1. BEA2005 Website: www.people.ex.ac.uk/gaharriswww.people.ex.ac.uk/gaharris Textbook: Management Information Systems, 8 th edn, O’Brien and Marakas.Management Information Systems Lecture and tutorial Assessment is Group Assignment and Exam (Essays, 4 from 6) Additional reading and case study will be provided. Lecture notes downloadable from websitewebsite BEA2005 L1 -1

2. BEA2005 L1 -2 Foundation Concepts Why study information systems and information technology? Vital component of successful businesses Helps businesses expand and compete Improves efficiency and effectiveness of business processes Facilitates managerial decision making and workgroup collaboration COMPONENTS- TRENDS – CHALLENGES – BENEFITS

3. Now… and the near future! Rapid change Web 2.0 supports better interaction. New web, new mode of production. Enables querying of multiple stored resources, updating of data and production of new information in real time. New structure (requires new architecture) New platform for innovation Web is a new resource from which to gain intelligence BEA2005 L1 -3

4. New deliverables Smart communications devices Pervasive ambient computing Geospatiality (location based services) Devices generate information in real time. Signalling supports triangulation. Results in opportunities for movement sensing, position related information in real time, Dig, tag objects. BEA2005 L1 -4

5. Outcome Rise of web services Old and original- was HTML – a standard language for defining web based content presentation. New – is XML – a platform for online computation, data driven services, interaction and collaboration. BEA2005 L1 -5

6. Effect on work Data availability and analysis were two separate operations. New model: Web can be a platform that supports real-time computation, time and cost-saving services and opportunity! Not your parent’s internet! Your generation grew up digitised. Bathed in “bits” BEA2005 L1 -6

7. Life changing – Industry changing Time online not wasted Computing not simply a hobby. (essential resource) TV no longer main focus (advertising revenues?) Activity is non-passive Collaboration. Reading, researching, exercising the mind, processing information. Youth is an authority on these practices. It’s your experience that is being adopted by the modern workplace. BEA2005 L1 -7

8. BEA2005 L1 -8 The Role of Information System Information systems support a firm’s Business processes Managerial decision making Strategies for competitive advantage INFORMATION SYSTEMS ARE THE BUSINESS Your task is to understand IS at the correct level of granularity.

9. BEA2005 L1 -9 1.The Concept of Systems 2.Information systems as important tools for business professionals 3.What areas of information systems knowledge do you need. 3.Need to recognize the structure and purpose of information systems observed within business organizations in the real world BEA2005 Study Objectives

10. BEA2005 Objectives 4 Identify ethical and logical challenges that management faces when information technology and systems are in place. 5.Appreciate related career opportunities within your chosen field. 6.Participate in decisions when IS are being considered as a strategic tool. BEA2005 L1 -10

11. Why get involved Information Society Understand the “commercial and competitive power” of information Technical knowledge not required Curiosity, creativity, and confidence to ask question are required. Probable participation in strategic planning. BEA2005 L1 -11

12. Business Imperatives IT is an expensive and critical resource Investment in IT must return value (Return on Investment) or can be invested elsewhere.. Business managers decide how financial resources are allocated. Business managers evaluate RISK Business managers evaluate investment performance and expectations. BEA2005 L1 -12 

13. Benefits from Investment in IS IS enable change in the way people work together IS integrate with almost every aspect of the business IS enable business opportunities and new strategies IS can be used to combat business challenges from competitors BEA2005 L1 -13 

14. Management Issues Manager requires ability to manage “change” Benefits must be balanced against cost IS place information in the hands of decision makers – closer to point of contact with customer Business environment is constantly changing Decisions about IS impact profits PROFIT=REVENUE-EXPENSES BEA2005 L1 -14

15. Wrong Strategy Wrong IS strategy can destroy a business strategy. (example: wrong type of website) IS must support organizational systems. (example: new systems but no staff training (example: telecommuting requires appropriate hardware and communications services in appropriate locations) Now an issue of Governance and Responsibility BEA2005 L1 -15 

16. What is an Information System? IS is… People Hardware and software Communication networks Data resources Policies and procedures Example: An Accounting System… Records, stores, retrieves, transforms, and makes available information about an organization to internal and external users, What are the limits of an accounting sustem? BEA2005 L1 -16 

17. IT / IS ??? Information Systems Deliver specified information to authorized users. Could be paper based Information Technologies Hardware, software, networking, data management BEA2005 L1 -17 

18. Span of Knowledge BEA2005 L1 -18 5 AREAS of INTEREST

19. Growth of IS in Business BEA2005 L1 -19 Stages of development 

20. Trends in Information Systems BEA2005 L1 -20

21. Trends in Information Systems Recognisable “Stages of Development” 1.pre-defined reports 2.Communication between “Front” and “Back Office”. 3.Ad-hoc and interactive querying 4.Enterprise wide “dashboard” displays. 5.Independence of distance. BEA2005 L1 -21 

22. Along came ….E-Business? Using Internet technologies to empower… Business processes Electronic commerce Collaboration within a company Collaboration with customers, suppliers, and other business stakeholders BEA2005 L1 -22 

23. How E-Business is Being Used BEA2005 L1 -23 

24. E-Business Use and “Stages of Growth” Reengineering Internal business processes Enterprise collaboration systems Support communications, coordination and coordination among teams and work groups Electronic commerce Buying, selling, marketing, and servicing of products and services over networks BEA2005 L1 -24 

25. Types of Information Systems Operations Support Systems Efficiently process business transactions Control industrial processes Support communication and collaboration Update corporate databases Management Support Systems Provide information as reports and displays Give direct computer support to managers during decision-making BEA2005 L1 -25 

26. Purposes of Information Systems BEA2005 L1 -26 

27. Operations Support Systems What do they do? Efficiently process business transactions Control industrial processes Support communications and collaboration Update corporate databases BEA2005 L1 -27 

28. Types of Operations Support Systems Transaction Processing Systems Record and process business transactions Examples: sales processing, inventory systems, accounting systems Process Control Systems Monitor and control physical processes Example: using sensors to monitor chemical processes in a petroleum refinery Enterprise Collaboration Systems Enhance team and workgroup communication Examples: email, video conferencing BEA2005 L1 -28 

29. When are transactions processed? Batch Processing Accumulate transactions over time and process periodically Example: a bank processes all checks received in a batch at night Online Processing Process transactions immediately Example: a bank processes an ATM withdrawal immediately BEA2005 L1 -29 FURTHER POSSIBILITY IS The ZERO Time Organisation 

30. Systems that support Management What do they do? Provide information and support for effective decision making by managers Management information systems Decision support systems Executive information systems BEA2005 L1 -30 

31. Types of Management Support Systems Management Information Systems (MIS) Reports and displays Example: daily sales analysis reports Decision Support Systems (DSS) Interactive and ad hoc support Example: a what-if analysis to determine where to spend advertising £££££$$$$ Executive Information Systems (EIS) Critical information for executives and managers Example: easy access to actions of competitors BEA2005 L1 -31 

32. additional types of Information Systems Expert Systems Clone the advice of experts Example: credit application advisor Knowledge Management Systems Support creation, organization, and dissemination of business knowledge throughout company Example: intranet access to best business practices BEA2005 L1 -32 

33. Information Systems can be… Strategic Information Systems Help get a strategic advantage over customer Examples: shipment tracking, e- commerce Web systems Functional Business Systems Focus on operational and managerial applications of basic business functions Examples: accounting, finance, or marketing BEA2005 L1 -33 

34. IT Challenges and Opportunities BEA2005 L1 -34 

35. Good Systems don’t just appear! BEA2005 L1 -35 

36. The “Good” and “Bad” Application of IT Customer relationship management Human resources management Business intelligence systems Potential Harm Infringements on privacy Inaccurate information Collusion BEA2005 L1 -36 

37. Good Intentions – Bad Outcomes Potential Risks Consumer boycotts Work stoppages Government intervention Possible Responses Codes of ethics Incentives Certification BEA2005 L1 -37 

38. Ethical Responsibilities What uses of IT might be considered improper or harmful to other individuals or society? Acceptable use of the Internet or a company’s IT resources? Protecting information assets from computer crime? BEA2005 L1 -38 

39. Summary of the IS Function The IS function is… A major functional area of business An important contributor to operational efficiency, employee productivity, morale, customer service and satisfaction A major source of information and support for decision making A vital ingredient in developing competitive products and services in the global marketplace A dynamic and challenging career opportunity A key component of today’s networked business BEA2005 L1 -39 

40. Again…What is a System? A system is… A set of interrelated components Working together as planned…. To achieve a common set of objectives By accepting inputs and producing outputs An organized transformation process BEA2005 L1 -40

41. Basic Functions of a System Input Capturing and assembling elements that enter the system to be processed Processing Transformation process that converts input into output Output Transferring transformed elements to their ultimate destination BEA2005 L1 -41 

42. Cybernetic System All systems have input, processing, and output A cybernetic system, a self-monitoring, self- regulating system, adds feedback and control: Feedback is data about the performance of a system Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal BEA2005 L1 -42 

43. A Cybernetic System BEA2005 L1 -43 

44. A Business as a System BEA2005 L1 -44 

45. Other System Characteristics If a system is one of the components of a larger system, it is a subsystem The larger system is an environment Several systems may share the same environment Some may be connected via a shared boundary, or interface Types of systems… Open Adaptive BEA2005 L1 -45

46. Components of an IS BEA2005 L1 -46

47. Information System Resources People Resources Specialists End users Hardware Resources Machines Media Software Resources Programs Procedures BEA2005 L1 -47 

48. Information System Resources Data Resources Product descriptions, customer records, employee files, inventory databases Network Resources Communications media, communications processors, network access and control software Information Resources Management reports and business documents using text and graphics displays, audio responses, and paper forms BEA2005 L1 -48 