INFORMATION SYSTEMS: AN OVERVIEW

1. MIS CHAPTER 1 INFORMATION SYSTEMS: AN OVERVIEW Hossein BIDGOLI TJX Credit Card Breach Fed Ex Cyrus NFL Coaches

2. Chapter 1 Information Systems: An Overview l e a r n i n g o u t c o m e s LO1Discuss common applications of computers and information systems. LO2Explain the differences between computer literacy and information literacy. LO3Define transaction processing systems and management information systems. LO4Describe the four major components of an information system. LO5Discuss the differences between data and information.

3. Chapter 1 Information Systems: An Overview l e a r n i n g o u t c o m e s (cont’d.) LO6Explain the importance and applications of information systems in functional areas of a business. LO7Discuss how information technologies are used to gain a competitive advantage. LO8Explain the Five Forces Model and strategies for gaining a competitive advantage. LO9Summarize the future outlook of information systems.

4. Value of IS Knowledge in Different Careers

5. What is a system?

6. Control of System Performance Input of Data Resources Processing Data Output of Information Products Storage of Data Resources What is an Information System? • Combinations of hardware, software, and telecommunications networks that people build and use to collect, create and distribute useful data, typically in organizational settings.

7. Knowledge Worker 1960 2000 • Knowledge Worker (Peter Drucker 1959) • Professionals that create, modify and/or synthesize information as a fundamental part of their job • They will require higher education levels and received higher compensation than workers in agriculture or manufacturing • At least 35% of all workers in Canada are knowledge workers As a knowledge worker of the future, computers and information technology will help you be more effective and productive, no matter what profession you choose.

8. Computers and Information Systems in Daily Life • Computers and information systems are all around you • Online classes • Grading • Grocery and retail • PDA and smartphones • Internet • “Information systems” versus “information technology”

9. TJX Companies, Inc.: Credit Card Breach • January 2007 • Identity thieves stole more than 46.5 million credit cards • Used sophisticated hacking techniques to break through security systems • Stored the stolen information on servers in Eastern Europe and the United States • Shows the international nature of cybercrime TJX Credit Card Breach

10. Computer Literacy and Information Literacy • Computer literacy • Having skills in using productivity software • Information literacy • Understanding the role of information in generating and using business intelligence • Business intelligence (BI) • Provides historical, current, and predictive views of business operations and environments • Gives organizations a competitive advantage in the marketplace

11. The Beginning: Transaction Processing Systems • Transaction processing systems (TPSs) • Focus on data collection and processing, • Cost reduction • Operations repetitive • Human involvement minimal Fed Ex

12. Management Information Systems • Management information system (MIS) • Organized integration of hardware and software technologies, data, processes, and human elements • Designed to produce timely, integrated, relevant, accurate, and useful information • For decision-making purposes • Include: • Hardware components • MIS software • Processes

13. Management Information Systems (cont’d.) • Designing an MIS • Define objectives • Collect and analyze data • Provide information in useful format • Used in both the private and public sect • Many organizations use information systems to gain a competitive advantage

14. Major Components of an Information System • Data • Database • Process • Information

15. Data • Data • Input to the system • Sources of data • External • Internal • Time orientation • Can be collected in different forms • Aggregated • Disaggregated 414712905 SIN 414-712-905 ATM

16. Database • Database • Heart of an information system • Collection of all relevant data organized in a series of integrated files • Essential for the success of any information system • Managed with database management system (DBMS): e.g., Oracle • Reduces personnel time needed to gather, process, and interpret data manually

17. Process • Process • Generates the most useful type of information for decision making • Generally includes transaction-processing reports and models for decision analysis • Includes a wide range of models to support all levels of decision making

18. Information • Information • Output of an information system • Facts that have been analyzed by the process component • Quality of information • Timeliness • Integration with other data and information • Consistency and accuracy • Relevance

19. Information (cont’d.) • User interface • Must be flexible and easy to use • Graphical user interfaces (GUIs) • Ultimate goal of an information system • Generate business intelligence (BI)

20. Example of Information Systems • a university • The university stores all student data in a database • Built-in query capability • Other types of analysis can be done

21. six major roles and goals of IT • 1. Increase employee productivity by reducing time, errors and costs using • 2. Enhance decision making • 3. Improve team collaboration • 4. Create business partnerships and alliances • 5. Enable global reach all over the world taking into consideration the culture of each nation or society. • 6. Facilitate organizational transformation as the organization evolves and responds to the ever-changing marketplace.

22. Using Information Systems and Information Technologies • Information technologies • Achieve goals of information systems • Examples • Internet • Databases • POS Systems • RFID tags

23. Information Technologies at Home Depot • POS system • Fast customer service • Improved inventory management • Wireless network • Efficient in-store communication • Web site • Communicate with customers • Increase sales with online orders • RFID tags • Better manage inventory

24. The Importance of Information Systems • Information • Second most important resource in any organization • Four Ms of resources: • Manpower >> Personnel info system • Machinery >> Manufacturing Info System • Materials >> Logistics info system • Money >> Financial Info system

25. 1831 Cyrus McCormick • Competitive advantage • Significant, long-term benefit to a company over its competition • Ability to establish and maintain a competitive advantage is vital to a company’s success

26. NFL Coaches • NFL Coaches • What sources of competitive advantage can you identify the New England Patriots have by using information technology? • Are these long term, sustainable competitive advantages? • From our list of Roles and goals of Technology, what does the IS of the NFL do?

27. Using Information Technologies for a Competitive Advantage • Michael Porter • Professor at Harvard Business School • Identified three strategies for competing in the marketplace successfully • Overall cost leadership • Differentiation • Focus

28. Using Information Technologies for a Competitive Advantage

29. Porter’s Five Forces Model: Understanding the Business Environment • Five Forces Model • Michael Porter • For analyzing an organization, its position in the marketplace, and how information systems could be used to make it more competitive

30. THE FIVE FORCES MODEL – analyze competitive forces in an Industry • How IS can have a factor in the industry

31. The IT Job Market • Chief Technology Officer • Manager of Info System Services • Systems Analyst • Network Administrator • Database Administrator • Computer Programmer • Webmaster

32. Future Outlooks • Hardware and software costs continue to decline • Processing information less expensive in the future • Artificial intelligence and related technologies will continue to improve and expand • Computer literacy will improve • Networking technology will improve • Personal computers will continue to improve in power and quality

33. Future Outlooks (cont'd.) • Internet growth and acceptance will continue • Computer criminals will become more sophisticated • Protecting personal identity information will become more difficult

34. Summary • Examples of uses for computers and information systems • Difference between computer literacy and information literacy • Management information system (MIS) • Data, database, process, and information • Porter • Three competitive strategies • Five Forces Model