Chapter 1 Introduction to Information Systems © Toh Kheng Ho/Age Fotostock America, Inc.

Chapter Outline 1.1 Why Should I Study Information Systems? 1.2 Overview of Computer-Based Information Systems 1.3 How Does IT Impact Organizations? 1.4 Why Are Information Systems Important to Society?

Learning Objectives 1.Identify the reasons why being an informed user of information systems is important in today’s world. 2.Describe the various types of computer-based information systems in an organization. 3.Discuss ways in which information technology can affect managers and nonmanagerial workers. 4.Identify positive and negative societal effects of the increased use of information technology.

Introduction Opening Case: Warby Parker Is Information Technology (IT) the same as Information System (IS)? IT refers to computer-based tools that support data-processing. IS utilizes IT to collect, process, store, analyze, and disseminate information for a specific purpose.

1.1 Why Should I Study Information Systems? You are Homo conexus, the most connected generation in history In what ways do you stay “connected”? You practice continuous computing You are surrounded by a personal, movable digital network that allows you retrieve and share information from anywhere at anytime. Three reasons why you should study IS: 1.To become an informed user 2.To explore career opportunities in IT 3.To take part in managing information resources

© Voon Nam Fook/iStockphoto The Informed User—You! Informed user A person knowledgeable about information systems and information technology An informed user… Benefits more from an organization’s IT resources Helps enhance IT resources with his/her input Recommends new/adapted IT resources Keeps up with IT development/updates/security Improves overall organizational effectiveness Don’t be like this guy Rate yourself as an informed IT user. (0 = Know nothing; 10 = Know everything)

IT Offers Career Opportunities “Fastest growing jobs” in America in 2011 Of the top 20 jobs, 8 relate directly to IT CNN Money See Table 1.1 for IT positions and job descriptions Which one requires the most experience? What skills are required for each position?

Managing Information Resources Managing information systems is a complex task. Information systems have significant strategic value to organizations. Information systems are expensive to acquire, operate, and maintain. Computing resources are located throughout the organization, requiring collaboration between MIS and functional departments. See Table 1.2 The changing role of the IS department

1.2 Overview of Computer- Based Information Systems Key terms: Data Information Knowledge What are examples of data, information, and knowledge?

Computer-Based Information System (CBIS)

IT Infrastructure IT Platform HardwareSoftwareNetworksDatabases IT Personnel IT Platform IT Services IT Infrastructure

Organizational Information Systems Application or application programs (app) A computer program designed to support a specific task Departmental information system Functional area information system (FAIS) A collection of application programs in a single department Angela Waye/Shutterstock

Figure 1.4 IS within an Organization

Figure 1.5 IS among Multiple Organizations

Breadth of Support of Information Systems Functional support within the organization Within a department Functional area information systems (FAISs) Accounting and finance systems, Sales automation, Human resources information systems, etc. Entire organization Enterprise resource planning (ERP) systems Coordinate and share data across multiple FAISs Transaction processing systems (TPSs) Monitor, collect, store, and process data from the organization’s basic transactions that generate data Interorganizational information systems (IOSs) Customer relationship management (CRM) system Supply chain management (SCM) system E-commerce Etc.

Support for Organizational Employees Office automation systems (OASs): Develop documents (word processing), schedule resources (electronic calendars), and support communication (e- mail, voice mail, videoconferencing, and groupware) FAISs: Summarize data and prepare reports Business intelligence (BI) systems: Support complex, nonroutine decisions Expert systems (ESs): Attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain Dashboards (or digital dashboards): Provide fast access to information for decision making Identify information systems used by each group of employees: Clerical workers, lower-level managers, middle managers, executives, knowledge workers

1.3 How Does IT Impact Organizations? IT will reduce the number of middle managers because it helps managers be more productive IT will change the manager’s job because it changes how managers make decisions Will IT eliminate jobs? What do you think? IT impacts employees at work Loss of identity Health and safety Job stress and ergonomic issues Opportunities for people with disabilities Speech- and vision-recognition systems Adaptive equipment and devices for computers Source: Media Bakery

1.4 Why Are Information Systems Important to Society? IT affects our quality of life Expanded work hours and flexibility Always on “constant call” Robot revolution on the way Why use robots? Military robot BigDogBigDog Industrial Robots Kiva RobotsKiva Robots Health care robot daVinci Surgical RobotdaVinci Surgical Robot Telepresence Robots Baty BotBaty Bot Improvements in health care Better and faster diagnoses More accurate patient monitoring Long-distance surgery and medical discussions Dangers of self-diagnosis © Stockbrokerxtra/Age Fotostock America, Inc.

What’s in IT for ME? Accounting and Finance Use IT systems in forecasting, determining best sources and uses of funds, and auditing Marketing Performs various analyses regarding product, price, site, and promotion Production/Operations Management Design and manufacture products, process customer orders, develop production schedules, control inventory levels, and monitor product quality Human Resources Management Manage the recruiting process, analyze and screen job applicants, hire new employees. Help employees manage their careers, compensation, and benefits, administer performance tests, and monitor productivity MIS Provides information and IT support to other functional areas

Closing Case 1: Today, Every Company Is a Technology Company The Problem The Solution Questions If every company is now a technology company, then what does this mean for the company’s employees? Discuss your answer and provide specific examples to support your answer. If every company is now a technology company, then what does this mean for every major in a college of business? Discuss your answer and provide specific examples to support your answer.

Closing Case 2: The Arab Spring The Problem The Solution Questions Describe how information technology enabled the Jasmine and Egyptian revolutions. Describe efforts by the Tunisian and Egyptian governments to quell the revolutions. In particular, describe the efforts that were directed at information technology. Discuss how information technology contributed to higher oil prices and higher prices you pay for gasoline.