Chapter 1 Introduction to Information Systems Cases on

Chapter 1 Introduction to Information Systems

Cases on Information systems § American airlines ðcreating new businesses § Baxter company ðcompetitive advantage § Mrs. Fields ðorganizational consequences § Open Market ðfast evolution: business risk

IS and IS resources Management Challenges Business Information applications Information technologies systems Development processes O’Brien p 7 -8 Foundation concepts PEOPLE Software Data Information Systems Resources Hardware Networks

The importance of Information Systems § § § An information system is a set of people , procedures and resources that: ðcollect ðtransform ðdisseminates information in an organization. Information is used for better management Companies cannot operate any more without automated information systems O’Brien p 7 -8

Properties of Information Systems Enterprise Perspective § § § major functional area of business important cost that poses a resource management problem important factor for efficiency, productivity, customer service and satisfaction source of management information and support important ingredient in strategic advantage and competitive position vital , dynamic , and challenging career opportunity O’Brien p 10

Properties of Information Systems Enterprise Perspective § § Worldwide information Society Knowledge workers ðInformation § § create use dissiminate Use information technology to manage people, finances, material, energy, … Ethical aspects ðsocial aspects: have - have not ðprivacy aspects: supermarket O’Brien p 8

Ethical considerations Applications of ICT • Improve market knowledge • Improve response capabilities • Improve persuasive communications • Improve strategy selection O’Brien p 9 Potential harms • Infrigements on privacy • Inaccurate information • Collusion • Exclusion from essential facilities Potential risks How likely are legal actions, consumer boy -cotts, strikes, other threats to occur Possible responses • • • self-regulation Advocacy Education Codes of ethics Incentives certification

The Role of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations O’Brien p 11

The Internetwork- enterprises The Internet Intranets Extranets Enterprise Intranets Supplier Client Intranets Electronic Commerce Other Organizations

Business Process Reengineering § Before § Today ð managers took all decisions ð everybody can take decisions ð only experts can do complex jobs ð a generalist can do the work of an expert based on available information ð information is available on only one specific place ð information is available for everybody at the same moment in time ð Collaborators in the field need an office to receive, store, consult and send information ð collaborators can send and receive information from everywhere O’Brien p 16

Information Systems Knowledge needed by managerial end users Management of IS Resources and activities Development of IS Solutions to business problems Applications of IS To operations management and strategic advantage Technology of IS Hardware , software , Telecommunications, and Data Management Foundation concepts of IS Fundamental Behavioral and Technical Aspects

The System Concept O’Brien 18 -19 System: A group of interrelated components or interacting elements forming a unified whole. ðinput ðprocessing ðoutput ðfeedback ðcontrol O’Brien p 21 } - environment - other systems

Other System Concepts § Subsystem § Interface § Open System § Adaptive system O’Brien p 23

Stakeholders in the Business Environment Competitors Management Customers Suppliers The community Control Feedback Economic Resources: People Money Material Land Facilities Energy Information Input Financial Institutions O’Brien p 24 Organizational Processes: Production Marketing Finance Personnel Other Processes Goods and Services: Products Services Payments Contributions Information Other Effects PROCESSING Stockholders Government Agencies Information Systems Output Labor Unions

Components of an Information System O’Brien 21 - 25 Da s ta , M Da s : list e o de ta R rc cia u l, o pe an esou s s e d K rc R IS e l no es p and wl o ed Pe ers ge s u Ba d Control of System Performance se n E es s urc re eso edu re R Proc d twa Sof ms an gra Pro Input of Processing Data into Communications media and Resources Information O’Brien p 25 Mac Har hines dwa a re R nd Me eso dia urc es s Output of Information network support Products Storage of Data resources Communications media and network support Network resources

IS Resources and Products People Resources ðSpecialists: system analysts, programmers, operators ðEnd users : anyone else using the system Hardware Resources ðMachines: computers, video monitors, disks, printers, scanners ðMedia: floppies, tapes, disks, plastic cards, paper forms, . . . Software Resources system, application, procedures ðPrograms: OS , spreadsheet programs, payroll programs , . . ðProcedures: data entry, error correction, paycheck distribution, . . . Data Resources database, model base, knowledge base ðProduct descriptions, customer records, inventory databases, . . . Network resources ðCommunication media, network support, . . . O’Brien p 26 -27

Data versus Information § Data ðraw facts or observations ðmeaningless ðtime independent ðmachine efficient ðgeneral purpose § O’Brien 24 Information ð informative value ð time dependent ð human efficient ð specific ð based on previous knowledge Different types of information can be derived from the same source of data.

Expanding Roles of Information Systems O’Brien 28 1950 s-1960 s: Data Processing ð electronic data processing systems transaction processing, record keeping, traditional accounting 1960 s-1970 s: Management reporting ð Management Information Systems mgt. reports for pre-specified information to support decision making 1970 s-1980 s: Decision Support ð Decision Support Systems Interactive ad hoc support of the managerial decision process

Expanding Roles of Information Systems (cont) § 1980 s-1990 s: Strategic and End User Support ð End User Computing Systems: direct productivity support ð Executive Information Systems: Critical Information ð Expert Systems: Knowledge based expert advise for end users ð Strategic Information Systems: for competitive advantage § 1990 s – 2000 s : Global internetworking ð Internetworked information systems ð for end-user, enterprise, and inter-organizational computing, collaboration, including global operations and management on the internet and other interconnected enterprise and global networks. O’Brien p 31

Types of Information Systems O’Brien 29 O’Brien p 32 -33

IT - usage in the Company

Nolan curve Four stages of DP growth: maturity control contagion initiation

NOLAN phases Stage orientation organization Initiation contagion control cost reductionnew functions moratorium where first useddispersed manager operations manager management viewlax central maturity database inquiry controlled distributed middle managerdirector selling controlling a resource applications supporting diversification databases end-user computing control little very little strong normal PC's project groups transparent user involvementinterviews , manuals

Information systems in the Company

Electronic Banking § § § § account status exchange rates economic information bank transfers order checks reports batch payments ( SWIFT, . . . ) Security via magnetic cards, password , control totals

Decision Support § § § § financial models what-if analyze goal seeking risk analysis statistical analysis management models graphical representations personal databases

Hospital Information Systems § § § § § patient registration laboratory management radiology medical files pharmacy stock management and purchasing human resources and scheduling billing and A/C receivable book keeping operation theater

Other Applications § Transport ðjust in time ðrouting ðshipping § Insurance § Tourism § Department stores