Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 90 views

    Foundations of Information Systems in Business

    Uploaded by

    Yasir Hasnain
    Foundations of Information Systems in Business

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Foundations of Information Systems in Business

    Uploaded by

    Yasir Hasnain
    90 views56 pages
    Foundations of Information Systems in Business

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Foundations of Information Systems in Business

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    90 views56 pages

    Foundations of Information Systems in Business

    Uploaded by

    Yasir Hasnain
    Foundations of Information Systems in Business

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 56

    Chapter

    1
    Foundations of
    Information Systems in Business

    McGraw-Hill/Irwin

    Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.

    Learning Objectives
    1. Understand the concept of a system and how it
    relates to information systems
    2. Explain why knowledge of information
    systems is important for business professionals

    Identify five areas of information systems


    knowledge needed

    1-2

    Learning Objectives
    3. Give examples to illustrate how business
    applications of information systems can
    support a firms

    Business processes
    Managerial decision making
    Strategies for competitive advantage

    4. Provide examples of information systems from


    your experiences with business organizations
    in the real world

    1-3

    Learning Objectives
    5. Identify challenges that a business manager
    might face in managing the successful, ethical
    development and
    use of information technology
    6. Provide examples of the components
    of real world information systems
    7. Become familiar with the myriad of career
    opportunities in information systems

    1-4

    Foundation Concepts
    Why study information systems and information
    technology?
    Vital component of successful businesses
    Helps businesses expand and compete
    Improves efficiency and effectiveness of
    business processes
    Facilitates managerial decision making and
    workgroup collaboration

    1-5

    Case 1: Heidelberg, Honeywell, Eaton


    Smart services, smart products
    Using information technology to monitor,
    intervene, assist

    Machines relay information via the Internet


    and wireless systems
    Optimized performance
    Minimized maintenance and repair costs
    Less unanticipated downtime

    Increased value justifies premium charge

    1-6

    Case Study Questions


    1. Why should manufacturing companies build
    smart products and provide smart services?

    What business benefits can be gained?


    Provide examples beyond those discussed in
    this case

    2. What information technologies are used


    by the companies in this case to build smart
    products and provide smart services?

    What other IT components might be used?


    Give examples of the capabilities they would
    provide
    1-7

    Case Study Questions


    3. What are some limitations of a smart products
    and smart services strategy?

    Give several examples that a business might


    encounter
    Explain how it might overcome them

    1-8

    What is a System?

    A set of interrelated components


    With a clearly defined boundary
    Working together
    To achieve a common set of objectives

    1-9

    What is an Information System?


    An organized combination of

    People
    Hardware and software
    Communication networks
    Data resources
    Policies and procedures

    This system
    Stores, retrieves, transforms, and disseminates
    information in an organization

    1-10

    Information Technologies
    Information Systems
    All the components and resources necessary to
    deliver information and functions to the
    organization
    Could be paper based

    Information Technologies
    Hardware, software, networking, data
    management

    Our focus will be on computer-based


    information systems (CBIS)
    1-11

    What Should Business Professionals Know?

    1-12

    Fundamental Roles of IS in Business

    1-13

    Trends in Information Systems

    1-14

    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

    1-15

    How E-Business is Being Used

    1-16

    E-Business Use
    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

    1-17

    Types of Information Systems


    Operations Support Systems

    Efficiently process business transactions


    Control industrial processes
    Support communication and collaboration
    Update corporate databases

    Management Support Systems


    Provide information as reports and displays
    Give direct computer support to managers during
    decision-making

    1-18

    Purposes of Information Systems

    1-19

    Operations Support Systems


    What do they do?

    Efficiently process business transactions


    Control industrial processes
    Support communications and collaboration
    Update corporate databases

    1-20

    Types of Operations Support Systems


    Transaction Processing Systems
    Record and process business transactions
    Examples: sales processing, inventory systems,
    accounting systems

    Process Control Systems


    Monitor and control physical processes
    Example: using sensors to monitor chemical
    processes in a petroleum refinery

    Enterprise Collaboration Systems


    Enhance team and workgroup communication
    Examples: email, video conferencing
    1-21

    Two Ways to Process Transactions


    Batch Processing
    Accumulate transactions over time and process
    periodically
    Example: a bank processes all checks received in
    a batch at night

    Online Processing
    Process transactions immediately
    Example: a bank processes an ATM withdrawal
    immediately

    1-22

    Management Support Systems


    What do they do?
    Provide information and support for effective
    decision making by managers
    Management information systems
    Decision support systems
    Executive information systems

    1-23

    Types of Management Support Systems


    Management Information Systems (MIS)
    Reports and displays
    Example: daily sales analysis reports

    Decision Support Systems (DSS)


    Interactive and ad hoc support
    Example: a what-if analysis to determine where
    to spend advertising dollars

    Executive Information Systems (EIS)


    Critical information for executives and managers
    Example: easy access to actions of competitors
    1-24

    Other Information Systems


    Expert Systems
    Provide expert advice
    Example: credit application advisor

    Knowledge Management Systems


    Support creation, organization, and dissemination
    of business knowledge throughout company
    Example: intranet access to best business
    practices

    1-25

    Other Information Systems


    Strategic Information Systems
    Help get a strategic advantage over customer
    Examples: shipment tracking, e-commerce Web
    systems

    Functional Business Systems


    Focus on operational and managerial applications
    of basic business functions
    Examples: accounting, finance, or marketing

    1-26

    IT Challenges and Opportunities

    1-27

    Measuring IT Success
    Efficiency
    Minimize cost, time, and use of information
    resources

    Effectiveness

    Support business strategies


    Enable business processes
    Enhance organizational structure and culture
    Increase customer and business value

    1-28

    Developing IS Solutions

    1-29

    Challenges and Ethics of IT


    Application of IT
    Customer relationship management
    Human resources management
    Business intelligence systems

    Potential Harm
    Infringements on privacy
    Inaccurate information
    Collusion

    1-30

    Challenges and Ethics of IT


    Potential Risks
    Consumer boycotts
    Work stoppages
    Government intervention

    Possible Responses
    Codes of ethics
    Incentives
    Certification

    1-31

    Ethical Responsibilities
    What uses of IT might be considered improper
    or harmful to other individuals or society?
    What is the proper business use of the Internet
    or a companys IT resources?
    How can you protect yourself from computer
    crime?

    1-32

    IT Careers
    Economic downturns have affected all job
    sectors, including IT
    Rising labor costs are pushing jobs to India,
    the Middle East, and Asia-Pacific countries
    However, IT employment opportunities are
    strong, with new jobs emerging daily
    Shortages of IT personnel are frequent
    The long-term job outlook is positive and
    exciting
    1-33

    IT Careers

    1-34

    IT Careers
    Job increases will be driven by
    Rapid growth in computer system design and
    related services
    The need to backfill positions
    Information sharing and client/server
    environments
    The need for those with problem-solving skills
    Falling hardware and software prices, which will
    fuel expanded computerization of operations

    1-35

    The IS Function
    The IS function is
    A major functional area of business
    An important contributor to operational
    efficiency, employee productivity, morale,
    customer service and satisfaction
    A major source of information and support for
    decision making
    A vital ingredient in developing competitive
    products and services in the global marketplace
    A dynamic and challenging career opportunity
    A key component of todays networked business
    1-36

    System Concepts: A Foundation


    System concepts help us understand
    Technology: hardware, software, data
    management, telecommunications networks
    Applications: to support inter-connected
    information systems
    Development: developing ways to use
    information technology includes designing the
    basic components of information systems
    Management: emphasizes the quality, strategic
    business value, and security of an organizations
    information systems
    1-37

    Real World Case: Lufthansa


    Lufthansa wants to
    Keep 3,500 pilots
    Trained on the latest technology and procedures
    Plugged into the corporate infrastructure
    Informed about schedules, weather events, and other
    facts that affect their jobs

    Control costs
    Provide Internet access to passengers

    1-38

    Case Study Questions


    Are many of Lufthansas challenges identified in
    the case similar to those being experienced by
    other businesses in todays global economy?
    What other tangible and intangible benefits,
    beyond those identified by Lufthansa, might a
    mobile workforce enjoy as a result of deploying
    mobile technologies?

    1-39

    Case Study Questions


    Lufthansa was clearly taking a big risk with their
    decision to deploy notebook computers to their
    pilots. What steps did they take to manage the
    risk, and what others might be needed in todays
    business environment?

    1-40

    What is a System?
    A system is

    A set of interrelated components


    With a clearly defined boundary
    Working together
    To achieve a common set of objectives
    By accepting inputs and producing outputs
    In an organized transformation process

    1-41

    Basic Functions of a System


    Input
    Capturing and assembling elements that enter the
    system to be processed

    Processing
    Transformation process that converts input into
    output

    Output
    Transferring transformed elements to their
    ultimate destination

    1-42

    Cybernetic System
    All systems have input, processing, and output
    A cybernetic system, a self-monitoring, selfregulating system, adds feedback and control:
    Feedback is data about the performance of a
    system
    Control involves monitoring and evaluating
    feedback to determine whether a system is
    moving toward the achievement of its goal

    1-43

    A Cybernetic System

    1-44

    A Business as a System

    1-45

    Other System Characteristics


    If a system is one of the components of a larger
    system, it is a subsystem
    The larger system is an environment

    Several systems may share the same


    environment
    Some may be connected via a shared boundary,
    or interface

    Types of systems
    Open
    Adaptive
    1-46

    Components of an IS

    1-47

    Information System Resources


    People Resources
    Specialists
    End users

    Hardware Resources
    Machines
    Media

    Software Resources
    Programs
    Procedures

    1-48

    Information System Resources


    Data Resources
    Product descriptions, customer records, employee
    files, inventory databases

    Network Resources
    Communications media, communications
    processors, network access and control software

    Information Resources
    Management reports and business documents
    using text and graphics displays, audio responses,
    and paper forms
    1-49

    Data Versus Information


    Data are raw facts about physical phenomena or
    business transactions
    Information is data that has been converted into
    meaningful and useful context for end users

    Examples:
    Sales data is names, quantities, and dollar
    amounts
    Sales information is amount of sales by product
    type, sales territory, or salesperson

    1-50

    IS Activities
    Input of data resources
    Data entry activities

    Processing of data into information


    Calculations, comparisons, sorting, and so on

    Output of information products


    Messages, reports, forms, graphic images

    Storage of data resources


    Data elements and databases

    Control of system performance


    Monitoring and evaluating feedback
    1-51

    Recognizing Information Systems


    Business professionals should be able to look at
    an information system and identify
    The people, hardware, software, data, and
    network resources they use
    The type of information products they produce
    The way they perform input, processing, output,
    storage, and control activities

    1-52

    Case 3: Aviall, Inc.


    Supplier of airplane parts and components
    Had lost track of its inventory
    Price-tracking software didnt work with
    inventory control or purchasing forecasting
    Sent wrong parts to wrong customers
    Sales falling

    Needed a middleware vision


    Get all the software to work together

    1-53

    Case Study Questions


    Why do you think that Aviall failed in their
    implementation of an airplane parts and
    components inventory control system?
    How has information technology brought new
    business success to Aviall? How did IT change
    Avialls business model?
    How could other companies use Avialls
    approach to the use of IT to improve their
    business success?

    1-54

    Case 4: Continental Airlines


    Building customer loyalty has become crucial
    for success in the airline industry
    Continental employs CallMinder systems to
    Monitor calls and keystrokes
    Data mine keystrokes and voice calls

    This technology resulted in

    Fewer calls going to the help desk


    Higher customer satisfaction
    Reduction of flight confirmation calls
    Cost savings in excess of $1 million
    1-55

    Case Questions
    What are the business benefits of the CallMiner
    system?
    How can new technologies like CallMiner help
    companies improve their customer service and
    gain a competitive edge in the marketplace?
    Andre Harris refers to calls to reconfirm a flight
    as quite frankly, low-value calls. Why are they
    classified as low value? Why do you think so
    many customers are placing such calls?
    1-56

    You might also like