Chapter 1

Information Systems:The Big Picture

Information Systems TodayInformation Systems TodayLeonard Jessup and Joseph ValacichLeonard Jessup and Joseph Valacich

Textbook Overview Ch 1 – IS: The Big Picture Ch 1 – IS: The Big Picture Ch 2 – IS for Competitive AdvantageCh 2 – IS for Competitive Advantage Ch 3 – Database ManagementCh 3 – Database Management Ch 4 – Telecommunications and the InternetCh 4 – Telecommunications and the Internet Ch 5 – E-Commerce, Intranets, and ExtranetsCh 5 – E-Commerce, Intranets, and Extranets Ch 6 – Organizational Information SystemsCh 6 – Organizational Information Systems Ch 7 – Enterprise-Wide ISCh 7 – Enterprise-Wide IS Ch 8 – IS Development and AcquisitionCh 8 – IS Development and Acquisition Ch 9 – IS Ethics, Crime, and SecurityCh 9 – IS Ethics, Crime, and Security

Textbook Overview

Appendix A – IS Hardware Appendix A – IS Hardware Appendix B – IS SoftwareAppendix B – IS Software Appendix C – Computer NetworkingAppendix C – Computer Networking

Chapter 1 Objectives Understand the term information systems (IS)Understand the term information systems (IS) Understand IS components:Understand IS components:

Technology, people, organizationsTechnology, people, organizations

Understand IS career opportunitiesUnderstand IS career opportunities Understand types of information systemsUnderstand types of information systems Understand IS and organizational success or Understand IS and organizational success or

failurefailure Understand the future of IS managementUnderstand the future of IS management

Case: IS at Washington State University

Automating educational processesAutomating educational processes Online AdministrationOnline Administration

RegistrationRegistration Financial aidFinancial aid GradesGrades

Online Course ManagementOnline Course Management SyllabiSyllabi AssignmentsAssignments Online class discussionsOnline class discussions

Information Systems Defined

Combinations of hardware, software, and Combinations of hardware, software, and telecommunications networks that people telecommunications networks that people build and use to collect, create, and build and use to collect, create, and distribute useful data in organizationsdistribute useful data in organizations

Key Elements of Information Systems

Knowledge as a Business Resource

Knowledge WorkerKnowledge Worker A well-educated professional who creates, A well-educated professional who creates,

modifies, or synthesizes knowledge in one’s modifies, or synthesizes knowledge in one’s professionprofession

Knowledge SocietyKnowledge Society Also called digital society, new economyAlso called digital society, new economy Working with brains instead of handsWorking with brains instead of hands The importance of educationThe importance of education Digital divideDigital divide

Data

DataData: raw material, unformatted information: raw material, unformatted information

InformationInformation: processed data (meaningful): processed data (meaningful) KnowledgeKnowledge: understanding relationships between : understanding relationships between

pieces of informationpieces of information

WisdomWisdom: knowledge accumulated and applied: knowledge accumulated and applied

Technology and Information Systems

Computer-Based Information SystemsComputer-Based Information Systems One type of technologyOne type of technology TechnologyTechnology – any mechanical and/or electrical means – any mechanical and/or electrical means

to supplement, extend, or replace human activityto supplement, extend, or replace human activity Information Technology (IT)Information Technology (IT) – machine technology – machine technology

controlled by or using informationcontrolled by or using information

The goal of IS is to provide useful data to usersThe goal of IS is to provide useful data to users IS can be local or global, organizational or enterprise-IS can be local or global, organizational or enterprise-

widewide

Careers: Operations Management

TrendsTrends Virtual CorporationsVirtual Corporations Network InfrastructureNetwork Infrastructure How wired is your firm?How wired is your firm?

The People Side of IS

Despite economic ups and downs…Despite economic ups and downs… Labor shortages predictedLabor shortages predicted

U.S. Bureau of Labor StatisticsU.S. Bureau of Labor Statistics http://stats.bls.gov/emp/emptab3.htmhttp://stats.bls.gov/emp/emptab3.htm

Ranked among best jobs availableRanked among best jobs available

Careers in IS

Systems AnalystSystems Analyst Systems ProgrammerSystems Programmer Systems ConsultantSystems Consultant Database AdministratorDatabase Administrator WebmasterWebmaster IS DirectorIS Director Chief Information OfficerChief Information Officer ProfessorProfessor Government scientistGovernment scientist

IS Activities and Careers

DevelopDevelop Systems analystSystems analyst Systems Systems

programmerprogrammer Systems consultantSystems consultant

MaintainMaintain Database Database

administratoradministrator WebmasterWebmaster

ManageManage IS DirectorIS Director CIOCIO

StudyStudy University University

ProfessorProfessor Government Government

scientistscientist

Chief Information Officer (CIO) Responsible for organization’s ISResponsible for organization’s IS Executive levelExecutive level Became prominent in 1980sBecame prominent in 1980s ChallengesChallenges

Tightening budgetsTightening budgets Expectation managementExpectation management

SubordinatesSubordinates Mid-level managersMid-level managers IS directorsIS directors Project managersProject managers

IS Managerial Personnel

CIOCIOhighest ranking IS manager—responsible for strategic highest ranking IS manager—responsible for strategic directiondirection

IS DirectorIS Directorresponsible for managing all systems throughout the firm and responsible for managing all systems throughout the firm and day-to-day operationsday-to-day operations

Account ExecutiveAccount Executiveresponsible for managing the day-to-day operations of all responsible for managing the day-to-day operations of all aspects of IS within ONE particular division or functional areaaspects of IS within ONE particular division or functional area

Info Center ManagerInfo Center Managerresponsible for managing IS services such as help desks, responsible for managing IS services such as help desks, trainingtraining

IS Managerial Personnel

Development ManagerDevelopment Managercoordinates and manages ALL new systems projectscoordinates and manages ALL new systems projects

Project ManagerProject Managerusually responsible for managing a particular new systems projectusually responsible for managing a particular new systems project

Maintenance ManagerMaintenance Managerresponsible for coordinating and managing all systems maintenance projectsresponsible for coordinating and managing all systems maintenance projects

Systems ManagerSystems Managerresponsible for managing a particular existing systemresponsible for managing a particular existing system

IS planning ManagerIS planning Managerplans for system growth and change in three main areas—hardware, software, plans for system growth and change in three main areas—hardware, software, and networkingand networking

Operations ManagerOperations Managersupervises the day to day operation of data/computer centersupervises the day to day operation of data/computer center

Programming ManagerProgramming Managercoordinates all programming effortscoordinates all programming efforts

IS Managerial PersonnelSystems Programming ManagerSystems Programming Manager

coordinates support for maintenance of all systems softwarecoordinates support for maintenance of all systems softwareManager of Emerging TechnologiesManager of Emerging Technologies

forecasts technology trends—evaluates/experiments with new technologiesforecasts technology trends—evaluates/experiments with new technologiesTelecommunications ManagerTelecommunications Manager

coordinates and manages the entire voice and data networkcoordinates and manages the entire voice and data networkNetwork ManagerNetwork Manager

responsible for managing one piece of the enterprise-wide networkresponsible for managing one piece of the enterprise-wide networkDatabase AdministratorDatabase AdministratorAuditing or Computer Security ManagerAuditing or Computer Security Manager

responsible for managing ethical and legal use of information systems within the firmresponsible for managing ethical and legal use of information systems within the firmQuality Assurance ManagerQuality Assurance Manager

develops and monitors standards and procedures to ensure system accuracy and qualitydevelops and monitors standards and procedures to ensure system accuracy and qualityWebmasterWebmaster

The High Value of IS Personnel

Supply and demandSupply and demand Aggressive recruitingAggressive recruiting High salariesHigh salaries Broad demandBroad demand

Large and small companiesLarge and small companiesUrban and ruralUrban and rural

Integrating Skills and Knowledge

TechnologyTechnology hardware, software, networkinghardware, software, networking

BusinessBusiness business, management, social, business, management, social,

communicationscommunications SystemsSystems

Integration, development methods, Integration, development methods, critical thinking, problem solvingcritical thinking, problem solving

Hot Skills in IS Workers Office / E-mailOffice / E-mail LanguagesLanguages ApplicationsApplications RDBS AdministrationRDBS Administration Development ToolsDevelopment Tools InternetworkingInternetworking Operating SystemsOperating Systems NOS LAN AdministrationNOS LAN Administration NetworkingNetworking

Types of Information SystemsTransaction Processing SystemTransaction Processing System

processes day to day business event data at the operational level of processes day to day business event data at the operational level of the organization—ie a grocery story checkout cash registerthe organization—ie a grocery story checkout cash register

Management Information SystemManagement Information Systemproduces detailed information to help manage a firm or part of a produces detailed information to help manage a firm or part of a firm—ie. Inventory mgmt systemfirm—ie. Inventory mgmt system

Executive Information SystemExecutive Information Systemprovides very high level aggregate information to support provides very high level aggregate information to support executive level decision making—ie news retrieval or stock updateexecutive level decision making—ie news retrieval or stock update

Decision Support SystemDecision Support Systemprovides analysis tools and access to databases in order to support provides analysis tools and access to databases in order to support quantitative decision making—ie demand forecasting systemquantitative decision making—ie demand forecasting system

Types of Information Systems

Expert SystemExpert Systemmimic human expert in a particular area and provides answers or mimic human expert in a particular area and provides answers or advice—ie automated system for analyzing bank loan applicationsadvice—ie automated system for analyzing bank loan applications

Functional Area Information SystemFunctional Area Information Systemsupports the activities within a specific functional area in the firm—supports the activities within a specific functional area in the firm—system for planning and personnel trainingsystem for planning and personnel training

Office Automation System (a.k.a. Personal Productivity Software)Office Automation System (a.k.a. Personal Productivity Software)supports a wide range of predefined, day to day work activities—word supports a wide range of predefined, day to day work activities—word processorprocessor

Collaboration SystemCollaboration Systemenables people to communicate, collaborate, and coordinate with each enables people to communicate, collaborate, and coordinate with each other—email, shared calendarother—email, shared calendar

Types of Information Systems

Customer Relationship Management SystemCustomer Relationship Management Systemsupport interaction between the firms and its support interaction between the firms and its customers—siebel suite of e-businesscustomers—siebel suite of e-business

Types of Information Systems

Electronic Commerce SystemElectronic Commerce Systemenables customers to buy goods and enables customers to buy goods and services from a firm’s websiteservices from a firm’s website

Enterprise Resource Planning SystemEnterprise Resource Planning SystemSupport and integrate all facets of the Support and integrate all facets of the business, including planning, business, including planning, manufacturing, and sales--SAPmanufacturing, and sales--SAP

Disaster Plans for IS

That IS is crucial to corporate success is That IS is crucial to corporate success is illustrated by the need for disaster planningillustrated by the need for disaster planning

Are companies prepared now?Are companies prepared now? What’s at stakeWhat’s at stake The consequences of failing to planThe consequences of failing to plan

The Dual Nature of IS

Systems can dictate success or failureSystems can dictate success or failure Case 1: Denver International AirportCase 1: Denver International Airport Case 2: Federal ExpressCase 2: Federal Express Factors affecting success/failure:Factors affecting success/failure:

Size and complexity of projectSize and complexity of project Size and nature of organizationSize and nature of organization

IS for Competitive Advantage

Strategic SystemsStrategic Systems Competition: doing things faster, better, Competition: doing things faster, better,

cheapercheaper How can systems gain one’s organization a How can systems gain one’s organization a

competitive advantage?competitive advantage?

International Outsourcing

Round-the-clock productivityRound-the-clock productivity Cost savingsCost savings

IS Within the Firm

Traditionally a love/hate relationshipTraditionally a love/hate relationship ““Techies” vs. mere “users” (us vs. them)Techies” vs. mere “users” (us vs. them) Poor service, lousy attitudesPoor service, lousy attitudes

Now: progress toward better customer serviceNow: progress toward better customer service Better relationships within the companyBetter relationships within the company Cooperation, not rivalryCooperation, not rivalry

Staying Current with IS News

Great sources for IS current info:Great sources for IS current info: informationweek.cominformationweek.com computerworld.comcomputerworld.com cio.comcio.com

The Spread of Technology in Organizations

Technology infiltrates business unitsTechnology infiltrates business units Dual role for IS workers:Dual role for IS workers:

Work with IS technical groupWork with IS technical group Work with business unit (marketing, finance, etc.)Work with business unit (marketing, finance, etc.)

The Spread of Technology in Organizations

Benefits of centralized IS functionBenefits of centralized IS function Coordinated planningCoordinated planning Consistent managementConsistent management Systems compatibility and connectivitySystems compatibility and connectivity

Human Resource Planning for IS

The human resource challenge:The human resource challenge: Tech workers need to understand businessTech workers need to understand business Business workers must understand technologyBusiness workers must understand technology

Fluctuations in hiring tech workersFluctuations in hiring tech workers Downsizing issuesDownsizing issues Recruiting issuesRecruiting issues

Career Prospects and Opportunities

IS applies to nearly every functional area IS applies to nearly every functional area within a firmwithin a firm

One may become indispensable in a firm One may become indispensable in a firm through mastering tech skillsthrough mastering tech skills

Anticipated growth in tech hiringAnticipated growth in tech hiring

Coming Attractions:

Is it a phone or computer? Wireless Pocket PCWireless Pocket PC

Merging mobile phones with personal Merging mobile phones with personal digital assistant (PDA) technology digital assistant (PDA) technology

Communicate, collaborate, and coordinateCommunicate, collaborate, and coordinate