Chapter 01

1. Chapter 01 Business Driven Technology 1-1

2. LEARNING OUTCOMES • Describe the information age and the differences between data, information, business intelligence, and knowledge • Identify the different departments in a company and why they must work together to achieve success • Explain systems thinking and how management information systems enable business communications 1-2

3. Video • What is an Information System

4. COMPETING IN THE INFORMATION AGE Did you know . . . • Avatar, the movie, took over 4 yrs to make and cost $450 million • Lady Gaga’s real name is Joanne Angelina Germanotta • It costs $2.6 million for a 30-second advertising time slot during the Super Bowl 1-4

5. COMPETING IN THE INFORMATION AGE • Fact- The confirmation or validation of an event or object • Information age - The present time, during which infinite quantities of facts are widely available to anyone who can use a computer 1-5

6. Great potentials of University students • College students startup company was very rare before the information age. • Recent examples of students who started their company while at college : • Mark Zuckerberg ( Facebook) • Bill Gates ( Microsoft) • Steve Jobs ( Apple) • Larry Page & Sergey Brin ( Google)

7. Another example of student Entrepreneurship The Million Dollar Homepage is a website conceived in 2005 by Alex Tew, a student from Wiltshire, England, to raise money for his university education. The home page consists of a million pixels arranged in a 1000 × 1000 pixel grid; the image-based links on it were sold for US$1 per pixel in 10 × 10 blocks.

8. COMPETING IN THE INFORMATION AGE • Examples of the power of business and technology • Amazon – Not a technology company; primary business focus is selling books • Netflix – Not a technology company; primary business focus is renting videos • Zappos – Not a technology company; primary business focus is selling shoes 1-8

9. Why do we need to study IT? • Information technology is everywhere in business • Business magazines discuss topics as databases, customer relationship management, supply chain management , security , business intelligence, etc. 1-9

10. Information Systems vs. Computer Science • Computer Science has its concentration in the study of algorithms, computation, software, and data structures. Its roots are in mathematics and engineering. Programming is only one aspect of computer science. • Information Systems is an extension of management and organization theory that applies technical capabilities and solutions initially developed by computer science, to tasks in organizations. It focuses on the information needs of organizations for a wide variety of business processes, management, decision-making, and planning purposes.

11. Information Technology’s Impact on Business 1-11

12. Organizations Major Business Functions • Organizations perform core functions: • Sales and marketing • Selling the products and services • Manufacturing • Producing products and services • Finance • Managing financial assets (cash, stocks, bonds,…) • Accounting • Maintaining financial records (receipts, paychecks, …) • Human resources • Attracting, developing labor force • Management Information Systems ( more recent) • Providing information for decision making

13. Information Technology’s Impact on Business 1-13

14. Information Technology’s Impact on Business 1-14

15. Information Technology’s Impact on Business • Organizations typically operate by functional areas or functional silos • Functional areas are interdependent 1-15

16. Information Technology Basics • Information technology (IT) – a field concerned with the use of technology in managing and processing information • Information technology is an important enabler of business success and innovation 1-16

17. Information Technology Tools managers use to cope with change • Hardware: Physical equipment • Software: Detailed preprogrammed instructions • Storage: Physical media for storing data and the software • Communications Technology: transfers data from one physical location to another • Networks: link computers to share data or resources

18. MANAGEMENT INFORMATION SYSTEMS • Management Information Systems (MIS) – A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving 1-18

19. INFORMATION TECHNOLOGY BASICS • When beginning to learn about information technology it is important to understand the following: • Data, information, and business intelligence • IT resources • The challenge: departmental companies • The solution: management information system Details in the next slides 1-19

20. Data, Information, BI • Data: Streams of raw facts representing events before they have been organized into form that people can understand, such as business transactions • Information: data that has been processed in some way to be meaningful and useful to human beings in processes such as making decisions • Business Intelligence (BI)– applications and technologies that are used to gather, provide access to, and analyze data and information to support decision-making efforts

21. Raw facts Represent events E.g. sales from a cash register Organized data Meaningful to people E.g. sales trends, comparison of brands DATA vs. INFORMATION

22. Example of Data vs. Information

23. Example of Raw Data 1-23

24. Example of Information 1-24

25. Example of Business Intelligence 1-25

26. IT Resources • People use • Information technologyto work with • Information 1-26

27. THE CHALLENGE: DEPARTMENTAL COMPANIES Common Departments Working Independently 1-27

28. THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS Common Departments Working Interdependently 1-28

29. What is an information system? • Asystemis a group of components that interact to achieve some purpose • An information system (IS) is a group of components that interact to produce information • Five fundamental components of computer-based information systems are: • Computer hardware • Computer Software • Data • Procedures • People

30. Five Components of an Information System

31. THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS • Systems thinking – A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback 1-31

32. Definitions: • Input: The collection of raw data from within the organization or from its external environment for processing in an information system. • Processing: The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans. • Output: The distribution of processed information to the people who will use it or to the activities for which it will be used. • Feedback: Output that is returned to the appropriate members of the organization to help them evaluate or correct input or processing.

33. Systems view of IS

34. Student Professor Registrar Enroll in Course: 20 years ago Reg. Form Select Courses Reg. Form Review request Determine if prereqs. met Wait in line, usually in rain. Determine if space available in sections) taught Registration open yet? N Review forms for issues/errors Y N Can student enroll? Line up for professor Reg. Form Y Form OK? N Enroll student, update form Y Reg. Form Key registration data into computer Y Need another course? N Reg. Form Bring completed form to registrar table

35. Student Banner Example of MIS Enroll in Course: Banner Select Courses (online) Sit at computer. Sipcoffee. Authenticate user Registration open yet? N Y Supply user name and password Check that student has prereqs Input requested courses Check availability in requested sections Record results in database Y Need more courses? N Present student results of course requests

36. LEARNING OUTCOME REVIEW • Now that you have finished the chapter please review the learning outcomes in your text 1-36

37. Bottom-line IT = Hardware + Software +Data IS = IT + People + Procedures

38. Videos • MIS • MIS success story