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Foundations of Information Systems in Business

Chapter One Module I – Foundation Concepts. Foundations of Information Systems in Business. IS 605. Section 1. Foundation Concepts: Information Systems in Business. An Essential Field of Study in Business What are the differences among the following fields:

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Foundations of Information Systems in Business

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  1. Chapter One Module I – Foundation Concepts Foundations of Information Systems in Business IS 605

  2. Section 1 Foundation Concepts: Information Systems in Business • An Essential Field of Study in Business • What are the differences among the following fields: • Management Information Systems (MIS) • Computer Information Systems (CIS) • Information Technology (IT) • Computer Sciences (CS) • Computer Engineering

  3. Why an MBA Student need to know MIS/CIS/IT? • The role of IT in business • Use a IT as a tool • Understand how to use IT as a competitive weapon • Understand the impact of IT on business • Good or bad • Predicate next wave of the technologies • Become IT/IS/CS literacy • Know how to deal with IT people • While you may know/use some of the IT technologies, the course provides a systematic review for the theory or practices.

  4. Real World Case - Amazon.Com • “In the physical world, it’s old saw: location, location, location” • “Three most important things are for us are Technology, Technology, and Technology” Jeff Bezos, CEO of Amazon • Computerized Warehouse at Fernley, Nevada • Turnover rate for the warehouse is 20 times

  5. Real World Case - Amazon.Com (Continue) • “The trouble with most companies is that they make judgment-based decisions when data-based decision can be made.”

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

  7. 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

  8. 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

  9. 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

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

  11. 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 withUpgrades

  12. 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

  13. Developing IS Solutions Investigate Analyze Maintain Design Implement

  14. 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

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

  16. 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

  17. Components of an Information Systems 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

  18. Components of an Information Systems (Continue) Software Resources • System Software • Application Software • Procedures Data Resources • Data Bases • Knowledge Bases Data vs. Information

  19. 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.

  20. Case 2 Kodak, HP, andAmersham Biosciences Challenges would include: • 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

  21. Case 2 Kodak, HP, andAmersham Biosciences How successful is the Eloquent software tool is described by Kodak and HP: • 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

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