01-1 Information is Power? “In today's world, as we know, information is power and there has been a huge explosion, in the communications industries in recent years. Computers are now going to be standard in every office and in an increasing number of private homes. … the Internet has made instantaneous electronic communications an every day fact of life for millions of people.” Source: Tony Blair, Speech on Freedom of Information (1996) at In the Digital Economy, how you gather, manage, and use information will determine whether you win or lose. Source: Bill Gates, the Speed of Thought.

01-2 Information overload...every business is an information business… information is the glue that holds together the structure of all businesses Source: Evans and Wurster, Harvard Business Review of Sept 1997 Corporate information doubles each year. Lyman and Varian (2000) calculated that the world's total yearly production of print, film, optical, and magnetic content would require roughly 1.5 billion gigabytes of storage. This is the equivalent of 250 megabytes per person for each man, woman, and child on Earth. Source: Lyman, P. and Varian, H. (2000) ‘How Much Information – online research summary. Retrieved from

01-3 Information Dictionary Definitions Information Knowledge acquired through experience or study. Knowledge of specific and timely events or situations; news. The condition of being informed. Computers a. the results derived from the processing of data according to programmed instructions b. another word for data INFORMATION = KNOWLEDGE?? INFORMATION = DATA? Inform To give form to To tell; to impart some essential or formative characteristics INFORMATION forms KNOWLEDGE INFORMATION has value (to people) DEFINITION

BIS Business Information Systems Information in our Pockets

01-5 Plotting Information Quality Timeliness Currency Frequency Correct Time Period Relevant Accurate Complete Concise Scope Clarity Detail Order Presentation Media Confidence in source Reliability Appropriateness Received By correct person Sent by correct channels Score Each Quality from 0 – 6 0 = Non 6 = Perfect TIME DIMENSION QUALITY DIMENSION CHANNEL DIMENSION FORM DIMENSION

01-6 Decisions, Decisions Q. What decisions do you make each day? Q. What decisions would you let a friend make for you? Q. What major life-decision did you make last year? Q. What information helped form the decision? Q. How did you decide? Random Impulse Discounting unfavourable choices Shortlist Ordered list Weighing a variety of factors External Factors and Circumstances

01-7 Decision Making Your Personal Decision Making Processes Trivial Random Impulse Subjective Routine Predictable Pre-programmed Significant Objective Evaluation Critical Life Decisions Highly-complex Objective and Subjective Evaluation

BIS Business Information Systems Decision Making Simple Source: Bocij and Chaffey (2005), page 25

BIS Business Information Systems Decision Making Harder Source: Bocij and Chaffey (2005), page 19

01-10 A Model of Decision Making StageActivities IntelligenceAwareness that a problem exists Awareness that a decision must be made DesignIdentify all possible solutions Examine possible solutions Examine implications of all possible solutions ChoiceSelect best solution ImplementationImplement solution EvaluationEvaluate effectiveness or success of decision Trivial Critical

01-11 Decision Making Personal Decision Making Processes Trivial Random Impulse Subjective Routine Predictable Pre-programmed Significant Objective Evaluation Critical Highly-complex Objective and Subjective Evaluation Operational level Tactical level Strategic level Business Decision Making Processes

BIS Business Information Systems Decision Making Levels Source: Bocij and Chaffey (2005), page 19 Strategic managers are largely concerned with long-term organisational planning. Tactical medium term. Operational short-term, day-to-day.

01-13 Systems are collections of objects that collaborate according to rules. Systems Source: Definition of “Systems” Sys"tem (?), n. [L. systema, Gr., fr. to place together; with + to place: cf. F. syst\'8ame.] 1. An assemblage of objects arranged in regular subordination, or after some distinct method, usually logical or scientific; a complete whole of objects related by some common law, principle, or end; a complete exhibition of essential principles or facts, arranged in a rational dependence or connection; a regular union of principles or parts forming one entire thing; as, a system of philosophy; a system of government; a system of divinity; a system of botany or chemistry; a military system; the solar system.] Webster’s Source: ARTFL project - DEFINITION

01-14 Systems Theory Systems theory the study of the behaviour and interactions within and between systems. a means for analysing and improving business processes System a collection of related components that work together towards a common goal. PurposeThingsProcess

BIS Business Information Systems “All systems involve transforming inputs such as data into outputs such as information” Simple Systems Source: Bocij, Chaffey et al, Business Information Systems (2005) Page 40

BIS Business Information Systems Generic Systems Model Source: Bocij, Chaffey et al, Business Information Systems (2005) Page 41

BIS Business Information Systems EXAMPLE Central Heating System Source: Adapted from Bocij, Chaffey et al, Business Information Systems (2005) Page 41 Measure current temperature Set desired temperature Turn OFF / ON X A warm houseHot water from a boiler Pump hot water to radiators around the house

01-18 Elements of a Generic System Input What goes into a system Examples: Data, Images, Instructions, Raw materials, etc. Process What goes on inside a system Examples: Adding numbers, interpreting images, following instructions, transforming materials etc. OutputsWhat comes out of a system Examples: Information, Graphics, Decisions, Finished Products Feedback Information on the Performance of the System Examples: success or fail, measurements, errors, defect rates ControlUses feedback to modify Process Examples: reduce input, make different decisions, work faster, stop In most systems that you study you should be able to identify these five elements. Try A calculatora computer system Your bank accountan information system

01-19 Systems Theory applied to a Business Systems Theory: A business can be regarded as a “system”: Input What goes into a system What goes into a business – supplies, resources, capital, effort Process What goes on inside a system What goes on inside a business – its operations, business processes OutputsWhat comes out of a system What a business produces - finished products, services, waste Feedback Information on the Performance of the System Information on the performance of the business – the “information systems” a business has ControlUses feedback to modify Process The management of the business - rely on the “information systems” to give them feedback.

What does the Business need to control? 2.What are the Inputs to and Outputs from the sales process? 3.What Information sources are available to managers? 4.What technology solutions are practical? 5.What information systems for managing the sales transactions (operational)? 6.What information systems for supporting management decisions (strategic)? EXAMPLE Systems View of a Business More questions

What does the Business need to control? 2.What are the Inputs to and Outputs from the sales process? 3.What Information sources are available to managers? 4.What technology solutions are practical? 5.What information systems for managing the sales transactions (operational)? 6.What information systems for supporting management decisions (strategic)? EXAMPLE Resources: Stock, Cash, Staff Input: Stock, Staff time Output: Cash Stock: Issued and Returned Cash: Issued and Retuned Staff: Working hours Paper forms (they’re cheap) Reconcile Daily Takings Stock Management Analysis of sales patterns by location, by product line, by day (weather) Systems View of a Business More questions

01-22 Information Systems i Information Made up of data Stored (on databases) Handled by computers Needed by people Used to make decisions Systems Objects that work together Follow a set of rules Handle information? Run on a computer or network? Designed by people Information Systems Both of the above More than just the sum of the above (emergent properties) The means by which organisations organise themselves, keep records, make decisions, interact with stakeholders