Introduction to Information Systems IBM: Five in 5:

The Plan Me: Madhu Rao MBA560: Management of IT The Course: MBA560: Management of IT The Course Structure and Requirements Introductions Break Break Introduction to Information Systems

EXTERNAL PARTNERSHIPS 5. Develop a Collaborative Relationship with External Partners EXTERNAL PARTNERSHIPS 5. Develop a Collaborative Relationship with External Partners PROJECT AND PORTFOLIO MANAGEMENT 3. Manage Projects and Portfolios Effectively PROJECT AND PORTFOLIO MANAGEMENT 3. Manage Projects and Portfolios Effectively IT AND BUSINESS PARTNERSHIPS 4. Ensure Partnerships within the Department and with the Business IT AND BUSINESS PARTNERSHIPS 4. Ensure Partnerships within the Department and with the Business PEOPLE 1. Recruit, Train, and Retain World Class IT Employees PEOPLE 1. Recruit, Train, and Retain World Class IT Employees INFRASTRUCTURE 2. Build and Maintain a Robust IT Infrastructure INFRASTRUCTURE 2. Build and Maintain a Robust IT Infrastructure If all of these five principles are addressed it is easier to… Fosters an understanding about which non-strategic aspects can be addressed by third parties to…. Provides IT credibility to…. Enables IT to… Sustainable IT Excellence MBA560: Management of Information Technology Source: High, P (2009), World Class IT Create ability to….

Peer Introductions Introduce one other person to the rest of the class Name Preferred name How far along into the MBA program Where are they from Work Family Hobbies

Data Vs. Information 392: Chocolate Chip Cookies 342: Coffee Powder 341: Red Curry Paste 392: Chocolate Chip Cookies 391: Keebler Fudge Sticks … Region: Redmond Store: QFC Store 32 Item#DescriptionUnits Sold 392 Choc Chip Ck 2397 YTD Sales $ Data Information

Data vs. Information The eternal question Data “Streams of raw fact representing events occurring in organizations or their environments before they have been organized and arranged into a form suitable for human interpretation” Information “Data that have been shaped into a form that is meaningful and useful” What then is “knowledge”

The Transformation: From Data to Wisdom Datainformation Data is transformed into information Resources used to organize data into categories Examples include monthly reports, regional summaries, etc. Informationknowledge Information is transformed into knowledge Knowledge is understanding patterns, rules and contexts. Knowledgewisdom Knowledge is transformed into wisdom Collective and individual experience in applying knowledge to solve a problem Wisdom is where, when and how to apply knowledge

The transformation…Data, Information, Knowledge, Wisdom Where is the Life we have lost in living? Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information? -T.S. Eliott, “The Rock”, 1934

Information? What’s the big deal? Globalization Transformation of Industrial Economies The Changing Organization

Emergence of Global Economy Management and control in a global marketplace Competition in global markets Global workgroups Global delivery systems

From Industrial to Post-Industrial Societies Knowledge- and information-based economies Productivity New products and services Shorter product life-cycle Turbulent operating environment

Transformation of the Organization Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and team activities

So, what is an Information System, anyway?

What is a System?

A System

Input

Input Process

Input Output Process

Input Output Process feedback

Input Output Process feedback Customers Competitors Suppliers Government

What is an Information System? a set of interrelated components that collect (or retrieve) process store distribute information in order to support decision making coordination and control

Approaches to Information Systems Information Systems Management Science Computer Science Operations Research Psychology Economics Sociology Behavioral Approaches Technical Approaches

Information Architecture Levels within a firm Functional Areas Types of Systems Foundation of technology

Levels and Functions within an Organization Levels Operational Management Strategic Functions Sales and Marketing Manufacturing and Production Finance and Accounting Human Resources

Organization structure strategic management oper Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting

strategic management oper Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting HardwareSoftwareData and StorageNetworks IT Infrastructure InformationArchitecture

Level of the System Operational-level systems Keep track of elementary activities and transactions Sales, receipts, payroll, etc. Purpose is to answer routine questions and track flow of transactions

Level of the System Management-level systems Keep track of monitoring, controlling decision making, and administrative work of middle management Periodic reports Some may be used for non-routine decisions What-if analysis Typically draws information from operational systems Strategic-level systems Assist senior management in making long-term decisions Typically non-routine, unstructured decision making activities

Information System Integration Management Level Strategic Level Operational Level Management Level

Information System Integration Management Level Strategic Level Operational Level Management Level TPS

Information System Integration Management Level Strategic Level Operational Level Management Level TPS MISDSS

Information System Integration Management Level Strategic Level Operational Level Management Level TPS MISDSS ESS

Information System Integration Management Level Strategic Level Operational Level Management Level TPS MISDSS ESS

Information System Integration ManagementLevel Strategic Level Operational Level ManagementLevel TPS MISDSS ESS

Information System Integration ManagementLevel Strategic Level Operational Level ManagementLevel TPS MISDSS ESS

Business Processes and IS BPs are a set of interrelated activities aimed at achieving a specific result. Examples Manufacturing and Production Checking quality Assembling a product Sales and Marketing Identifying customers Selling a product Some processes go across functional areas

Cross-functional business process Sales Accounting Manufacturing And Production GenerateOrder SubmitOrder CheckCreditApproveCreditGenerateInvoice AssembleProductShipProduct Order Fulfillment Process

Enterprise Applications Various systems described earlier operate within their level and functional area Operational: TPS Management: MIS and DSS Strategic: ESS But what about information systems that go across multiple levels and functions? Known as Enterprise Applications For example, SCM and CRM

Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting HardwareSoftwareData and StorageNetworks Suppliers, other Business partners Processes SCMSystems CRMSystems Customers, distributors EnterpriseSystems KnowledgeManagementSystems Enterprise Resource Planning Systems

The old way…. Manufacturing and Production Manufacturing and Production Finance and Accounting Sales and Marketing HR Finance and Accounting Sales and Marketing HR Information Systems Functional Areas

The new way…. Manufacturing and Production Finance and Accounting Sales and Marketing HR Enterprise-wide Business Processes Enterprise System

Next Class Value of IT Read Nicholas Carr Article!