1 AN INTRODUCTION TO MANAGEMENT INFORMATION SYSTEMS IS 340 BY CHANDRA S. AMARAVADI

2 IN THIS PRESENTATION Why information systems? What are information systems? What is their role in organizations? How are they developed? What are some current issues? Course outline and features

3 THE GROWING IMPORTANCE OF INFORMATION SYSTEMS

4 IT budget for Nation’s Bank $2 billion IT budget for Bank America $ 4 billion Web spending $200 billion U.S. IT spending approx $1 trillion Worldwide IT spending $2.6 trillion WHY INFORMATION SYSTEMS?

5 Morgan Stanley, An investment bank 24hr/day 7day/week operation 15,000 computers to process 100,000 trades/day 34,000 batch jobs/day 100 million lines of code Intranet with 10,000 users Consider the following:

6 MOTIVATION FOR IS What business changes [in the last 30 years] have resulted in the increased demand for information systems?

7 DEFINITION AND EXAMPLES OF INFORMATION SYSTEMS

8 DEFINITION OF IS “A collection of computer systems to support information processing in organizations.” -- preferred definition. “A set of interrelated components working together to collect, process, store and disseminate information to support decision making, co-ordination, control, analysis and visualization.” Information technologies refer to technologies such as computers, Networks, LANs etc.

CUSTOMER PRODUCTION INFORMATION SYSTEMS IN ORGANIZATIONS orders order fulfillment ACCOUNTING/ FINANCE raw materials SUPPLIERS SALES/ MARKETING

10 Billing systems Bank account processing Online ordering Sales prediction Repair assessment SOME EXAMPLES OF INFORMATION SYSTEMS ARE

11 EVOLUTION/TYPES OF INFORMATION SYSTEMS Transaction processing Reporting systems Database management systems Decision support Office information systems AI based systems Executive information systems Strategic information systems Enterprise information systems E-Commerce systems Knowledge Management systems 1950’s 1970’s 1980’s 1990’s

12 TYPES OF INFORMATION SYSTEMS Transaction processing systems: process business transactions Reporting systems: summarize transaction information Database management systems: systems to manage information Decision support systems: support analysis of data to aid in d.m. Executive information systems: systems to support executive d.m. Office information systems: provide support to office workers AI & expert systems: use artificial intelligence to duplicate human activity (in organizations). Strategic systems:systems which support the strategy of the organization and improve competitive advantage. Enterprise information systems: systems which support all functional areas, from marketing to production. E-commerce systems: systems for browsing, ordering, payment etc. KM Systems: support organizational knowledge.

13 ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS

WHAT IS A ROLE? An IS role is a particular usage of information systems. l Labor substitution l Managerial control l ………… Take the example of a building.

15  1950s: Labor Substitution  Use technology instead of labor  60s-70s: Managerial Control  Use information to control operations  80s-90s: Organizational Strategy  Support organizational strategy  80s-90s: Institutional Core Activities  Support activities such as accounting, finance etc.  80s-90s: Organizational Redesign  See next  Current: E-Commerce (not discussed)  Support web operations

LABOR SUBSTITUTION & MANAGERIAL CONTROL Information Changes

17 ORGANIZATIONAL STRATEGY ROLE l Started with classic cases of SABRE & AHS l SABRE -- reservation system of AA l AHS (BAXTER) -- system now classified as SCM. l IS should support org. strategies Note: AA – American Airlines; AHS – American Hospital Supply, now Baxter AHS HOSPITAL Use IS as a competitive weapon

INSTITUTIONAL/CORE ACTIVITIES

19 ORGANIZATIONAL RE-DESIGN n Simplify & redesign business processes n Extend organizational boundaries n Support new organizational structures Change organizational structure: Note: E-commerce role will be discussed later in the course

20 INFORMATION SYSTEMS DEVELOPMENT

21 INFORMATION SYSTEMS DEVELOPMENT IS development is the process of developing an information system. l Systems analysis and design (SAD) l Software development/software engg. l Information systems development Also known as:

22 IS DEVELOPMENT METHODS Conventional/Traditional Prototyping (RAD) Object oriented RAD: Rapid Application Development Note: these methods will be discussed later in the course

THE IS DEVELOPMENT PROCESS Programmers Users Business Analysts Project manager Specs application/ information system

24 CURRENT ISSUES IN INFORMATION SYSTEMS

25 u Managing global projects u Open Source software u Information privacy u Information security -- viruses CURRENT ISSUES IN INFORMATION SYSTEMS

26 COURSE OUTLINE AND FEATURES

COURSE OBJECTIVES A good and thorough understanding of what information systems are, where they are used and how they are developed.

COURSE PHILOSOPHY Application of technologies to business problems. Understanding of technology v. imp. This is nature of IS Needed by AACSB, for info. literacy Course arranged in this manner Tests based on understanding matl.

COURSE FEATURES u Concept oriented (but technical) u Learn concept and apply it u Large # of concepts u Critical thinking is important u Become SW independent u Refers to current business events u Lots of questions, discussions u digressions welcome! KEEP UP!

COURSE OUTLINE Information Systems Technologies Information Systems Applications Information Systems Development Hardware infra. Software infra. Internet Database TP & ERP systems* E-Commerce Management support systems AI and expert systems Conventional Prototyping* *if time permits

COURSE EVALUATION Straight scale Note: The following is tentative, please refer to your syllabus for uptodate allocation of points Evaluation ItemPoints Midterms (2 x 100) 200 Final exam 100 Quizzes (4 x 10 – 1 x 10) 30 Assignments (5 x 20) 100 Participation 40 Total 470

PARTICIPATION u Both assigned and spontaneous u Research a topic & give a 5 min presentation u Answer questions, raise relevant issues u Relate topics to discussions in press u Quality > frequency u One good contribution per class adequate for an “A” in participation u Avoid disruptive activities

DISRUPTIVE ACTIVITIES u Talking to class mates u Eating u Texting u Checking for messages u Homework u Studying for another course/test u Etc.

ADDITIONAL COMMENTS uTurn in Assignments on day they are due (before class) u Check into web site for assignments and other announcements u No makeups except under extreme circumstances (with documentation) u Take notes & review materials before class u No talking, eating, sleeping or doing HW in class!