Information Systems Today, 2/C/e ©2008 Pearson Education Canada 1-1 Chapter 1 Why Information Systems Matter Robert Riordan, Carleton University

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Why Learn about Information Systems 2

Value of IS Knowledge in Different Careers Use IS more than any other non IS field _____________ Access to funds Where to invest ----Can be heavily analytical Finance Sales force automation SFA Geographic IS CRM _____________ HRM, payroll, benefits HR SCM CAD/CAM _____________ Intranets Digital rights management systems Media & Communications 1-3

Information Systems Today, 2/C/e ©2008 Pearson Education Canada 4 What is a system? Start a chip company

Information Systems Today, 2/C/e ©2008 Pearson Education Canada _____________ Case 1-5

6 What is an Information System? Combinations of _____________, software, and telecommunications networks that people build and use to collect, create and distribute useful data, typically in _____________settings. Input of ______ Resources Input of ______ Resources Processing ________ Processing ________ Output of Information Products Output of Information Products Control of System Performance Storage of Data Resources

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems: Turn Data into Information 1-7 DataInformation Raw material _________ information Generally has no _______ Examples Processed material _________ information Data given ________ Individual time cards for factory workers entered into the payroll system Department Labour Report, Project Status Report, Employee Payroll Checks

Information Systems Today, 2/C/e ©2008 Pearson Education Canada What are Computer Based Information Systems? A ____________of technical components - Built and used by ____________ to collect, create, and distribute useful data - Used typically in ____________ settings but are evolving for personal use

Information Systems Today, 2/C/e ©2008 Pearson Education Canada How Levi’s Got Its Jeans into Wal-Mart

Information Systems Today, 2/C/e ©2008 Pearson Education Canada High Flyers What existing information systems can you Identify? What additional information systems would be beneficial? 10 High Flyers

Information Systems Today, 2/C/e ©2008 Pearson Education Canada What is the Data component of the IS? 1-11 Information Systems Information Systems Hardware Telecommunications People Data Software The raw inputs for entry into ___________systems ____________, processed and stored by an IS to support user information needs Provides basis for qualitative/quantitative _________

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems Components: Hardware 1-12 Information Systems Information Systems Hardware Telecommunications People Data Software The ____________ components of information systems Hardware components include processors, input and output devices, and ____________ devices

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems Components: Software 1-13 Information Systems Information Systems Hardware Telecommunications People Data Software The ____________ that operate the information system System software controls the hardware (e.g. Windows XP) ____________ software allows users to perform specific tasks to increase productivity (e.g. MS Word)

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems Components: Telecommunications 1-14 Information Systems Information Systems Hardware Telecommunications People Data Software The communication mechanism of information systems Allows two or more computers to communicate (Internet) Utilizes standard protocols for IS communication

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Society Evolution 1-15 Agricultural Industrial (Prior to 1890’s) (1890’s to 1960’s) Informational (1960’s to Present)

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Society Evolution: Terms and Issues 1-16 Knowledge Worker (Peter Drucker 1959) ____________ s that create, modify and/or synthesize information as a fundamental part of their job They will require higher ____________ levels and received higher compensation than workers in agriculture or manufacturing At least ____________ of all workers in Canada are knowledge workers Knowledge Worker (Peter Drucker 1959) ____________ s that create, modify and/or synthesize information as a fundamental part of their job They will require higher ____________ levels and received higher compensation than workers in agriculture or manufacturing At least ____________ of all workers in Canada are knowledge workers Knowledge Worker

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Society 1-17 New Economy (Wired Magazine - Late 1990s) Similar to “knowledge society” but more ____________ Describes a society where people use their brains more than their hands in their work and personal lives Where ____________ s technology and other IT systems will create ____________ competition for all products and services Other names: Digital Economy, Network Era, Internet Era New Economy (Wired Magazine - Late 1990s) Similar to “knowledge society” but more ____________ Describes a society where people use their brains more than their hands in their work and personal lives Where ____________ s technology and other IT systems will create ____________ competition for all products and services Other names: Digital Economy, Network Era, Internet Era

Information Systems Today, 2/C/e ©2008 Pearson Education Canada The New Economy (NE): Societal Perspectives 1-18 Perspective 1: Sims –Taylor The new economy creates risks for ____________ ____________ will be the first to be replaced by automation with information technology Perspective 1: Sims –Taylor The new economy creates risks for ____________ ____________ will be the first to be replaced by automation with information technology Perspective 2: Rikfin The over reliance on information technology has caused society to act ____________ The result has been a loss of perspective Perspective 2: Rikfin The over reliance on information technology has caused society to act ____________ The result has been a loss of perspective Perspective 3: THE DIGITAL DIVIDE Those with ____________ to information technology have great ____________ over those that don’t IT access will further ____________ society Perspective 3: THE DIGITAL DIVIDE Those with ____________ to information technology have great ____________ over those that don’t IT access will further ____________ society

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Executive Roles in Information Technology 1-19 CEO Chief Executive Officer COO Chief Operations Officer CFO Chief Financial Officer CIO Chief Information Officer Manages Operations Allocates Resources Primary Consumer of IT within the Organization Manages External Stakeholder Relationships Sets Strategic Direction Defines High Level IT Needs for the Future Manages Accounting & Finance Forecasts Needs and Secures Financial Resources Allocates Budget for IT Expenditures

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Executive Roles in Information Technology 1-20 CEO Chief Executive Officer COO Chief Operations Officer CFO Chief Financial Officer CIO Chief Information Officer Manages IT Organization and Operations Forecasts IT Needs from Business Strategy Sets Direction for IT Architecture and Organization Plans, Designs and Delivers IT throughout the firm

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Three Distinct Competencies of IS Professionals 1-21 ____________ Knowledge of hardware, software, networking, and security Most IS professionals are not deep technical experts but can direct/manage others with the required technical skills ____________ Knowledge of hardware, software, networking, and security Most IS professionals are not deep technical experts but can direct/manage others with the required technical skills ____________ Understand the nature of business including process, management, social, and communication domains Unique skills over those with only technical skills ____________ Understand the nature of business including process, management, social, and communication domains Unique skills over those with only technical skills ____________ Knowledge of approaches and methods, also possess critical thinking and problem solving skills necessary to build and integrate large information systems Unique skills over those with only technical skills ____________ Knowledge of approaches and methods, also possess critical thinking and problem solving skills necessary to build and integrate large information systems Unique skills over those with only technical skills

Information Systems Today, 2/C/e ©2008 Pearson Education Canada IS Impact on Organizations: New Opportunities 1-22 CRA creates a website and allows NETFILE New Website Activate NETFILE Implementation Results ____________ ____________ in forms distribution, hotline support, data entry from access to info/materials on the website and NETFILE Allow for ____________ of resources to ____________ activities including conducting audits and resolving problems

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Levels of the Organization and Traditional Systems 1-23 Management Information Systems Executive Information Systems Transaction Processing Systems

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Traditional Information System Functions 1-24 ____________ Processing Systems ____________ Information Systems Decision Support Systems ________ Systems ________ Area Information Systems Process day-to-day business event data in an organization (Operational level) Produce detailed information to help manage a firm or part of a firm (Managerial) Provide very high-level, aggregate information to support decisions (Executive) Provide analysis tools and databases to support quantitative decision making (Multiple) Mimic human expert in a particular area and provide answers or advice (Operational) Support the activities within a specific functional area of the firm (All)

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Other Information Systems - Not as Easy to Categorize 1-25 Office Automation System ____________ System ____________ Relationship Management ____________ Commerce Enterprise Resource Planning _________ Support a wide range of predefined, daily work activities of individuals or groups (e.g. MS Word) Enable people to communicate, collaborate, and coordinate with each other (e.g. ) Support the interaction between the firm and its customers (e.g. sales force automation or call center technology) Enable customers to buy goods and services from a firm’s website. ( Support and integrate all facets of the business (e.g. planning, manufacturing, sales, etc.)

Information Systems Today, 2/C/e ©2008 Pearson Education Canada IS Competitive Advantage Perspectives: Who is Right? 1-26 “________________________” - Carr 2003 As IT becomes more pervasive, technology becomes more standardized and ubiquitous The result is that the same technologies are available to all competitors in an industry This produces no competitive advantage “The Engine that Drives Success: The Best Companies have the Models Because they Have the Best IT Strategies” - Lundberg 2004 Companies with bad business models fail regardless of IT systems or other capabilities Companies with good business models use IT to execute successful business models and succeed

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Competitive Advantage: Dual Nature of Systems 1-27 IS gone wrong (DIA) Strategic in Nature Established Technology Capable Suppliers Structured Implementation Capable IS Support IS that works (FedEx) Evaluation Factors No FedEx Customer Website versus Denver International Airport Baggage System

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Organizational IT Roles 1-28 _________ IT Organization Responsible for IT Planning Coordinates implementations Establishes organization’s IT methods and standards _________ Unit Responsible for determining IS business requirements Supply budget and personal resources for implementations _________ Unit Support Liaison between Central IT and the Business Unit Spends much time onsite at the Business Unit Reports to both orgs

Information Systems Today, 2/C/e ©2008 Pearson Education Canada The Future of Information Systems: Trends 1-29 _________ _________(Old School IS) Large backlogs of user requests…very poor service Arrogance and feeling of ownership and control of IT Can’t do attitude…told users why they couldn’t do things Resulted in a very poor relationship with users __________________________ ____(New School IS) IS is taking on an IT consulting role “Service Mentality”…users are customers to be served Proactively support and problem solve for their customers Fundamentally believe that customers own the technology Business managers became _________ savvy Systems _________ and became easier to develop Business organizations developed their own systems THENTHEN

Information Systems Today, 2/C/e ©2008 Pearson Education Canada IS Role in Change: Trends and Terms 1-30 _________ _________ _________ Reducing organizational headcount to meet the financial goals of the organization IS is viewed as the lever to provide the systems necessary to increase productivity _________ _________ _________ Reducing organizational headcount to meet the financial goals of the organization IS is viewed as the lever to provide the systems necessary to increase productivity _________ Transferring business functions outside the organization to increase service levels and/or reduce operating cost IS is not immune to this trend. Certain commodity IS technical jobs will be increasingly transferred overseas IS must find better methods to manage offshore work _________ Transferring business functions outside the organization to increase service levels and/or reduce operating cost IS is not immune to this trend. Certain commodity IS technical jobs will be increasingly transferred overseas IS must find better methods to manage offshore work

Information Systems Today, 2/C/e ©2008 Pearson Education Canada The Future for IS _________ for success include: continuous learning and growth, finding new ways to add value, flexibility, and developing unique skills 1-31 IS needs will continue to grow _________ developments advance Although _________ will continue, there will be strong demand for IS professionals There is a need for _________ that can speak the language of _________ and business and the _________ to manage projects and people

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Edible Arrangements 1-32

Information Systems Today, 2/C/e ©2008 Pearson Education Canada S1--Passwords & Password Etiquette What makes a strong password Make it ________8 or more characters in length Do not use name, real name, or company name No _________dictionary word in any language Different from other _________you have used Upper and lower case, numbers & Symbols examples of good ones Qw37>T1bb?at or 3B47qq 57b Problem ____________________________________ 33

Information Systems Today, 2/C/e ©2008 Pearson Education Canada S1--Passwords & Password Etiquette cont. One technique _________of each word of a memorable phrase I was born in Lethbridge Alberta in 1980 __________________ Better yet -- I was born before 12:00 in Lethbridge Alberta in 1980 __________________ Once created, your password needs to be protected Never _________ it down Do not _________ with others, d_________ someone for theirs and never _________yours to someone else Swap chairs, don’t let someone else_________for you ___________________________, when others typing 34