Common applications of computers and information

Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
Common applications of computers and information systems In daily life, computers and
We information systems are all
around us.
Organizations use computers
Organizations and information systems to
reduce costs and gain a
competitive advantage in the
marketplace.
in daily life and organizations
Our future
ITS
Terminology
IT
We use computers and information systems as students, particularly as Unisa students who engage in
distance education.
Many workers are now telecommuters who perform their jobs at home, and others often use their
mobile devices to conduct business while on the go.
We access the Internet constantly and engage with each other on social networking sites and through
SMSs.
We use video-sharing sites to watch news, sporting events, and entertainment videos. One of the most
popular sites is YouTube (www.youtube.com).
Grocery and retail stores use -
Point-of-sale (POS) system to speed up service by reading the universal product codes (UPCs) on
items in our shopping carts.
The same system also manages store inventory, and some information systems can even reorder
stock automatically.
Banks use computers and information systems for generating monthly statements, running automatic
teller machines (ATMs), and for many other banking activities.
Organizations also use social networking sites to give customers up-to-date information and how-to
support via videos. These sites can reduce organizations' costs by providing an inexpensive medium
for targeting a large customer base.
Computers and information technology will help the knowledge workers of the future perform more
effectively and productively, no matter what profession they choose.
In addition, these workers will be able to connect to the rest of the world to share information,
knowledge, videos, ideas, and almost anything else that can be digitized.
Information technologies offer many advantages for improving decision making .
But they involve some challenges, too, such as security and privacy issues.
Although the term information systems is broader in scope than information technologies, the two
over­lap in many areas and are used interchangeably in the prescribed book.
Organizations use both to more competitive and to improve their overall efficiency and effectiveness.
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 In the 21st century, knowledge workers need two types of knowledge to be competitive in the workplace:
Computer literacy and information literacy
Computer literacy Information literacy

Computer literacy is skill in - Information literacy is understanding -

using productivity software, such as the role of information in generating, and
word processors, using business intelligence.
spreadsheets;
database management systems, and Business intelligence (Bl) is more than information, and
presentation software, provides
as well as having a basic knowledge of historical,
hardware and software, current, and
the Internet, and predictive
collaboration tools and technologies. views of business operations and environments, and
gives organizations a competitive advantage in the
marketplace.

Knowledge workers should know the following:

Internal and external sources of data
How data is collected
Why data is collected
What type of data should be collected
generates

Data
How data is converted to information and eventually to business intelligence
Information How data should be indexed and updated
How data and information should be used to gain a competitive advantage
es
r at
ne

BI
ge
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
Transaction processing systems Focus Transaction processing systems (TPSs) focus on data collection and processing.

The major reason for using them is the enormous reductions in costs as they can carry out repetitive operations
Reason for use involving enormous volumes of data with minimal human involvement.

For the past 60 years, transaction-processing systems (TPSs) have been applied to structured tasks such as record keeping, simple clerical
operations, and inventory control. Payroll was one of the first applications to be automated.
The first ATM opened for business in 1969 with some very basic features.
Later electronic banking kiosks were introduced.
Increasingly customers are identified by using biometric features such as scanning a fingerprint or the iris of an eye.
History of TPSs
The cardless ATM is one of the recent technologies deployed by some banks. You can send instant cash to yourself or to people who do not
have bank accounts. The bank sends them a voucher number, and the account holder sends the beneficiary a PIN which together are used by
the beneficiary to withdraw the cash from an ATM.
Security risks of ATM include:

Skimming Jackpotting

Skimmers use a card the size of a credit card installed inside the ATM In recent years, it has been reported that some ATM machines have
or on the top of the machine, are able to record PIN numbers and fallen victim to a technique used by computer criminals call
other financial information of the users. jackpotting where machines are forced to spit out cash.

Precautions to protect yourself from skimming:

Check your bank statements regularly. Usually, if you report fraudulent
charges soon after the discovery, the bank may reimburse you.
Watch for signs that the ATM has been tampered with. This could be done by
physically touching the machine or checking on Bluetooth for unusual Wi-Fi
networks.
Cover your PIN number when entering it.
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 Information technologies support information systems and use the Internet, computer networks, database systems, POS systems, and Radio
Management information systems Frequency Identity (RFID tags).

A management information system (MIS) is an 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.

Hardware Software Processes Human elements

Description
The hardware components
include input, output, and
memory devices and vary
depending on the application
and the organization.
MIS software can include
commercial programs,
software developed in-house,
or both
The application or
organization determines the
type of software used.
Processes are usually methods for The human element includes users,
performing a task in an MIS
programmers, systems analysts,
application.
Data which are raw facts not useful and other technical personnel.
for making decisions are used as
input and the output consists of
facts that have been analyzed by
the process component and are
therefore more useful to the MIS
user.

Finally, provide
Steps in information in a
Clearly define
designing an the systems Collect and format useful
MIS objectives. analyze data. for decision
making
purposes.

Uses of MISs MIS applications are used in both the private and public sectors.

Goal of MISs Ultimately to generate BI.

Business
Data Information
Intelligence
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 Data The data component of an information system is considered the input to the system.
The information that users need affects the type of data that is collected and used.
The four major components of a management information system If an organization has defined its strategic goals, objectives, and critical success factors, then structuring the data component to define what type of data is collected and in what form is
usually easy.

Sources of data Time orientation of data Forms of data

An information system should collect data from both internal and external sources, although organizational Past data is collected for performance Aggregated (e.g., subtotals
objectives and the type of application also determine what sources to use. reports for categories of
Current data is collected for information)
External data includes: operational reports
Internal data includes sales records, Disaggregated (e.g., itemized
Customers, competitors, and suppliers Future data is predicted for budgets
personnel records, and so forth. lists).
Government agencies and financial institutions or cash flow reports.
Labour and population statistics
Economic conditions

Database A database, the heart of an information system, is a collection of all relevant data organized in a series of integrated files.
To create, organize, and manage databases, a database management system (DBMS) is used.
Databases are also important for reducing personnel time needed to gather, process, and interpret data manually.
With a computerized database and a DBMS, data can be treated as a common resource that is easy to access and use.

Process The process component of an information system generates the most useful type of information for decision making, including transaction-processing reports and models for decision
analysis that can be built into the system or accessed from external sources.
The two most important capabilities are:
Analysis Forecasting

The process component of the information system analyze A forecasting model forms part of the process component.
the data. Such a forecasting model can be used to generate predictions
For example, to break down the sales of an organization per Examples, for organizations, estimates for the next sales period, and these predictions can be broken down by product,
product, regions, salesperson. region, and salesperson.

Information Information consists of facts that have been analyzed by the process component and is an output of an information system.
Information is the second most important resource (after the human element) in any organization.
The quality of information is determined by its usefulness to users, and its usefulness determines the success of an information system. Information is useful if it enables decision makers to
make the right decision in a timely manner.
To be useful, information must have the following qualities: Timeliness Consistency and accuracy

Integration with other data and information Relevance

Timely, relevant, and accurate information is a critical tool for enhancing a company's competitive position in the marketplace and managing the four Ms of resources: manpower, machinery,
materials, and money.

Another factor affecting the usefulness of information is the information system's user interface. A flexible and easy to use user interface also affect the usefulness of information. Hence most information systems make
use of graphical user interfaces (GUis), with features such as menus and buttons.
To be useful, information systems should also produce information in different formats, including graphics (e.g., pie charts and bar graphs), tables, and exception reports, which highlight information that is outside a
specified range.
In addition to the formal information that an information system generates, users need to be able to make use of informal information-such as rumors, unconfirmed reports, and stories-when solving problems.
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 Different types of information systems have been developed. Although all have the major components above, they vary in the kind of data they collect and the analyses they perform.

Information systems in the functional areas of business A PIS/HRIS supports the following decisions, among others:
Personnel A PIS/ HRIS is designed to provide information that helps decision makers in personnel carry out their
Choosing the best job candidate
information system tasks more effectively.
Scheduling and assigning employees
Web technologies have played a major role in improving the efficiency and effectiveness of HR
(PIS)/ human Predicting the organization's future personnel needs
departments. For example, intranets are often used to provide basic HR functions, such as employees
resource checking how much vacation time they have left. Intranets reduce personnel costs and speed up
Providing reports and statistics on employee demographics
Allocating human and financial resource
information system responses to common employee requests. The main difference between an intranet and the Internet is
(HRIS) that intranets are private and the Internet is public.

An LIS isesigned to reduce the cost of transporting materials while maintaining safe and reliable delivery. The following are a few examples of decisions supported by an
LIS:
Logistics
Improving routing and delivery schedules
information system Selecting the best modes of transportation
(LIS) Improving transportation budgeting
Improving shipment planning

A manufacturing information system (MFIS) is used to manage manufacturing resources so companies Here are some decisions that an MFIS supports:
can reduce manufacturing costs, increase product quality, and make better inventory decisions Ordering decisions
MFISs can perform many types of analysis with a high degree of timeliness and accuracy. For example, Product cost calculations
Manufacturing managers could use an MFIS to assess the effect on final product costs of a 7 percent increase in raw Space utilization
information system materials or to deter mine how many assembly-line workers are needed to produce 200 automobiles in The bid evaluation process used with vendors and suppliers
(MFIS) the next three weeks. Analysis of p1ice changes and discounts
Manufacturing and operations management can also use social media information systems (SMISs) for
crowdsourcing. This platform provides a global reach to all sorts of talents throughout the world for
performing certain manufacturing tasks at a moderate cost

The goal of a financial information system (FIS) is to provide information to financial executives in a timely Here are some decisions an FIS is used to support:
manner. Improving budget allocation
Financial
Minimizing capital investment risks
information system Monitoring cost trends
(FIS) Managing cash flows
Determining po1tfolio structures

Marketing information systems (MKISs) are used to improve marketing decisions. Here are some decisions that an MKIS supports:
An effective MKIS should provide timely, accurate, and integrated information about the marketing mix, Analyzing market share, sales, and sales personnel
Marketing or the 4Ps: price, promotion, place, and product. Sales forecasting
information system A growing number of information technology tools are being used in the marketing field that could play Price and cost analysis of items sold
(MKIS) a major role in running an effective marketing operation in all types of organizations. One of these
technology tools is database marketing.
Other marketing technology tools are covered in the next slide.
Information systems in the functional areas of business
The IT tools below help organizations with direct marketing and help them grow leads, opportunities, and revenue.

These ·enable an organization to pinpoint the performance of channels, technologies

Business, Web, and
mobile analytics
in use, ad campaigns and offers, and everything else that is trackable.

This enables an organization to be in constant contact with its customers in an

E-mail marketing effective and efficient manner.

Search engine
This helps an organization to get top-rank listings of the organization's Web site.
marketing that
includes both paid Popular tools include Google, AdWords and Yahoo!
search ads and search
engine optimization
(SEO)

These enable an organization to sell products and services to mobile users as their
Mobile technologies number is increasing on a daily basis.

This helps an organization bring all other IT tools together, including analytics, online
Marketing
automation forms, customer tracking, personalization technology, customer relation
management (CRM), and automated alerts to salespeople.
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 Strategies for Michael Porter, a professor at Harvard Business School, identified three strategies for successfully competing in the marketplace:

competing Overall cost leadership Differentiation Focus

successfully in
The use of information systems for a competitive advantage

Information systems can help organizations reduce the cost of products and services and, if designed correctly, can assist with
the marketplace differentiation and focus strategies.

How IT can help with the
three strategies
Overall cost Information technologies can help bottom-line and top-line strategies.
The focus of a bottom-line strategy is improving efficiency by reducing overall costs.
leadership
A top-line strategy focuses on generating new revenue by offering new products and services to
customers or increasing revenue by selling existing products and services to new customers. price.
Enterprise systems-such as supply chain management (SCM), customer relationship management
(CRM), enterprise resource planning (ERP), knowledge management (KM), and collaboration software-
to reduce costs and improve customer service.
Differentiation For differentiation strategies, organizations try to make their products and services different from
their competitors
Apple has been successful with this strategy by designing its computers to look very different from
PCs and focusing on its computers' ease of use.

Focus With focus strategies, organizations concentrate on a specific market segment to achieve a cost or
differentiation advantage.
Apple has also used this strategy to target iPhones to consumer users rather than business users.

Limits of focus and They only work Customers are often willing to pay more for a unique product or service or one with a specific focus.
However, cost still plays a major role. If a product or service becomes too expensive, customers might
differentiation up to a certain
not be willing to purchase it.
strategies point

Before a business starts its operation and it is in the planning phase, the three strategies must be carefully
New businesses analyzed as it relates to that particular business
How businesses can use
these three strategies They could also analyze the three strategies and evaluate their position within the market they are serving
Existing
and deploy selected information technology tools and information systems that could improve their
businesses market position.
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 Potential entrants
Michael Porter's Five Forces Model analyzes an
organization position in the marketplace, and Threat of new entrants

how information systems could be used to make Bargaining power

Industry competitors
Bargaining power
of suppliers of buyers
Five forces it more competitive.
Suppliers Buyers

model The five forces include buyer power, supplier, Rivalry among existing
Porter's five forces model

competitors
power, threat of substitute product or services,
Threat of substitute
threat of new entrants, and rivalry among existing
products or services
competitors.
Substitutes

Situation Steps to counter the situation

Try to limit buyers' choices by offering services that make it difficult for customers to switch, which is essentially using a
differentiation strategy.
Buyer power is high when customers
Increase customer loyalty with strategies like Extra Saving, Clicks Club Card, etc, thus combating the threat of new entrants or
Buyer power have many choices
substitute products.
It is low when they have few choices.
However, certain information technology tools, such as the Internet, have evened the playing field by giving customers more access
to all sorts of data, such as the various prices for products and services.

Supplier power is high when customers Organizations might use information systems to make their products and services cheaper or to offer more services in order to
have fewer options . distinguish themselves from competitors (another use of a differentiation strategy).
Supplier power It is low when customers have more Organizations have tools other than information systems and technologies to increase their power. For example, drug companies
options. obtain patents for their products to reduce competition.

The threat of customers choosing substitute

Substitute
products or services is high when many Use of add services
products of alternatives to an organization's products Fees to discourage customers from switching to a competitor,.
services and services are available.

The threat of new entrants into the market­-
New market place is low when duplicating a company's
entrants product or service is difficult.
Organizations often use focus strategies to ensure that this threat remains low. For example, developing a search engine that could
compete successfully with Google would be difficult.
Threat of substitute products or services always exist, and information technology could assist businesses in order to maintain their
market position by continued Research and Development (R&D) and improving customer service and creating a loyal ecosystem
But: sometimes newcomers are able to beat firstcomers: Netflix replaced Blockbuster.

Rivalry among existing competitors is high

Competetitor when many competitors occupy the same
Use information technologies to make services offered unique.
marketplace position; it is low when there
rivalty are few competitors.
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 During the past decade, the IT job market has been one of the fastest-growing segments in the economy, and it continues to be so.
Even during the economic downturn, certain segments of the IT job market-such as Web design, infrastructure, and computer and network security-have shown growth compared to
Demand the rest of the job market.
Currently, cloud computing-related jobs are in high demand.

Operations and help desk Programming Systems design Web design and Web hosting

IT job categories Network design and maintenenance Database design and maintenenance Robotics and artificial intelligence
The IT job market

Chief technology officer
(CTO)/ Chief information
officer (CIO)
Manager of information
systems services
Well- . Writes computer programs or software segments that
The top information systems job
This person oversees long-range planning and keeps
an eye on new developments in the field that can
affect a company's success.
Some organizations also have a chief privacy officer
(CPO).
This executive position includes responsibility for
Network administrator
managing the risks and business impacts of privacy
laws and policies.
Responsible for managing all the hardware, software, and
personnel within the information systems department.
This person oversees a company's internal and external
network systems, designing and implementing net­work
systems that deliver correct information to the right
decision maker in a timely manner.
Providing network and cybersecurity is part of this
position's responsibility.
Due to the increasing number of data breaches and
security threats, large organizations have created a
relatively new job title called a chief information
security officer (CISO). This executive position is
responsible for establishing and implementing policies
in order to ensure that information assets and
technologies are pro­ected against internal and external
threats.

established jobs allow the information system to perform a specific

task. Responsible for the design and implementation of
in IT job market There are many computer languages available, and information systems.
Computer programmer each one requires specific knowledge suitable for a In addition to computer knowledge and an information
specific application. Systems Analyst systems back­ground, this position requires a thorough
Because of the popularity of smartphones and mobile understanding of business systems and functional
devices, many programmers are now developing apps areas within a business organization.
for iOS and Android devices.

A webmaster designs and maintains the organization's

Database administrator
A database administrator (DBA) is responsible for
Web site.
database design and implementation. Webmaster Because of the popularity of e-commerce applications,
Additionally, a database administrator should have
webmasters have been in high demand.
knowledge and understanding of data warehouses and
data-mining tools.

Newly Data scientist Telework manager or coordinator Social media architect Business architect Enterprise mobile developer

established jobs Search engine optimization specialist Mobile technoloty architect Cloud architect
Social media/online-community manager
in IT job market See next slide
 A recent trend Recently a growing number of companies have been hiring data scientists (DS) in different sectors of the economy:
sports, politics, agriculture, technol­ogy, and retail.
Companies such as Microsoft, Google, Facebook, Bank of America, JPMorgan Chase, and Target are a few
examples.

What does a DS A DS may perform different tasks in different disciplines.

do? A DS may interact with different users to auto­mate data collection, aggregation, and visualization.
The IT job market

He or she deploys statistical and mathematical models and certain artificial intelligence technologies.
The ultimate goal is to help generate business intelligence (BI) and actionable information for decision making.

Specific tasks Identify the problem that an organization faces

that a DS Identify and collect data sets and variables
perform Ensure the accuracy and completeness of data sets
Apply models and algorithms to data sets
Analyze and interpret the results for the decision makers

Top five Analytical skills and quantitative reasoning

qualities of an Storytelling ability-be able to explain data to nontechnical team members
effective DS Be a team player-work and interact effectively with team members
Be a problem solver
Have a sense of curiosity-help the organization find new uses for the collected data

Education of a
The background and educational degrees for a DS vary.
DS
Generally speaking, some knowledge of mathematics, statistics, and MIS is needed.
There are a variety of courses and degree programs that prepare students to become a DS.
In 2016, Microsoft launched an online data science degree program with the goal of addressing a shortage of
workers with data science skills.
 Common applications of computers and information
Information systems in business systems in daily life and organizations

The future outlook for

information systems Computer literacy and information
literacy

The IT job market Transaction processing systems

Porter's five forces model Management information systems

The use of information systems for

a competitive advantage The four major components of a
management information system

Information systems in the

functional areas of business
 Predictions by examining various factors Hardware and software costs

The future outlook for information systems related to designing, implementing, and using Artificial Intelligence (AI)

information systems Computer literacy

See separate
Networking technology
slide following
Personal computers and tablets

Internet

Computer criminals

Major computing trends that are already Ubiquitous computing

underway and should continue into the future Internet of Things (IoT) & Everything (IoE) & Me (IoMe)

3D and 4D printing

Pervasive analytics
See separate
Context aware computing
slide following
Small machines and devices

Cloud computing

Software defined applications and infrastructure

Security
 Predictions by examining various factors related to designing, implementing, and using information systems
The future outlook for information systems
Hardware and software costs
Artificial Intelligence (AI)
Computer literacy
Networking technology
Personal computers and tablets
Internet
Computer criminals
Hardware and software costs will continue to decline, so processing information will be less expensive.
These cost savings should make information systems affordable for any organization, regardless of its size and
financial status.
Artificial intelligence and related technologies will continue to improve and expand, which will have an impact
on information systems.
For example, further development in natural language processing should make information systems easier to
use
Also, robots will play a major role in the workforce of the future. Some say one in three jobs will be taken by
software or robots.
The computer literacy of typical information system users will improve, as computer basics are taught more in
elementary schools.
Networking technology will improve, so connecting computers will be easier and sending information from one
location to another will be faster.
Compatibility issues between networks will become more manageable, and integrating voice, data, and images
on the same transmission medium will improve communication quality and information delivery.
Personal computers and tablets will continue to improve in power and quality, so most information system
software will be able to run on them without problems.
This trend should make information systems more affordable, easier to maintain, and more appealing to
organizations.
Internet growth will continue, which will put small and large organizations on the same footing, regardless of
their financial status
Internet growth will also make e-collaboration easier, despite geographical distances.
Computer criminals will become more sophisticated and protecting personal information will become more
difficult.
 Major computing trends that are already underway and should continue into the future
The future outlook for information systems
Computing devices everywhere with different sizes and power and accessed through multiple formats
Ubiquitous computing
such as voice, touch, and gesture.

Internet of Things (IoT), Everything (IoE) Connected devices through the Web that will be used by businesses and individuals for increasing
& Me (IoMe) productivity and cost savings

Creating a physical object from a 3D and 4D digital model for individual use and businesses.
3D and 4D printing
This could significantly bring down manufacturing costs.

Pervasive analytics Building and integrating analytics capabilities into all everyday business activities.

Widespread applications and deployment of devices that know users, their devices, and their locations
Context aware computing ? and serve as intelligent assistants to businesses and individuals.

Small machines and devices Continuous improvements in autonomous cars, trucks, drones, and robots, such as self-driving cars.

Cloud computing Growth in cloud computing for multiple applications and multiple users.

Software defined applications and The trend toward dynamically assembled infrastructures that are more responsive to user needs and
infrastructure able to deliver results faster, as opposed to predefined infrastructures.

The importance of computer and network security will increase.

Security
More attention will be given to application self-protection.
Reference:
Hossein Bidgoli MIS (10th ed)