1. Yong Choi BPA CSUB

2.  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

3.  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” : 1.71 billion active user  China: 1.357 billion

4.  Sarbanes-Oxley Act of 2002 ◦ Mandates strict reforms to improve financial disclosures from corporations for preventing accounting fraud. Section 409 Requires disclosure to the public on a “rapid and current” basis of material changes in an organization’s financial condition. ◦ impossible without IS

5.  Data/information everywhere ◦ Average American relies on more than 400 computers per day  Boosting world economy ◦ 45 - 50 Fortune 500 companies are IT companies  Convenient/comfortable life style ◦ Smart phone 1-5

6.  Privacy ◦ Social Networking and the Vulnerability of Personal Information Social Networking and the Vulnerability of Personal Information  Online fraud ◦ $490 – credit card number and PIN ◦ $147 – driver’s license number ◦ Identity Theft: A Fast-growing cyber crime Identity Theft: A Fast-growing cyber crime ◦ Online Scams Watch Online Scams Watch

7.  Based on nature of decision-making  Structured ◦ Routine & Repetitive ◦ Small accounting book keepers and small independent travel agencies ◦ Problems are predictable ◦ Problems can be solved by applying standard solutions

8.  Unstructured ◦ Non-routine, Unpredictable, and Fuzzy ◦ Management consultant (Accenture) ◦ Standard solutions are not applicable ◦ Solve problems by individual judgment

9.  Semi-structured ◦ Combination of non-routine and predictable (production Scheduling) ◦ Production/inventory manager ◦ Require a combination of standard solution procedures and individual judgment

10.  1) Globalization (Nike Corporation) ◦ Global management thru IS  2) Organizational Change ◦ Almost no traditional middle management : collect, process, store and distribute information for various decision makings ◦ Cross functional (project based – virtual team or organization)

11.  Post information age  IBM Watson, Technical details of WatsonWatsonTechnical details of Watson  MOOC: massive open online coursemassive open online course ◦ Udacity Udacity ◦ khan Academy khan Academy

12.  Marketing ◦ A New Era of Marketing: YouTube A New Era of Marketing: YouTube  Finance ◦ Information Technologies at Domino’s Pizza Information Technologies at Domino’s Pizza  HR ◦ Human Resource Information Systems in Action Human Resource Information Systems in Action  Logistics ◦ Information Technologies at UPS Information Technologies at UPS 12

13. Functions of an information system

14. SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY COMPUTERSCIENCE OPERATIONSRESEARCH MANAGEMENTSCIENCE MIS TECHNICAL BEHAVIORAL

15.  Initiative # 1: Cost leadership ◦ Achieve competitive advantage by providing lower cost than competitors ◦ Wal-Mart: Always Low Price: lower price using computerized purchasing and inventory system  Initiative # 2: Differentiation ◦ Achieve competitive advantage by providing more unique and value added products/services than competitors ◦ First Online Order Tracking system by FedEx

16.  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: Create new products and services ◦ E*Trade.com

17.  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

18.  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