Chapter 1 Foundations of Information Systems in Business What do Managers do??? I know what Physicians, Firemen, Bus Drivers, Architects, Plumbers, Police

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1 Foundations of Information Systems in BusinessFoundations of Information Systems in BusinessFoundations of Information Systems in BusinessFoundations of Information Systems in Business

What do Managers do???• I know what Physicians, Firemen, Bus Drivers, Architects, Plumbers, Police Men,

Veterinarians, Accountants, Jockeys, Football Players, Burglars, Painters, Sculptors, Actors, Chefs, Waitresses, Sports Announcers, Ballet Dancers, Sumo Wrestlers, Fishermen, Typists, Sewer workers, Tennis Players, Golfers, Computer Programmers, Smugglers, Garbage Men, Models, Airline Pilots, Flight Attendants, Physicists, Dog Trainers, Psychiatrists, Psychologists, Arsonists, Terrorists, News Casters, Weather People, Surgeons, Supreme Court Justices, Serial Killers, Ophthalmologists, Ornithologists, Astronomers, Pianists, Piano Tuners, Violinists, Cellists, Cyclists, Gymnasts, Mailmen, Racists, Sexists, Yodelers, Beach Bums, Interpreters, Translators, Bee Keepers, House Keepers, Tour Guides, Tourists, Actors, Actuaries, Chemists, Cable Guys, Paranoids, Drug Dealers, Book Sellers, Bookies, Lawyers, Stenographers, Soldiers, Welders, Tree Trimmers, Pharmacists, Farmers, Politicians DO (OK – I don’t know what Politicians do, if anything)

• All of these titles can be described can be described in 5 words or less (Except Politicians)

Tell me what “A Manager” does in 5 words or less !!!

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Make decisions• You can make good decisions

In 1980, after adapting an operating system for the PC, which was to be delivered to IBM for a one-time fee of $50,000, Bill Gates decided offer to transfer the copyright on the operating system, because he believed that other hardware vendors would clone IBM's system.

As of November, 2013 his net worth was estimated at US$ 76.8 billion

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Make decisions• Or you can make bad decisions

The Trojan Horse being taken into Troy as depicted by Venetian painter Giovanni Domenico Tiepolo circa 1760.

The Greeks constructed a huge wooden horse, and hid a select force of men inside. The Greeks pretended to sail away, and the Trojans pulled the horse into their city as a victory trophy. That night the Greek force crept out of the horse and opened the gates for the rest of the Greek army, which had sailed back under cover of night. The Greeks entered and destroyed the city of Troy, decisively ending the war. (Wikipedia)

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Why Study Information Systems?

Information technologies are playing an expanding role in business. Improving efficiency and effectiveness managerial decision making workgroup collaboration

→ The end result is that businesses can strengthen their competitive position in the rapidly changing marketplace

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Why Study Information Systems? Efficiency

Minimize Costs Minimize Time Minimize Use of Information Resources

Effectiveness Support an organization’s business strategies Enable its business processes Enhance organizational structure and culture Increase customer business value

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Why Study Information Systems? Internet-based systems have become a necessary

ingredient for business success How many of you:

• Purchased products on line that you would have not considered buying 5 years ago?

• Make airline reservations on line?

• Gotten product/service information on line?

→ Information technologies are playing an expanding role in business.

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Why do you have required accounting, marketing, management, economics and finance courses?

But why a required principles course?

→ Because these are all basic business functions(As are Information Systems)

It wasn’t always that way, however.

Let’s consider a typical Organization Table from the late 1970’s/early 1980’s

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CEO

VP Finance VP Production VP Marketing

Accounting

EDP Depart.

A (Simplified) Organizational Table (c. 1960)

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A (Simplified) Organizational Table (c. 1990)

VP Marketing VP Finance VP Production CIO

CEO

Why the difference? Information Systems are no longer viewed merely

as tools They have moved from a STAFF position to a

LINE position

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• The Conceptual Framework of IS KnowledgeWhat will we be studying in this course?

• Fundamental behavioral, technical, business and managerial concepts about IS components and IS roles

Chapters 1 & 2

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• The Conceptual Framework of IS KnowledgeWhat constitutes an information system?

• Major concepts, developments and management issues in issues in IS Technology• Hardware • Software • Networks

• Data Management• Internet

Technologies

Chapters 3 - 6

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• The challenges of effectively and ethically managing information systems at the end-user, enterprise, and global levels of the business

Chapters 13 & 14

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• The major uses of Information Technologies for operations, management and competitive advantages

Chapters 8 - 10

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• How information professionals and specialists plan, develop and implement information systems to meet business opportunities

Chapters 11 & 12

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So what is an information system?

• ALL the components must work together toward a single goal

• In fact it is many different and related systems that appear to be only one system

• It is a term that we use everyday, without thought to what it really means:

“I don’t understand why they chose the new inventory system instead of an SAP system”

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• Information systems should be viewed the same as any other system

• The solar system• A railway system• An ecological system• An economic System

(The European Community)

• They are:

• ALL the components work together toward a single goal

“a group of independent but interrelated elements comprising a unified whole”


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So what is an information system?• A basic system can be represented as

Input

Control

OutputProcessing

FeedbackSignals

ControlSignals

ControlSignals

FeedbackSignals

ENVIRONMENT

capturing and assembling elements that enter the system to be processed

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Input

Control

OutputProcessing

FeedbackSignals

ControlSignals

ControlSignals

FeedbackSignals

ENVIRONMENT

transformation steps that convert input into output

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Input

Control

OutputProcessing

FeedbackSignals

ControlSignals

ControlSignals

FeedbackSignals

ENVIRONMENT

transferring elements that have been produced by a transformation process to their ultimate destination

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Input

Control

OutputProcessing

FeedbackSignals

ControlSignals

ControlSignals

FeedbackSignals

ENVIRONMENT

monitoring and evaluating feedback to determine whether a system is moving toward its goal

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Input

Control

OutputProcessing

FeedbackSignals

ControlSignals

ControlSignals

FeedbackSignals

ENVIRONMENT

data about the performance of a system

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Input

Control

OutputProcessing

FeedbackSignals

ControlSignals

ControlSignals

FeedbackSignals

ENVIRONMENT

Adjustment to improve system performance

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What does this have to do with real life?

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• Closed Systems:• Mechanical systems are generally closed systems

To use a refrigerator you turn it on and set the temperature. After that you can forget about monitoring the temperature because it is done automatically.

• You might consider a prison system as a closed system (especially if a prisoner is locked-up in isolation)

• A simple computer program which always returns the same result may be considered a closed system

What types of systems are there?

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• Open Systems:• Living Organisms

• Some mechanical systems, such as thermostats, which rely on inputs from the environment

People are open systems since they must interact with their environment in order to take in food, water, and obtain shelter

and produce affects affecting the environment

What types of systems are there?

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The Systems Trinity: • Managers • Users• System’s Designers

What constitutes an information system?

As well as: • Customers• and others

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• microcomputers, midsize servers, and large mainframe systems

• the input, output, and storage devices that support them


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• operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management


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• operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management


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• Data Versus Information


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• While information systems rely on data, they must provide information

What’s the difference???• Data (pl) is a non-random sequence of symbols

Fernandez, Juan A19 1211 83 77 81

• Information, while generally based on data, is something that increases our knowledge

Juan Fernandez is an Accounting Major and has a 80.3 average in Principles of Accounting

(Based on analysis of the above data)

Data versus Information?

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• While information systems rely on data, they must provide information

What’s the difference???• Data (pl) is a non-random sequence of symbols

Fernandez, Juan A19 1211 83 77 81

• Information, while generally based on data, is something that increases our knowledge

Juan Fernandez is an Accounting Major and has a 80.3 average in Principles of Accounting

(Based on analysis of the above data)

Data versus Information?

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Aren’t Information Systems and Information Technology the same thing?

all components and resources necessary to deliver information and information processing functions to the organization

• Information Systems (IS):

• Information Technology (IT):

various hardware components necessary for the system to operate

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What are the Fundamental Roles of IS in Business?• Let’s first talk about the fundamental roles of management

Anthony’s Hierarchy of Management

Operational Management

(Production Manager)

• Focus is on the present

Middle or Tactical Mgt.

(Plant Manager)

• Focus is on the short term future(e.g., Budgeting)

Top Mgt.

(CEO)

• Focus is on the Long term future(e.g., New Products)

(e.g., Meeting Production Schedule)

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What are the Fundamental Roles of IS in Business?





(Plant Manager)

Top Mgt.

(CEO)

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What types of information do we need? That depends on what you need Let’s look at some of the dimensions of information

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Information needs and Management Levels





(Plant Manager)

Top Mgt.

(CEO)

• Very Timely

• Unscheduled

• Very current

• Dated

• Often needed

• Infrequent

• Present Data

• Future Orientation

• Historical Data

• Predictive

• Very Accurate

• Semi-accurate

• Very Relevant

• Semi-relevant

• Complete

• Incomplete

• Detailed

• Concise

• Narrow Scope

• Broad Scope

Form of presentation is a function of the manager’s preference

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What types of information do we need?





(Plant Manager)

Top Mgt.

(CEO)

Operations Support Systems• Transaction Processing• Process Control• Collaboration Systems

Management Support Systems• Management decision support• Management reporting systems

Strategic Information Systems• Competitive Advantage Systems• Long term Planning

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Operations Support Systems


Transaction Processing

Systems


Systems

process data resulting from business transactions, update operational databases, and produce business documents.

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Systems


Systems

•monitor and control industrial processes.

Process Control Systems


• Process control systems use electronic sensors linked to computers to continually monitor processes and make instant (real-time) adjustments that control the process.

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Systems


Systems

• support team, workgroup, and enterprise communications and collaboration.



Enterprise Collaboration

Systems

Enterprise Collaboration

Systems

• Enterprise collaboration systems enhance team and workgroup communications and productivity, and include applications that are sometimes called office automation.

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Management Support Systems


Management Information

Systems


Systems

provide information in the form of pre-specified reports and displays to support business decision making.

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Systems


Systems

Decision Support Systems


provide interactive ad hoc support for the decision making processes of managers and other business professionals.

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Systems


Systems



Executive Information

Systems

Executive Information

Systems

EIS systems are management information systems which are tailored to meet the strategic information needs of top management.

provide critical information from MIS, DSS, and other sources tailored to the information needs of executives.

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What types of information do we need? Other Information Systems

•Expert Systems•Attempts to apply the logic used by “Experts” in a specific field

•Knowledge Management Systems• Systems that support the creation, organization, and

dissemination of business knowledge to employees and managers

•Functional Business Systems• Information Systems that focus on operational and managerial

applications of business functions

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What types of information do we need? Other Information Systems

•Strategic Information Systems• Systems that support the creation, organization, and

dissemination of business knowledge to employees and managers

•Cross-functional Information Systems• Computer systems developed in order to help knowledge

workers create, organize, and share important business knowledge wherever and whenever needed.

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How have information systems evolved?

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How have information systems evolved? Network Configurations

•Local Area Networks (LANS)Short Range – within the same building

•IntranetsWithin a business – may be world-wide

•InternetsAvailable to anyone – world-wide

•ExtranetsA network between an enterprise and its trading partners

•Wide Area Networks (WANS)Long Range – May be world-wide

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How do we develop an information system?

What’s the problem? What are you doing? I think this is what you should be doing!

Let’s do it!

How are we doing? Let’s keep up the good stuff, and improve where we can!

(This is also known as the planning phase)

Who should be Involved? Everyone!

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What is E-Business? Using Internet technologies to empower:

• Business processes• Electronic commerce• Collaboration within a company• Collaboration with customers, suppliers, and

other business stakeholders In essence, an online exchange of value

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How is E-Business Being Used?

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E-Business Use Business Process 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

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What are the Managerial Challenges of information system? Some Examples:

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Success and Failure with IT

• Success should not be measured only by its efficiency• Success should include:

• The effectiveness of information technology in supporting and organization’s business strategies

• The enabling of its business processes

• The enhancement of organizational structures and culture

• The increase of customer and business value

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Introduction Summary

The IS Function is …

• An important contributor to operational efficiency, employee productivity, and customer service and satisfaction.

• a major source of information and support needed to promote effective decision making by managers and business professionals.

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Introduction Summary

The IS Function is …

• An important factor in developing competitive products and services that give an organization a strategic advantage in global marketplace.

• A functional area of business as important to business success as accounting, finance, operations management, marketing, and human resource management.

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Anything else I should know Information Anything else I should know Information Systems ???Systems ???

Of Course!!! That’s why you’re taking this course !!

??? Any Questions ?????? Any Questions ???

I’ve got lots of questions, but I know that no one else does, and I hate to look stupid --- BETTER TO JUST NOT KNOW!!!Ignorance, after all, IS bliss!!

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Chapter 1 Foundations of Information Systems in Business What do Managers do??? I know what Physicians, Firemen, Bus Drivers, Architects, Plumbers, Police