BUS 710: Foundations of Information Systems

1. BUS 710: Foundations of Information Systems Introduction to Course Introduction to Information Management

2. Agenda • Introductions • Name cards • Syllabus – course overview • Lecture: • Introduction to Information Management • Group discussions BUS 710 - Fall 2003

3. Your Instructor • Name: Jakob Iversen • Background: • Danish Citizen • Software Engineer: Master’s Degree, 1996, Aalborg University, Denmark • Ph.D. in Computer Science, 2000, Aalborg University, Denmark. Thesis title: ”Data-Driven Intervention in software Process Improvment” • Assistant Professor at UW Oshkosh from Fall 2000 • Primary research interest: Software development and Software Process Improvement (SPI) BUS 710 - Fall 2003

4. Course Goals • Understand the relationship of the IS function to the general organization. • Understand basic IS hardware and software concepts and terms at the computer and network levels. • Understand basic database concepts. • Understand basic telecommunications and networking concepts, including the Internet. BUS 710 - Fall 2003

5. Course Goals – cont. • Understand the business implications of the Internet and eCommerce. • Understand IS project development methodologies. • Develop team (group) work skills. • Practice oral communication skills. • Be ready for additional IS coursework at the graduate level. BUS 710 - Fall 2003

6. Course Overview / Policy • Read before class – ask questions • Communication • Web page and email (all slides will be available on web) • Assignments/Exams/Grading • Final Exam 50% • Team Presentations 30% • Individual assignments 20% • Changes, suggestions, etc. • Schedule may change • Check your email BUS 710 - Fall 2003

7. Next Week • Until next time • Make sure your student account is working • Check email address listed on Blackboard • Continue group discussions • Blackboard groups will be created • Access Course Web site • http://www.uwosh.edu/faculty_staff/iversen/710-Osh • Check out Individual Assignment 1 • Next Thursday • Hardware and Software • Stair, Chapter 2 • First two team presentations BUS 710 - Fall 2003

8. CHAPTER 1INTRODUCTION BUSINESS AND INFORMATION TECHNOLOGY

9. Why did YOU take this course? • Well, since this is a required course ... Why do you think it is required? BUS 710 - Fall 2003

10. Why You Need to Learn About Information Technology • IT is Generally Interesting • IT Facilitates Work in Organizations • IT Offers Career Opportunities • IT is Used by All Departments • IT is Crucial to Society BUS 710 - Fall 2003

11. What Is Information? BUS 710 - Fall 2003

12. Transforming Data into Information BUS 710 - Fall 2003

13. What is a Computer-Based Information System? • Collects, processes, stores, analyzes, disseminates information • Specific purpose • Uses information technology • What information system did/will you interact with today? BUS 710 - Fall 2003

14. Functions of Information Systems BUS 710 - Fall 2003

15. Information Technology (IT) Components of Information Systems BUS 710 - Fall 2003

16. Information Technology (IT) Components of Information Systems BUS 710 - Fall 2003

17. Capabilities of Information Systems • Fast and Accurate Transactions • Large Capacity, Fast Access Storage • Fast Communications (machine to machine, human to human) • Reduce (and cause) Information Overload • Span Boundaries • Provide Support for Decision Making • Provide a Competitive Weapon • General Technological Trends for IT... • What trends have you observed? • What do you think will happen in the future? BUS 710 - Fall 2003

18. Types of Business Information Systems • Electronic Commerce • Transaction Processing Systems • Supports basic transactions in a company • Enterprise Resource Planning (ERP) • Unified system for an entire corporation • Information and Decision Support Systems • Systems that help managers make decisions • Special-Purpose Business Information Systems • Artificial Intelligence, Expert Systems, and Virtual Reality BUS 710 - Fall 2003

19. Organizations and Information Systems • Organization • A formal collection of people and other resources established to accomplish a set of goals • Value Chain • A series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service BUS 710 - Fall 2003

20. General Model of an Organization BUS 710 - Fall 2003

21. Porter’s Value Chain BUS 710 - Fall 2003

22. Manufacturing Value Chain BUS 710 - Fall 2003

23. Technology Diffusion and Infusion • Technology diffusion • A measure of how widely technology is spread throughout an organization • Technology infusion • The extent to which technology is deeply integrated into an area or department • Technology may be widely diffused but only highly infused in a few areas BUS 710 - Fall 2003

24. Porter’s Competitive Forces Model • Competition • a significant and (ideally) long-term benefit to a company over its competition • at the core of a firm’s success or failure • Porter’s Model can be used to develop strategies for companies to increase their competitive edge • The model demonstrates how IT can enhance competitiveness • 5 major forces: … Next slide… BUS 710 - Fall 2003

25. Porter’s Five Forces Model New Entrants Threat of New Entrants Industry Competitors Intensity of Rivalry Suppliers Buyers Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes Substitute Products BUS 710 - Fall 2003

26. Strategic Planning • Altering the industry structure • Creating new products and services • Improving existing product lines and services • Using information systems for strategic purposes BUS 710 - Fall 2003

27. Competitive Advantage Factors and Strategies BUS 710 - Fall 2003

28. Competitive Advantage Factors and Strategies BUS 710 - Fall 2003

29. Other Strategies • Cost leadership strategy - producing at lowest cost • Differentiation strategy - being unique • Focus strategy - selecting a narrow-scope segment • Growth strategy - increasing market share • Alliances strategy - working with business partners • Internal efficiency strategy - improving the manner in which business processes are executed • Customer-oriented strategy - concentrating on making customers happy BUS 710 - Fall 2003

30. Three Stages in the Use of IS BUS 710 - Fall 2003

31. The Evolution of IS Stage 1: Cost reduction and Productivity Stage 2: Competitive Advantage Stage 3: Performance-Based Management BUS 710 - Fall 2003

32. Measuring Performance • Productivity • A measure of the output achieved divided by the input requirement • Productivity=(Output/Input) x 100% • Quality • The ability of a product (including services) to meet or exceed customer expectations • Return on Investment (ROI) • One measure of IS value that investigates the additional profits or benefits that are generated as a percentage of the investment in information systems technology • Total Cost of Ownership (TCO) • Measuring both expense and benefits of a system. For a PC, includes purchase price, training, software, support, etc. BUS 710 - Fall 2003

33. Obvious costs Hardware Software license fees Personnel HW + SW deployment Support + service Custom application development Upgrades Energy + space Not-so-obvious costs System downtime – lost productivity, opportunities Being locked into a technology Moving to other technologies and platforms Having non-standard configurations Amount of training required Total Cost of Ownership (TCO) BUS 710 - Fall 2003

34. Information Systems Personnel BUS 710 - Fall 2003

35. Three IS Functions • Operations • Maintains and supports the use of corporate information systems • Systems Development • Development of corporate information systems • Support • Provides assistance to users BUS 710 - Fall 2003

36. Major IS Issues • Outsourcing • What services are best delivered by in-house expertise and what should be outsourced? • Cost savings, access to larger labor pool • On-shore, off-shore, near-shore • Centralized vs. Decentralized organization • Showing value of IS to the organization • Disaster/Business Recovery • Security BUS 710 - Fall 2003

37. www.salary.com http://www.computerworld.com/careertopics/careers/story/0,10801,75368,00.html http://marketing.dice.com/rateresults/ IT Jobs BUS 710 - Fall 2003

38. The 10 Fastest-Growing Occupations 2003-2010 Read more in September 2003 issue of Business 2.0 (page 97) BUS 710 - Fall 2003