Information Systems Why Do People Need Information? Individuals - Entertainment and enlightenment Businesses - Decision making, problem solving and control 2

Data, Information, and Systems Data vs. Information Data A “given,” or fact; a number, a statement, or a picture Represents something in the real world The raw materials in the production of information Information Data that have meaning within a context Data in relationships Data after manipulation

Data, Information, and Systems Data Manipulation Example: customer survey Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful. When manipulated, the surveys may provide useful information.

Data, Information, and Systems Generating Information Computer-based ISs take data as raw material, process it, and produce information as output. Figure 1.1 Input-process-output

Data, Information, and Systems Information in Context Figure 1.2 Characteristics of useful information

Data, Information, and Systems What Is a System? System: A set of components that work together to achieve a common goal Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal Closed system: Stand-alone system that has no contact with other systems Open system: System that interfaces with other systems

Data, Information, and Systems Figure 1.3 Several subsystems make up this corporate accounting system.

Data, Information, and Systems Information and Managers Systems thinking Creates a framework for problem solving and decision making. Keeps managers focused on overall goals and operations of business.

Data, Information, and Systems Figure 1.5 Qualities of humans and computers that contribute to synergy

Data, Information, and Systems The Benefits of Human-Computer Synergy Synergy When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately Allows human thought to be translated into efficient processing of large amounts of data

Data, Information, and Systems Figure 1.6 Components of an information system

Data, Information, and Systems The Four Stages of Data Processing Input: Data is collected and entered into computer. Data processing: Data is manipulated into information using mathematical, statistical, and other tools. Output: Information is displayed or presented. Storage: Data and information are maintained for later use.

Why Study IS? Information Systems Careers Knowledge Workers Systems analyst, specialist in enterprise resource planning (ERP), database administrator, telecommunications specialist, consulting, etc. Knowledge Workers Managers and non-managers Employers seek computer-literate professionals who know how to use information technology. Computer Literacy Replacing Traditional Literacy Key to full participation in western society

Ethical and Societal Issues The Not-So-Bright Side Consumer Privacy Organizations collect (and sometimes sell) huge amounts of data on individuals. Employee Privacy IT supports remote monitoring of employees, violating privacy and creating stress.

Ethical and Societal Issues The Not-So-Bright Side Freedom of Speech IT increases opportunities for pornography, hate speech, intellectual property crime, an d other intrusions; prevention may abridge free speech. IT Professionalism No mandatory or enforced code of ethics for IT professionals--unlike other professions. Social Inequality Less than 20% of the world’s population have ever used a PC; less than 3% have Internet access.

Management of IS How do business organize themselves to manage IS and IT activities? Depends upon the type of technology Depends upon the size of the business

What Needs to be Managed? Procurement activities Of hardware, software and services Deployment or implementation activities How do we get this stuff working within the business? Maintenance Keeping everything running as the business evolves Hardware, software, databases, web presence Protection Backup and continuity planning Security and audits Disaster response

Organizational Objectives Cost effectiveness Firms that spend too much on IT become uncompetitive Responsiveness Is IT organization able to respond quickly and appropriately to business needs? Quality and Effectiveness Is the IT organization competent? Do they get the job done?

Organizational Models Informal Very small organizations don’t have any formal IT function – “a guy” Formal Organizations have from 1 to thousand’s of employees dedicated to IT

Formal Organization Models Decentralized IT employees report to business unit or department, not to a central, corporate organization Centralized Employees report to a central organization

Pros and Cons of Decentralization Advantages Responsiveness to local business unit Close proximity = easy communication Little bureaucracy Familiarity with business Feeling of ownership and belonging Disadvantages Will tend to be reactive rather than strategic Small size will make skill development and training more difficult Lack of management expertise and professionalism Will result in less efficiency for entire enterprise

Pros and Cons of Centralization Advantages Cost savings through standardization Procurement cost savings due to volume Training efficiencies Greater career opportunities with enhance attractiveness as a place to work Disadvantages Slow and bureaucratic (perceived to be) Out of touch with real business Cost accounting and charge back requirements

Current Large Business Trends Centralize and standardize procurement All hardware Most software Centralize web management and standards But perhaps not development Centralize management of support of office systems Dual reporting for business application development Corporate and business unit

Careers in MIS

What is Management Information Systems (MIS)? What is MIS, based on what you’ve learned so far? Definition by the Association for Information Systems: “The use of information technology to improve organizational performance and individual quality of work life”

What do MIS people do? Database administrator and data analyst Computer programmer Webmaster Senior technical executive Business technologist Electronic commerce expert Data security manager Internet applications engineer Help Desk support Software engineer Information systems business consultant Entrepreneur Technical sales person

Who hires MIS people? Information technology consulting firms Information technology units throughout the private and public sectors Everyone needs MIS! Self-employed

Careers In Information Systems Software Development Business or C.S. background Database Administration Systems Analysis Design business solutions Project and program managers Understand technology Manage people, decisions, contracts, schedules