Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Introduction to Business Information Systems Dr Sherif Kamel The American University in Cairo

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Outline Difference between data and information. Categories of information. What an information system (IS)? Components of information system. How users use information systems? Benefits of information systems Information technology and information systems

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman It is important to note that… [SYST 305] - Why study Information Systems? [Technology] [SYST 406] - Why study Management Information Systems? [Management] [SYST 430] - Why study Business Information Systems? [Development]

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information concepts Bank statement Sales forecast Profit and loss report Order form Airline ticket

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Data representation Alphanumeric Characters such as numbers and letters Image Graphical images and pictures Audio Sound and noise Video Moving pictures and images

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Data in a context Interpretation of data. Data that has been processed to be meaningful. Data put into context – dissemination of knowledge. Information created depend on the relationship defined.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Data versus Information Information is created by defining and organizing relationship among data. Defining different relationships results in different information.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information creation

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Data processes Classification Sorting Aggregating Calculating Selecting Data Information

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Exercise DateX Bank statementX The number X Balance sheetX Bus timetableX Car registration plateX Data Information

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Quality of information Time Timely, frequent, current Content Accurate, concrete, relevant, reliable Form Presentation, detail, clarity

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Value of information Tangible Intangible Can be measured in terms of financial value Not possible to calculate the value

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Exercise Improved Inventory Control T Enhanced customer service I Increased production T Reduced administration cost T Greater customer loyalty I Enhanced public image I Tangible Intangible

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information categories Strategic information Annual report Business plan Tactical information Monthly sales report Bank statement Operational information Daily weather forecast Attendance sheet

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information pyramid Strategic information Tactical information Operational information

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman What is an information system? An organised collection of components that interact to accomplish a goal. A group of interrelated components working together towards a common goal by accepting inputs and producing outputs in an organised transformation process.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman What is a sub-system? A component of a system - that is a system in its own right is called a subsystem. A systems often consists of numerous subsystems. Each subsystem has elements, interactions with other subsystems, and objectives.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman What is a sub-system? A component of a system element Sub-systems elementSub-systems

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman IT/IS in a business context Information technology Information system Business process Organisation Business environment

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Systems and sub-systems In business, functions such as marketing, finance, and manufacturing are subsystems. Subsystems perform specialised tasks for the overall system.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Environment – A system model Input Output A boundary, interrelated sub systems, interface

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Systems boundaries Defines the system. Distinguishing it from everything else [the environment]. Defines what is inside and what is outside the system Boundaries depict the scope of activities for a system. Boundaries delineate areas of responsibility. Boundaries for business systems should be defined.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Systems environment Components of the system’s environment are, things which are outside the system but have relevance to it and interact with it. It is always important to identify the strengths and the limitations of the system.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information systems functions Input Capturing and gathering raw data Processing Converting or transforming data into useful outputs Output Useful information, usually in the form of documents, reports, and updated records Feedback Output that is used to make changes to input or processing activities

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Input, processing, output and feedback Information systems are never complete, continuous upgrading and amendments are required to be able to capitalize on the competitive edge of using information technology.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Supplier Design Produce Sell Deliver Product Design Order to Supplier Purchased parts Actual and forecasted orders Customer preferences Equipment information Service request Finished goods orders The Firm Finished goods Service An Organization with 5 Sub-systems

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Sell Design Deliver Produce Service Supplier Purchased parts Order to Supplier Customer Preferences Finished goods Service request Product design Actual and forecasted orders Orders An organization as a system

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information system Organisation Technology Management IS are more than computers

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information systems roles Support of strategic advantage Support of managerial decision making Support of business operations MSS OIS Management Support Systems Organizationa l Information Systems

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Types of information systems Operations Support Systems Management Support Systems Transaction Processing Systems Enterprise Collaboration Systems MIS DSS, GDSS EIS Operations Management Expert Systems AI Systems

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Organizational problem Organizational level Tactical Strategic Knowledge Operations, Production, Service Senior management General or Middle management Knowledge and Data workers Production and Service workers An integrated view of the role of IS within an Organization

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Potential benefits of IS Increased market share Increased revenue Reduced costs Increased customer service Wider market exposure Market visibility Edging competition

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman IS in functional business areas Functional areas are the operating divisions of business Financial information systems Accounting information systems Marketing information systems Manufacturing information systems Human resources management information systems

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information systems in the industry Airline industry Investment firms Banks and savings and loan companies Transportation industry Publishing companies Health care organisations Retail companies Power management and utility companies

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman It is important to note that… Computer and information systems are constantly changing the way organisations conduct business. The value of information is directly linked to how it helps decision makers achieve the organisation's goals. The goal of information systems architecture is to enable the organisation to achieve its business goals.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information systems and information technology An information system (IS) is an arrangement of people, data, processes, communications, and information technology that interact to support and improve day-to-day operations in a business, as well as support the problem-solving and decision-making needs of management and users. Information technology is a contemporary term that describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks).

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Stakeholders: players in the systems game A stakeholder is any person who has an interest in an existing or new information system. Stakeholders can be technical or non-technical workers. For information systems, the stakeholders can be classified as: System owners System users Systems analysts System designers System builders IT vendors and consultants

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Information versus knowledge workers Information workers are those workers whose jobs involve the creation, collection, processing, distribution, and use of information. Knowledge workers are a subset of information workers whose responsibilities are based on a specialized body of knowledge.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman System owners System owners are the information system’s sponsors and chief advocates. They are usually responsible for funding the project to develop, operate, and maintain the information system.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman System users System users are the people who use or are affected by the information system on a regular basis—capturing, validating, entering, responding to, storing, and exchanging data and information. A common synonym is client. Types include: Internal users –Clerical and service workers –Technical and professional staff –Supervisors, middle managers, and executive managers –Remote and mobile users (internal but disconnected) External users

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman System designers and system builders System designers translate system users’ business requirements and constraints into technical solutions. They design the computer files, databases, inputs, outputs, screens, networks, and programs that will meet the system users’ requirements. System builders construct the information system components based on the design specifications from the system designers. In many cases, the system designer and builder for a component are one and the same.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Systems analysts A systems analyst studies the problems and needs of an organization to determine how people, data, processes, communications, and information technology can best accomplish improvements for the business. When information technology is used, the analyst is responsible for: The efficient capture of data from its business source, The flow of that data to the computer, The processing and storage of that data by the computer, and The flow of useful and timely information back to the business and its people.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Variations on the systems analysts title A business analyst is a systems analyst that specializes in business problem analysis and technology- independent requirements analysis. A programmer/analyst (or analyst/programmer) includes the responsibilities of both the computer programmer and the systems analyst. Other synonyms for systems analyst include: Systems consultant Systems architect Systems engineer Information engineer Systems integrator

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Problem-solving scenarios True problem situations, either real or anticipated, that require corrective action Opportunities to improve a situation despite the absence of complaints Directives to change a situation regardless of whether anyone has complained about the current situation

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman General problem-solving approach 1. Identify the problem. 2. Analyze and understand the problem. 3. Identify solution requirements or expectations. 4. Identify alternative solutions and decide a course of action. 5. Design and implement the “best” solution. 6. Evaluate the results. If the problem is not solved, return to step 1 or 2 as appropriate.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Where systems analysts work In traditional businesses Working in traditional information services organizations (permanent project teams) Working in contemporary information services organizations (dynamic project teams) In outsourcing businesses Contracted to traditional businesses In consulting businesses Contracted to traditional businesses In application software businesses Building software products for traditional businesses

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Traditional IS services organization

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Contemporary IS services organization

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Business trends and drivers Total quality management (TQM) Continuous process improvement (CPI) Globalization of the economy Information technology problems and opportunities Enterprise resource planning (ERP) Electronic commerce

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Total Quality Management Total quality management (TQM) is a comprehensive approach to facilitating quality improvements and management within a business. Information systems quality standards: ISO 9001, Quality systems – Model for quality assurance in design/development, production, installation, and servicing. Capability Maturity Model (CMM) is a framework to assess the maturity level of an organization’s information systems development and management processes and products. It consists of five levels of maturity as measured by a set of guidelines called the key process areas.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Business process redesign Business process redesign (BPR) is the study, analysis, and redesign of fundamental business processes to reduce costs and/or improve value added to the business. Usually complemented by continuous process improvement

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Continuous process improvement Continuous process improvement (CPI) is the continuous monitoring of business processes to effect small but measurable improvements to cost reduction and value added. Essentially the opposite of business process redesign; however, CPI can and frequently does complement BPR.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Legacy systems Legacy systems are older information system applications that have become crucial to the day-to-day operation of a business and that may use technologies considered old or outdated by current standards.

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Enterprise resource planning An Enterprise resource planning (ERP) software product is a fully integrated information system that spans most basic business functions required by a major corporation. An ERP product is built around a common database shared these business functions. Examples of ERP software vendors include. Baan J. D. Edwards Oracle Peoplesoft SAP

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Electronic commerce Electronic commerce (eCommerce) involves conducting both internal and external business over the Internet, intranets, and extranets. Electronic commerce includes the buying and selling of goods and services, the transfer of funds, and the simplification of day- to-day business processes – all through digital communications. Three basic types of electronic commerce applications include: –Marketing –Business-to-consumer (B2C) –Business-to-business (B2B)

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman The systems analyst as a facilitator

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Skills required by systems analysts Working knowledge of information technology Computer programming experience and expertise General business knowledge Problem-solving skills Interpersonal communication skills Interpersonal relations skills Flexibility and adaptability Character and ethics Systems analysis and design skills

Copyright © 2003 Sherif Kamel Copyright © 2001 Whitten, Bentley and Dittman Computer ethics – 10 commandments 1.Not use a computer to harm other people. 2.Not interfere with other people's computer work. 3.Not snoop around in other people's computer files. 4.Not use a computer to steal. 5.Not use a computer to bear false witness. 6.Not copy or use proprietary software for which you have not paid. 7.Not use other people's computer resources without authorization or proper compensation. 8.Not appropriate other people's intellectual output. 9.Think about the social consequences of the program you are writing or the system you are designing. 10.Always use a computer in ways that insure consideration and respect for your fellow human