1. Information Systems in Global Business Today
LECTURE 2
Information Systems in Global Business Today

2. Chapter 1 Information Systems in Global Business Today
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Learning Objectives:
Understand the concept of a system and how it relates to information systems.

3. Chapter 1 Information Systems in Global Business Today
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Chapter 1 Information Systems in Global Business Today
What is a System
System: A set of components that work together to achieve a common goal
EXAMPLE: Manufacturing system
(accepts raw materials as inputs and produces finished goods as output)
EXAMPLE :Movie

4. System Example System Elements Goal Inputs Processing elements Outputs
Movie
Actors, director, staff, sets, equipment
Filming, editing, special effects, distribution
Finished film delivered to movie studio
Entertaining movie, film awards, profits

5. Functions of an Information System?
Lecture 1 Information Systems in Global Business Today
Functions of an Information System?
Three basic activities
Feedback
Input
Processing
Output
Feedbacks data about the performance of a system
or output returned for evaluation and correction of input.

6. Chapter 1 Information Systems in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Information system
is an organized combination of people, hardware, software, communication networks and the data resources that collects (input), transforms (process) and disseminates (output) information in a organization.

7. Chapter 1 Information Systems in Global Business Today
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Learning Objectives:
How does an information system accomplish this?
What are system components and activities involved? 7 7

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Chapter 1 Information Systems in Global Business Today
Components of an IS
Information system depends on the resources of people, hardware, software, data and networks to perform input, processing ,output, storage and control activities that convert data resources into information.

9. Components of an Information System9 9

10. Examples Of Information System Resources And Products
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Examples Of Information System Resources And Products
Information Systems Resources And Products
People Resources
Network Resources
Hardware Resources
Software Resources
Data Resources
Information Products

11. Information Systems Resources And Products
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Information Systems Resources And Products
People resources:
- specialist (system analysts, software
developers, system operators).
- end users (anyone else who uses
information systems).
Hardware resources:
- machines (computers, video monitor, magnetic disk drives, printers, optical scanners).
- media (floppy disks, magnetic tape, optical disks,
plastic cards, paper forms).

12. Information Systems Resources And Products (continued)
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Information Systems Resources And Products (continued)
Software resources:
- programs (operating system program, spreadsheet
programs, word processing programs).
- procedures ( are the operating instructions for the people who will use the info systems, using a software package, data entry procedures, error correction
procedures).
Data resources:
- product description, customer records, employee
files, inventory databases.

13. Information Systems Resources And Products (continued)
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Information Systems Resources And Products (continued)
Network resources:
-communication technologies and networks like internet, intranet, communications media fiber optic cables, wireless technologies), communication
processors modem), network access and control
software network operating software).
Information products:
- management reports and business
documents using text and graphics displays,
audio responses, and paper forms.

14. Chapter 1 Information Systems in Global Business Today
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Learning Objectives:
Role and purpose on information systems.

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Chapter 1 Information Systems in Global Business Today
Roles of IS in Business
Support of
Strategic
Advantage(ESS)
Business
Decision Making(MIS,DSS)
Business Processes and Operations(TPS)

16. Chapter 1 Information Systems in Global Business Today
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Learning Objectives:
How information systems exist in the real world.
Operation and management classification of information systems.

17. Classification of IS Information Systems Operations Support System
Management Information Systems Chapter 1 Information System in Global Business Today
Classification of IS
Information Systems
Support of managerial decision making
Support of business operations
Operations Support System
Management Support System
Transaction processing systems
Office automation systems
Decision support systems
Executive support systems
Management information systems
Process control systems
Management Information Systems
Chapter 1 Information Systems in Global Business Today

18. Chapter 1 Information Systems in Global Business Today
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Operations support systems process data generated by business operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
Management Support Systems provide information and support needed for effective decision making by managers
Major categories are
Management Information System
Decision Support Systems
Executive Support System

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Chapter 1 Information Systems in Global Business Today
Transaction Processing Systems (TPS)
Computerized system that performs and records the daily routine transactions necessary to conduct the business; these systems serve the operational level of the organization
TYPE: Operational-level
INPUTS: transactions, events
PROCESSING: updating
OUTPUTS: detailed reports
USERS: operations personnel, supervisors
EXAMPLE: Payroll

20. Data elements in payroll
Payroll TPS
PROCESS
OUTPUT
INPUT
Calculating pay
Calculating cost of taxes
etc.
Payroll master file
Payroll
system
Management
reports
Data elements in payroll
master file
Employee number
Employee name
Employee department
Employee occupation
Employee pay rate
Earnings
State tax
Government
documents
Employee
checks

21. Transaction processing system
TPSs process transactions in two ways:
Batch processing
Online processing
Batch Processing of transactions occurs when transactions are collected and then processed together as a “batch” at some later time.
Ex: Banks often use batch processing when reconciling checks drawn or customer accounts.
Online processing of transactions provide immediate results. Data is processed immediately after a transaction occurs.
Ex: Online reservation processing.

22. Process control systems
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Chapter 1 Information Systems in Global Business Today
Process control systems
Monitor and control industrial processes.
EXAMPLE: Petroleum refinery
Has electronic sensors linked to computers to continuously monitor chemical process and make instant adjustments to control refinery process.

23. Office support systems /Enterprise collaboration systems
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Chapter 1 Information Systems in Global Business Today
Office support systems /Enterprise collaboration systems
Automate office procedures and enhance office communications and productivity.
EXAMPLE: , chat and videoconferencing groupware system

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Management Information Systems (MIS)
Information system at the management level of an organization that provide information in form or reports and displays to managers.
TYPE: Management-level
INPUTS: high volume data
PROCESSING: simple models
OUTPUTS: summary reports
USERS: middle managers
EXAMPLE: Daily Sales analysis report evaluating sales made by each personnel. In banks a daily liability sales report.

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Chapter 1 Information Systems in Global Business Today
Decision Support Systems (DSS)
Information system at the management level of an organization gives direct support to managers.
TYPE: Management-level
INPUTS: low volume data
PROCESSING: simulations, analysis
OUTPUTS: decision analysis
USERS: professionals, staff managers
EXAMPLE: sales region analysis

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Chapter 1 Information Systems in Global Business Today
Executive Support Systems (ESS)
Information system at the strategic level of an organization that provide critical information tailored to the information needs of executives
TYPE: Strategic level
INPUTS: aggregate data; internal and external
PROCESSING: interactive
OUTPUTS: projections
USERS: senior managers
EXAMPLE: 5 year operating plan

27. Managerial Challenges Of Information Technology
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Managerial Challenges Of Information Technology
Information Systems and their technology must be managed to support the business strategies, business processes and organizational culture of an enterprise to increase its customer and business value
Business Strategies/Processes/Structure/Culture
Customer Value Business Value
Information Systems
If information technology and information systems are mismanaged it leads to technological and business failure.
EXAMPLE BOEING failure in 1997 COSTLY DELAY OF 1.6 BILLION

28. Developing Information System (IS) Solutions multistep process
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Developing Information System (IS) Solutions multistep process
Information specialist design IS applications based on the analysis of the business requirements of an organization.
Investigating the economic and technical feasibility of a proposed application. Acquiring and learning how to use the software required to implement the new system
and making improvements to maintain the business value of a system.

29. Chapter 1 Information Systems in Global Business Today
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
Learning Objectives:
E-business enterprise

30. E-business enterprise
E-Business enterprises rely on information technologies such as the Internet to:
Reengineer and revitalize internal business processes
Implement electronic commerce systems among businesses and their customers and suppliers
Promote enterprise collaboration among business teams and workgroup

31. The Role Of “E Business” In Business
Management Information Systems Chapter 1 Information System in Global Business Today
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Chapter 1 Information Systems in Global Business Today
The Role Of “E Business” In Business
Businesses are becoming E-business Enterprise.
E-Business enterprise depends on internet,intranets,extranets and other networks to support every step of the commercial process.
Everything from advertising, sales and customer support on the web to internet security and payment mechanism that ensure completion of delivery and payment processes.

32. The Role Of E Business In Business (continued)
Management Information Systems Chapter 1 Information System in Global Business Today
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The Role Of E Business In Business (continued)
E business
The use of internet technologies to internet work and empower business processes, electronic commerce, and enterprise communication collaboration within a company and with its customers, suppliers, and other business stakeholders.
EXAMPLE:DELL

33. Business Today (continued)
Management Information Systems Chapter 1 Information System in Global Business Today
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Business Today (continued)
Intranet:
The internet and internet like networks inside the enterprise.
Extranet:
the internet and internet like networks between an enterprise and its trading partners.

34. Extranets
Extranets are networks that link company's to business partners ,customer and suppliers over the Internet by providing access to certain areas of each other’s corporate intranets. example is FEDEX Extranet that allows customers to track the status of a package.

35. Business Today (continued)
Management Information Systems Chapter 1 Information System in Global Business Today
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Business Today (continued)
Electronic commerce:
The buying, selling, marketing, and servicing of products, services, and information over a variety of computer networks. EXAMPLE eBay half of revenue comes from outside US.
Amazon
E-Government: e-Government (short for electronic government) E-government helps simplify processes and makes access to government information more easily accessible for public sector agencies and citizens.

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Interactive session
Virtual meetings: smart management
What are the ways in which video conferencing provides value to a business? would you consider it smart management? Explain your answer.
Distinction between video conferencing and telepresence?
If you were in charge of a small business would you choose to implement videoconferencing? What factors will you consider in your decision?