Chapter 1 IT for Business and Business Professionals January 5 & 10, 2011 With: Moataz Soliman Management Information Systems COMM 226

What We Will Cover Why IS matters What Is an Information System? What’s in IT for Me? What’s in IT for an Organization? What’s in IT for Society?

Why IS Matters o Organizations and individuals must keep up with rapid technology changes or risk becoming obsolete o Rate of technology change is greater today than ever before and it will be more important to keep up with those changes o Information technology, as a part of any IS, impacts all business disciplines (accounting, marketing, etc.) o In today's work environment it’s impossible to do knowledge work without technology

What Is an Information System (IS)? o An information system is an organized collection of people, information, business processes, and information technology (IT), designed to transform inputs into outputs, in order to achieve a goal o Information systems enhance knowledge, work, decision making, problem solving, communication, and coordination

IPO Model of an Information System Copyright 2010 John Wiley & Sons Canada, Ltd.

Information System Components ConceptDefinition InputItems entered into a system to transform them into outputs ProcessA series of one or more steps used by a business to transform inputs into outputs OutputThe end result of a process. Information is the result of the transformation (processing) of data. DataRaw, unorganized facts InformationProcessed/organized/transformed data that is useful to a person KnowledgeInformation plus human experience and judgment

Information System Components (Continued) ConceptDefinition DecisionA choice made from one or more alternatives to follow or avoid some course of action Business Value A positive return on the investment of resources that is created through the effective and efficient integration of an organization’s people, information, information technology, and business processes

The Productivity Zone o Created at the intersection of people, process and technology o Incorporates elements of human design to accommodate how people will use the system o Combines all three of these elements allowing for superior productivity and a competitive advantage

The Productivity Zone Copyright 2010 John Wiley & Sons Canada, Ltd. Figure 1.3 The productivity zone occurs at the intersection of people, processes, and technology. A successful IS system integrates all three of these components to create business value

What’s in IT for Me? o IT knowledge can be a key contributor to your success both personally and professionally o Using technology allows you to be more efficient and effective thereby becoming more productive o IT is fundamental for your career

What’s in IT for an Organization?  Efficiency  Competitive advantage  Customer loyalty  Globalization

Types of IS ºThere are a number of types of IS that are widely used in creating business value: ●Transaction Processing Systems (TPS) ●Management Information Systems (MIS) ●Decision Support Systems (DSS) ●Enterprise Resource Planning (ERP) Systems ●Customer Relationship Management (CRM) Systems

Transaction Processing Systems  What do they do? Capture and process transactions to make them available to the organization  How does this create business value? It enables a business to efficiently and accurately track the transactions that are at the heart of all business activities. Captured transaction data can then be used to support decision making

Management Information Systems  What do they do? Provide timely information to decision makers through processing and reporting features  How does this create business value? Timely reporting can enable managers to monitor critical processes and avoid costly mistakes

Decision Support Systems o What do they do? o Provide analytical and visualization tools to support and enhance decision making o How does this create business value? o It enables decision makers to make decisions based on data and to discover new business opportunities

Enterprise Resource Planning Systems  What do they do? Integrate and standardize processes and centralize and standardize the storage and management of data  How does this create business value? This can reduce costs associated with duplication of processes and effort. It can also reduce decision-making mistakes made because of multiple versions of the same data, information, and knowledge

Customer Relationship Management Systems o What do they do? o Integrate data collection, transformation, storage, and analysis of customer transaction data, including purchases, service requests, and other forms of customer contact o How does this create business value? o This greatly increases understanding of customers’ purchasing and service behaviors and needs. It facilitates timely and proactive management of customers

What’s in IT for Society?  Connectivity between people  Better understanding between cultures: a smaller world.  Improved healthcare

Of the following types of IS, which primarily captures and processes data? A. DSS B. CRM C. ERP D. TPS E. MIS

To do before next class: 1) 1-mark week-end assignment 2) Readings: Tech guide “A” available online only 3) Download Assignment 1