LECTURE 2 1 Lecture overview Define a basic

LECTURE 2 1

Lecture overview Define a basic system. Expand the system definition to an Information system. Components of IS and its resources. Activities of an information system Complementary Assets. Contemporary approaches to Information Systems.

Lecture 2 Chapter 1 Information Systems in Global Business Today Learning Objectives: Understand the concept of a system and how it relates to information systems. 3

Lecture 2 Chapter 1 Information Systems in Global Business Today What is a System: A set of components that work together to achieve a common goal EXAMPLE: Manufacturing system (accepts raw materials as inputs and produces finished goods as output) EXAMPLE : Movie 4

System Example Components System Inputs Movie Actors, director, staff, sets, equipment Processing elements Filming, editing, special effects, distribution Goal Outputs Finished film delivered to movie studio Entertaining movie, film awards, profits

Learning objective Apply the systems concept we have learned to understand better how an information system work?

Lecture 1 Information Systems in Global Business Today What is an Information System Technical perspective Technical Definition: An information system can be defined technically as a set of interrelated components that collects, process, store and distribute information to support decision making and control in an organization

Lecture 2 Chapter 1 Information Systems in Global Business Today Learning Objectives: How does an information system accomplish this? What are system components and activities involved? 8

Information system model 9

Lecture 2 Information system Chapter 1 Information Systems in Global Business Today is an organized combination of � people, �hardware, �software, � communication networks and the �data resources this system collects (input), transforms (process) , stores and disseminates (output) information in a organization. 10

Lecture 1 Information Systems in Global Business Today Functions of an Information System? Three basic activities Two additional components Feedback and control. Feedback Input Processing Output Feedback: data about the performance of a system or output returned for evaluation and correction of input. Control: Monitoring and evaluating feedback to determine whether a system is moving towards the goal.

Lecture 2 Chapter 1 Information Systems in Global Business Today Components or resources of an IS Information system depends on the resources of people, hardware, software, data and networks to perform input, processing , output, storage and control activities that convert data resources into information products.

Components of an INFORMATION System

Lecture 2 Chapter 1 Information Systems in Global Business Today Information Systems Resources And Products People resources: - IS specialist (system analysts, software developers, system operators). - end users (anyone else who uses information systems). Hardware resources: - machines (computers, video monitor, magnetic disk drives, printers, optical scanners). - media (floppy disks, magnetic tape, optical disks, plastic cards, paper forms). 14

Lecture 2 Chapter 1 Information Systems in Global Business Today Information Systems Resources And Products (continued) Software resources: - programs (operating system program, spreadsheet programs, word processing programs). - procedures ( are the operating instructions for the people who will use the info systems, using a software package, data entry procedures, error correction procedures). Data resources: - product description, customer records, employee files, inventory databases. 15

Lecture 2 Chapter 1 Information Systems in Global Business Today Information Systems Resources And Products (continued) Network resources: -communication technologies and networks like internet, , intranet, communications media like fiber optic cables, wireless technologies, communication processors modem, network access and control software network operating software). Information products: - management reports and business documents using text and graphics displays, audio responses, and paper forms. 16

Lecture 1 Information Systems in Global Business Today Variation in Returns – Why? Investing In IT does not by itself guarantee good returns. Ex: Record label companies fail adopt a new business model.

Lecture 1 Information Systems in Global Business Today Complimentary assets Answer lies in complimentary assets Complimentary assets are those assets that are required to derive value from a primary investment. Firms that support their investment in IT with investment in complimentary assets such as new business models, new business processes, organizational culture, management behavior, trainings etc, receive superior returns.

Lecture 1 Information Systems in Global Business Today Complementary Assets table 1 -3 Organizational assets Supportive organizational culture that values efficiency and effectiveness Appropriate business model Decentralized authority Distributed decision-making rights Strong IS development team Managerial assets Strong senior management support for technology investment and change Incentives for management innovation Teamwork and collaborative work environment Training programs to enhance management decision skills Management culture that values flexibility and knowledge-based decision – making Social Assets Set by the society Internet and telecommunications infrastructure educational system Networking and computing Standards ( both government and set by society) Laws and regulation

Complimentary assets Investments in organization and management are known as organizational and management capital. Value of investment in information technology depends to a large extent on complimentary investments in management and organization.

Complimentary assets Course emphasize a framework of analysis that considers technology, management and organizational assets and their interaction. Theme of course. managers need to consider the broader organization and management dimensions of information systems to derive value from IT technology investments.

Chapter 1 Information Systems in Global Business Today Contemporary Approaches to Information Systems • Multi-disciplinary field • The study of information systems deals with issues and insights from Technical and Behavioral disciplines.

CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

Approach of this text : Socio technical systems Information system are Socio technical systems. Require substantial social, organizational and intellectual investments to make them work properly. Only IT alone will not lead to productivity enhancement. Performance is maximized when technology and organization mutually adjust. Technology must be changed and designed as to fit the organizational and individual needs. In this course we will study we study management information systems that is study of information systems in business and management.

Information Systems, Organization and Strategy Lecture 4 Disruptive technology Technology’s impact on organization has become a disruptive force. New technology comes as a tsunami Some firms are able to create tsuanami gain profits Learn and swim with current Others are obliterated. Profit goes to customer. Example: World wide web I-tunes ATM Citibank is the inventor. Refer to table 3 -1.

Management Information Systems Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems ASSIGNMENT 2 UPS Competes Globally with Information Technology • Read the Interactive Session: Technology, and then discuss the following questions: • What are the inputs, processing, and outputs of UPS’s package tracking system? • What technologies are used by UPS? How are these technologies related to UPS’s business strategy? • What problems do UPS’s information systems solve? What would happen if these systems were not available?