Information Systems Today, 2/C/e ©2008 Pearson Education Canada 1-1 Chapter 1 Why Information Systems Matter Robert Riordan, Carleton University

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Introduction Survey of majors Why in this class? Want to be a business person, how can this class help you – First job, someone asks your opinion on how to improve the company’s CRM What's a CRM? What does CRM do? What makes a good CRM? – Personalize the material – How this class relates to your goal of becoming a business professional 2

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Why Learn about Information Systems 3

Information Systems Today, 2/C/e ©2008 Pearson Education Canada 4

Value of IS Knowledge in Different Careers Use IS more than any other non IS field Accounting Access to funds Where to invest ----Can be heavily analytical Finance Sales force automation SFA Geographic IS CRM Marketing HRM, payroll, benefits HR SCM CAD/CAM Operations Intranets Digital rights management systems Media & Communications 1-5

Information Systems Today, 2/C/e ©2008 Pearson Education Canada 6 What is a system? Start a chip company

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Chips case I have some capital and I like chips – Help me start a chip company 1-7

8 What is an Information System? Combinations of hardware, software, and telecommunications networks that people build and use to collect, create and distribute useful data, typically in organizational settings. Input of Data Resources Input of Data Resources Processing Data Processing Data Output of Information Products Output of Information Products Control of System Performance Storage of Data Resources

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems: Turn Data into Information 1-9 DataInformation Raw material Unformatted information Generally has no context Examples Processed material Formatted information Data given context Individual time cards for factory workers entered into the payroll system Department Labour Report, Project Status Report, Employee Payroll Checks

Information Systems Today, 2/C/e ©2008 Pearson Education Canada What are Computer Based Information Systems? A combination of technical components - Built and used by people to collect, create, and distribute useful data - Used typically in organizational settings but are evolving for personal use

Information Systems Today, 2/C/e ©2008 Pearson Education Canada How Levi’s Got Its Jeans into Wal-Mart

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Is this an information system? Why? What makes up the information system? What is the data? What is the information product? 1-12

Information Systems Today, 2/C/e ©2008 Pearson Education Canada What is the Data component of the IS? 1-13 Information Systems Information Systems Hardware Telecommunications People Data Software The raw inputs for entry into information systems Organized, processed and stored by an IS to support user information needs Provides basis for qualitative/quantitative analysis SIN ATM

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems Components: Hardware 1-14 Information Systems Information Systems Hardware Telecommunications People Data Software The physical components of information systems Hardware components include processors, input and output devices, and storage devices

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems Components: Software 1-15 Information Systems Information Systems Hardware Telecommunications People Data Software The instructions that operate the information system System software controls the hardware (e.g. Windows XP) Application software allows users to perform specific tasks to increase productivity (e.g. MS Word)

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Systems Components: Telecommunications 1-16 Information Systems Information Systems Hardware Telecommunications People Data Software The communication mechanism of information systems Allows two or more computers to communicate (Internet) Utilizes standard protocols for IS communication

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Society Evolution: Terms and Issues 1-17 Knowledge Worker (Peter Drucker 1959) Professionals that create, modify and/or synthesize information as a fundamental part of their job They will require higher education levels and received higher compensation than workers in agriculture or manufacturing At least 25% of all workers in Canada are knowledge workers Knowledge Worker (Peter Drucker 1959) Professionals that create, modify and/or synthesize information as a fundamental part of their job They will require higher education levels and received higher compensation than workers in agriculture or manufacturing At least 25% of all workers in Canada are knowledge workers Knowledge Worker

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Information Society 1-18 New Economy (Wired Magazine - Late 1990s) Similar to “knowledge society” but more descriptive Describes a society where people use their brains more than their hands in their work and personal lives Where communications technology and other IT systems will create global competition for all products and services Other names: Digital Economy, Network Era, Internet Era New Economy (Wired Magazine - Late 1990s) Similar to “knowledge society” but more descriptive Describes a society where people use their brains more than their hands in their work and personal lives Where communications technology and other IT systems will create global competition for all products and services Other names: Digital Economy, Network Era, Internet Era

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Ebay What information systems can you Identify and who would use those information systems? If you worked for ebay, would you be a knowldedge worker? Why or why not? 19 ebay mini

Information Systems Today, 2/C/e ©2008 Pearson Education Canada The New Economy (NE): Societal Perspectives 1-20 Perspective 1: Sims –Taylor The new economy creates risks for Knowledge Workers Knowledge workers will be the first to be replaced by automation with information technology Perspective 1: Sims –Taylor The new economy creates risks for Knowledge Workers Knowledge workers will be the first to be replaced by automation with information technology Perspective 2: Rikfin The over reliance on information technology has caused society to act hastily The result has been a loss of perspective Perspective 2: Rikfin The over reliance on information technology has caused society to act hastily The result has been a loss of perspective Perspective 3: THE DIGITAL DIVIDE Those with access to information technology have great advantages over those that don’t IT access will further polarize society Perspective 3: THE DIGITAL DIVIDE Those with access to information technology have great advantages over those that don’t IT access will further polarize society

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Executive Roles in Information Technology 1-21 CEO Chief Executive Officer COO Chief Operations Officer CFO Chief Financial Officer CIO Chief Information Officer Manages IT Organization and Operations Forecasts IT Needs from Business Strategy Sets Direction for IT Architecture and Organization Plans, Designs and Delivers IT throughout the firm

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Three Distinct Competencies of IS Professionals 1-22 Technical Knowledge of hardware, software, networking, and security Most IS professionals are not deep technical experts but can direct/manage others with the required technical skills Technical Knowledge of hardware, software, networking, and security Most IS professionals are not deep technical experts but can direct/manage others with the required technical skills Business Understand the nature of business including process, management, social, and communication domains Unique skills over those with only technical skills Business Understand the nature of business including process, management, social, and communication domains Unique skills over those with only technical skills Systems Knowledge of approaches and methods, also possess critical thinking and problem solving skills necessary to build and integrate large information systems Unique skills over those with only technical skills Systems Knowledge of approaches and methods, also possess critical thinking and problem solving skills necessary to build and integrate large information systems Unique skills over those with only technical skills

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Levels of the Organization and Traditional Systems 1-23 Management Information Systems Executive Information Systems Transaction Processing Systems

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Traditional Information System Functions 1-24 Transaction Processing Systems Management Information Systems Executive Information Systems Decision Support Systems Expert Systems Functional Area Information Systems Process day-to-day business event data in an organization (Operational level) Produce detailed information to help manage a firm or part of a firm (Managerial) Provide very high-level, aggregate information to support decisions (Executive) Provide analysis tools and databases to support quantitative decision making (Multiple) Mimic human expert in a particular area and provide answers or advice (Operational) Support the activities within a specific functionalarea of the firm (All)

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Other Information Systems - Not as Easy to Categorize 1-25 Office Automation System Collaboration System Customer Relationship Management Electronic Commerce Enterprise Resource Planning System Support a wide range of predefined, daily work activities of individuals or groups (e.g. MS Word) Enable people to communicate, collaborate, and coordinate with each other (e.g. ) Support the interaction between the firm and its customers (e.g. sales force automation or call center technology) Enable customers to buy goods and services from a firm’s website. ( Support and integrate all facets of the business (e.g. planning, manufacturing, sales, etc.)

Information Systems Today, 2/C/e ©2008 Pearson Education Canada IS Competitive Advantage Perspectives: Who is Right? 1-26 “IT Doesn’t Matter” - Carr 2003 As IT becomes more pervasive, technology becomes more standardized and ubiquitous The result is that the same technologies are available to all competitors in an industry This produces no competitive advantage “The Engine that Drives Success: The Best Companies have the Models Because they Have the Best IT Strategies” - Lundberg 2004 Companies with bad business models fail regardless of IT systems or other capabilities Companies with good business models use IT to execute successful business models and succeed

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Competitive Advantage: Dual Nature of Systems 1-27 IS gone wrong (DIA) Strategic in Nature Established Technology Capable Suppliers Structured Implementation Capable IS Support IS that works (FedEx) Evaluation Factors Yes No ?? No ?? FedEx Customer Website versus Denver International Airport Baggage System

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Organizational IT Roles 1-28 Central IT Organization Responsible for IT Planning Coordinates implementations Establishes organization’s IT methods and standards Business Unit Responsible for determining IS business requirements Supply budget and personal resources for implementations IT Business Unit Support Liaison between Central IT and the Business Unit Spends much time onsite at the Business Unit Reports to both orgs

Information Systems Today, 2/C/e ©2008 Pearson Education Canada The Future of Information Systems: Trends 1-29 Ownership and Control (Old School IS) Large backlogs of user requests…very poor service Arrogance and feeling of ownership and control of IT Can’t do attitude…told users why they couldn’t do things Resulted in a very poor relationship with users Consulting and Service Mentality (New School IS) IS is taking on an IT consulting role “Service Mentality”…users are customers to be served Proactively support and problem solve for their customers Fundamentally believe that customers own the technology Business managers became technology savvy Systems evolved and became easier to develop Business organizations developed their own systems THENTHEN

Information Systems Today, 2/C/e ©2008 Pearson Education Canada IS Role in Change: Trends and Terms 1-30 Downsizing (Sometimes called Rightsizing) Reducing organizational headcount to meet the financial goals of the organization IS is viewed as the lever to provide the systems necessary to increase productivity Downsizing (Sometimes called Rightsizing) Reducing organizational headcount to meet the financial goals of the organization IS is viewed as the lever to provide the systems necessary to increase productivity Outsourcing Transferring business functions outside the organization to increase service levels and/or reduce operating cost IS is not immune to this trend. Certain commodity IS technical jobs will be increasingly transferred overseas IS must find better methods to manage offshore work Outsourcing Transferring business functions outside the organization to increase service levels and/or reduce operating cost IS is not immune to this trend. Certain commodity IS technical jobs will be increasingly transferred overseas IS must find better methods to manage offshore work

Information Systems Today, 2/C/e ©2008 Pearson Education Canada The Future for IS Characteristics for success include: continuous learning and growth, finding new ways to add value, flexibility, and developing unique skills 1-31 IS needs will continue to grow as technology developments advance Although outsourcing will continue, there will be strong demand for IS professionals There is a need for personnel that can speak the language of technology and business and the skills to manage projects and people

Information Systems Today, 2/C/e ©2008 Pearson Education Canada Edible Arrangements List and define four systems that you think are or have been critical to this organizations’ success? 1-32 Edible Arrangements

Information Systems Today, 2/C/e ©2008 Pearson Education Canada S1--Passwords & Password Etiquette What makes a strong password Make it lengthy. 8 or more characters in length Do not use name, real name, or company name No complete dictionary word in any language Different from other passwords you have used Upper and lower case, numbers & Symbols examples of good ones Qw37>T1bb?at or 3B47qq 57b Problem is “who can remember them?” 33

Information Systems Today, 2/C/e ©2008 Pearson Education Canada S1--Passwords & Password Etiquette cont. One technique 1 st letter of each word of a memorable phrase I was born in Lethbridge Alberta in 1980 IwbiLAi1980 Better yet -- I was born before 12:00 in Lethbridge Alberta in 1980 Iwb<12:00iLAi1980 Once created, your password needs to be protected Never write it down Do not share with others, don’t ask someone for theirs and never give yours to someone else Swap chairs, don’t let someone else type for you Look in another direction, when others typing 34