© 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc.1-2

© 2003 Prentice Hall, Inc.1-3 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

© 2003 Prentice Hall, Inc.1-4 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

© 2003 Prentice Hall, Inc.1-5 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

© 2003 Prentice Hall, Inc.1-6 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

© 2003 Prentice Hall, Inc.1-7 Information Systems Defined Combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data in organizations

© 2003 Prentice Hall, Inc.1-8 Key Elements of Information Systems

© 2003 Prentice Hall, Inc.1-9 Knowledge as a Business Resource Knowledge Worker Knowledge Worker  A well-educated professional who creates, modifies, or synthesize s 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

© 2003 Prentice Hall, Inc.1-10 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

© 2003 Prentice Hall, Inc.1-11 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 uses 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

© 2003 Prentice Hall, Inc.1-12 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

© 2003 Prentice Hall, Inc.1-13 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

© 2003 Prentice Hall, Inc.1-14 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

© 2003 Prentice Hall, Inc.1-15 IS Managerial Personnel 1. CIO 2. IS director 3. Account Executive 4. Info Center Manager 5. Development Manager 6. Project Manager 7. Maintenance Manager 8. Systems Manager 9. IS planning Manager 10. Operations Manager 11. Programming Manager 12. Systems Programming Manager 13. Manager of Emerging Technologies 14. Telecommunications Manager 15. Network Manager 16. Database Administrator 17. Auditing or Computer Security Manager 18. Quality Assurance Manager 19. Webmaster

© 2003 Prentice Hall, Inc.1-16 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

© 2003 Prentice Hall, Inc.1-17 Integrating Skills and Knowledge Technology Technology  hardware, software, networking Business Business  business, management, social, communications Systems Systems  Integration, development methods, critical thinking, problem solving

© 2003 Prentice Hall, Inc.1-18 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

© 2003 Prentice Hall, Inc.1-19 The Organizational Side of IS 1. Transaction Processing System 2. Management Information System 3. Executive Information System 4. Decision Support System 5. Expert System 6. Functional Area Information System 7. Office Automation System (a.k.a. Personal Productivity Software) 8. Collaboration System 9. Customer Relationship Management System 10. Electronic Commerce System 11. Enterprise Resource Planning System

© 2003 Prentice Hall, Inc.1-20 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

© 2003 Prentice Hall, Inc.1-21 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?

© 2003 Prentice Hall, Inc.1-22 International Outsourcing Round-the-clock productivity Round-the-clock productivity Cost savings Cost savings

© 2003 Prentice Hall, Inc.1-23 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

© 2003 Prentice Hall, Inc.1-24 Staying Current with IS News Great sources for IS current info: Great sources for IS current info:  informationweek.com  computerworld.com  cio.com

© 2003 Prentice Hall, Inc.1-25 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.)

© 2003 Prentice Hall, Inc.1-26 The Spread of Technology in Organizations Benefits of centralized IS function Benefits of centralized IS function  Coordinated planning  Consistent management  Systems compatibility and connectivity

© 2003 Prentice Hall, Inc.1-27 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

© 2003 Prentice Hall, Inc.1-28 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

© 2003 Prentice Hall, Inc.1-29 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