1. © 2006 Pearson Education Canada Inc.1-1 Chapter 1 Information Systems: The Big Picture PowerPoint Presentation Jack Van Deventer Ward Eagen

2. © 2006 Pearson Education Canada Inc.1-2 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-Business, Intranets, and Extranets Ch 5 – E-Business, 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, Computer Crime, and Security Ch 9 – IS Ethics, Computer Crime, and Security

3. © 2006 Pearson Education Canada Inc.1-3 Textbook Overview Appendix A – IS Hardware Appendix A – IS Hardware Appendix B – IS Software Appendix B – IS Software Appendix C – Networking Appendix C – Networking

4. © 2006 Pearson Education Canada Inc.1-4 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

5. © 2006 Pearson Education Canada Inc.1-5 Case: Whistler.com Powers Up Whistler.com has contracted Fusepoint Managed Services to handle its entire IT infrastructure for Vancouver’s 2010 Winter Olympic Games online Whistler.com has contracted Fusepoint Managed Services to handle its entire IT infrastructure for Vancouver’s 2010 Winter Olympic Games online It believes that “digging deeper into information sources is the new direction” It believes that “digging deeper into information sources is the new direction” “Where we see the opportunity in this overall space is with people buying IT like it’s electricity” “Where we see the opportunity in this overall space is with people buying IT like it’s electricity”

6. © 2006 Pearson Education Canada Inc.1-6 Information Systems Defined Combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data in organizations

7. © 2006 Pearson Education Canada Inc.1-7 SakTel Pushes Broadband SaskTel will spend $121 million expanding high- speed Internet to rural areas SaskTel will spend $121 million expanding high- speed Internet to rural areas Its goal is to bring high bandwidth to communities as small as 100–200 people and it is exploring fixed wireless to reach 95% of the provincial population Its goal is to bring high bandwidth to communities as small as 100–200 people and it is exploring fixed wireless to reach 95% of the provincial population Considering it a social responsibility, SaskTel says “you just don’t know if you’re ever going to make money at that” Considering it a social responsibility, SaskTel says “you just don’t know if you’re ever going to make money at that”

8. © 2006 Pearson Education Canada Inc.1-8 Key Elements of Information Systems

9. © 2006 Pearson Education Canada Inc.1-9 Knowledge as a Business Resource Knowledge Worker Knowledge Worker  A well-educated professional who creates, modifies, or synthesizes 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

10. © 2006 Pearson Education Canada Inc.1-10 Accounting and Finance: Scotiabank Global Finance magazine rated Scotiabank as Best Canadian Internet bank Global Finance magazine rated Scotiabank as Best Canadian Internet bank Scotiabank seeks constant improvement through a monthly customer satisfaction survey—it has a 94% satisfaction index Scotiabank seeks constant improvement through a monthly customer satisfaction survey—it has a 94% satisfaction index Cost and ROI are questions, but the retention of online customers is strategic in repositioning the bank to be in the wealth-management business Cost and ROI are questions, but the retention of online customers is strategic in repositioning the bank to be in the wealth-management business

11. © 2006 Pearson Education Canada Inc.1-11 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

12. © 2006 Pearson Education Canada Inc.1-12 Theory or Practice Generally in Canada, colleges tend to be hands-on and universities tend to be theory- based: What is more important? Generally in Canada, colleges tend to be hands-on and universities tend to be theory- based: What is more important? How can you be strategic about finance and marketing if you do not know the tool? How can you be strategic about finance and marketing if you do not know the tool? How one resolves this is a continuing debate in higher education and business. How one resolves this is a continuing debate in higher education and business.

13. © 2006 Pearson Education Canada Inc.1-13 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 using 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

14. © 2006 Pearson Education Canada Inc.1-14 Careers: Operations Management Trends Trends  Virtual corporations  Network infrastructure  How wired is your firm?

15. © 2006 Pearson Education Canada Inc.1-15 The People Side of IS Despite economic ups and downs… Despite economic ups and downs…  Labour shortages predicted  U.S. Bureau of Labor Statistics  http://stats.bls.gov/emp/emptab3.htm http://stats.bls.gov/emp/emptab3.htm  Ranked among best jobs available

16. © 2006 Pearson Education Canada Inc.1-16 Human Resource Management Communication between IT workers (who get satisfaction from making something that works) and, for example, accountants (who focus on the impact to the business) is a problem in many firms Communication between IT workers (who get satisfaction from making something that works) and, for example, accountants (who focus on the impact to the business) is a problem in many firms Few computer science programs integrate business and marketing with their technical training Few computer science programs integrate business and marketing with their technical training From the other side, too few leaders are comfortable with the technology issues From the other side, too few leaders are comfortable with the technology issues There needs to be a shared perspective between IT and non-IT managers before strategy can evolve There needs to be a shared perspective between IT and non-IT managers before strategy can evolve

17. © 2006 Pearson Education Canada Inc.1-17 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

18. © 2006 Pearson Education Canada Inc.1-18 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

19. © 2006 Pearson Education Canada Inc.1-19 IS Managerial Personnel 1. CIO 2. IS director 3. Account Executive 4. Info Centre 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

20. © 2006 Pearson Education Canada Inc.1-20 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

21. © 2006 Pearson Education Canada Inc.1-21 Integrating Skills and Knowledge Technology Technology  Hardware, software, networking Business Business  Business, management, social, communications Systems Systems  Integration, development methods, critical thinking, problem solving

22. © 2006 Pearson Education Canada Inc.1-22 Hot Skills in IS Workers Office / E-mail Office / E-mail 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

23. © 2006 Pearson Education Canada Inc.1-23 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

24. © 2006 Pearson Education Canada Inc.1-24 Marketing: Ticketmaster Ticketmaster grew from a small company that handled tickets for college events at Arizona State University in 1978 to the world’s largest online ticket resource and more Ticketmaster grew from a small company that handled tickets for college events at Arizona State University in 1978 to the world’s largest online ticket resource and more Much of the success is due to Ticketmaster’s Citysearch Web sites, which are online guides for 128 cities or regions worldwide Much of the success is due to Ticketmaster’s Citysearch Web sites, which are online guides for 128 cities or regions worldwide Ticketmaster is constantly integrating cutting-edge technologies and systems into its business (e.g., wireless and handheld technologies) Ticketmaster is constantly integrating cutting-edge technologies and systems into its business (e.g., wireless and handheld technologies)

25. © 2006 Pearson Education Canada Inc.1-25 Operations Management With just in time (JIT) manufacturing, a few minutes can mean thousands of dollars With just in time (JIT) manufacturing, a few minutes can mean thousands of dollars Global positioning systems (GPS) are used in tracking material but have shortcomings because they require line-of-sight transmission Global positioning systems (GPS) are used in tracking material but have shortcomings because they require line-of-sight transmission Bell Mobility and Sedum Corp. of Vancouver have developed a new service combining Bell’s cellular network with GPS technology, allowing tracking in bad weather, indoors, etc. Bell Mobility and Sedum Corp. of Vancouver have developed a new service combining Bell’s cellular network with GPS technology, allowing tracking in bad weather, indoors, etc.

26. © 2006 Pearson Education Canada Inc.1-26 Disaster Plans for IS That IS is crucial to corporate success is illustrated by the need for disaster planning That IS is crucial to corporate success is illustrated by the need for disaster planning Power Blackout 2003 Power Blackout 2003 Are companies prepared now? Are companies prepared now?  What’s at stake?  The consequences of failing to plan

27. © 2006 Pearson Education Canada Inc.1-27 When Things Go Wrong Blackouts, blizzards, and terrorist acts underscore the importance of contingency plans for IS, yet little time is given to disaster recovery strategy Blackouts, blizzards, and terrorist acts underscore the importance of contingency plans for IS, yet little time is given to disaster recovery strategy 44% of Canadian firms surveyed do not have a disaster recovery plan in place 44% of Canadian firms surveyed do not have a disaster recovery plan in place Why? The biggest challenge is funding Why? The biggest challenge is funding And existing plans are rarely tested And existing plans are rarely tested 25% of companies have a disaster recovery plan for their midrange data centres (payroll and HR), and only 1/3 of these have actually tested it 25% of companies have a disaster recovery plan for their midrange data centres (payroll and HR), and only 1/3 of these have actually tested it

28. © 2006 Pearson Education Canada Inc.1-28 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

29. © 2006 Pearson Education Canada Inc.1-29 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?

30. © 2006 Pearson Education Canada Inc.1-30 Global Perspective Offshore outsourcing is pushing beyond its roots in India: The programming skills needed now exist in China, the Philippines, Russia, Eastern Europe, etc. Offshore outsourcing is pushing beyond its roots in India: The programming skills needed now exist in China, the Philippines, Russia, Eastern Europe, etc. A 25% cost savings for an offshore outsourcing contract is realistic A 25% cost savings for an offshore outsourcing contract is realistic Most outsourcing firms have management personnel in North America to mitigate the risk Most outsourcing firms have management personnel in North America to mitigate the risk Outsourcing has become a worldwide search for the right mix of talent, resources, and cost savings Outsourcing has become a worldwide search for the right mix of talent, resources, and cost savings

31. © 2006 Pearson Education Canada Inc.1-31 International Outsourcing Round-the-clock productivity Round-the-clock productivity Cost savings Cost savings

32. © 2006 Pearson Education Canada Inc.1-32 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

33. © 2006 Pearson Education Canada Inc.1-33 IT Personalities IT workers are near the bottom of the list in perceiving the importance of communication IT workers are near the bottom of the list in perceiving the importance of communication The irony of those charged with communication in the company not being keen on communicating themselves has negative effects on the status and mobility of IT people, but this is changing The irony of those charged with communication in the company not being keen on communicating themselves has negative effects on the status and mobility of IT people, but this is changing As the significance of IT to the business grows, IT is being seen as core and not a cost centre As the significance of IT to the business grows, IT is being seen as core and not a cost centre

34. © 2006 Pearson Education Canada Inc.1-34 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.)

35. © 2006 Pearson Education Canada Inc.1-35 The Spread of Technology in Organizations Benefits of centralized IS function Benefits of centralized IS function  Coordinated planning  Consistent management  Systems compatibility and connectivity

36. © 2006 Pearson Education Canada Inc.1-36 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

37. © 2006 Pearson Education Canada Inc.1-37 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

38. © 2006 Pearson Education Canada Inc.1-38 Staying Current with IS News Great sources for IS current info: Great sources for IS current info:  informationweek.com  computerworld.com  cio.com  cipa.com  CanadaIT.com  GlobeTechnology.com

39. © 2006 Pearson Education Canada Inc.1-39 Coming Attractions: Bright Future for Organic Displays Organic Displays (Organic Light Emitting Device) are being developed at the University of Toronto Organic Displays (Organic Light Emitting Device) are being developed at the University of Toronto Thin as paper, and just as flexible, OLED is considered the next major display technology and will replace LCDs in the future Thin as paper, and just as flexible, OLED is considered the next major display technology and will replace LCDs in the future Some products are available now but common commercial use won’t occur until at least 2010 Some products are available now but common commercial use won’t occur until at least 2010 OLED produces an extremely clear image that can be viewed from multiple angles, but currently OLED screens have a very limited life span OLED produces an extremely clear image that can be viewed from multiple angles, but currently OLED screens have a very limited life span

40. © 2006 Pearson Education Canada Inc.1-40 Canucks @ Microsoft, Eh? Why are there so many Canadians at Microsoft? Why are there so many Canadians at Microsoft? Higher salaries, more opportunities, and more interesting research attracts many Higher salaries, more opportunities, and more interesting research attracts many Microsoft is a model co-op student employer, giving many Canadian students (15-30 Waterloo University students a semester) meaningful work and contracts after graduation Microsoft is a model co-op student employer, giving many Canadian students (15-30 Waterloo University students a semester) meaningful work and contracts after graduation Brain drain? The term is just not meaningful in the current global market Brain drain? The term is just not meaningful in the current global market