Yong Choi BPA CSUB

 An Information System (IS) is interrelated components to collect, process, store and distribute information to support mainly decision makings in an organization.  Information technology (IT) describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks).  CBIS vs. Manual IS

 Information Age ◦ Bill Gates (how much rich?), List of GDPhow much richList of GDP ◦ Major TANGIBLE product of Microsoft ◦ Information age phenomena  Population of “facebook.com” : 800 million active user  US: 310 million

 Find a job or business that complies with rules of information age….  Structured ◦ small independent travel agencies ◦ Routine & Repetitive ◦ Problems are predictable ◦ Problems can be solved by applying standard solutions

 Sarbanes-Oxley Act of 2002 ◦ Mandates strict reforms to improve financial disclosures from corporations and prevent accounting fraud (such as WorldCom). Section 409 –  Requires disclosure to the public on a “rapid and current” basis of material changes in an organization’s financial condition.  impossible w/o MIS

 Fierce competitors to AT&T and Sprint  Used to have: ◦ 88,000 employees ◦ 60,000 miles of telephone lines around the world ◦ Revenue of $40 billion  Collapsed because of the accounting fraud ◦ $11 billion ◦ One of the biggest (second: Lehman Brothers, ENRON)  A main trigger ◦ Simple: failure integration of four different billing DB  Kaiser: Northern, CA and Southern, CA

 1) Globalization (Nike Corporation) ◦ Global management thru IS  2) Organizational Change ◦ Less traditional middle management : collect, process, store and distribute information for various decision makings ◦ Cross functional (project based – virtual team or organization)

 $490 – credit card number and PIN  $147 – driver’s license number  $147 – birth certificate  $6 – PayPal logon and password  $78-$294 – billing data including account number, address, birth date, etc

 Post information age  IBM WatsonWatson  MOOC: massive open online coursemassive open online course ◦ Udacity Udacity ◦ khan Academy khan Academy

Functions of an information system

SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY COMPUTERSCIENCE OPERATIONSRESEARCH MANAGEMENTSCIENCE MIS TECHNICAL BEHAVIORAL

 Definition of competitive advantage ◦ Competitive advantage is a significant benefit (ideally long term) to a business over its competitors because of the quality or superiority of products or services which will persuade customers to buy from them rather than from competitors.  Initiative # 1: Cost leadership ◦ Achieve competitive advantage by providing lower cost than competitors ◦ Wal-Mart: Always Low Price (read this article!): lower price using computerized purchasing and inventory system Wal-Mart: Always Low Price

 Initiative # 2: Differentiation ◦ Achieve competitive advantage by providing more unique and value added products/services than competitors ◦ First ATM system by Citibank  Initiative # 3: Focus (Cost leadership + Differentiation) ◦ Achieve competitive advantage by providing lower cost + unique and value added products/services ◦ Amazon.com (others: SW, DVD, games and extra value added information for each product)

 Initiative #4: Enhance products and services ◦ First Online Order Tracking system by FedEx  Initiative #5: Create new products and services ◦ E*Trade.com

 IS can be easily copied by competitors.  IS can bring on litigation or regulation ◦ SABRE by AA: first computer-based online reservation system. ◦ Monopolization of the entire market by monopolizing information  Bad timing ◦ on-line home banking in the early 1980s by chemical bank  Fail to integrate system: WorldCom

 Monitor competitors IS usage  Monitor change of government regulations  Review competitor’s web sites ◦ Information about new products and projects ◦ Trend in budgeting (e.g., annual report) ◦ Advertising strategies  Analyze competitor’s newsgroup on the Internet ◦ Newsgroup participants discuss what they like or dislike about competitor’s products or services