Introduction to Information Systems

1. Introduction to Information Systems http://www.youtube.com/watch?v=6ILQrUrEWe8

2. The Plan • Me: MadhuRao • The Course: MBA560: Management of IT • The Course Structure and Requirements • Introductions • Break • Introduction to Information Systems

3. Data Vs. Information 392: Chocolate Chip Cookies 342: Coffee Powder 341: Red Curry Paste 392: Chocolate Chip Cookies 391: Keebler Fudge Sticks … … Data • Region:Redmond • Store:QFC Store 32 • Item#DescriptionUnits Sold • Choc Chip Ck 2397 • YTD Sales • $6972.78 Information

4. Data vs. Information • The eternal question • Data • “Streams of raw fact representing events occurring in organizations or their environments before they have been organized and arranged into a form suitable for human interpretation” • Information • “Data that have been shaped into a form that is meaningful and useful” • What then is “knowledge”

5. The Transformation: From Data to Wisdom • Data is transformed into information • Resources used to organize data into categories • Examples include monthly reports, regional summaries, etc. • Information is transformed into knowledge • Knowledge is understanding patterns, rules and contexts. • Knowledge is transformed into wisdom • Collective and individual experience in applying knowledge to solve a problem • Wisdom is where, when and how to apply knowledge

6. The transformation…Data, Information, Knowledge, Wisdom Where is the Life we have lost in living? Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information? -T.S. Eliott, “The Rock”, 1934

7. Information? What’s the big deal? • Globalization • Transformation of Industrial Economies • The Changing Organization

8. Emergence of Global Economy • Management and control in a global marketplace • Competition in global markets • Global workgroups • Global delivery systems

9. From Industrial to Post-Industrial Societies • Knowledge- and information-based economies • Productivity • New products and services • Shorter product life-cycle • Turbulent operating environment

10. Transformation of the Organization • Flattening • Decentralization • Flexibility • Location independence • Low transaction and coordination costs • Empowerment • Collaborative work and team activities

11. So, what is an Information System, anyway?

12. What is a System?

13. A System

14. A System Input

15. A System Process Input

16. A System Process Output Input

17. A System Process Output Input feedback

18. A System Competitors Customers Process Output Input feedback Suppliers Government

19. What is an Information System? • a set of interrelated components that • collect (or retrieve) • process • store • distribute information in order to support • decisionmaking • coordinationandcontrol

20. Approaches to Information Systems Technical Approaches Computer Science Operations Research Management Science Information Systems Sociology Psychology Economics Behavioral Approaches

21. Information Architecture • Levels within a firm • Functional Areas • Types of Systems • Foundation of technology

22. Levels and Functions within an Organization • Levels • Operational • Management • Strategic • Functions • Sales and Marketing • Manufacturing and Production • Finance and Accounting • Human Resources

23. Organization structure strategic management oper Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting

24. strategic Information Architecture management oper Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting Hardware Software Data and Storage Networks IT Infrastructure

25. Level of the System • Operational-level systems • Keep track of elementary activities and transactions • Sales, receipts, payroll, etc. • Purpose is to answer routine questions and track flow of transactions

26. Level of the System • Management-level systems • Keep track of monitoring, controlling decision making, and administrative work of middle management • Periodic reports • Some may be used for non-routine decisions • What-if analysis • Typically draws information from operational systems • Strategic-level systems • Assist senior management in making long-term decisions • Typically non-routine, unstructured decision making activities

27. Types of Information Systems • Executive Support Systems (ESS) • Management Information Systems (MIS) • Decision Support Systems (DSS) • Transaction Processing Systems (TPS)

28. Types of Systems • Transaction Processing Systems • serves operational needs • performs/records daily and routine transactions • span boundary of organization and environment • major supplier of information to other IS • examples • airline reservation system • payroll system • plant scheduling

29. Types of Systems (contd.) • Management Information Systems • serves activities of planning, controllingand decision-making at the management level • usually take form of performance reports (such as exception or summary reports) • limited analytical ability • often (mistakenly) equated with IS

30. Types of Systems (contd.) • Decision Support Systems • focussed on a specific type of problem • more analytical ability than an MIS • more interactive • eg: lease or buy in face of volatile interest rates • Executive Support Systems • used by senior management • used for unstructured problems • heavy graphics base

31. Information System Integration Strategic Level Management Level Management Level Operational Level

32. Information System Integration Strategic Level Management Level Management Level TPS Operational Level

33. Information System Integration Strategic Level Management Level Management Level DSS MIS TPS Operational Level

34. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

35. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

36. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

37. Information System Integration Strategic Level ESS Management Level Management Level DSS MIS TPS Operational Level

38. Business Processes and IS • BPs are a set of interrelated activities aimed at achieving a specific result. • Examples • Manufacturing and Production • Checking quality • Assembling a product • Sales and Marketing • Identifying customers • Selling a product • Some processes go across functional areas

39. Cross-functional business process Order Fulfillment Process Sales Submit Order Generate Order Accounting Check Credit Approve Credit Generate Invoice Manufacturing And Production Assemble Product Ship Product

40. Enterprise Applications • Various systems described earlier operate within their level and functional area • Operational: TPS • Management: MIS and DSS • Strategic: ESS • But what about information systems that go across multiple levels and functions? • Known as Enterprise Applications • For example, SCM and CRM

41. Enterprise Resource Planning Systems Suppliers, other Business partners Customers, distributors Enterprise Systems Processes CRM Systems SCM Systems Processes Knowledge Management Systems Sales and Marketing Manufacturing and Production Human Resources Finance and Accounting Hardware Software Data and Storage Networks

42. The old way…. Functional Areas Manufacturing and Production Finance and Accounting Sales and Marketing HR Manufacturing and Production Finance and Accounting Sales and Marketing HR Information Systems

43. The new way…. Manufacturing and Production Finance and Accounting Enterprise-wide Business Processes Sales and Marketing HR Enterprise System

44. Next Class Value of IT Read Nicholas Carr Article!