Chapter 1 Foundations of Information Systems in Business

Chapter 1 Foundations of Information Systems in Business What do Managers do? ? ? • I know what Physicians, Firemen, Bus Drivers, Architects, Plumbers, Police Men, Veterinarians, Accountants, Jockeys, Football Players, Burglars, Painters, Sculptors, Actors, Chefs, Waitresses, Sports Announcers, Ballet Dancers, Sumo Wrestlers, Fishermen, Typists, Sewer workers, Tennis Players, Golfers, Computer Programmers, Smugglers, Garbage Men, Models, Airline Pilots, Flight Attendants, Physicists, Dog Trainers, Psychiatrists, Psychologists, Arsonists, Terrorists, News Casters, Weather People, Surgeons, Supreme Court Justices, Serial Killers, Ophthalmologists, Ornithologists, Astronomers, Pianists, Piano Tuners, Violinists, Cellists, Cyclists, Gymnasts, Mailmen, Racists, Sexists, Yodelers, Beach Bums, Interpreters, Translators, Bee Keepers, House Keepers, Tour Guides, Tourists, Actors, Actuaries, Chemists, Cable Guys, Paranoids, Drug Dealers, Book Sellers, Bookies, Lawyers, Stenographers, Soldiers, Welders, Tree Trimmers, Pharmacists, Farmers, Politicians DO (OK – I don’t know what Politicians do, if anything) • All of these titles can be described in 5 words or less (Except Politicians) Tell me what “A Manager” does in 5 words or less !!!

Chapter 1 Foundations of Information Systems in Business Make decisions • You can make good decisions In 1980, after adapting an operating system for the PC, which was to be delivered to IBM for a one-time fee of $50, 000, Bill Gates decided offer to transfer the copyright on the operating system, because he believed that other hardware vendors would clone IBM's system. As of November, 2013 his net worth was estimated at US$ 76. 8 billion

Chapter 1 Foundations of Information Systems in Business Make decisions • Or you can make bad decisions The Trojan Horse being taken into Troy as depicted by Venetian painter Giovanni Domenico Tiepolo circa 1760. The Greeks constructed a huge wooden horse, and hid a select force of men inside. The Greeks pretended to sail away, and the Trojans pulled the horse into their city as a victory trophy. That night the Greek force crept out of the horse and opened the gates for the rest of the Greek army, which had sailed back under cover of night. The Greeks entered and destroyed the city of Troy, decisively ending the war. (Wikipedia)

Chapter 1 Foundations of Information Systems in Business Why Study Information Systems? q 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 strengthen their competitive position in the rapidly changing marketplace

Chapter 1 Foundations of Information Systems in Business Why Study Information Systems? q Efficiency § Minimize Costs § Minimize Time § Minimize Use of Information Resources q Effectiveness § Support an organization’s business strategies § Enable its business processes § Enhance organizational structure and culture § Increase customer business value

Chapter 1 Foundations of Information Systems in Business Why Study Information Systems? q Internet-based systems have become a necessary ingredient for business success § How many of you: • Purchased products on line that you would have 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.

Chapter 1 Foundations of Information Systems in Business But why a required principles course? q Why do you have required accounting, marketing, management, economics and finance courses? → Because these are all basic business functions (As are Information Systems) q It wasn’t always that way, however. § Let’s consider a typical Organization Table from the late 1970’s/early 1980’s

Chapter 1 Foundations of Information Systems in Business q A (Simplified) Organizational Table (c. 1960) CEO VP Finance Accounting EDP Depart. VP Production VP Marketing

Chapter 1 Foundations of Information Systems in Business q A (Simplified) Organizational Table (c. 1990) CEO VP Marketing VP Finance VP Production CIO Why the difference? q Information Systems are no longer viewed merely as tools § They have moved from a STAFF position to a LINE position

Chapter 1 Foundations of Information Systems in Business What will we be studying in this course? • The Conceptual Framework of IS Knowledge • Fundamental behavioral, technical, business and managerial concepts about IS components and IS roles Chapters 1 & 2

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • The Conceptual Framework of IS Knowledge • Major concepts, developments and management issues in IS Technology • Hardware • Data Management • Internet • Software Technologies • Networks Chapters 3 - 6

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • The Conceptual Framework of IS Knowledge • The challenges of effectively and ethically managing information systems at the end-user, enterprise, and global levels of the business Chapters 13 & 14

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • The Conceptual Framework of IS Knowledge • The major uses of Information Technologies for operations, management and competitive advantages Chapters 8 - 10

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • The Conceptual Framework of IS Knowledge • How information professionals and specialists plan, develop and implement information systems to meet business opportunities Chapters 11 & 12

Chapter 1 Foundations of Information Systems in Business 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 appear to be only one system • It is a term that we use everyday, without thought to what it really means: “I don’t understand why they chose the new inventory system instead of an SAP system”

Chapter 1 Foundations of Information Systems in Business So what is an information system? • 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: “a group of independent but interrelated elements comprising a unified whole” • ALL the components work together toward a single goal

Chapter 1 Foundations of Information Systems in Business So what is an information system? • A basic system can be represented as capturing and assembling elements that enter the system to be processed

Chapter 1 Foundations of Information Systems in Business So what is an information system? transformation steps that convert input into output

Chapter 1 Foundations of Information Systems in Business So what is an information system? transferring elements that have been produced by a transformation process to their ultimate destination

Chapter 1 Foundations of Information Systems in Business So what is an information system? monitoring and evaluating feedback to determine whether a system is moving toward its goal

Chapter 1 Foundations of Information Systems in Business So what is an information system? data about the performance of a system

Chapter 1 Foundations of Information Systems in Business So what is an information system? Adjustment to improve system performance

Chapter 1 Foundations of Information Systems in Business What does this have to do with real life?

Chapter 1 Foundations of Information Systems in Business What types of systems are there? • 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 closed system (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

Chapter 1 Foundations of Information Systems in Business What types of systems are there? • Open Systems: • Living Organisms People are open systems since they must interact with their environment in order to take in food, water, and obtain shelter • Some mechanical systems, such as thermostats, which rely on inputs from the environment and produce affects affecting the environment

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? The Systems Trinity: As well as: • Customers • and others • Managers • Users • System’s Designers

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • microcomputers, midsize servers, and large mainframe systems • the input, output, and storage devices that support them

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management

Chapter 1 Foundations of Information Systems in Business What constitutes an information system? • Data Versus Information

Chapter 1 Foundations of Information Systems in Business Data versus Information? • While information systems rely on data, they must provide information What’s the difference? ? ? • Data (pl) is a non-random sequence of symbols Fernandez, Juan A 19 1211 83 77 81 • Information, while generally based on data, is something that increases our knowledge Juan Fernandez is an Accounting Major and has a 80. 3 average in Principles of Accounting (Based on analysis of the above data)

Chapter 1 Foundations of Information Systems in Business Data versus Information? • While information systems rely on data, they must provide information What’s the difference? ? ? • Data (pl) is a non-random sequence of symbols Fernandez, Juan A 19 1211 83 77 81 • Information, while generally based on data, is something that increases our knowledge Juan Fernandez is an Accounting Major and has a 80. 3 average in Principles of Accounting (Based on analysis of the above data)

Chapter 1 Foundations of Information Systems in Business Aren’t Information Systems and Information Technology the same thing? • Information Systems (IS): all components and resources necessary to deliver information and information processing functions to the organization • Information Technology (IT): various hardware components necessary for the system to operate

Chapter 1 Foundations of Information Systems in Business What are the Fundamental Roles of IS in Business? • Let’s first talk about the fundamental roles of management Anthony’s Hierarchy of Management Top Mgt. • Focus is on the Long term future (e. g. , New Products) (CEO) Middle or Tactical Mgt. • Focus is on the short term future (e. g. , Budgeting) (Plant Manager) Operational Management (Production Manager) • Focus is on the present (e. g. , Meeting Production Schedule)

Chapter 1 Foundations of Information Systems in Business What are the Fundamental Roles of IS in Business? Anthony’s Hierarchy of Management Top Mgt. (CEO) Middle or Tactical Mgt. (Plant Manager) Operational Management (Production Manager)

Chapter 1 Foundations of Information Systems in Business What types of information do we need? q That depends on what you need q Let’s look at some of the dimensions of information

Chapter 1 Foundations of Information Systems in Business Information needs and Management Levels Anthony’s Hierarchy of Management Top Mgt. • • • Unscheduled Dated Infrequent Future Orientation Predictive • • • Semi-accurate Semi-relevant Incomplete Concise Broad Scope (CEO) Form of presentation is a function of the manager’s preference Middle or Tactical Mgt. (Plant Manager) Operational Management (Production Manager) • • • Very Timely Very current Often needed Present Data Historical Data • • • Narrow Scope Detailed Complete Very Relevant Very Accurate

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Anthony’s Hierarchy of Management Top Mgt. q Strategic Information Systems • Competitive Advantage Systems • Long term Planning (CEO) Middle or Tactical Mgt. q Management Support Systems • Management decision support • Management reporting systems (Plant Manager) Operational Management (Production Manager) q Operations Support Systems • Transaction Processing • Process Control • Collaboration Systems

Chapter 1 Foundations of Information Systems in Business What types of information do we need?

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Operations Support Systems Transaction Processing Systems process data resulting from business transactions, update operational databases, and produce business documents.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Operations Support Systems Transaction Processing Systems Process Control Systems • monitor and control industrial processes. • Process control systems use electronic sensors linked to computers to continually monitor processes and make instant (real-time) adjustments that control the process.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Operations Support Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems • support team, workgroup, and enterprise communications and collaboration. • Enterprise collaboration systems enhance team and workgroup communications and productivity, and include applications that are sometimes called office automation.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Management Support Systems Management Information Systems provide information in the form of pre-specified reports and displays to support business decision making.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? 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.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Management Support Systems Management Information Systems Decision Support Systems Executive Information Systems provide critical information from MIS, DSS, and other sources tailored to the information needs of executives. EIS systems are management information systems which are tailored to meet the strategic information needs of top management.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? q Other Information Systems • Expert Systems • Attempts to apply the logic used by “Experts” in a specific field • Knowledge Management 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

Chapter 1 Foundations of Information Systems in Business What types of information do we need? q Other Information Systems • Strategic Information Systems • Systems that support the creation, organization, and dissemination of business knowledge to employees and managers • Cross-functional Information Systems • Computer systems developed in order to help knowledge workers create, organize, and share important business knowledge wherever and whenever needed.

Chapter 1 Foundations of Information Systems in Business How have information systems evolved?

Chapter 1 Foundations of Information Systems in Business How have information systems evolved? q Network Configurations • Local Area Networks (LANS) Short Range – within the same building • Wide Area Networks (WANS) Long Range – May be world-wide • Intranets Within a business – may be world-wide • Extranets A network between an enterprise and its trading partners • Internets Available to anyone – world-wide

Chapter 1 Foundations of Information Systems in Business How do we develop an information system? What’s the problem? What are you doing? (This is also known as the planning phase) How are we doing? Let’s keep up the good stuff, and improve where we can! I think this is what you should be doing! Let’s do it! Who should be Involved? Everyone!

Chapter 1 Foundations of Information Systems in Business What is E-Business? q Using Internet technologies to empower: • Business processes • Electronic commerce • Collaboration within a company • Collaboration with customers, suppliers, and other business stakeholders q In essence, an online exchange of value

Chapter 1 Foundations of Information Systems in Business How is E-Business Being Used?

Chapter 1 Foundations of Information Systems in Business E-Business Use q Business Process Reengineering • Internal business processes q Enterprise collaboration systems • Support communications, coordination and coordination among teams and work groups q Electronic commerce • Buying, selling, marketing, and servicing of products and services over networks

Chapter 1 Foundations of Information Systems in Business What are the Managerial Challenges of Some Examples: information system?

Chapter 1 Foundations of Information Systems in Business q Success and Failure with IT • Success should not be measured only by its efficiency • Success should include: • The effectiveness of information technology in supporting and organization’s business strategies • The enabling of its business processes • The enhancement of organizational structures and culture • The increase of customer and business value

Chapter 1 Foundations of Information Systems in Business q Introduction Summary § The IS Function is … • a major source of information and support needed to promote effective decision making by managers and business professionals. • An important contributor to operational efficiency, employee productivity, and customer service and satisfaction.

Chapter 1 Foundations of Information Systems in Business q Introduction Summary § The IS Function is … • An important factor in developing competitive products and services that give an organization a strategic advantage in global marketplace. • A functional area of business as important to business success as accounting, finance, operations management, marketing, and human resource management.

Chapter 1 Foundations of Information Systems in Business Anything else I should know Information Systems ? ? ? Of Course!!! That’s why you’re taking this course !! ? ? ? Any Questions ? ? ? I’ve got lots of questions, but I know that no one else does, and I hate to look stupid --- BETTER TO JUST NOT KNOW!!! Ignorance, after all, IS bliss!!