1. Organizational Resource Management
ORM 8

2. Information Systems (IS)

3. What is IS?
IS – a set of interrelated components working together to collect, retrieve, process, store, and distribute information for the purpose of facilitating planning, control, coordination, analysis, and decision making in business organizations
Input-process-output perspective
People-organization-technology perspective

5. Why Do People Need Information?
Information Systems
Why Do People Need Information?
Individuals - Entertainment and enlightenment
Businesses - Decision making, problem solving and control 2

6. Data, Information, and Systems
Data vs. Information
Data
A “given,” or fact; a number, a statement, or a picture
Represents something in the real world
The raw materials in the production of information
Information
Data that have meaning within a context
Data in relationships
Data after manipulation

7. Computer-based Information System
An Information System is an organized combination of people, hardware, software, communication networks and the data resources that collects, transforms and disseminates information in a organization.

8. Data, Information, and Systems
Generating Information
Computer-based ISs take data as raw material, process it, and produce information as output.
Figure 1.1 Input-process-output

9. Data, Information, and Systems
What Is a System?
System: A set of components that work together to achieve a common goal
Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal
Closed system: Stand-alone system that has no contact with other systems
Open system: System that interfaces with other systems

10. Data, Information, and Systems
Figure 1.3 Several subsystems make up this corporate accounting system.

11. Data, Information, and Systems
The Four Stages of Data Processing
Input: Data is collected and entered into computer.
Data processing: Data is manipulated into information using mathematical, statistical, and other tools.
Output: Information is displayed or presented.
Storage: Data and information are maintained for later use.

12. Ethical and Societal Issues The Not-So-Bright Side
Consumer Privacy
Organizations collect (and sometimes sell) huge amounts of data on individuals.
Employee Privacy
IT supports remote monitoring of employees, violating privacy and creating stress.

13. Ethical and Societal Issues The Not-So-Bright Side
Freedom of Speech
IT abridge free speech.
IT Professionalism
No mandatory or enforced code of ethics for IT professionals--unlike other professions.
Social Inequality
Less than 20% of the world’s population have ever used a PC; less than 3% have Internet access.

15. Activity 1
Share your experience of Information Systems incorporated in your company?

16. Role of IS

17. Expanding Roles of IS Data Processing: 1950s-1960s
Management Reporting: 1960s-1970s
Decision support: 1970s-1980s
Strategic and End User Support: 1980s-1990s
Global Internetworking: 1990s-2000s

18. Classification of IS Information Systems Operations Support System
Management Support System
Transaction processing systems
Process control systems
Office automation systems
Management information systems
Decision support systems
Executive information systems

19. Other categories
Expert systems
End user computing systems
Business information systems
d) Strategic information systems
a) Expert Systems are knowledge-based systems that provides expert advice and act as expert consultants to the users
b) End user computing systems support the direct, hands on use of computers by end users for operational and managerial applications
c) Business information systems support the operational and managerial applications of the basic business functions of a firm
d) Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage

20. Enterprise Resource Planning (ERP)
Integrated programs that can manage a company’s entire set of business operations
Often coordinate planning, inventory control, production and ordering

21. Information Systems Planning

22. Definition / Levels of IS Planning
What is IS planning?
The process of developing a view of the future that guides decision making today
Stating the direction we want to go and how we intend to get there

23. The Changing World of Planning
Evolution of strategic IS planning along with rapid change of Internet-driven technologies.
Traditional style of planning no longer viable
Command and control
IS as a support function
“Lifecycle” (static environment)
Still need long-range vision but with flexibility and creativity 23

24. INFORMATION
SYSTEMS IN THE
ENTERPRISE

25. MANAGEMENT CHALLENGES
KEY SYSTEM APPLICATIONS
FUNCTIONAL PERSPECTIVE OF SYSTEMS
INTEGRATING FUNCTIONS & PROCESSES *

26. TYPES OF INFORMATION SYSTEMS
DATA WORKERS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MANAGERS
MANAGEMENT LEVEL MIDDLE MANAGERS
OPERATIONAL OPERATIONAL LEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
RESOURCES
MARKETING

27. MAJOR TYPES OF SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)
DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT INFORMATION SYSTEMS (MIS)
KNOWLEDGE WORK SYSTEMS (KWS)
OFFICE AUTOMATION SYSTEMS (OAS)
TRANSACTION PROCESSING SYSTEMS (TPS) *

28. DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT LEVEL
INPUTS: LOW VOLUME DATA
PROCESSING: INTERACTIVE
OUTPUTS: DECISION ANALYSIS
USERS: PROFESSIONALS, STAFF
EXAMPLE: CONTRACT COST ANALYSIS

29. DECISION SUPPORT SYSTEMS (DSS)
FLEXIBLE, ADAPTABLE, QUICK
USER CONTROLS INPUTS/OUTPUTS
NO PROFESSIONAL PROGRAMMING
SUPPORTS DECISION PROCESS *

30. EXECUTIVE SUPPORT SYSTEMS (ESS)
STRATEGIC LEVEL
INPUTS: AGGREGATE DATA
PROCESSING: INTERACTIVE
OUTPUTS: PROJECTIONS
USERS: SENIOR MANAGERS
EXAMPLE: 5 YEAR OPERATING PLAN

31. EXECUTIVE SUPPORT SYSTEMS (ESS)
TOP LEVEL MANAGEMENT
DESIGNED TO THE INDIVIDUAL
TIES CEO TO ALL LEVELS
VERY EXPENSIVE TO KEEP UP
EXTENSIVE SUPPORT STAFF *

32. SALES & MARKETING INFORMATION SYSTEM

33. MANUFACTURING INFORMATION SYSTEM

34. FINANCE & ACCOUNTING INFORMATION SYSTEM

35. HUMAN RESOURCES INFORMATION SYSTEM

36. Developing an Information Technology Risk Management Program

37. Information Security is
the protection of data against unauthorized access or modification

38. What is “Risk”?
Risk is intentionally exploit a particular information system vulnerability, and the resulting impact on the organization if this should occur (National Institute of Standards & Technology-NIST)
Risk is the probability of a vulnerability being exploited in the current environment, leading to a degree of loss of confidentiality, integrity, or availability, of an asset. (Microsoft)

39. What is Risk Management?
The goal of a risk management program is to protect the organization and its ability to perform its mission from IT-related risk

40. Risk Management is the Keystone of Information Security

41. Risk Management has Three Parts
Risk Assessment - Determining where risks lie, and how big they are
Risk Mitigation - Prioritizing, evaluating, and implementing appropriate risk-reducing controls
Evaluation and Assessment – Since Risk Management is continuous and evolving, the past year’s Risk Management efforts should be assessed and evaluated prior to beginning the cycle again

42. Risk Management Process
What is my risk?
What will I do about it?
How did I do?
Risk Assessment
Risk Mitigation
RM Evaluation

43. Assessing Risk Phase has Three Steps
Planning – Align your annual process with your budget; Specify your scope; Identify and pre-sell stakeholders; embrace subjectivity
Facilitated Data Gathering – Identify tangible and intangible assets, threats, vulnerabilities, existing controls, probable impact
Risk Prioritization – Determine probabilities, and combine impact with probability to produce a risk statement

44. Risk Mitigation Options
Assume the Risk – Accept the risk and continue operating (how big is your appetite?)
Avoid the Risk – Stop running the program or sharing the data
Transfer the Risk – Use options to compensate for the loss, such as insurance
Lessen the Risk – Implement controls that lessen the impact or lower the likelihood

45. Activity 3
Can Risk Assessment be done in terms of calculation of financial figures?