → Logically related tasks and behaviors for accomplishing work
Fulfilling an order, Developing a new productMay be informal or include formal rules
Culture embedded in information systemsWhat is Organizational Culture ?Example → UPS’s concern with placing service to customer first
Information Systems
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PeopleRequires skilled people → Build, Maintain and Use
Adequate Training
Employee attitudes affect ability to use systems productively
Role of managersPerceive business challengesSet organizational strategyAllocate human and financial resourcesCreative work, new products, services
Information Systems
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TechnologyIT Infrastructure → Foundation or platform that information systems built on
Computer hardwareComputer softwareData management technologyNetworking and telecommunications technology
Internet and Web, extranets, intranetsVoice, video communications
Information Systems
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Case Study Case Study -- United Parcel ServiceUnited Parcel Service
Using a handheld computer called a Delivery Information Acquisition Device (DIAD), UPS drivers automatically capture customers’signatures along with pickup, delivery, and time card information. UPS information systems use these data to track packages while they are being transported.
Information System
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UPS Competes Globally with Information TechnologyUPS Competes Globally with Information Technology
Information System
• Case Study Questions• What are the inputs, processing, and outputs of UPS’s package
tracking system?
• What technologies are used?
• How are these technologies related to UPS’s business strategy?
• What problems do these technologies solve?
• What would happen if these technologies were not available?
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Types of Operations Support SystemsTransaction Processing Systems
Record and process data from business transactionsExamples: sales processing, inventory systems, accounting sales processing, inventory systems, accounting systemssystems
Process Control SystemsMonitor and control physical processesExample: in a petroleum refinery use sensors to monitor chemical processes
Enterprise Collaboration SystemsEnhance team and work group communicationsExamples: e-mail, videoconferencing
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Processing TransactionsBatch Processing
Accumulate transactions over time and process periodicallyExample: a bank processes all checks received in a batch at night
Online ProcessingProcess transactions immediatelyExample: a bank processes an ATM withdrawal immediately
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Management Support SystemsWhat are they?
Provide information and support for effective decision making by managers
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Types of Management Support SystemsManagement Information Systems (MIS)
Provide reports and displays to managersExample: daily sales analysis reports
Decision Support Systems (DSS)Provide interactive ad hoc support for decision makingExample: A what-if-analysis to determine where to spend advertising dollars
Executive Information Systems (EIS)Provide critical information for executives and managersExample: easy access to actions of competitors
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Other CategoriesExpert Systems
Provide expert advice and act as consultant to usersExample: process monitor, credit application advisor
Knowledge Management SystemsSupports creation, organization of business knowledgeExample: Internet access to best business practices
Strategic Information SystemsSupport operations/management processes that provide strategic product/services for competitive edgeExample: Online stock trading, shipment tracking
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The Problem Solving ApproachFew Business problems are simple or straightforwardA Model of The Problem Solving Process
Problem IdentificationSolution DesignSolution Evaluation and ChoiceImplementation
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Problem IdentificationIncludes
Agreement that problem existsDefinition of problemCauses of problemWhat can be done given resources of firm
Typical Organizational ProblemOutdated business processesUnsupportive culture and attitudesPolitical in-fightingTurbulent business environment, changeComplexity of taskInadequate resources
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Problem IdentificationTypical Technology Problems
Insufficient or aging hardware, Outdated SoftwareInsufficient telecommunications/database capacityIncompatibility of old systems with new technologyRapid technological change
Typical People ProblemsLack of employee trainingDifficulties of evaluating performanceLegal and regulatory complianceWork environmentPoor or indecisive managementLack of employee support and participation
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Model for Problem Solving ApproachSolution Design
Often many possible solutionsConsider as many as possibleRange of Solutions → Technology, Organization, PeopleMost Successful Solutions → Integrated Approach
Evaluation and ChoiceCostFeasibility given resources and skillsLength of time needed to implement solution
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Model for Problem Solving ApproachImplementation
Building or purchasing solutionTesting solution, employee trainingChange managementMeasurement of outcomesFeedback, evaluation of solution
Evaluation and ChoiceCostFeasibility given resources and skillsLength of time needed to implement solution
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Model for Problem Solving Approach
Problem Solving: Process, Not an EventSometimes chosen solution doesn’t work or needs adjustment
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Role of Critical ThinkingWhat is Critical Thinking?• Sustained suspension of judgment with an awareness
of multiple perspectives and alternatives
• Without critical thinking, easy to jump to conclusions, misjudge a problem and waste resources
• Best protection against incorrect results
Four ElementsMaintaining doubt and Suspending judgmentBeing aware of different perspectivesTesting alternatives and letting experience guideBeing aware of organizational and personal limitations
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ConnectionsBusiness Objectives, Problems, Solutions• When firms cannot achieve business objectives
these objectives become challenges
• Information systems often present solutions, partially or fully, to these challenges
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Interactive Session Interactive Session –– Saks CustomersSaks CustomersQuestions
What is the problem affecting the performance of Saks?
What information does Saks need to solve this problem? What other pieces of data does Saks need in addition to those in its nine-box grid? Where can Saks acquire this information?
What role should managers and employees have in designing the solution?
Design a report that represents the information Saks needs to implement its merchandising strategy
How might a better understanding of customer preference support Saks’ strategy of improving existing facilities?
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Information Systems and Business CareersAccounting
Accountants → Information SystemsSummarize TransactionsCreate Financial RecordsOrganize DataPerform Financial Analysis
SkillsIT, software used in auditing, accounting functionsSystem and network security issuesEnterprise systems for financial reporting
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Information Systems and Business CareersFinance
Financial Management/Services → Information SystemsDevelop Financial ReportsDirect Investment ActivitiesImplement Cash Management Strategies
SkillsIT, software used by financial managers and financial services firmsNew technologies for financial transactions, tradingEnterprise systems for financial reporting
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Information Systems and Business Careers
Equities analysts depend heavily on information systems for organizing and analyzing very large amounts of financial data
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Information Systems and Business CareersMarketing and Advertising
Technology driven changes Internet Advertising → Fastest growing, 30% annually
13 billion US$ in 2006Expected 200,000 new jobs by 1012 in US
SkillsUnderstanding of Internet, marketing database systemsImpact on marketing activities → brand development, promotion, salesEnterprise systems for product management, sales force management, customer relationship management
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Information Systems and Business CareersOperations Management Services/Manufacturing
Coordinate and Optimize Resources to produce goods and services
Industrial Production ManagersAdministrative Services ManagersOperation Analysts
SkillsHardware and software platforms for operations management How enterprise systems for production management, supplier management, sales force management, customer relationship management are used to achieve efficient operations and meet other goals
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Information Systems and Business CareersManagement
Largest single group in US – 14 million membersIndustrial Production ManagersAdministrative Services ManagersOperation Analysts
SkillsHardware and software to improve management, enhance leadership and coordination, improve achievement of overall corporate objectivesIn-depth understanding of how enterprise systems are used to achieve efficient operations and help make better decisions for improving firm performance
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Information Systems and Business CareersInformation Systems
Most dynamic of all business professions, fastest 5/20IT → Key business objectivesOutsourcing and Offshoring
ImpactManagerial IS positions ↑, Lower-level technical jobs ↓
SkillsIn-depth knowledge of how new and emerging hardware and software to achieve six business objectivesAn ability to take a leadership role in the design and implementation of new information systems
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Information Systems and Business CareersCommon Requirements
How IT helps achieve six business objectives
Central role of databases
Information analysis, impact of environment
Working with specialists and systems designers
Ethical, social, legal environment and issuesUse of IT to meet legal requirements