Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

Textbook Overview Ch 1 – IS: The Big Picture Ch 1 – IS: The Big Picture Ch 2 – IS for Competitive Advantage Ch 2 – IS for Competitive Advantage Ch 3 – Database Management Ch 3 – Database Management Ch 4 – Telecommunications and the Internet Ch 4 – Telecommunications and the Internet Ch 5 – E-Commerce, Intranets, and Extranets Ch 5 – E-Commerce, Intranets, and Extranets Ch 6 – Organizational Information Systems Ch 6 – Organizational Information Systems Ch 7 – Enterprise-Wide IS Ch 7 – Enterprise-Wide IS Ch 8 – IS Development and Acquisition Ch 8 – IS Development and Acquisition Ch 9 – IS Ethics, Crime, and Security Ch 9 – IS Ethics, Crime, and Security

Textbook Overview Appendix A – IS Hardware Appendix A – IS Hardware Appendix B – IS Software Appendix B – IS Software Appendix C – Computer Networking Appendix C – Computer Networking

Chapter 1 Objectives Understand the term information systems (IS) Understand the term information systems (IS) Understand IS components: Understand IS components:  Technology, people, organizations Understand IS career opportunities Understand IS career opportunities Understand types of information systems Understand types of information systems Understand IS and organizational success or failure Understand IS and organizational success or failure Understand the future of IS management Understand the future of IS management

Case: IS at Washington State University Automating educational processes Automating educational processes Online Administration Online Administration  Registration  Financial aid  Grades Online Course Management Online Course Management  Syllabi  Assignments  Online class discussions

Information Systems Defined Combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data in organizations

Key Elements of Information Systems

Knowledge as a Business Resource Knowledge Worker Knowledge Worker  A well-educated professional who creates, modifies, or synthesizes knowledge in one’s profession Knowledge Society Knowledge Society  Also called digital society, new economy  Working with brains instead of hands  The importance of education  Digital divide

Data Data: raw material, unformatted information Data: raw material, unformatted information Information: processed data (meaningful) Information: processed data (meaningful) Knowledge: understanding relationships between pieces of information Knowledge: understanding relationships between pieces of information Wisdom: knowledge accumulated and applied Wisdom: knowledge accumulated and applied

Technology and Information Systems Computer-Based Information Systems Computer-Based Information Systems  One type of technology  Technology – any mechanical and/or electrical means to supplement, extend, or replace human activity  Information Technology (IT) – machine technology controlled by or using information The goal of IS is to provide useful data to users The goal of IS is to provide useful data to users  IS can be local or global, organizational or enterprise-wide

Careers: Operations Management Trends Trends  Virtual Corporations  Network Infrastructure  How wired is your firm?

The People Side of IS Despite economic ups and downs… Despite economic ups and downs…  Labor shortages predicted  U.S. Bureau of Labor Statistics   Ranked among best jobs available

Careers in IS Systems Analyst Systems Analyst Systems Programmer Systems Programmer Systems Consultant Systems Consultant Database Administrator Database Administrator Webmaster Webmaster IS Director IS Director Chief Information Officer Chief Information Officer Professor Professor Government scientist Government scientist

IS Activities and Careers Develop Develop  Systems analyst  Systems programmer  Systems consultant Maintain Maintain  Database administrator  Webmaster Manage  IS Director  CIO Study  University Professor  Government scientist

Chief Information Officer (CIO) Responsible for organization’s IS Responsible for organization’s IS Executive level Executive level Became prominent in 1980s Became prominent in 1980s Challenges Challenges  Tightening budgets  Expectation management Subordinates Subordinates  Mid-level managers  IS directors  Project managers

IS Managerial Personnel CIO highest ranking IS manager—responsible for strategic direction IS Director responsible for managing all systems throughout the firm and day-to-day operations Account Executive responsible for managing the day-to-day operations of all aspects of IS within ONE particular division or functional area Info Center Manager responsible for managing IS services such as help desks, training

IS Managerial Personnel Development Manager coordinates and manages ALL new systems projects Project Manager usually responsible for managing a particular new systems project Maintenance Manager responsible for coordinating and managing all systems maintenance projects Systems Manager responsible for managing a particular existing system IS planning Manager plans for system growth and change in three main areas—hardware, software, and networking Operations Manager supervises the day to day operation of data/computer center Programming Manager coordinates all programming efforts

IS Managerial Personnel Systems Programming Manager coordinates support for maintenance of all systems software Manager of Emerging Technologies forecasts technology trends—evaluates/experiments with new technologies Telecommunications Manager coordinates and manages the entire voice and data network Network Manager responsible for managing one piece of the enterprise-wide network Database Administrator Auditing or Computer Security Manager responsible for managing ethical and legal use of information systems within the firm Quality Assurance Manager develops and monitors standards and procedures to ensure system accuracy and quality Webmaster

The High Value of IS Personnel Supply and demand Supply and demand  Aggressive recruiting  High salaries  Broad demand  Large and small companies  Urban and rural

Integrating Skills and Knowledge Technology Technology  hardware, software, networking Business Business  business, management, social, communications Systems Systems  Integration, development methods, critical thinking, problem solving

Hot Skills in IS Workers Office / Office / Languages Languages Applications Applications RDBS Administration RDBS Administration Development Tools Development Tools Internetworking Internetworking Operating Systems Operating Systems NOS LAN Administration NOS LAN Administration Networking Networking

Types of Information Systems Transaction Processing System processes day to day business event data at the operational level of the organization—ie a grocery story checkout cash register Management Information System produces detailed information to help manage a firm or part of a firm—ie. Inventory mgmt system Executive Information System provides very high level aggregate information to support executive level decision making—ie news retrieval or stock update Decision Support System provides analysis tools and access to databases in order to support quantitative decision making—ie demand forecasting system

Types of Information Systems Expert System mimic human expert in a particular area and provides answers or advice—ie automated system for analyzing bank loan applications Functional Area Information System supports the activities within a specific functional area in the firm— system for planning and personnel training Office Automation System (a.k.a. Personal Productivity Software) supports a wide range of predefined, day to day work activities—word processor Collaboration System enables people to communicate, collaborate, and coordinate with each other— , shared calendar

Types of Information Systems Customer Relationship Management System support interaction between the firms and its customers—siebel suite of e-business

Types of Information Systems Electronic Commerce System enables customers to buy goods and services from a firm’s website Enterprise Resource Planning System Support and integrate all facets of the business, including planning, manufacturing, and sales--SAP

Disaster Plans for IS That IS is crucial to corporate success is illustrated by the need for disaster planning That IS is crucial to corporate success is illustrated by the need for disaster planning Are companies prepared now? Are companies prepared now?  What’s at stake  The consequences of failing to plan

The Dual Nature of IS Systems can dictate success or failure Systems can dictate success or failure Case 1: Denver International Airport Case 1: Denver International Airport Case 2: Federal Express Case 2: Federal Express Factors affecting success/failure: Factors affecting success/failure:  Size and complexity of project  Size and nature of organization

IS for Competitive Advantage Strategic Systems Strategic Systems Competition: doing things faster, better, cheaper Competition: doing things faster, better, cheaper How can systems gain one’s organization a competitive advantage? How can systems gain one’s organization a competitive advantage?

International Outsourcing Round-the-clock productivity Round-the-clock productivity Cost savings Cost savings

IS Within the Firm Traditionally a love/hate relationship Traditionally a love/hate relationship  “Techies” vs. mere “users” (us vs. them)  Poor service, lousy attitudes Now: progress toward better customer service Now: progress toward better customer service  Better relationships within the company  Cooperation, not rivalry

Staying Current with IS News Great sources for IS current info: Great sources for IS current info:  informationweek.com  computerworld.com  cio.com

The Spread of Technology in Organizations Technology infiltrates business units Technology infiltrates business units Dual role for IS workers: Dual role for IS workers:  Work with IS technical group  Work with business unit (marketing, finance, etc.)

The Spread of Technology in Organizations Benefits of centralized IS function Benefits of centralized IS function  Coordinated planning  Consistent management  Systems compatibility and connectivity

Human Resource Planning for IS The human resource challenge: The human resource challenge:  Tech workers need to understand business  Business workers must understand technology Fluctuations in hiring tech workers Fluctuations in hiring tech workers  Downsizing issues  Recruiting issues

Career Prospects and Opportunities IS applies to nearly every functional area within a firm IS applies to nearly every functional area within a firm One may become indispensable in a firm through mastering tech skills One may become indispensable in a firm through mastering tech skills Anticipated growth in tech hiring Anticipated growth in tech hiring

Coming Attractions: Is it a phone or computer? Wireless Pocket PC Wireless Pocket PC  Merging mobile phones with personal digital assistant (PDA) technology Communicate, collaborate, and coordinate Communicate, collaborate, and coordinate