mis james a. o'brian chap 01
TRANSCRIPT
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1 - 1Copyright 2006, The McGraw-Hill Companies, Inc. All rights reserved.
Foundations ofInformation Systems
in Business
Chapter
1
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1. Explain why knowledge of informationsystems is important for businessprofessionals and identify five areas ofinformation systems knowledge they need.
2. Give examples to illustrate how the businessapplications of information systems can
support a firms business processes,managerial decision making, and strategiesfor competitive advantage.
Learning Objectives
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Learning Objectives
3. Provide examples of several major typesof information systems from yourexperiences with business organizations
in the real world.
4. Identify several challenges that a
business manager might face inmanaging the successful and ethicaldevelopment and use of informationtechnology in a business.
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Learning Objectives
5. Provide examples of the components ofreal world information systems. Illustratethat in an information system, people
use hardware, software, data andnetworks as resources to perform input,processing, output, storage, and controlactivities that transform data resources
into information products.
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Why Study Information Systems?
Information technology can help all kindsof businesses improve the efficiency andeffectiveness of their business processes,
managerial decision making, andworkgroup collaboration, thusstrengthening their competitive positionsin a rapidly changing marketplace.
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Why Study Information Systems
Internet-based systems have become anecessary ingredient for business successin todays dynamic global environment.
Information technologies are playing anexpanding role in business.
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What is an Information System?
Any organized combination of people,hardware, software, communicationsnetworks, and data resources that stores,
retrieves, transforms, and disseminatesinformation in an organization.
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Information Systems vs.Information Technology
Information Systems (IS) allcomponents and resources necessary todeliver information and information
processing functions to the organization
Information Technology (IT) various
hardware components necessary for thesystem to operate
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Types of Information Technologies
Computer Hardware Technologiesincluding microcomputers, midsize servers, and largemainframe systems, and the input, output, and storagedevices that support them
Computer Software Technologiesincluding operating system software, Web browsers,software productivity suites, and software for businessapplications like customer relationship management andsupply chain management
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Types of Information Technologies
Telecommunications NetworkTechnologiesincluding the telecommunications media, processors,and software needed to provide wire-based and
wireless access and support for the Internet and privateInternet-based networks
Data Resource Management
Technologiesincluding database management system software forthe development, access, and maintenance of thedatabases of an organization
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Conceptual Framework of IS Knowledge
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Roles of IS in Business
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Trends in Information Systems
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What is E-Business?
Definition: The use of Internet technologies to work
and empower business processes,
electronic commerce, and enterprisecollaboration within a company and withits customers, suppliers, and otherbusiness stakeholders.
An online exchange of value.
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E-Business Information TechnologyInfrastructure
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Enterprise Collaboration Systems
Definition: Involve the use of software tools to
support communication, coordination, and
collaboration among the members ofnetworked teams and workgroups.
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What is E-Commerce?
Definition:The buying and selling, and marketingand servicing of products, services, and
information over a variety of computernetworks.
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Types of Information Systems
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Operation Support Systems
Definition: Information systems that process data
generated by and used in business
operations Goal is to efficiently process business
transactions, control industrial processes,
support enterprise communications andcollaboration, and update corporatedatabases
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Examples of Operations Support Systems
Transaction Processing Systems (TPS)process data resulting from businesstransactions, update operational databases, andproduce business documents.
Process Control Systems (PCS) monitor andcontrol industrial processes.
Enterprise Collaboration Systems supportteam, workgroup, and enterprisecommunications an collaboration.
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Management Support Systems
Definition: Information systems that focus on
providing information and support for
effective decision making by managers
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Management Support Systems
Management Information Systems (MIS)provide information in the form of pre-specifiedreports and displays to support businessdecision making.
Decision Support Systems (DSS) provideinteractive ad hoc support for the decisionmaking processes of managers and otherbusiness professionals.
Executive Information Systems (EIS) providecritical information from MIS, DSS, and othersources tailored to the information needs ofexecutives.
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Operational & Managerial IS
Expert Systems provide expert advicefor operational chores or managerialdecisions
Knowledge Management Systemssupport the creation, organization, and
dissemination of business knowledge toemployees and managers
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IS Classifications by Scope
Functional Business Systems support basicbusiness functions
Strategic Information Systems supportprocesses that provide a firm with strategicproducts, services, and capabilities forcompetitive advantage
Cross-functional Information Systemsintegrated combinations of information systems
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Management Challenges & Opportunities
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Measures of Success
Efficiency
Minimize costs
Minimize time
Minimize the use of information resources
Effectiveness
Support an organizations business strategies
Enable its business processes
Enhance its organizational structure and culture
Increase the customer business value of theenterprise
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Developing IS Solutions
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Ethical Challenges of IT
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IT Career Trends
Rising labor costs have resulting in large-scalemovement to outsource programming functions to India,the Middle East and Asia-Pacific countries.
More new and exciting jobs emerge each day as
organizations continue to expand their wide-scale use ofIT.
Frequent shortages of qualified information systems
personnel.
Constantly changing job requirements due to dynamicdevelopments in business and IT ensure long-term joboutlook in IT remains positive and exciting.
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The IS Function represents
A major functional area of businessequally as important to business successas the functions of accounting, finance,operations management, marketing, andhuman resource management.
An important contributor to operationalefficiency, employee productivity andmorale, and customer service andsatisfaction.
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The IS Function represents
A major source of information and supportneeded to promote effective decisionmaking by managers and businessprofessionals.
A vital ingredient in developing
competitive products and services thatgive an organization a strategic advantagein global marketplace.
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The IS Function represents
A dynamic, rewarding, and challengingcareer opportunity for millions of men andwomen.
A key component of the resources,infrastructure, and capabilities of todays
networked business enterprise.
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Case #2: Connecting the Mobile Workforce
Goals: Keep 3,500 highly mobile airline pilots:
Trained on the latest technology and
procedures Plugged into the corporate infrastructure
Informed about schedules, weather events,and other facts that affect their jobs
Control costs
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Case #2: Connecting the Mobile Workforce
Productivity and Efficiency Improvements: Pilots can access updated data electronically.
Pilots can work in a variety of locations includingairplanes, airports, hotels, and other remotelocations.
Pilots appreciate the convenience of not havingto carry heavy manuals and documentation to
multiple locations.
Pilots can take their required training on theirlaptops during downtime in any airport.
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Case #2: Connecting the Mobile Workforce
1. Are many of Lufthansas challengesidentified in the case similar to thosebeing experienced by other businessesin todays global economy? Explain and
provide some examples.
2. What other tangible and intangible
benefits, beyond those identified byLufthansa, might a mobile workforceenjoy as a result of deploying mobiletechnologies? Explain.
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Case #2: Connecting the Mobile Workforce
3. Lufthansa was clearly taking a big riskwith their decision to deploy notebookcomputers to their pilots. What steps didthey take to manage that risk and what
others might be needed in todaysbusiness environment? Provide someexamples.
4. How might mobile computing improveyour productivity and efficiency?Provide some examples.
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Case #2: Connecting the Mobile Workforce
5. What challenges in pilot morale,performance, and management mightarise with the use of mobile computingdevices in the field and in the cockpit?What preventive actions or solutions tothese potential problem areas could yousuggest?
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What is a System?
Definition:A group of interrelated components, witha clearly defined boundary, working
together toward a common goal byaccepting inputs and producing outputs inan organized transformation process.
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System Components
Input capturing and assemblingelements that enter the system to beprocessed
Processing transformation steps thatconvert input into output
Output transferring elements that havebeen produced by a transformationprocess to their ultimate destination
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Cybernetic Systems
Definition:a self-monitoring, self-regulating system.
Feedback data about the performanceof a system
Control monitoring and evaluatingfeedback to determine whether a systemis moving toward the achievement of itsgoal
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Example of a Cybernetic System
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A Business System
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IS Resources & Activities
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Information System Resources
People end users and IS specialists
Hardware physical devices andmaterials used in information processingincluding computer systems, peripherals,and media
Software sets of information processinginstructions including system software,application software and procedures
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Information Systems Resources (cont)
Data facts or observations aboutphysical phenomena or businesstransactions
Network communications media andnetwork infrastructure
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Data vs. Information
Data raw facts or observations typicallyabout physical phenomena or businesstransactions
Information data that have beenconverted into a meaningful and usefulcontext for specific end users
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Network Resources
Communications Media examplesinclude twisted-pair wire, coaxial andfiber-optic cables, microwave, cellular,and satellite wireless technologies
Network Infrastructure examples includecommunications processors such as
modems and internetwork processors,and communications control softwaresuch as network operating systems andInternet browser packages.
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Information Systems Activities
Input of Data Resources Processing of Data into Information
Output of Information Products
Storage of Data Resources Control of System Performance
S
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Recognizing Information Systems
Fundamental Components of IS People, hardware, software, data and
network resources used
Types of information products produced
Input, processing, output, storage andcontrol activities performed
S
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Summary
There is no longer a distinction betweenan IT project and a business initiative.
Information systems are an importantcontributor to operational efficiency,employee productivity and morale, andcustomer service and satisfaction.
S
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Summary
Information systems are a major source ofinformation and support needed topromote effective decision making bymanagers and business professionals.
Information systems can be categorizedbased on their intended purpose.
S
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Summary
Managing and using information systemscan pose several challenges including thedevelopment process and ethicalresponsibilities.
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End of Chapter
Chapter
1