What is IS?

IS – a set of interrelated components working together to collect, retrieve, process, store, and distribute information for the purpose of facilitating planning, control, coordination, analysis, and decision making in business organizations

Input-process-output perspectivePeople-organization-technology

perspective

Choice Hotels Reservation System example:

Technology – the means by which data is transformed and organized for business use: Hardware Software Database Telecommunication

People – the users of IS Organization -- a collection of functional

units working together to achieve a common goal

Functional units of business organizations:

production sales/marketing finance/accounting human resources

maximize profit by producing goods and/or services

Functional Areas of Business

The manufacturing and production function is responsible for producing the firm's goods and services. There are three stages of the manufacturing/ production process: inbound logistics production outbound logistics

Functional Areas of Business

The sales and marketing function is responsible for finding customers for the firm's product or service and selling the firm's product or service to those customers. The sales and marketing process consists of

identifying and creating markets developing markets maintaining markets

Functional Areas of Business

The finance and accounting function is responsible for managing the firm's financial assets and maintaining the firm's financial records. The finance process involves managing the firm's financial assets, whereas the accounting process is involved primarily in financial record keeping.

Functional Areas of Business

The human resource function is responsible for attracting and maintaining an appropriate work force for the firm. The human resources process entails attracting the work force developing the firm's work force to meet the

firm's personnel needs maintaining the work force

Computer vs IS literacy

IS in Business

Business functionsBusiness processes

A series of interrelated activities through which work is organized and focused to produce a product or service

Business levels Strategic (long range planning) Tactical (co-ordinate & supervise) Operational (produce product & service)

The order generation and fulfillment process (Fig. 2.2)

Role of IS in Business

Competitive advantageLow-cost (value chain)Market niche Product differentiation Customer loyalty

GlobalizationPeople (language)Organization (culture) Technology (telecommunication)

The value chain views the firm as a series of basic activities that add value to a firm's products or services (Fig. 3-2)

Primary activities•inbound logistics, •operations, •outbound logistics, •sales and marketing•service

Support activities•administration and management•human resources•technology and procurement.

Quality Process simplification Benchmarking Customer focus Cycle time reduction Improve design & production Error reduction

Reengineering Business processes redesign

Ethical & social responsibility Information rights & privacy Intellectual property Accountability & liability Quality of life

IS Approach to Problem Solving

Systems Analysis

Systems Design

Systems Analysis & Design

Systems Analysis Problem analysis (what) Information gathering (where & why) Decision making (how)

Establish objectivesDetermine feasibilityChoose best solution

Systems Design (Input, Process, Output, Procedures, Control) Logical design

Systems Analysis & DesignSystems Design

Logical design (what will the system do?) Input: content, format, source, volume, frequency, timing Process: rule, model, formula, timing Output: content, format, organization, volume, freq., timing Storage: data, format, organization, relationship, volume Procedure: manual activities, rule, sequence, timing,

location Control: security, accuracy, validity, supervision

Physical design (how the system will work?) Input: keyboard, voice, scanner Process: PC, operating system, software Output: print-outs, files, audio Storage: tape, CD Procedure: batching, backup, auditing, data entry Control: batch control, password, audit logs

Implementation (coding, testing, training)

Technology perspective to problem solving

Organizational perspective to problem solving

People perspective to problem solving