MIS 300 Chapter 1 Basic Themes Information helps

MIS 300 Chapter 1

Basic Themes • • • Information helps meet goals Systems are artifacts Organizations run on information Systems provide careers MIS 300 Chapter 1 2

Principles and Learning Objectives-1 • The value of information is directly linked to how it helps decision makers achieve the organization’s goals – Distinguish data from information and describe the characteristics used to evaluate the quality of data Click here to see this material Organization GOAL Information MIS 300 Chapter 1 3

Principles and Learning Objectives -2 • Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life – Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver Click here to see this material MIS 300 Chapter 1 4

Principles and Learning Objectives-3 • System users, business managers, and information systems professionals must work together to build a successful information system – Identify the major steps of the systems development process and state the goal of each Click here to see this material MIS 300 Chapter 1 5

Principles and Learning Objectives-4 • The use of information systems to add value to the organization can also give an organization a competitive advantage – Identify the value-added processes in the supply chain and describe the role of information systems within them – Identify some of the strategies employed to lower costs or improve service – Define the term competitive advantage and discuss how organizations are using information systems to Click here gain such an advantage to see this material MIS 300 Chapter 1 6

Principles and Learning Objectives-5 • Information systems personnel are the key to unlocking the potential of any new or modified system – Define the types of roles, functions, and careers available in information systems – Can (and will) also include many users – Will (most certainly) include all workers Click here to see this material MIS 300 Chapter 1 7

Introduction • Information system (IS) – Set of interrelated components: collect, manipulate, disseminate data and information – Provide feedback to meet an objective – Examples: ATMs, airline reservation systems, course reservation systems What is Information, really? Why have it? MIS 300 Chapter 1 8

What Your Mother Taught You See Something Happens MIS 300 Chapter 1 Think Say Do Response Required 9

What Herbert Simon Won the Nobel Prize For Intelligence Something Happens MIS 300 Chapter 1 Design Choice Execution Mgmt Decision Required 10

What’s Behind the Model of Rational Decision Making Optimize or Satisfice? Gather information Intelliabout pertinent gence events Something Happens MIS 300 Chapter 1 Reflect against what is known All activity depends on requirements and resources available Select one alternative course of action Implement the decision Mgmt Decision Required 11

What ‘s Wrong with This Model? Intelligence Something Happens MIS 300 Chapter 1 Design Choice Execute Mgmt Decision Required 12

Information Concepts: Data Versus Information • Data: raw facts of machines’ experiences Recordings – Alphanumeric, image, audio, and video • Information data or other information – Organized collection of facts – Have value beyond the facts themselves components themselves Information is “information” only to the extent that it informs a user or consumer. That means that the informationness of an experience depends on the observer and what the observer has to do (intention)! MIS 300 Chapter 1 13

Data Versus Information (continued) Figure 1. 1: Defining and Organizing Relationships Among Data Creates Information MIS 300 Chapter 1 14

Data Versus Information (continued) Selecting, organizing and manipulating, conditioned by existing models and subsequent need for action. Figure 1. 2: The Process of Transforming Data into Information MIS 300 Chapter 1 15

The Characteristics of Valuable Information Table 1. 2: Characteristics of Valuable Information MIS 300 Chapter 1 16

The Characteristics of Valuable Information (continued) Table 1. 2: Characteristics of Valuable Information (continued) MIS 300 Chapter 1 17

What Is an Information System? This is only one view. A system is much more complex. A behavioral view will keep in mind intentions, skills, judgments, and prior knowledge (theory) Figure 1. 3: The Components of an Information System MIS 300 Chapter 1 18

Computer-Based Information Systems • Manual versus computerized information systems • Computers are NOT necessary in information systems, but they have certain efficiencies • Computer-based information system (CBIS) – Hardware, software, databases, telecommunications, people, and procedures – Collect, manipulate, store, and process data into information MIS 300 Chapter 1 19

Computer-Based Information Systems (continued) The infrastructur e (left) What you experience (above) Figure 1. 4: The Components of a Computer-Based Information System MIS 300 Chapter 1 20

Business Information Systems • Most common types of information systems used in business organizations: – Electronic and mobile commerce systems – Transaction processing systems – Management information systems – Decision support systems – Specialized business information systems These are detailed next. MIS 300 Chapter 1 21

Electronic and Mobile Commerce • E-commerce: any business transaction executed electronically between parties such as: – – – Companies (B 2 B) Companies and consumers (B 2 C) Consumers and other consumers (C 2 C) Business and the public sector Consumers and the public sector MIS 300 Chapter 1 22

Transaction Processing Systems • Transaction: business-related exchange – Payments to employees – Sales to customers – Payments to suppliers • Transaction processing system (TPS) – A collection of people, procedures, software, databases, devices – Records completed business transactions MIS 300 Chapter 1 23

Transaction Processing Systems (continued) Figure 1. 7: A Payroll Transaction Processing System The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks) MIS 300 Chapter 1 24

Enterprise Resource Planning • Integrated programs that manage all business operations • Coordinate planning, inventory control, production, and ordering among others • Historically based in production systems • Hard to translate to other types of business • Necessarily complex MIS 300 Chapter 1 25

Management Information Systems • Management information system (MIS) – A collection of people, procedures, software, databases, devices – Provides information to managers/decision makers • Primary focus is operational efficiency • MIS outputs – Scheduled reports – Demand reports – Exception reports MIS 300 Chapter 1 26

Management Information Systems (continued) Figure 1. 8: Functional management information systems draw data from the organization’s transaction processing system MIS 300 Chapter 1 27

Decision Support Systems • Decision support system (DSS) – A collection of people, procedures, software, databases, devices – Supports problem-specific decision making • Focus is on decision-making effectiveness MIS 300 Chapter 1 28

Decision Support Systems (continued) Figure 1. 9: Essential DSS Elements MIS 300 Chapter 1 29

Systems Development • Systems development – Creating or modifying existing business systems • Systems investigation: gain an understanding • of the problem to be solved or opportunity to be addressed • Systems analysis: define problems and opportunities of the existing system MIS 300 Chapter 1 30

Systems Development (continued) • Systems design: determine how the new system will work to meet the business needs defined during systems analysis • Systems implementation: create or acquire the various system components defined in the design step, assembling them, and putting the new system into operation • Systems maintenance and review: check and modify the system so that it continues to meet changing business needs MIS 300 Chapter 1 31

Organizations and Information Systems • Organization: a collection of people and other resources established to accomplish a set of goals • An organization is a system – Inputs: resources (materials, people, money) – Outputs: goods or services MIS 300 Chapter 1 32

Organizations and Information Systems (continued) Figure 1. 13: A General Model of an Organization MIS 300 Chapter 1 33

Organizations and Information Systems (continued) • Value chain: a series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service • Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities • Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service MIS 300 Chapter 1 34

Organizations and Information Systems (continued) Figure 1. 14: The Value Chain of a Manufacturing Company MIS 300 Chapter 1 35

Organizations in a Global Society • As companies rely on virtual structures and outsourcing to a greater extent, businesses can operate around the world • Challenges to operating in a global society – Every country has a set of customs, cultures, standards, politics, and laws – Language barriers – Difficulty in managing and controlling operations in different countries MIS 300 Chapter 1 36

Competitive Advantage • Significant, long-term benefit to a company over its competition • Ability to establish and maintain a competitive advantage is vital to a company’s success MIS 300 Chapter 1 37

Factors That Lead Firms to Seek Competitive Advantage • • Rivalry among existing competition Threat of new entrants Threat of substitute products and services Bargaining power of customers and suppliers MIS 300 Chapter 1 38

Strategic Planning for Competitive Advantage • • Change the structure of the industry Create new products or services Improve existing products or services Use information systems for strategic purposes MIS 300 Chapter 1 39

Strategic Planning for Competitive Advantage (continued) Table 1. 5: Competitive Advantage Factors and Strategies MIS 300 Chapter 1 40

Strategic Planning for Competitive Advantage (continued) Table 1. 5: Competitive Advantage Factors and Strategies (continued) MIS 300 Chapter 1 41

Return on Investment and the Value of Information Systems • • Earnings growth Market share Customer awareness and satisfaction Total cost of ownership MIS 300 Chapter 1 42

Careers in Information Systems • Degree programs – Degrees in information systems – Business degrees with a global or international orientation • Computer systems are making IS professionals’ work easier • Opportunities in information systems are not confined to single countries MIS 300 Chapter 1 43

Careers in Information Systems (continued) Figure 1. 16: The Three Primary Responsibilities of Information Systems MIS 300 Chapter 1 44

Roles, Functions, and Careers in the IS Department • Primary responsibilities in information systems – Operations: focuses on the efficiency of information – Systems development: focuses on development projects and ongoing maintenance and review – Support: provides user assistance MIS 300 Chapter 1 45

Typical IS Titles and Functions • Chief information officer (CIO): uses IS department equipment and personnel • LAN administrators: set up and manage the network hardware, software, and security processes • Internet careers – – Strategists Programmers Web site operators Chief Internet officer • Other IS careers MIS 300 Chapter 1 46

Summary • Data: raw facts • Information: organized collection of facts • System components: input, processing, output, and feedback • Computer-based information system (CBIS) – Hardware, software, databases, telecommunications, people, and procedures – Collect, manipulate, store, and process data into information MIS 300 Chapter 1 47

Summary (continued) • Transaction processing system (TPS): a collection of people, procedures, software, databases, and devices used to record completed business transactions • Management information system (MIS): a collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers MIS 300 Chapter 1 48

Summary (continued) • Decision support system (DSS): a collection of people, procedures, software, databases, and devices used to support problem-specific decision making • Systems development: creating or modifying existing business systems • Competitive advantage: significant, long-term benefit to a company over its competition • Primary responsibilities in information systems: operations, systems development, and support MIS 300 Chapter 1 49