Information Systems Today, 2/C/e ©2008 Pearson Education Canada 1-1 Chapter 1 Why Information...

Information Systems Today, 2/C/e ©2008 Pearson Education Canada1-1

Chapter 1

Why InformationSystems

Matter

www.pearsoned.ca/jessup

Robert Riordan, Carleton University

Information Systems Today, 2/C/e ©2008 Pearson Education Canada

Why Learn about Information Systems

2

Value of IS Knowledge in Different Careers

• Use IS more than any other non IS field_____________

• Access to funds• Where to invest ----Can be heavily analyticalFinance• Sales force automation SFA• Geographic IS CRM_____________

• HRM , payroll, benefitsHR• SCM• CAD/CAM_____________

• Intranets• Digital rights management systems

Media & Communications

1-3

Information Systems Today, 2/C/e ©2008 Pearson Education Canada4

What is a system?

Start a chip company


_____________ Case

1-5

6

What is an Information System?• Combinations of _____________, software, and telecommunications

networks that people build and use to collect, create and distribute useful data, typically in _____________settings.

Input of______

Resources

Input of______

Resources

Processing ________

Processing ________

Output ofInformation

Products

Output ofInformation

Products

Control of System PerformanceControl of System Performance

Storage of Data ResourcesStorage of Data Resources


Information Systems: Turn Data into Information

1-7

Data Information• Raw material• _________ information• Generally has no _______

Examples

• Processed material• _________ information• Data given ________

Individual time cards for factory workers entered into the payroll system

Department Labour Report, Project Status Report, Employee Payroll Checks


What are Computer Based Information Systems?

1-8

- A ____________of technical components - Built and used by ____________ to collect, create,

and distribute useful data - Used typically in ____________ settings but are

evolving for personal use


How Levi’s Got Its Jeans into Wal-Mart

http://images.google.com/imgres?imgurl=http://www.ks.dk/publikationer/knyt/2002/06/img/levis.jpg&imgrefurl=http://www.ks.dk/publikationer/knyt/2002/06/0602_05/&h=448&w=380&sz=43&tbnid=nJWoNYDE3tMJ:&tbnh=124&tbnw=105&hl=en&start=1&prev=/images?q=levis&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-23,GGLG:en

http://images.google.com/imgres?imgurl=http://www.indcjournal.com/archives/walmart.jpg&imgrefurl=http://www.indcjournal.com/archives/2004_12.php&h=357&w=500&sz=39&tbnid=nX9iwwDWrGMJ:&tbnh=90&tbnw=127&hl=en&start=1&prev=/images?q=walmart&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-23,GGLG:en


High Flyers

• What existing information systems can you Identify?

• What additional information systems would be beneficial?

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High Flyers


What is the Data component of the IS?

1-11

InformationSystems

InformationSystems

HardwareHardware TelecommunicationsTelecommunications

PeoplePeopleDataData

SoftwareSoftware

• The raw inputs for entry into ___________systems• ____________, processed and stored by an IS to support user information needs

• Provides basis for qualitative/quantitative _________


Information Systems Components: Hardware

1-12

InformationSystems

InformationSystems

HardwareHardwareTelecommunicationsTelecommunications


SoftwareSoftware

• The ____________ components of information systems

• Hardware components include processors, input and output devices, and ____________ devices


Information Systems Components: Software

1-13

InformationSystems

InformationSystems

HardwareHardware TelecommunicationsTelecommunications


SoftwareSoftware

• The ____________ that operate the information system• System software controls the hardware (e.g. Windows XP) • ____________ software allows users to perform specific

tasks to increase productivity (e.g. MS Word)


Information Systems Components: Telecommunications

1-14

InformationSystems

InformationSystems

HardwareHardwareTelecommunicationsTelecommunications


SoftwareSoftware

• The communication mechanism of information systems• Allows two or more computers to communicate (Internet)• Utilizes standard protocols for IS communication


Information Society Evolution

1-15

Agricultural Industrial

(Prior to 1890’s) (1890’s to 1960’s)

Informational

(1960’s to Present)


Information Society Evolution: Terms and Issues

1-16

Knowledge Worker (Peter Drucker 1959)• ____________ s that create, modify and/or synthesize

information as a fundamental part of their job • They will require higher ____________ levels and received

higher compensation than workers in agriculture or manufacturing

• At least ____________ of all workers in Canada are knowledge workers

Knowledge Worker (Peter Drucker 1959)• ____________ s that create, modify and/or synthesize

information as a fundamental part of their job • They will require higher ____________ levels and received

higher compensation than workers in agriculture or manufacturing

• At least ____________ of all workers in Canada are knowledge workers

1960 2000

Knowledge Worker


Information Society

1-17

New Economy (Wired Magazine - Late 1990s)• Similar to “knowledge society” but more ____________• Describes a society where people use their brains more

than their hands in their work and personal lives • Where ____________ s technology and other IT systems

will create ____________ competition for all products and services

• Other names: Digital Economy, Network Era, Internet Era

New Economy (Wired Magazine - Late 1990s)• Similar to “knowledge society” but more ____________• Describes a society where people use their brains more

than their hands in their work and personal lives • Where ____________ s technology and other IT systems

will create ____________ competition for all products and services

• Other names: Digital Economy, Network Era, Internet Era

1960 2000


The New Economy (NE): Societal Perspectives

1-18

Perspective 1: Sims –Taylor• The new economy creates risks for ____________• ____________ will be the first to be replaced by

automation with information technology

Perspective 1: Sims –Taylor• The new economy creates risks for ____________• ____________ will be the first to be replaced by

automation with information technology

Perspective 2: Rikfin• The over reliance on information technology has

caused society to act ____________• The result has been a loss of perspective

Perspective 2: Rikfin• The over reliance on information technology has

caused society to act ____________• The result has been a loss of perspective

Perspective 3: THE DIGITAL DIVIDE• Those with ____________ to information

technology have great ____________ over those that don’t

• IT access will further ____________ society

Perspective 3: THE DIGITAL DIVIDE• Those with ____________ to information

technology have great ____________ over those that don’t

• IT access will further ____________ society


Executive Roles in Information Technology

1-19

CEOChief Executive

Officer

COOChief Operations

Officer

CFOChief Financial

Officer

CIOChief Information

Officer

• Manages Operations• Allocates Resources• Primary Consumer of IT

within the Organization

• Manages External Stakeholder Relationships

• Sets Strategic Direction• Defines High Level IT

Needs for the Future

• Manages Accounting & Finance• Forecasts Needs and Secures

Financial Resources• Allocates Budget for IT Expenditures


Executive Roles in Information Technology

1-20

CEOChief Executive

Officer

COOChief Operations

Officer

CFOChief Financial

Officer

CIOChief Information

Officer

• Manages IT Organization and Operations• Forecasts IT Needs from Business Strategy• Sets Direction for IT Architecture and Organization• Plans, Designs and Delivers IT throughout the firm


Three Distinct Competencies of IS Professionals

1-21

____________ Knowledge of hardware, software, networking, and security • Most IS professionals are not deep technical experts but

can direct/manage others with the required technical skills

____________ Knowledge of hardware, software, networking, and security • Most IS professionals are not deep technical experts but

can direct/manage others with the required technical skills

____________ Understand the nature of business including process,

management, social, and communication domains • Unique skills over those with only technical skills

____________ Understand the nature of business including process,

management, social, and communication domains • Unique skills over those with only technical skills

____________ Knowledge of approaches and methods, also possess

critical thinking and problem solving skills necessary to build and integrate large information systems

• Unique skills over those with only technical skills

____________ Knowledge of approaches and methods, also possess

critical thinking and problem solving skills necessary to build and integrate large information systems

• Unique skills over those with only technical skills


IS Impact on Organizations: New Opportunities

1-22

CRA creates a website and allows NETFILE

New Website

ActivateNETFILEImplementation Results

• ____________ ____________ in forms distribution, hotline support, data entry from access to info/materials on the website and NETFILE

• Allow for ____________ of resources to ____________ activities including conducting audits and resolving problems


Levels of the Organization and Traditional Systems

1-23

• Management Information Systems

• Executive Information Systems

• Transaction Processing Systems


Traditional Information System Functions

1-24

____________ Processing Systems

____________ Information Systems

____________ Information Systems

Decision SupportSystems

________ Systems

________ Area Information Systems

Process day-to-day business event data in an organization (Operational level)

Produce detailed information to help manage a firm or part of a firm (Managerial)

Provide very high-level, aggregate information to support decisions (Executive)

Provide analysis tools and databases to support quantitative decision making (Multiple)

Mimic human expert in a particular area and provide answers or advice (Operational)

Support the activities within a specific functional area of the firm (All)


Other Information Systems - Not as Easy to Categorize

1-25

Office Automation System

____________ System

____________ Relationship Management

____________ Commerce

Enterprise ResourcePlanning _________

Support a wide range of predefined, daily work activities of individuals or groups (e.g. MS Word)

Enable people to communicate, collaborate, and coordinate with each other (e.g. email)

Support the interaction between the firm and its customers (e.g. sales force automation or call center technology)

Enable customers to buy goods and services from a firm’s website. (www.amazon.com)

Support and integrate all facets of the business (e.g. planning, manufacturing, sales, etc.)


IS Competitive Advantage Perspectives: Who is Right?

1-26

“________________________” - Carr 2003• As IT becomes more pervasive, technology

becomes more standardized and ubiquitous• The result is that the same technologies are

available to all competitors in an industry• This produces no competitive advantage

“The Engine that Drives Success: The Best Companies have the Models Because they Have the Best IT Strategies” - Lundberg 2004

• Companies with bad business models fail regardless of IT systems or other capabilities

• Companies with good business models use IT to execute successful business models and succeed


Competitive Advantage: Dual Nature of Systems

1-27

IS gone wrong(DIA)

Strategic in Nature

Established Technology

Capable Suppliers

Structured Implementation

Capable IS Support

IS that works(FedEx)Evaluation Factors

No

No

FedEx Customer Website versus

Denver International Airport Baggage System


Organizational IT Roles

1-28

_________ IT Organization• Responsible for IT Planning• Coordinates implementations• Establishes organization’s IT

methods and standards

_________ Unit• Responsible for determining

IS business requirements • Supply budget and personal

resources for implementations

_________ Unit Support• Liaison between Central

IT and the Business Unit• Spends much time onsite

at the Business Unit• Reports to both orgs


The Future of Information Systems: Trends

1-29

_________ _________(Old School IS)• Large backlogs of user requests…very poor service• Arrogance and feeling of ownership and control of IT• Can’t do attitude…told users why they couldn’t do things• Resulted in a very poor relationship with users

__________________________ ____(New School IS)• IS is taking on an IT consulting role• “Service Mentality”…users are customers to be served• Proactively support and problem solve for their customers• Fundamentally believe that customers own the

technology

• Business managers became _________ savvy • Systems _________ and became easier to develop• Business organizations developed their own systems

THEN


IS Role in Change: Trends and Terms

1-30

_________ _________ _________ Reducing organizational headcount to meet the financial goals of the organization

• IS is viewed as the lever to provide the systems necessary to increase productivity

_________ _________ _________ Reducing organizational headcount to meet the financial goals of the organization

• IS is viewed as the lever to provide the systems necessary to increase productivity

_________ Transferring business functions outside the organization to increase service levels and/or reduce operating cost

• IS is not immune to this trend. Certain commodity IS technical jobs will be increasingly transferred overseas

• IS must find better methods to manage offshore work

_________ Transferring business functions outside the organization to increase service levels and/or reduce operating cost

• IS is not immune to this trend. Certain commodity IS technical jobs will be increasingly transferred overseas

• IS must find better methods to manage offshore work


The Future for IS

_________ for success include: continuous learning and growth, finding new ways to add value, flexibility, and developing unique skills

1-31

IS needs will continue to grow _________ developments advance

Although _________ will continue, there will be strong demand for IS professionals

There is a need for _________ that can speak the language of _________ and business and the _________ to manage projects and people


Edible Arrangements

1-32


S1--Passwords & Password Etiquette

What makes a strong password •Make it ________8 or more characters in length•Do not use name, real name, or company name•No _________dictionary word in any language•Different from other _________you have used•Upper and lower case, numbers & Symbols•examples of good ones •Qw37>T1bb?at or 3B47qq<3>57b•Problem ____________________________________

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S1--Passwords & Password Etiquette cont.

One technique _________of each word of a memorable phrase•I was born in Lethbridge Alberta in 1980•__________________

•Better yet -- I was born before 12:00 in Lethbridge Alberta in 1980•__________________

•Once created, your password needs to be protected•Never _________ it down•Do not _________ with others, d_________ someone for theirs and never _________yours to someone else

•Swap chairs, don’t let someone else_________for you•___________________________, when others typing

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