Chap01 management

8/10/2019 Chap01 management

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McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.


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463-390 Management Information System

Assist. Prof. Dr. Wiphada Wettayaprasit

[email protected]

http://www.cs.psu.ac.th/wiphada


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Information systems framework

Ch 1,2

Ch 3,4,5,6

Ch 13,14

Ch 11,12

Ch 7,8,9,10


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Information systems

framework

Ch 1,2

Ch 3,4,5,6

Ch 13,14

Ch 11,12

Ch 7,8,9,10


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McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Foundations of

Information Systems in Business

Chapter

1


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1. Understand the concept of a system and how itrelates to information systems

2. Explain why knowledge of information

systems is important for business professionals Identify five areas of information systems

knowledge needed

Learning Objectives


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3. Give examples to illustrate how businessapplications of information systems can

support a firms Business processes

Managerial decision making Strategies for competitive advantage

4. Provide examples of information systems from

your experiences with business organizationsin the real world

Learning Objectives


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Learning Objectives

5. Identify challenges that a business managermight face in managing the successful, ethical

development and

use of information technology

6. Provide examples of the components

of real world information systems

7. Become familiar with the myriad of career

opportunities in information systems


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Foundation Concepts

Why study information systems and informationtechnology? Vital component of successful businesses

Helps businesses expand and compete

Improves efficiency and effectiveness ofbusiness processes

Facilitates managerial decision making and

workgroup collaboration


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Case 1: Heidelberg, Honeywell, Eaton

Smart services, smart products Using information technology to monitor,

intervene, assist

Machines relay information via the Internet

and wireless systems Optimized performance

Minimized maintenance and repair costs

Less unanticipated downtime Increased value justifies premium charge


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Case Study Questions

1. Why should manufacturing companies buildsmart products and provide smart services?

What business benefits can be gained?

Provide examples beyond those discussed in

this case

2. What information technologies are used

by the companies in this case to build smart

products and provide smart services? What other IT components might be used?

Give examples of the capabilities they would

provide


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3. What are some limitations of a smart productsand smart services strategy?

Give several examples that a business might

encounter

Explain how it might overcome them


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What is a System?

A set of interrelated components With a clearly defined boundary

Working together

To achieve a common set of objectives


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What is an Information System?

An organized combination of People

Hardware and software

Communication networks

Data resources Policies and procedures

This system

Stores, retrieves, transforms, and disseminatesinformation in an organization


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Information Technologies

Information Systems All the components and resources necessary to

deliver information and functions to the

organization

Could be paper based

Information Technologies Hardware, software, networking, data

management Our focus will be on computer-based

information systems (CBIS)


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What Should Business Professionals Know?


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Fundamental Roles of IS in Business


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Trends in Information Systems


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What is E-Business?

Using Internet technologies to empower Business processes

Electronic commerce

Collaboration within a company

Collaboration with customers, suppliers, andother business stakeholders

In essence, an online exchange of value


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How E-Business is Being Used


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E-Business Use

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 Systems

1) Operations Support Systems Efficiently process business transactions

Control industrial processes

Support communication and collaboration

Update corporate databases 2) 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 Systems


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1) Operations 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 Systems

1.1 Transaction Processing Systems Record and process business transactions

Examples: sales processing, inventory systems,

accounting systems

1.2 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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Two Ways to Process Transactions

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 withdrawalimmediately


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2) Management Support Systems

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 Systems

2.1 Management Information Systems (MIS) Reports and displays

Example: daily sales analysis reports

2.2 Decision Support Systems (DSS) Interactive and ad hoc support

Example: a what-if analysis to determine where

to spend advertising dollars

2.3 Executive Information Systems (EIS) Critical information for executives and managers

Example: easy access to actions of competitors


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3) Other Information Systems

3.1 Expert Systems Provide expert advice

Example: credit application advisor

3.2 Knowledge Management Systems Support creation, organization, and dissemination

of business knowledge throughout company

Example: intranet access to best business

practices


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Other Information Systems

3.4 Strategic Information Systems Help get a strategic advantage over customer Examples: shipment tracking, e-commerce Web

systems

3.5 Functional Business Systems Focus on operational and managerial applications

of basic business functions

Examples: accounting, finance, or marketing


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IT Challenges and Opportunities


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Measuring IT Success

Efficiency Minimize cost, time, and use of information

resources

Effectiveness Support business strategies

Enable business processes

Enhance organizational structure and culture

Increase customer and business value


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Developing IS Solutions


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Challenges and Ethics of IT

Application of IT Customer relationship management Human resources management

Business intelligence systems

Potential Harm Infringements on privacy

Inaccurate information

Collusion


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Challenges and Ethics of IT

Potential Risks Consumer boycotts Work stoppages

Government intervention

Possible Responses Codes of ethics

Incentives

Certification


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Ethical Responsibilities

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

What is the proper business use of the Internet

or a companys IT resources?

How can you protect yourself from computer

crime?


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IT Careers

Economic downturns have affected all jobsectors, including IT

Rising labor costs are pushing jobs to India,

the Middle East, and Asia-Pacific countries

However, IT employment opportunities are

strong, with new jobs emerging daily

Shortages of IT personnel are frequent

The long-term job outlook is positive and

exciting


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IT Careers


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IT Careers

Job increases will be driven by Rapid growth in computer system design and

related services

The need to backfill positions

Information sharing and client/serverenvironments

The need for those withproblem-solving skills

Falling hardware and software prices, which willfuel expanded computerization of operations


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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 competitiveproducts and services in the global marketplace

A dynamic and challenging career opportunity

A key component of todays networked business


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System Concepts: A Foundation

System concepts help us understand Technology:hardware, software, data

management, telecommunications networks

Applications:to support inter-connected

information systems

Development:developing ways to use

information technology includes designing the

basic components of information systems Management:emphasizes the quality, strategic

business value, and security of an organizations

information systems


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Real World Case: Lufthansa

Lufthansa wants to Keep 3,500 pilots

Trained on the latest technology and procedures

Plugged into the corporate infrastructure

Informed about schedules, weather events, and otherfacts that affect their jobs

Control costs

Provide Internet access to passengers


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Are many of Lufthansas challenges identified inthe case similar to those being experienced by

other businesses in todays global economy?

What other tangible and intangible benefits,beyond those identified by Lufthansa, might a

mobile workforce enjoy as a result of deploying

mobile technologies?


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Lufthansa was clearly taking a big risk with theirdecision to deploy notebook computers to their

pilots. What steps did they take to manage the

risk, and what others might be needed in todays

business environment?


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What is a System?

A system is A set of interrelated components

With a clearly defined boundary

Working together

To achieve a common set of objectives

By accepting inputs and producing outputs

In an organized transformation process


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Basic Functions of a System

Input Capturing and assembling elements that enter thesystem to be processed

Processing

Transformation process that converts input intooutput

Output

Transferring transformed elements to theirultimate destination


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Cybernetic 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 Controlinvolves monitoring and evaluating

feedback to determine whether a system is

moving toward the achievement of its goal


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A Cybernetic System

A B i S


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A Business as a System

Oth S t Ch t i ti


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Other System Characteristics

If a system is one of the components of a largersystem, 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

C t f IS


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Components of an IS

I f ti S t R


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Information System Resources

1 People Resources Specialists End users

2 Hardware Resources Machines

Media

3 Software Resources

Programs Procedures

I f ti S t R


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Information System Resources

4 Data Resources Product descriptions, customer records, employeefiles, inventory databases

5 Network Resources Communications media, communications

processors, network accessand control software

6 Information Resources

Management reports and business documentsusing text and graphics displays, audio responses,

and paper forms

D t V I f ti


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Data Versus Information

Dataare raw facts about physical phenomena orbusiness transactions

Informationis data that has been converted

into meaningful and useful context for end users Examples:

Sales data..is names, quantities,and dollar

amounts

Sales informationis amount of salesby

product type, sales territory, or salesperson

IS A ti iti


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IS Activities

Inputof data resources Data entryactivities

Processingof datainto information Calculations, comparisons, sorting, and so on

Outputof information products Messages, reports, forms, graphic images

Storageof data resources

Data elements and databases Controlof system performance

Monitoring and evaluating feedback

R i i I f ti S t


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Recognizing Information Systems

Business professionals should be able to look atan information system and identify

The people, hardware, software, data, and

network resources they use

The type of information products they produce

The way they perform input, processing, output,

storage, and control activities

C 3 A i ll I


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Case 3: Aviall, Inc.

Supplier of airplane parts and components Had lost track of its inventory

Price-tracking software didnt work with

inventory control or purchasing forecasting

Sent wrong parts to wrong customers Sales falling

Needed a middleware vision

Get all the software to work together

Case St d Q estions


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Why do you think that Aviall failed in theirimplementation of an airplane parts and

components inventory control system?

How has information technology brought new

business success to Aviall? How did IT changeAvialls business model?

How could other companies use Avialls

approach to the use of IT to improve theirbusiness success?


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Case Questions


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Case Questions

What are the business benefits of the CallMinersystem?

How can new technologies like CallMiner help

companies improve their customer service and

gain a competitive edge in the marketplace?

Andre Harris refers to calls to reconfirm a flight

as quite frankly, low-value calls. Why are they

classified as low value? Why do you think so

many customers are placing such calls?

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