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Foundations of Information Systems in Business

Module I – Foundation Concepts. Foundations of Information Systems in Business. Learning Objectives. 1. Importance of information systems and five needed areas of knowledge

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Foundations of Information Systems in Business

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  1. Module I – Foundation Concepts Foundations of Information Systems in Business

  2. Learning Objectives 1. Importance of information systems and five needed areas of knowledge 2. Examples of business applications of information systems that support a firm’s business processes, managerial decision-making, and strategies for competitive advantage 3. Provide examples of several major types of information systems from your experiences with business organizations in the real world

  3. Learning Objectives 4. Identify challenges a business manager might face in managing the successful and ethical development and use of information technology in a business 5. Components of real world information systems - the use of hardware, software, data, and networks to perform input, processing, output, storage, and control activities that transform data resources into information products

  4. Foundation Concepts: Information Systems in Business Section 1 Why Study IS and IT? An Essential Field of Study in Business Real World of Information Systems Real World Case 1- Amazon.Com Click to go to Case 1

  5. Information Technologies What is an Information System? • Computer Hardware • Computer Software • Telecommunications Network • Data Resource Management

  6. IS Framework for Business Foundation Concepts Information Technologies Information Systems Business Applications Development Processes Management Challenges Management Challenges Business Applications Information Technologies Information Systems Development Processes Foundation Concepts

  7. Roles of IS in Business Support Strategies for Competitive Advantage Support Business Decision Making Support Business Processes and Operations

  8. Roles of e-Business in Business The Internet Extranets Suppliers and Other Business Partners Company Boundary Supply chain management: Procurement, Distribution, and Logistics Intranets Engineering and Research Manufacturing and Production Accounting and Finance Intranets Customer relationship management: Marketing Sales Customer Service Extranets Consumers and Business Customers

  9. Roles of e-Business in Business WESCO International E-Business Sales and Supplier System • Distributor of Electrical Products and Supplies • Over 6,000 Employees • 5 Distribution Centers • 360 Branches Worldwide • Over 100,000 Customers • New E-Business Ordering System • Increased Sales and Cut Costs • Est. $12 million Savings Annually

  10. Trends in Information Systems Electronic Business & Commerce: 1990s – 2000s Internet-Based E-Business and E-Commerce systems Strategic and End User Support: 1980s – 1990s End User Computing Systems Executive Information Systems Expert Systems Strategic Information Systems Expanding Participation of End Users and Managers in IS Decision Support: 1970s – 1980s Decision Support Systems Expanding Roles of IS in Business and Management Management Reporting: 1960s – 1970s Management Information Systems Data Processing: 1950s – 1960s Electronic Data Processing Systems

  11. Types of Information Systems Information Systems Support of Managerial Decision Making Support of Business Operations Operations Support Systems Management Support Systems Transaction Processing Systems Executive Information Systems Process Control Systems Decision Support Systems Management Information Systems Enterprise Collaboration Systems Control of Industrial Processes Processing Business Transactions Team and Workgroup Collaboration Prespecified Reporting for Managers Interactive Decision Support Information Tailored for Executives

  12. Other Information Systems • Expert Systems (ES) • Knowledge Management Systems • Functional Business Systems • Strategic Information Systems (SIS) • Cross-Functional Information Systems

  13. Managerial Challenges of IT The Business Enterprise Strategies/ Processes/ Structure/ Culture Information Technology Customer Value/ Business Value Business/IT Goals Business/IT Developments Business/IT Challenges

  14. Managerial Challenges of IT Hershey Foods: Failure and Success with IT • Problems with ERP Software • $112 Million Project – • Order Processing Problems • Multiple Vendor Applications Being Installed Simultaneously • Initial Problems to Implement • Recent Success with Upgrades

  15. Developing IS Solutions Investigate Analyze Maintain Design Implement

  16. The IS Function • A Major Functional Area of Business – Important to Success • Important Contributor to Operational Efficiency, Employee Productivity and Morale, and Customer Service and Satisfaction • A Major Source of Information for Decision Making

  17. Developing IS Solutions A-DEC Inc.: Challenges in Systems Development • New ERP Suite of Software • Loss of Business • Workers Didn’t Understand System • Upgrade of Servers and Databases • Redesigning Processes and Training Customers • Now Reaping Benefits

  18. Challenges of Ethics and IT • Ethical Responsibilities • Be a Responsible End-User Applications of IT Potential Harms Potential Risks Possible Responses Customer Relationship Management Infringe- ments on Privacy Customer Boycotts Codes of Ethics Human Resources Management Inaccurate Information Work Stoppages Incentives Business Intelligence Systems Government Intervention Certification Collusion

  19. Challenges of Ethics and IT • Protection from Crime and Other Risks Link Staffing: Network Security and Ethical Use • E-Mail and Antivirus Filtering • Limits on Size and Types of Attachments, Chatting Banned • Use of Secure VPN Service • Tough Employee Standards • Termination for Violations

  20. Challenges of IT Careers Amazon.Com: IT Career Challenges • Huge Demand for Systems Professionals • On-line Customer Sales Support • Technology as a Means to an End Where the End is the Customer or Just Have Technical Skills • Hard to Find a Combination of Skills • Functioning in Unexplored Territory

  21. The IS Function • Vital for Developing Competitive Products and Services to Gain Strategic Advantage • Dynamic, Rewarding, and Challenging Career Opportunities • Key Component of the Resources, Infrastructure, and Capabilities of Networked Business Enterprises

  22. Foundation Concepts: The Components of Information Systems Section II • Technology • Applications • Development • Management Real World Case 2- Kodak, HP, and Amersham Biosciences Click to go to Case 2

  23. Systems Concepts: A Foundation What is a System? • Input • Processing • Output • Feedback • Control

  24. Systems Concepts • Environment • Subsystem • Interface • Open Systems • Adaptive System Graphically…

  25. Information System Model Stakeholders in the Business Environment The Community Competitors Control Management Feedback Government Agencies Customers Information Systems Goods & Services Business Resources Economic Resources Stockholders Suppliers Output Processing Input Financial Institutions Labor Unions

  26. Components of an IS 1. People Resources - End Users - IS Specialists 2. Hardware - Machines - Media 3. Software - Programs - Procedures 4. Data Resources - Data and Knowledge Bases 5. Network Resources - Communications Media and Networks

  27. Components of an IS Software Resources • System Software • Application Software • Procedures Data Resources • Data Bases • Knowledge Bases Data vs. Information

  28. Information System Activities Input Data Resources • Source Document • User Interface Processing Data into Information Products Storage of Data Resources Control of System Performance

  29. Recognizing Information Systems Analyzing Information Systems Recognizing: IS Resources Information Products IS Activities

  30. Recognizing Information Systems Analyzing Kodak and HP’s Information Systems • IS Resources • Information Products • IS Activities Chapter Conclusions…

  31. Summary 1. An IS Framework for Business Professionals 1) Foundation Concepts - Fundamental Concepts of IS 2) Information Technologies – Hardware, Software, Data Management, and Networks 3) Business Applications – Processes, Operations, Decision Making, Strategic/Competitive Advantage 4) Development Processes – Develop and Implement Business/IT Solutions 5) Managerial Challenges – IT Uses for Top Performance and Business Value

  32. Summary 2. Business Roles of Info. Systems 1) Three Vital Roles of IS – a- Support Business Processes b- Business Decision Making c- Strategic Competitive Advantage 2) Management Support Systems 3) Management Information Systems 4) Decision Support Systems 5) Executive Information Systems 6) Expert Systems 7) Knowledge Management Systems 8) Strategic Information Systems 9) Functional and Cross-Functional Information Systems

  33. Summary 3. Systems Concepts 1) Interrelated Components – Common objective 2) Inputs 3) Processing 4) Outputs 5) Feedback 6) Control

  34. Summary 4. An Information System Model 1) People 2) Hardware 3) Software 4) Data 5) Networks 6) Storage

  35. Summary 5. IS Resources and Products 1) Hardware Resources 2) Software Resources -Programs -Procedures 3) People Resources -Systems Specialists -Users

  36. Computer-Based Information System Control Data Data or Information Processing Data Resources Developing Business/IT Solutions E-Business E-Business Role in Business Electronic Commerce End User Enterprise Collaboration Systems KEY TERMS

  37. Extranet Feedback Hardware Resources - Machines – Media Information - Products - Quality Information System Information System Activities - Input - Processing - Output - Storage - Control Information System model Information Technology (IT) Intranet KEY TERMS

  38. IS Knowledge Needed by Business Professionals Knowledge Workers Management Challenges of IS - Ethics and IT - IT Career Challenges - IT Success and Failure Network Resources People Resources - IS Specialists - End Users Roles of IS Applications in Business - Support of Business Processes and Operations KEY TERMS

  39. - Support of Business Decision Making - Support of Strategies for Competitive Advantage Software Resources - Programs - Procedures System Trends in Information Systems Types of Information Systems - Cross-Functional Systems - Management Support Systems - Operations Support Systems KEY TERMS

  40. Optional Case Studies Click to go to Case 1 Real World Case 1 Amazon.Com Real World Case 2 Kodak, HP, and Amersham Biosciences Click to go to Case 2 Click to go to Case 3 Real World Case 3 Aviall, Inc. Click to go to Case 4 Real World Case 4 Pacific Gas & Electric, Inc.

  41. Next... Competing with Information Technology Chapter 2

  42. Amazon.Com Case 1 1- Could Amazon.com achieve business success without information technology? Why or why not? • Fundamental Roles of IS Including: • Support of Operations, Decision Making and Strategic Competitive Advantages • Use of E-Business Environment • Usage of Internet, Intranet and Extranet Technologies • Management Style of Decision Making • Dependence on IT for Competitive Strategies Return to Chapter 1 Return to Cases Page

  43. Amazon.Com Case 1 2- Can any business today succeed without information technology? Why or why not? • IT Plays a Vital and Expanding Role in all Businesses • Planning and Using IT Should be a Key Component of all Efforts by a Business to Remain Competitive in a Global Environment • Expanding Roles of the Business Applications of IS • Classification of IS that Describe the Role of Each in the Support of Business Operations and Managerial Decision Making

  44. Amazon.Com Case 1 3- Jeff Bezos says that: “The trouble with most corporations is that they make judgment-based decisions, when data-based decisions could be made.” Do you agree or not? Explain. Return to Chapter 1 Return to Cases Page

  45. Amazon.Com Case 1 3- Jeff Bezos says that: “The trouble with most corporations is that they make judgment-based decisions, when data-based decisions could be made.” Do you agree or not? Explain. • Major Roles of IS in a Business Return to Chapter 1 Return to Cases Page

  46. Amazon.Com Case 1 3- Jeff Bezos says that: “The trouble with most corporations is that they make judgment-based decisions, when data-based decisions could be made.” Do you agree or not? Explain. • Major Roles of IS in a Business • Trends in IS that Depict the Changing Role of IS to Support Managerial Decision Making Return to Chapter 1 Return to Cases Page

  47. Case 2 Kodak, HP, andAmersham Biosciences What is the business challenge facing companies like Kodak and HP in supporting their global sales forces? How successfully is the Eloquent software tool helping these two companies meet this challenge? Explain. Return to Chapter 1 Return to Cases Page

  48. Kodak, HP, andAmersham Biosciences Case 2 • Silo syndrome - The Cost of Employee Time Spent on Research, Preparing Reports and Developing Support for the Sales Staff Without an Easy Way to Access the Information • Data is Being Collected, but Kodak and HP are not Good at Sharing and Updating the Data • Unused Valuable Marketing Information and Other Intellectual Property Challenges would include:

  49. Kodak, HP, andAmersham Biosciences Case 2 • Ability to Deliver a Full Range of Product Information • Includes Text, Synchronized Video, Graphics, Audio and Search Capabilities to Globally Dispersed Sales Organizations • Allowing People to get More Done and Spend More Face Time with Customers as Opposed to Calling on the Phone to Kodak How successful is the Eloquent software tool is described by Kodak and HP:

  50. Kodak, HP, andAmersham Biosciences Case 2 • HP’s Ability to “Close the Loop on Sales Readiness” with the Eloquent Software’s Capability to Track and Report on Usage and Measurement of Learning Led to a Tenfold Return on Investment for the Company How successful is the Eloquent software tool is described by Kodak and HP:

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