What is IS? zIS – a set of interrelated components working together to collect, retrieve, process, store, and distribute information for the purpose of facilitating planning, control, coordination, analysis, and decision making in business organizations zInput-process-output perspective zPeople-organization-technology perspective

Choice Hotels Reservation System example:

yTechnology – the means by which data is transformed and organized for business use: yHardware ySoftware yDatabase yTelecommunication yPeople – the users of IS yOrganization -- a collection of functional units working together to achieve a common goal

Functional units of business organizations: yproduction ysales/marketing yfinance/accounting yhuman resources  maximize profit by producing goods and/or services

Functional Areas of Business zThe manufacturing and production function is responsible for producing the firm's goods and services. There are three stages of the manufacturing/ production process: yinbound logistics yproduction youtbound logistics

Functional Areas of Business zThe sales and marketing function is responsible for finding customers for the firm's product or service and selling the firm's product or service to those customers. The sales and marketing process consists of zidentifying and creating markets ydeveloping markets ymaintaining markets

Functional Areas of Business zThe finance and accounting function is responsible for managing the firm's financial assets and maintaining the firm's financial records. The finance process involves managing the firm's financial assets, whereas the accounting process is involved primarily in financial record keeping.

Functional Areas of Business zThe human resource function is responsible for attracting and maintaining an appropriate work force for the firm. The human resources process entails yattracting the work force ydeveloping the firm's work force to meet the firm's personnel needs ymaintaining the work force

Computer vs IS literacy

IS in Business zBusiness functions zBusiness processes yA series of interrelated activities through which work is organized and focused to produce a product or service zBusiness levels yStrategic (long range planning) yTactical (co-ordinate & supervise) yOperational (produce product & service)

The order generation and fulfillment process (Fig. 2.2)

Role of IS in Business Competitive advantage zLow-cost (value chain) zMarket niche zProduct differentiation zCustomer loyalty Globalization zPeople (language) zOrganization (culture) zTechnology (telecommunication)

The value chain views the firm as a series of basic activities that add value to a firm's products or services (Fig. 3-2) Primary activities inbound logistics, operations, outbound logistics, sales and marketing service Support activities administration and management human resources technology and procurement.

Quality zProcess simplification zBenchmarking zCustomer focus zCycle time reduction zImprove design & production zError reduction Reengineering zBusiness processes redesign Ethical & social responsibility zInformation rights & privacy zIntellectual property zAccountability & liability zQuality of life

IS Approach to Problem Solving Systems Analysis Systems Design

Systems Analysis & Design zSystems Analysis yProblem analysis (what) yInformation gathering (where & why) yDecision making (how) xEstablish objectives xDetermine feasibility xChoose best solution zSystems Design (Input, Process, Output, Procedures, Control) yLogical design

Systems Analysis & Design zSystems Design yLogical design (what will the system do?) xInput: content, format, source, volume, frequency, timing xProcess: rule, model, formula, timing xOutput: content, format, organization, volume, freq., timing xStorage: data, format, organization, relationship, volume xProcedure: manual activities, rule, sequence, timing, location xControl: security, accuracy, validity, supervision yPhysical design (how the system will work?) xInput: keyboard, voice, scanner xProcess: PC, operating system, software xOutput: print-outs, files, audio xStorage: tape, CD xProcedure: batching, backup, auditing, data entry xControl: batch control, password, audit logs yImplementation (coding, testing, training)

Technology perspective to problem solving

Organizational perspective to problem solving

People perspective to problem solving