1. Copyright 2007 John Wiley & Sons, Inc. Information Systems: Creating Business Value John Wiley & Sons, Inc. Mark Huber, Craig Piercy, and Patrick McKeown

2. Copyright 2007 John Wiley & Sons, Inc. Chapter 1: Introduction to Information Systems

3. Copyright 2007 John Wiley & Sons, Inc. Chapter 1 Introduction to Information Systems

4. Copyright 2007 John Wiley & Sons, Inc. What We Will Cover: Business Organizations and the Business Environment? What are Data, Information, and Knowledge? What is an Information System?

5. Copyright 2007 John Wiley & Sons, Inc. Student ROI (Return on Investment) Your investment of time and effort in this course will result in your being able to answer these questions: 1.How do different factors in a business environment, such as the Internet and globalization, impact the need for timely data, information, and knowledge? 2.What role does the data-information-knowledge continuum play in your success as a current student and future knowledge worker? 3.How do the different types of information systems (IS) help knowledge workers manage data, information, and knowledge?

6. Copyright 2007 John Wiley & Sons, Inc. Welcome! We want to prepare you for your future as a knowledge worker. Business and information first, then IT! What we do with IT to create business value is usually more important than the IT itself!

7. Copyright 2007 John Wiley & Sons, Inc. Knowledge Work and Knowledge Workers What is knowledge work? What is a knowledge worker? What are some examples of verbs associated with the activities of knowledge workers?

8. Copyright 2007 John Wiley & Sons, Inc. What are Business Organizations? For our purposes, a business is an organization with one or more people who: (1) (2) (3) One of the most important factors influencing a business is the business _____________.

9. Copyright 2007 John Wiley & Sons, Inc. The Business Environment

10. Copyright 2007 John Wiley & Sons, Inc. Why learn about a business organization? You will spend much of your life in and around a business organization: Approximately, 86,000 hours (40 hrs/wk x 50 wks/yr x 43 years) at work in an organization over 16 times as many hours as you spent working to earn your degree

11. Copyright 2007 John Wiley & Sons, Inc. Changing Business Organizations Increasingly, organizations are turning to __________ and _________ __________ to keep pace with dynamic business environments. Organizations rely on this digital information to gain _________ __________ and to _________ __________ to opportunities and other changes in the business environment. As organizations strive to respond quickly, they are changing the way they organize or structure themselves. Much of this change involves __________ and the __________.

12. Copyright 2007 John Wiley & Sons, Inc. Globalization and the Internet Globalization means that modern businesses are using information technology to: –(1) –(2) –(3) Much of globalization is built around the __________, which is simply a large number of cooperating computer networks that use the same rules for sending messages.

13. Copyright 2007 John Wiley & Sons, Inc. What is the most widely used component of the Internet and why is this component so useful and so popular? What is e-commerce? Globalization and the Internet (cont.)

14. Copyright 2007 John Wiley & Sons, Inc. The Data—Information—Knowledge Continuum Given the importance of data, information, and knowledge, let’s look deeper into the meaning of each word. Data are … Information is … Knowledge is … What about wisdom …?

15. Copyright 2007 John Wiley & Sons, Inc. Becoming a Knowledge Worker According to Peter Drucker: knowledge workers are people who: 1. 2. 3. 4. [Drucker, 1994, pages 53-80]

16. Copyright 2007 John Wiley & Sons, Inc. Becoming a Knowledge Worker Why would a business hire you? Knowledge work involves …? To be a successful knowledge worker, you need to build on the two types of knowledge that you possess: ________ knowledge and ________ knowledge.

17. Copyright 2007 John Wiley & Sons, Inc. Two Types of Knowledge Explicit knowledge – Tacit knowledge -

18. Copyright 2007 John Wiley & Sons, Inc. What is an Information System (IS)? An information system (IS) is …? What can information systems do for individuals and organizations

19. Copyright 2007 John Wiley & Sons, Inc. Why Learn about Information Systems? Information is … Information systems and technology are the tools business people use to …? Without IS, the modern business organization would not be able to ________ _________.

20. Copyright 2007 John Wiley & Sons, Inc. IPO Model of an Information System

21. Copyright 2007 John Wiley & Sons, Inc. Information System Components ConceptDefinition Input Process Output Data Information Knowledge System

22. Copyright 2007 John Wiley & Sons, Inc. Information System Components (Cont.) ConceptDefinition People Information Technology Decision Business Value

23. Copyright 2007 John Wiley & Sons, Inc. Types of IS There are a number of types of IS that are widely used in creating business value: –Transaction Processing Systems (TPS) –Management Information Systems (MIS) –Decision Support Systems (DSS) –Enterprise Resource Management (ERP) Systems –Customer Relationship Management (CRM) Systems

24. Copyright 2007 John Wiley & Sons, Inc. IS-Type: TPS Transaction Processing System (TPS) What do they do? – How does this create business value? –

25. Copyright 2007 John Wiley & Sons, Inc. IS-Type: MIS Management Information System (MIS) What do they do? – How does this create business value? –

26. Copyright 2007 John Wiley & Sons, Inc. IS-Type: DSS Decision Support System (DSS) What do they do? – How does this create business value? –

27. Copyright 2007 John Wiley & Sons, Inc. IS-Type: ERP Enterprise Resource Planning (ERP) What do they do? – How does this create business value? –

28. Copyright 2007 John Wiley & Sons, Inc. IS-Type: CRM Customer Relationship Management (CRM) What do they do? – How does this create business value? –

29. Copyright 2007 John Wiley & Sons, Inc. IS Security As businesses increasingly rely on the use of IS to support and enable the creation of business value, the need for IS security also grows. IS security (also known as information assurance) protects (1) ______, (2) ______, (3) ______, (4) ______, (5) ______, and (6) ______, from the harmful actions of others. Harmful actions include …?.

30. Copyright 2007 John Wiley & Sons, Inc. About the Book Spiral model This book use a spiral approach to learning that starts with familiar topics (individual computing) and moves to unfamiliar topics (organizational and inter-organizational use of information systems) Here’s an example Individual (Consumer)    Organization (retailer)    Inter-organizational (retailer’s suppliers or their national, and international business partners) Each level discusses business and technology and the integration of the two concepts to create business value.

31. Copyright 2007 John Wiley & Sons, Inc. The Spiral Model of this Book