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INFORMATION SYSTEMS: AN OVERVIEW
CHAPTER 1
Hossein BIDGOLI
MIS
TJX Credit Card Breach
NFL Coaches
Fed Ex Cyrus
Chapter 1 Information Systems: An Overview
LO1 Discuss common applications of computers and information systems.
LO2 Explain the differences between computer literacy and information literacy.
LO3 Define transaction processing systems and management information systems.
LO4 Describe the four major components of an information system.
LO5 Discuss the differences between data and information.
l e a r n i n g o u t c o m e s
LO6 Explain the importance and applications of information systems in functional areas of a business.
LO7 Discuss how information technologies are used to gain a competitive advantage.
LO8 Explain the Five Forces Model and strategies for gaining a competitive advantage.
LO9 Summarize the future outlook of information systems.
l e a r n i n g o u t c o m e s (cont’d.)
Chapter 1 Information Systems: An Overview
•Use IS more than any other non IS field
Accounting
•Access to funds
•Where to invest ----Can be heavily analytical
Finance
•Sales force automation SFA
•Geographic IS CRM
Marketing
•HRM , payroll, benefits
HR
•SCM
•CAD/CAM
Operations
•Intranets
•Digital rights management systems
Media & Communications
Value of IS Knowledge in Different Careers
1-4
5
What is a system?
Combinations of hardware, software, and telecommunications networks that people build and use to collect, create and distribute useful data, typically in organizational settings.
What is an Information System?
6
Input ofData
Resources
Input ofData
Resources
Processing Data
Processing Data
Output ofInformation
Products
Output ofInformation
Products
Control of System PerformanceControl of System Performance
Storage of Data ResourcesStorage of Data Resources
1-7
Knowledge Worker (Peter Drucker 1959)• Professionals that create, modify and/or synthesize information as a
fundamental part of their job • They will require higher education levels and received higher
compensation than workers in agriculture or manufacturing• At least 35% of all workers in Canada are knowledge workers
Knowledge Worker (Peter Drucker 1959)• Professionals that create, modify and/or synthesize information as a
fundamental part of their job • They will require higher education levels and received higher
compensation than workers in agriculture or manufacturing• At least 35% of all workers in Canada are knowledge workers
1960 2000
Knowledge Worker
As a knowledge worker of the future, computers and information technology will help you be more effective and productive, no matter what profession you choose.
Computers and information systems are all around you◦ Online classes◦ Grading◦ Grocery and retail◦ PDA and smartphones◦ Internet
“Information systems” versus “information technology”
Computers and Information Systems in Daily Life
January 2007 Identity thieves stole more than 46.5 million
credit cards◦ Used sophisticated hacking techniques to break
through security systems◦ Stored the stolen information on servers in
Eastern Europe and the United States Shows the international nature of
cybercrime
TJX Companies, Inc.: Credit Card Breach
TJX Credit Card Breach
• Computer literacy ◦ Having skills in using productivity software
• Information literacy◦ Understanding the role of information in generating
and using business intelligence• Business intelligence (BI)
◦ Provides historical, current, and predictive views of business operations and environments
◦ Gives organizations a competitive advantage in the marketplace
Computer Literacy and Information Literacy
• Transaction processing systems (TPSs) ◦ Focus on data collection and processing,◦ Cost reduction◦ Operations repetitive◦ Human involvement minimal
The Beginning: Transaction Processing Systems
Fed Ex
• Management information system (MIS)◦ Organized integration of hardware and software
technologies, data, processes, and human elements
◦ Designed to produce timely, integrated, relevant, accurate, and useful information For decision-making purposes
Include:◦ Hardware components◦ MIS software◦ Processes
Management Information Systems
Designing an MIS◦ Define objectives◦ Collect and analyze data◦ Provide information in useful format
Used in both the private and public sect Many organizations use information
systems to gain a competitive advantage
Management Information Systems (cont’d.)
Data Database Process Information
Major Components of an Information System
• Data ◦ Input to the system
Sources of data◦ External◦ Internal
Time orientation Can be collected in different forms
◦ Aggregated ◦ Disaggregated
Data
414712905
SIN 414-712-905
ATM
Database◦ Heart of an information system◦ Collection of all relevant data organized in a
series of integrated files Essential for the success of any information
system Managed with database management
system (DBMS): e.g., Oracle Reduces personnel time needed to gather,
process, and interpret data manually
Database
Process ◦ Generates the most useful type of information for
decision making Generally includes transaction-processing
reports and models for decision analysis Includes a wide range of models to support
all levels of decision making
Process
Information◦ Output of an information system◦ Facts that have been analyzed by the process
component Quality of information
◦ Timeliness◦ Integration with other data and information◦ Consistency and accuracy◦ Relevance
Information
User interface◦ Must be flexible and easy to use◦ Graphical user interfaces (GUIs)
Ultimate goal of an information system ◦ Generate business intelligence (BI)
Information (cont’d.)
a university◦ The university stores all student data in a
database◦ Built-in query capability◦ Other types of analysis can be done
Example of Information Systems
1. Increase employee productivity by reducing time, errors and costs using
2. Enhance decision making 3. Improve team collaboration 4. Create business partnerships and alliances 5. Enable global reach all over the world taking into
consideration the culture of each nation or society. 6. Facilitate organizational transformation as the
organization evolves and responds to the ever-changing marketplace.
six major roles and goals of IT
21
Information technologies◦ Achieve goals of information systems
Examples◦ Internet◦ Databases◦ POS Systems◦ RFID tags
Using Information Systems and Information Technologies
POS system◦ Fast customer service ◦ Improved inventory management
Wireless network ◦ Efficient in-store communication
Web site ◦ Communicate with customers ◦ Increase sales with online orders
RFID tags ◦ Better manage inventory
Information Technologies at Home Depot
Information ◦ Second most important resource in any
organization Four Ms of resources:
◦ Manpower >> Personnel info system◦ Machinery >> Manufacturing Info System◦ Materials >> Logistics info system◦ Money >> Financial Info system
The Importance of Information Systems
1831
Competitive advantageSignificant, long-term benefit to a company over its competition
Ability to establish and maintain a competitive advantage is vital to a company’s success
Cyrus McCormick
• What sources of competitive advantage can you identify the New England Patriots have by using information technology?
• Are these long term, sustainable competitive advantages?
• From our list of Roles and goals of Technology, what does the IS of the NFL do?
26
NFL Coaches
NFL Coaches
Michael Porter◦ Professor at Harvard Business School◦ Identified three strategies for competing in the
marketplace successfully Overall cost leadership Differentiation Focus
Using Information Technologies for a Competitive Advantage
Using Information Technologies for a Competitive Advantage
Five Forces Model◦ Michael Porter◦ For analyzing an organization, its position in the
marketplace, and how information systems could be used to make it more competitive
Porter’s Five Forces Model: Understanding the Business Environment
How IS can have a factor in the industry
THE FIVE FORCES MODEL – analyze competitive forces in an Industry
30
Chief Technology Officer Manager of Info System Services Systems Analyst Network Administrator Database Administrator Computer Programmer Webmaster
The IT Job Market
Hardware and software costs continue to decline◦ Processing information less expensive in the
future Artificial intelligence and related
technologies will continue to improve and expand
Computer literacy will improve Networking technology will improve Personal computers will continue to improve
in power and quality
Future Outlooks
Internet growth and acceptance will continue
Computer criminals will become more sophisticated◦ Protecting personal identity information will
become more difficult
Future Outlooks (cont'd.)
Examples of uses for computers and information systems
Difference between computer literacy and information literacy
Management information system (MIS)◦ Data, database, process, and information
Porter◦ Three competitive strategies ◦ Five Forces Model
Summary