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1Foundations of Information Systems in BusinessFoundations of Information Systems in BusinessFoundations of Information Systems in BusinessFoundations of Information Systems in Business

Why Study Information Systems?

Information technologies are playing an expanding

role in business.

Improving efficiency and effectiveness managerial decision making

workgroup collaboration

The end result is that businesses can strengthentheir competitive position in the rapidly changing

marketplace

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Efficiency

Minimize Costs

Minimize Time Minimize Use of Information Resources

Effectiveness

Support an organizations business strategies

Enable its business processes

Enhance organizational structure and culture

Increase customer business value

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Internet-based systems have become a necessary

ingredient for business success

How many of you:

Purchased products on line that you wouldhave not considered buying 5 years ago?

Make airline reservations on line? Gotten product/service information on line?

Information technologies are playing an expanding

role in business.

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Why do you have required accounting, marketing,management, economics and finance courses?

But why a required principles course?

Because these are all basic business functions(As are Information Systems)

It wasnt always that way, however.

Lets consider a typical Organization Table fromthe late 1970s/early 1980s

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CEO

VP Finance VP Production VP Marketing

Accounting

EDP Depart.

A(Simplified) Organizational Table (c. 1960)

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A(Simplified) Organizational Table (c. 1990)

VP Marketing VP Finance VP Production CIO

CEO

Why the difference?

Information Systems are no longer viewed merelyas tools

They have moved from a STAFFposition to a

LINEposition

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The Conceptual Framework of IS Knowledge

What will we be studying in this course?

Fundamental behavioral, technical, business and managerial

concepts about IS components and IS roles

Chapters 1 & 2

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What constitutes an information system?

Major concepts, developments and management issues in

issues in IS Technology

Hardware

Software

Networks

Data Management Internet

Technologies

Chapters

3 - 6

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The challenges of effectively and ethically managing

information systems at the end-user, enterprise, and global

levels of the business

Chapters 13 & 14

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The major uses of Information Technologies for operations,

management and competitive advantages

Chapters 8 - 10

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How information professionals and specialists plan, develop

and implement information systems to meet business

opportunities

Chapters 11 & 12

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So what is an information system?

ALL the components must work together toward a single

goal

In fact it is many different and related systems that appearto be only one system

It is a term that we use everyday, without thought to what

it really means:

I dont understand why they chose the new

inventory system instead of an SAP system

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Information systems should be viewed the same as any

other system

The solar system

A railway system

An ecological system

An economic System

(The European Community)

They are:

ALL the components work together toward a single goal

a group of independent but interrelated

elements comprising a unified whole


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A basic system can be represented as

Input

Control

OutputProcessing

FeedbackSignals

Control

Signals

Control

Signals

FeedbackSignals

ENVIRONMENT

capturing and assembling elements that enter the system

to be processed

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Input

Control

OutputProcessing

FeedbackSignals

Control

Signals

Control

Signals

FeedbackSignals

ENVIRONMENT

transformation steps that convert input into output

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Input

Control

OutputProcessing

FeedbackSignals

Control

Signals

Control

Signals

FeedbackSignals

ENVIRONMENT

transferring elements that have been produced by atransformation process to their ultimate destination

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Input

Control

OutputProcessing

FeedbackSignals

Control

Signals

Control

Signals

FeedbackSignals

ENVIRONMENT

monitoring and evaluating feedback to determinewhether a system is moving toward its goal

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Input

Control

OutputProcessing

FeedbackSignals

Control

Signals

Control

Signals

FeedbackSignals

ENVIRONMENT

data about the performance of a system

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Input

Control

OutputProcessing

FeedbackSignals

Control

Signals

Control

Signals

FeedbackSignals

ENVIRONMENT

Adjustment to improve system performance

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What does this have to do with real life?

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Closed Systems:

Mechanical systems are generally closed systems

To use a refrigerator you turn it on and set the

temperature.After that you can forget about

monitoring the temperature because it is done

automatically.

You might consider a prison system as a closedsystem (especially if a prisoner is locked-up in

isolation)

A simple computer program which always returns the

same result may be considered a closed system

What types of systems are there?

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Open Systems:

Living Organisms

Some mechanical systems, such

as thermostats,which rely on inputs from the

environment

People are open systems since they mustinteract with their environment in order to take

in food, water, and obtain shelter

and produce affects affecting the

environment

What types of systems are there?

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The Systems Trinity: Managers Users

Systems Designers


As well as: Customers

and others

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microcomputers, midsize servers,

and large mainframe systems

the input, output, and

storage devices thatsupport them


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operating system software, Web browsers, software productivity

suites, and software for business applications like customer

relationship management and supply chain management


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operating system software, Web browsers, software productivity

suites, and software for business applications like customer

relationship management and supply chain management


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Data Versus Information


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While information systems rely on data, they must provide

information

Whats the difference??? Data (pl) is a non-random sequence of symbols

Fernandez, JuanA19 1211 83 77 81

Information, while generally based on data, is somethingthat increases our knowledge

Juan Fernandez is anAccounting Major and has a 80.3 average in

Principles ofAccounting

(Based on analysis of the above data)

Data versus Information?

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While information systems rely on data, they must provide

information

Whats the difference??? Data (pl) is a non-random sequence of symbols

Fernandez, JuanA19 1211 83 77 81

Information, while generally based on data, is somethingthat increases our knowledge

Juan Fernandez is anAccounting Major and has a 80.3 average in

Principles ofAccounting

(Based on analysis of the above data)

Data versus Information?

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Arent Information Systems and InformationTechnology the same thing?

all components and resources

necessary to deliver information and

information processing functions to the

organization

Information

Systems (IS):

Information

Technology (IT):

various hardware components

necessary for the system to operate

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What are the Fundamental Roles of IS in Business? Lets first talk about the fundamental roles of management

Anthonys Hierarchy of Management

Operational

Management

(Production Manager)

Focus is on the present

Middle or

Tactical Mgt.

(Plant Manager)

Focus is on the short term future

(e.g., Budgeting)

Top

Mgt.

(CEO)

Focus is on the Long term future

(e.g., New Products)

(e.g., Meeting Production Schedule)

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What are the Fundamental Roles of IS in Business?


Operational

Management


Middle or

Tactical Mgt.

(Plant Manager)

Top

Mgt.

(CEO)

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What types of information do we need?

That depends on what you need Lets look at some of the dimensions of information

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Information needs and Management Levels


Operational

Management


Middle or

Tactical Mgt.

(Plant Manager)

Top

Mgt.

(CEO)

Very Timely

Unscheduled

Very current

Dated

Often needed

Infrequent

Present Data

Future Orientation

Historical Data

Predictive

VeryAccurate

Semi-accurate

Very Relevant

Semi-relevant

Complete

Incomplete

Detailed

Concise

Narrow Scope

Broad Scope

Form of presentation

is a function of the

managers preference

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Operational

Management


Middle or

Tactical Mgt.

(Plant Manager)

Top

Mgt.

(CEO)

Operations Support Systems

Transaction Processing Process Control

Collaboration Systems

Management Support Systems

Management decision support Management reporting systems

Strategic Information Systems CompetitiveAdvantage Systems

Long term Planning

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Operations

Support

Systems

Transaction

Processing

Systems

process data resulting from business transactions, update operational

databases, and produce business documents.

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Operations

Support

Systems

Transaction

Processing

Systems

monitor and control industrial processes.

Process

Control

Systems

Process control systems use electronic sensors linked to

computers to continually monitor processes and make instant (real-

time) adjustments that control the process.

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Operations

Support

Systems

Transaction

Processing

Systems

support team, workgroup, and enterprise communications and

collaboration.

Process

Control

Systems

Enterprise

Collaboration

Systems

Enterprise collaboration systems enhance team and workgroup

communications and productivity, and include applications that are

sometimes called office automation.

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Management

Support

Systems

Management

Information

Systems

provide information in the form of pre-specified reports and displays

to support business decision making.

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Management

Support

Systems

Management

Information

Systems

Decision

Support

Systems

provide interactive ad hoc support for the decision making processes

of managers and other business professionals.

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Management

Support

Systems

Management

Information

Systems

Decision

Support

Systems

Executive

Information

Systems

EIS systems are management information systems which are tailored

to meet the strategic information needs of top management.

provide critical information from MIS, DSS, and other sources tailored

to the information needs of executives.

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Other Information Systems

Expert Systems

Attempts to apply the logic used by Experts in a specific field

KnowledgeManagement Systems

Systems that support the creation, organization, and

dissemination of business knowledge to employees and

managers

Functional Business Systems

Information Systems that focus on operational and managerial

applications of business functions

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Other Information Systems

Strategic Information Systems

Systems that support the creation, organization, anddissemination of business knowledge to employees and

managers

Cross-functional Information Systems

Computer systems developed in order to help knowledgeworkers create, organize, and share important business

knowledge wherever and whenever needed.

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How have information systems evolved?

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How have information systems evolved?

Network Configurations

LocalArea Networks (LANS)

Short Range within the same building

IntranetsWithin a business may be world-wide

InternetsAvailable to anyone world-wide

ExtranetsA network between an enterprise and its trading partners

WideArea Networks (WANS)Long Range May be world-wide

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How do we develop an information system?

Whats the problem? What are you doing? I think this is what

you should be doing!

Lets do it!

How are we

doing? Letskeep up the

good stuff, and

improve where

we can!

(This is also known

as the planningphase)

Who should be Involved? Everyone!

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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 is E-Business 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 ofproducts and services over networks

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What are the Managerial Challenges ofinformation system? Some Examples:

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Success and Failure with IT

Success should not be measured only by its efficiency

Success should include:

The effectiveness of information technology in supportingand organizations business strategies

The enabling of its business processes

The enhancement of organizational structures and culture

The increase of customer and business value

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Introduction Summary

The IS Function is

An important contributor to operational

efficiency, employee productivity, andcustomer service and satisfaction.

a major source of information and supportneeded to promote effective decision makingby managers and business professionals.

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Introduction Summary

The IS Function is

An important factor in developing competitive

products and services that give anorganization a strategic advantage in globalmarketplace.

A functional area of business as important tobusiness success as accounting, finance,operations management, marketing, andhuman resource management.

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Anything else I should know InformationAnything else I should know InformationSystems ???Systems ???

Of Course!!! Thats why youre taking this course !!

??? Any Questions ?????? Any Questions ???

Ive got lots of questions, but I know that no

one else does, and I hate to look stupid ---

BETTER TO JUST NOT KNOW!!!

Chap01R2

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