Abacus 1886 – Punch-cards

Used in 1890 for US Census 1945 – ENIAC 1947 – EDVAC/UNIVAC 1971 – Intel released first

microprocessor (CPU) 1975

– Apple Computer (Steve Jobs and Steve Wozniak)

– Microsoft (Paul Allen and Bill Gates)

History of ComputersHistory of Computers

Information SystemsInformation Systems

Definition from book:– An information system is a set of interrelated

components that collect (input), manipulate (process), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

Organization StructureOrganization Structure

Any Company, USA.

IT

Accounting

Marketing

Finance Sales

Operations

•CIO

•Levels of Mgmt.

•Systems Analyst, Programmers

•DBA

•LAN Administrator

The value of information is directly The value of information is directly linked to how it helps decision linked to how it helps decision

makers achieve the organizations makers achieve the organizations goalsgoals

Data vs. Information– Data: Raw facts– Information: Processed Data

Knowledge: need to process the data to get meaningful, useful, valuable information

Valuable InformationValuable Information

Accurate (GIGO) Economical Secure Reliable Accessible Simple

Verifiable Complete Flexible Timely Relevant

Knowing the potential impact of Knowing the potential impact of information systems and having the ability information systems and having the ability to put this knowledge to work can result in to put this knowledge to work can result in

a successful personal career, an a successful personal career, an organization that reaches its goals and a organization that reaches its goals and a

society with a higher quality of lifesociety with a higher quality of life E–commerce Transaction Processing Systems (TPS) Management Information System (MIS) Decision Support System (DSS) Artificial Intelligence Expert Systems Virtual Reality

Information Systems add value to an Information Systems add value to an organization and its processorganization and its process

Primary Goal of any organization: Provide value to stakeholders (customer, supplier,

manager, or employee)

Value Chain

Inbound logistics

Marketing, sales

Customer Service

Outbound logistics

Warehouse, storage Finished

product storage

Production

Because Information Systems are so Because Information Systems are so important, businesses need to be important, businesses need to be sure that improved or completely sure that improved or completely new systems help lower costs, new systems help lower costs,

increase profits, improve service, or increase profits, improve service, or achieve a competitive advantageachieve a competitive advantage

Five-Force ModelFive-Force ModelFactors that lead firms to seek a Factors that lead firms to seek a

competitive advantagecompetitive advantage

1. Rivalry among existing competitors

2. Threat of new entrants

3. Threat of substitute products and services

4. Bargaining power of customers

5. Bargaining power of suppliers

Strategies for a Competitive Strategies for a Competitive AdvantageAdvantage

Altering the industry structureCreating new products and servicesImprove existing product lines and services

Use of information systems throughout the strategies above

Business Use of ISBusiness Use of IS

1st Stage – 1960’sCost Reduction/Productivity

2nd Stage – 1980’sGaining a competitive advantage

3rd Stage – CurrentPerformance-based

– Strategic advantage, cost– Productivity, quality, return on investment

33rdrd Stage: Performance-based Stage: Performance-based

Productivity Output achieved / Input requiredQuality Ability of a product to meet or exceed customer

expectationsReturn on Investment Earnings growth Market share Customer awareness & satisfaction Total cost of ownership