Chapter 1 Foundations of Information Systems in Business Why Study Information Systems?  Information technologies are playing an expanding role in business.  Improving efficiency and effectiveness  managerial decision making  workgroup collaboration →The end result is that businesses can strengthen their competitive position in the rapidly changing marketplace

Chapter 1 Foundations of Information Systems in Business Why Study Information Systems?  Efficiency  Minimize Costs  Minimize Time  Minimize Use of Information Resources  Effectiveness  Support an organization’s business strategies  Enable its business processes  Enhance organizational structure and culture  Increase customer business value

Chapter 1 Foundations of Information Systems in Business Why Study Information Systems?  Internet-based systems have become a necessary ingredient for business success  How many of you: Purchased products on line that you would have not considered buying 5 years ago? Make airline reservations on line? Gotten product/service information on line? →Information technologies are playing an expanding role in business.

Chapter 1 Foundations of Information Systems in Business  Why do you have required accounting, marketing, management, economics and finance courses? But why a required principles course? →Because these are all basic business functions (As are Information Systems)  It wasn’t always that way, however.  Let’s consider a typical Organization Table from the late 1970’s/early 1980’s

Chapter 1 Foundations of Information Systems in Business CEO VP Finance VP Production VP Marketing Accounting EDP Depart.  A (Simplified) Organizational Table (c. 1960)

Chapter 1 Foundations of Information Systems in Business  A (Simplified) Organizational Table (c. 1990) VP Marketing VP Finance VP Production CIO CEO Why the difference?  Information Systems are no longer viewed merely as tools  They have moved from a STAFF position to a LINE position

Chapter 1 Foundations of Information Systems in Business The Conceptual Framework of IS Knowledge What will we be studying in this course? Fundamental behavioral, technical, business and managerial concepts about IS components and IS roles Chapters 1 & 2

Chapter 1 Foundations of Information Systems in Business The Conceptual Framework of IS Knowledge What constitutes an information system? Major concepts, developments and management issues in issues in IS Technology Hardware Software Networks Data Management Internet Technologies Chapters 3 - 6

Chapter 1 Foundations of Information Systems in Business The Conceptual Framework of IS Knowledge What constitutes an information system? The challenges of effectively and ethically managing information systems at the end-user, enterprise, and global levels of the business Chapters 13 & 14

Chapter 1 Foundations of Information Systems in Business The Conceptual Framework of IS Knowledge What constitutes an information system? The major uses of Information Technologies for operations, management and competitive advantages Chapters

Chapter 1 Foundations of Information Systems in Business The Conceptual Framework of IS Knowledge What constitutes an information system? How information professionals and specialists plan, develop and implement information systems to meet business opportunities Chapters 11 & 12

Chapter 1 Foundations of Information Systems in Business So what is an information system?  First of all, we must recognize that it is a SYSTEM, not just a product “a group of independent but interrelated elements comprising a unified whole” A system may be defined as:

Chapter 1 Foundations of Information Systems in Business So what is an information system? ALL the components must work together toward a single goal In fact it is many different and related systems that appear to be only one system It is a term that we use everyday, without thought to what it really means: “I don’t understand why they chose the new inventory system instead of an SAP system”

Chapter 1 Foundations of Information Systems in Business Information systems should be viewed the same as any other system The solar system A railway system An ecological system An economic System (The European Community) They are: ALL the components work together toward a single goal “a group of independent but interrelated elements comprising a unified whole” So what is an information system?

Chapter 1 Foundations of Information Systems in Business So what is an information system? A basic system can be represented as capturing and assembling elements that enter the system to be processed

Chapter 1 Foundations of Information Systems in Business So what is an information system? transformation steps that convert input into output

Chapter 1 Foundations of Information Systems in Business So what is an information system? transferring elements that have been produced by a transformation process to their ultimate destination

Chapter 1 Foundations of Information Systems in Business So what is an information system? monitoring and evaluating feedback to determine whether a system is moving toward its goal

Chapter 1 Foundations of Information Systems in Business So what is an information system? data about the performance of a system

Chapter 1 Foundations of Information Systems in Business So what is an information system? Adjustment to improve system performance

Chapter 1 Foundations of Information Systems in Business What does this have to do with real life?

Chapter 1 Foundations of Information Systems in Business Closed Systems: Mechanical systems are generally closed systems To use a refrigerator you turn it on and set the temperature. After that you can forget about monitoring the temperature because it is done automatically. You might consider a prison system as a closed system (especially if a prisoner is locked-up in isolation) A simple computer program which always returns the same result may be considered a closed system What types of systems are there?

Chapter 1 Foundations of Information Systems in Business Open Systems: Living Organisms Some mechanical systems, such as thermostats, which rely on inputs from the environment People are open systems since they must interact with their environment in order to take in food, water, and obtain shelter and produce affects affecting the environment What types of systems are there?

Chapter 1 Foundations of Information Systems in Business The Systems Trinity: Managers Users System’s Designers What constitutes an information system? As well as: Customers and others

Chapter 1 Foundations of Information Systems in Business microcomputers, midsize servers, and large mainframe systems the input, output, and storage devices that support them What constitutes an information system?

Chapter 1 Foundations of Information Systems in Business operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management What constitutes an information system?

Chapter 1 Foundations of Information Systems in Business operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management What constitutes an information system?

Chapter 1 Foundations of Information Systems in Business Data Versus Information What constitutes an information system?

Chapter 1 Foundations of Information Systems in Business While information systems rely on data, they must provide information What’s the difference??? Data (pl) is a non-random sequence of symbols Fernandez, Juan A Information, while generally based on data, is something that increases our knowledge Juan Fernandez is an Accounting Major and has a 80.3 average in Principles of Accounting (Based on analysis of the above data) Data versus Information?

Chapter 1 Foundations of Information Systems in Business Aren’t Information Systems and Information Technology the same thing? all components and resources necessary to deliver information and information processing functions to the organization Information Systems (IS): Information Technology (IT): various hardware components necessary for the system to operate

Chapter 1 Foundations of Information Systems in Business What types of information do we need?  That depends on what you need  Let’s look at some of the dimensions of information (We will look at these in detail a little later)

Chapter 1 Foundations of Information Systems in Business What types of information do we need?

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Operations Support Systems Transaction Processing Systems process data resulting from business transactions, update operational databases, and produce business documents.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Operations Support Systems Transaction Processing Systems monitor and control industrial processes. Process Control Systems Process control systems use electronic sensors linked to computers to continually monitor processes and make instant (real- time) adjustments that control the process.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Operations Support Systems Transaction Processing Systems support team, workgroup, and enterprise communications and collaboration. Process Control Systems Enterprise Collaboration Systems Enterprise collaboration systems enhance team and workgroup communications and productivity, and include applications that are sometimes called office automation.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Management Support Systems Management Information Systems provide information in the form of pre-specified reports and displays to support business decision making.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Management Support Systems Management Information Systems provide critical information from MIS, DSS, and other sources tailored to the information needs of executives. Decision Support Systems EIS systems are management information systems which are tailored to meet the strategic information needs of top management.

Chapter 1 Foundations of Information Systems in Business What types of information do we need? Management Support Systems Management Information Systems provide interactive ad hoc support for the decision making processes of managers and other business professionals. Decision Support Systems Executive Information Systems

Chapter 1 Foundations of Information Systems in Business What types of information do we need?  Other Information Systems Expert Systems Attempts to apply the logic used by “Experts” in a specific field Knowledge Management Systems Systems that support the creation, organization, and dissemination of business knowledge to employees and managers Functional Business Systems Information Systems that focus on operational and managerial applications of business functions

Chapter 1 Foundations of Information Systems in Business What types of information do we need?  Other Information Systems Strategic Information Systems Systems that support the creation, organization, and dissemination of business knowledge to employees and managers Cross-functional Information Systems Computer systems developed in order to help knowledge workers create, organize, and share important business knowledge wherever and whenever needed.

Chapter 1 Foundations of Information Systems in Business How have information systems evolved?

Chapter 1 Foundations of Information Systems in Business How have information systems evolved?  Network Configurations Local Area Networks (LANS) Short Range – within the same building Intranets Within a business – may be world-wide Internets Available to anyone – world-wide Extranets A network between an enterprise and its trading partners Wide Area Networks (WANS) Long Range – May be world-wide

Chapter 1 Foundations of Information Systems in Business How do we develop an information system? What’s the problem?What are you doing? I think this is what you should be doing! Let’s do it! How are we doing? Let’s keep up the good stuff, and improve where we can! (This is also known as the planning phase) Who should be Involved?Everyone!

Chapter 1 Foundations of Information Systems in Business What are the Managerial Challenges of information system? Some Examples:

Chapter 1 Foundations of Information Systems in Business  Success and Failure with IT Success should not be measured only by its efficiency Success should include: The effectiveness of information technology in supporting and organization’s business strategies The enabling of its business processes The enhancement of organizational structures and culture The increase of customer and business value

Chapter 1 Foundations of Information Systems in Business  Introduction Summary  The IS Function is … An important contributor to operational efficiency, employee productivity, and customer service and satisfaction. a major source of information and support needed to promote effective decision making by managers and business professionals.

Chapter 1 Foundations of Information Systems in Business  Introduction Summary  The IS Function is … An important contributor to operational efficiency, employee productivity, and customer service and satisfaction. a major source of information and support needed to promote effective decision making by managers and business professionals.

Chapter 1 Foundations of Information Systems in Business  Introduction Summary  The IS Function is … An important factor in developing competitive products and services that give an organization a strategic advantage in global marketplace. A functional area of business as important to business success as accounting, finance, operations management, marketing, and human resource management.

Chapter 1 Foundations of Information Systems in Business Anything else I should know Information Systems ??? Anything else I should know Information Systems ??? Of Course!!! That’s why you’re taking this course !! ??? Any Questions ??? ??? Any Questions ??? I’ve got lots of questions, but I know that no one else does, and I hate to look stupid --- BETTER TO JUST NOT KNOW!!!