Chapter 1 Information Systems: The Big Picture

1. Chapter 1Information Systems:The Big Picture PowerPoint Presentation Jack Van Deventer Ward Eagen

2. Textbook Overview • Ch 1 – IS: The Big Picture • Ch 2 – IS for Competitive Advantage • Ch 3 – Database Management • Ch 4 – Telecommunications and the Internet • Ch 5 – E-Business, Intranets, and Extranets • Ch 6 – Organizational Information Systems • Ch 7 – Enterprise-Wide IS • Ch 8 – IS Development and Acquisition • Ch 9 – IS Ethics, Computer Crime, and Security

3. Textbook Overview • Appendix A – IS Hardware • Appendix B – IS Software • Appendix C – Networking

4. Chapter 1 Objectives • Understand the term information systems (IS) • Understand IS components: • Technology, people, organizations • Understand IS career opportunities • Understand types of information systems • Understand IS and organizational success or failure • Understand the future of IS management

5. Case: Whistler.com Powers Up • Whistler.com has contracted Fusepoint Managed Services to handle its entire IT infrastructure for Vancouver’s 2010 Winter Olympic Games online • It believes that “digging deeper into information sources is the new direction” • “Where we see the opportunity in this overall space is with people buying IT like it’s electricity”

6. Information Systems Defined Combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data in organizations

7. SakTel Pushes Broadband • SaskTel will spend $121 million expanding high- speed Internet to rural areas • Its goal is to bring high bandwidth to communities as small as 100–200 people and it is exploring fixed wireless to reach 95% of the provincial population • Considering it a social responsibility, SaskTel says “you just don’t know if you’re ever going to make money at that”

8. Key Elements of Information Systems

9. Knowledge as a Business Resource • Knowledge Worker • A well-educated professional who creates, modifies, or synthesizes knowledge in one’s profession • Knowledge Society • Also called digital society, new economy • Working with brains instead of hands • The importance of education • Digital divide

10. Accounting and Finance: Scotiabank • Global Finance magazine rated Scotiabank as Best Canadian Internet bank • Scotiabank seeks constant improvement through a monthly customer satisfaction survey—it has a 94% satisfaction index • Cost and ROI are questions, but the retention of online customers is strategic in repositioning the bank to be in the wealth-management business

11. Data • Data: raw material, unformatted information • Information: processed data (meaningful) • Knowledge: understanding relationships between pieces of information • Wisdom: knowledge accumulated and applied

12. Theory or Practice • Generally in Canada, colleges tend to be hands-on and universities tend to be theory-based: What is more important? • How can you be strategic about finance and marketing if you do not know the tool? • How one resolves this is a continuing debate in higher education and business.

13. Technology and Information Systems • Computer-Based Information Systems • One type of technology • Technology – any mechanical and/or electrical means to supplement, extend, or replace human activity • Information Technology (IT) – machine technology controlled by or using information • The goal of IS is to provide useful data to users • IS can be local or global, organizational or enterprise-wide

14. Careers: Operations Management • Trends • Virtual corporations • Network infrastructure • How wired is your firm?

15. The People Side of IS • Despite economic ups and downs… • Labour shortages predicted • U.S. Bureau of Labor Statistics • http://stats.bls.gov/emp/emptab3.htm • Ranked among best jobs available

16. Human Resource Management • Communication between IT workers (who get satisfaction from making something that works) and, for example, accountants (who focus on the impact to the business) is a problem in many firms • Few computer science programs integrate business and marketing with their technical training • From the other side, too few leaders are comfortable with the technology issues • There needs to be a shared perspective between IT and non-IT managers before strategy can evolve

17. Careers in IS • Systems Analyst • Systems Programmer • Systems Consultant • Database Administrator • Webmaster • IS Director • Chief Information Officer • Professor • Government scientist

18. Chief Information Officer (CIO) • Responsible for organization’s IS • Executive level • Became prominent in 1980s • Challenges • Tightening budgets • Expectation management • Subordinates • Mid-level managers • IS directors • Project managers

19. CIO IS director Account Executive Info Centre Manager Development Manager Project Manager Maintenance Manager Systems Manager IS planning Manager Operations Manager Programming Manager Systems Programming Manager Manager of Emerging Technologies Telecommunications Manager Network Manager Database Administrator Auditing or Computer Security Manager Quality Assurance Manager Webmaster IS Managerial Personnel

20. The High Value of IS Personnel • Supply and Demand • Aggressive recruiting • High salaries • Broad demand • Large and small companies • Urban and rural

21. Integrating Skills and Knowledge • Technology • Hardware, software, networking • Business • Business, management, social, communications • Systems • Integration, development methods, critical thinking, problem solving

22. Hot Skills in IS Workers • Office / E-mail • Languages • Applications • RDBS Administration • Development Tools • Internetworking • Operating Systems • NOS LAN Administration • Networking

23. The Organizational Side of IS • Transaction Processing System • Management Information System • Executive Information System • Decision Support System • Expert System • Functional Area Information System • Office Automation System (a.k.a. Personal Productivity Software) • Collaboration System • Customer Relationship Management System • Electronic Commerce System • Enterprise Resource Planning System

24. Marketing: Ticketmaster • Ticketmaster grew from a small company that handled tickets for college events at Arizona State University in 1978 to the world’s largest online ticket resource and more • Much of the success is due to Ticketmaster’s Citysearch Web sites, which are online guides for 128 cities or regions worldwide • Ticketmaster is constantly integrating cutting-edge technologies and systems into its business (e.g., wireless and handheld technologies)

25. Operations Management • With just in time (JIT) manufacturing, a few minutes can mean thousands of dollars • Global positioning systems (GPS) are used in tracking material but have shortcomings because they require line-of-sight transmission • Bell Mobility and Sedum Corp. of Vancouver have developed a new service combining Bell’s cellular network with GPS technology, allowing tracking in bad weather, indoors, etc.

26. Disaster Plans for IS • That IS is crucial to corporate success is illustrated by the need for disaster planning • Power Blackout 2003 • Are companies prepared now? • What’s at stake? • The consequences of failing to plan

27. When Things Go Wrong • Blackouts, blizzards, and terrorist acts underscore the importance of contingency plans for IS, yet little time is given to disaster recovery strategy • 44% of Canadian firms surveyed do not have a disaster recovery plan in place • Why? The biggest challenge is funding • And existing plans are rarely tested • 25% of companies have a disaster recovery plan for their midrange data centres (payroll and HR), and only 1/3 of these have actually tested it

28. The Dual Nature of IS • Systems can dictate success or failure • Case 1: Denver International Airport • Case 2: Federal Express • Factors affecting success/failure: • Size and complexity of project • Size and nature of organization

29. IS for Competitive Advantage • Strategic Systems • Competition: doing things faster, better, cheaper • How can systems gain one’s organization a competitive advantage?

30. Global Perspective • Offshore outsourcing is pushing beyond its roots in India: The programming skills needed now exist in China, the Philippines, Russia, Eastern Europe, etc. • A 25% cost savings for an offshore outsourcing contract is realistic • Most outsourcing firms have management personnel in North America to mitigate the risk • Outsourcing has become a worldwide search for the right mix of talent, resources, and cost savings

31. International Outsourcing • Round-the-clock productivity • Cost savings

32. IS Within the Firm • Traditionally a love/hate relationship • “Techies” vs. mere “users” (us vs. them) • Poor service, lousy attitudes • Now: progress toward better customer service • Better relationships within the company • Cooperation, not rivalry

33. IT Personalities • IT workers are near the bottom of the list in perceiving the importance of communication • The irony of those charged with communication in the company not being keen on communicating themselves has negative effects on the status and mobility of IT people, but this is changing • As the significance of IT to the business grows, IT is being seen as core and not a cost centre

34. The Spread of Technology in Organizations • Technology infiltrates business units • Dual role for IS workers: • Work with IS technical group • Work with business unit (marketing, finance, etc.)

35. The Spread of Technology in Organizations • Benefits of centralized IS function • Coordinated planning • Consistent management • Systems compatibility and connectivity

36. Human Resource Planning for IS • The human resource challenge: • Tech workers need to understand business • Business workers must understand technology • Fluctuations in hiring tech workers: • Downsizing issues • Recruiting issues

37. Career Prospects and Opportunities • IS applies to nearly every functional area within a firm • One may become indispensable in a firm through mastering tech skills • Anticipated growth in tech hiring

38. Staying Current with IS News • Great sources for IS current info: • informationweek.com • computerworld.com • cio.com • cipa.com • CanadaIT.com • GlobeTechnology.com

39. Coming Attractions:Bright Future for Organic Displays • Organic Displays (Organic Light Emitting Device) are being developed at the University of Toronto • Thin as paper, and just as flexible, OLED is considered the next major display technology and will replace LCDs in the future • Some products are available now but common commercial use won’t occur until at least 2010 • OLED produces an extremely clear image that can be viewed from multiple angles, but currently OLED screens have a very limited life span

40. Canucks @ Microsoft, Eh? • Why are there so many Canadians at Microsoft? • Higher salaries, more opportunities, and more interesting research attracts many • Microsoft is a model co-op student employer, giving many Canadian students (15-30 Waterloo University students a semester) meaningful work and contracts after graduation • Brain drain? The term is just not meaningful in the current global market