1. Liu, Lu 刘鲁 Professor Department of Information Systems School of Economics & Management BeiHang University March, 2006 Email: liulu@buaa.edu.cn

2. 1-2 Lecture 1 Information Systems:Principles and Approaches An Introduction to Information Systems Agenda For Today A walk through the course outline An introduction to Information Systems Why Information Systems? What is IS? Approaches to IS The Challenges of IS

3. 1-3 Main Contents of This Course 1. Concept and role of Information systems (Lec.1, Lec.2) 2. Application of Information System in Organizations (Lec.3, Lec.4, Lec.5, Lec.6) 3. Approaches to Information systems ( Lec.7, Lec.8) 4. Managing Information systems (Lec.9)

4. 1-4 Teaching and Learning Methods Seminar Individual assignment Choose a topic Searching, reading and writing Preparing PPT Presentation and Discussion

5. 1-5 Grading Component % Presentation 30% Writing Report 20% Final Exam 50%

6. 1-6 1.1 Why IS? 1. Emergence of the global economy Competition in world markets Management & control in a global marketplace Global work groups Global delivery systems The success of firms depends on their ability to operate globally

7. 1-7 Global Economy Globally: Means there is no nation ’ s boundary Trading, Production,Finance, Consuming Product,Service, Capital, Information International company, multi-national company, cross-national company

8. 1-8 Role of Information Systems Company ’ s ability to operate globally is based on the utilization of IS New Product Development capability Capture the requirement of customer Provide personalized products or service Communication and coordination capability Operation, Management and control power

9. 1-9 2. Transformation of Industrial Economy Knowledge- & information-based economies What is K-economy? How to judge it? Where we are? How to transform or go into K-economy?

10. 1-10 Knowledge- & Information- intense Products or Services Products that require a great deal of learning and knowledge to produce Examples: Computer software, …. Service that require a great deal of learning and knowledge to provide Examples: Consulting firms, ….

11. 1-11 Knowledge & Information- intense Organizations They are devoted entirely to production, processing and distribution of information Examples: Sina.com Kingdee company

12. 1-12 3.Transformation of the Business Enterprise Flattening Decentralization Flexibility Location independent Low transaction & coordination costs Empowerment Collaborative work & teamwork

13. 1-13 Classifications of Organization Profit-oriented vs. Non-profit Labor intensive vs. Knowledge intensive Traditional vs. E-enterprise Real vs. Virtual enterprise

14. 1-14 1.2 What is an IS? Basic concepts Data Information System Information System In the view of technology Business perspective

15. 1-15 What Is Information? Data: streams of raw facts Information:data that have been shaped into a form that is meaningful Data Transformation process (applying knowledge by selecting, organizing, and manipulating data) Information Valuable Information: Accurate, Complete Reliable, Relevant Timely, Accessible Secure

16. 1-16 What Is a System? Process Inputs Outputs Feedback System Boundary Components (subsystems) Environment Interactions

17. 1-17 What Is an Information System? Inputs Processing Converting or transforming data into useful outputs Outputs Producing useful information, usually in the forms of documents Feedback Output that is used to alter inputs or processes Gathering and capturing data

18. 1-18 Information System: in the View of Technology A set of interrelated components Collect (or retrieve), process, store and distribute information To support decision making,coordination, control analysis and visualization in an organization.

19. 1-19 Functions of an Information System INPUTOUTPUTPROCESS FEEDBACK INFORMATION SYSTEM Environment Customers Suppliers Regulatory Stockholders Competitors Agencies ORGANIZATION

20. 1-20 Information Systems: a Business Respective An organizational and management solution, based on information technology, to a challenge posed by the environment. Help manager analyze problems, create new products or services. Its success depends on organization, management and technology.

21. 1-21 Organization Key elements of organization: People: managers, workers Structure Operating procedures:SOPs Politics Culture

22. 1-22 Relationship Between Organization and ITORGANIZATIONS MEDIATING FACTORS: Environment Culture Structure Standard Operating Procedures Politics Management Decisions Chance INFORMATION TECHNOLOGY

23. 1-23 IS in the Organization The organization Senior management Major end users(divisions) Information System Department IT Infrastructure Hardware Software Data Storage Telecommunication. Information System Specialists CIO Managers System analysts System designers System programmers Applications programmers Database administrator Network administrator

24. 1-24 Major Organizational Functions Sales and marketing Manufacturing Finance Accounting Human resources

25. 1-25 Management Managerial functions Planning, organizing, coordinating, deciding and controlling Managers job Set strategy and goals Allocate resources Coordinate the work Managers role at different levels

26. 1-26 Technology IT Infrastructure Computer hardware Computer software Storage technology Communications technology

27. 1-27 Information Systems ORGANIZATIONSTECHNOLOGY MANAGEMENT INFORMATION SYSTEMS SYSTEMS

28. 1-28 1.3 Approaches to information systems SOCIOLOGY ECONOMICS PSYCHOLOGY COMPUTERSCIENCE OPERATIONSRESEARCH MANAGEMENTSCIENCE MIS TECHNICAL APPROACHES BEHAVIORAL APPROACHES

29. 1-29 Socio-technical Perspective Technology & Organization Mutually Adjust To One Another Until Fit Is Satisfactory

30. 1-30 New Role of IS in Organizations IS affect how managers decide, plan, and manage their employees, and increasingly shape what products or service are produced, where, when and how. What a business would like to do often depends on what its systems will be able to do.

31. 1-31 System Interdependence BUSINESS Strategy Strategy Rules Rules Procedures Procedures ORGANIZATION INFORMATION SYSTEM HARDWARE SOFTWAREDATABASE TELE- COMMUNICATIONS INTERDEPENDENCE

32. 1-32 The Widening Scope of IS

33. 1-33 Digital Firm and the Networked Enterprise Redesign the organization with IS Flattening organizations Separating work from location Reorganizing work-flows Increasing flexibility of organization The changing management process Redefining organizational boundaries *

34. 1-34 Digital Firm: E-commerce and E- business Electronic Market Marketplace created by computer and communication technology Linking many buyers and seller Electronic Commerce Process of buying and selling goods and services electronically using Internet, networks and other digital technologies Electronic Business Use of Internet and digital technology for organizational communication and the management of the firm *

35. 1-35 1.4 Learning to use IS: The challenge and opportunities Key Management Issues 1.The strategic business challenge How can business use IT to design organization that are competitive, effective and digitally enabled?

36. 1-36 2. The Globalization Challenge How can firms understand the business and system requirement of a global economic environment ?

37. 1-37 3. The Information Architecture Challenge How can organizations develop an information architecture that supports their business goals? Information architecture of the firm Particular form that information technology takes in an organization to achieve selected goals

38. 1-38 Information Architecture and Information Technology Infrastructure

39. 1-39 4. The information systems investment challenge How can organizations determine the business value of information systems?

40. 1-40 5. The responsibility and control challenge How can organizations design systems that people can control and understand?

41. 1-41 Summary What is an information system? Why does organization need IS? What are management challenges to building and using IS in organizations?

42. 1-42 Application Cases Wal-Mart Google.com