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Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.
What is a System?
A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives
Technology perspective: A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization
PERSPECTIVES ON INFORMATION SYSTEMS
What is an Information System? (Continued)
Data: Streams of raw facts representing events such as business transactions Information: Clusters of facts meaningful and useful to human beings in the processes such as making decisions
PERSPECTIVES ON INFORMATION SYSTEMS
Data and Information
Management Information Systems Chapter 1 Managing the Digital Firm PERSPECTIVES ON INFORMATION SYSTEMS Functions of an Information System Figure 1-6 .
PERSPECTIVES ON INFORMATION SYSTEMS Information Systems Are More than Computers Figure 1-8 .
transforms. and disseminates information in an organization 1-8 . retrieves.What is an Information System? An organized combination of« People Hardware and software Communication networks Data resources Policies and procedures This system« Stores.
networking. software.Information Technologies Information Systems All the components and resources necessary to deliver information and functions to the organization Could be paper based Information Technologies Hardware. data management Our focus will be on computer-based information systems (CBIS) 1-9 .
What Should Business Professionals Know? 1-10 .
Fundamental Roles of IS in Business 1-11 .
Trends in Information Systems 1-12 .
an online exchange of value 1-13 .What is E-Business? Using Internet technologies to empower« Business processes Electronic commerce Collaboration within a company Collaboration with customers. and other business stakeholders In essence. suppliers.
How E-Business is Being Used 1-14 .
and servicing of products and services over networks 1-15 .E-Business Use Reengineering Internal business processes Enterprise collaboration systems Support communications. marketing. selling. coordination and coordination among teams and work groups Electronic commerce Buying.
Types of Information Systems Operations Support Systems Efficiently process business transactions Control industrial processes Support communication and collaboration Update corporate databases Management Support Systems Provide information as reports and displays Give direct computer support to managers during decision-making 1-16 .
Purposes of Information Systems 1-17 .
Operations Support Systems What do they do? Efficiently process business transactions Control industrial processes Support communications and collaboration Update corporate databases 1-18 .
inventory systems. accounting systems Process Control Systems Monitor and control physical processes Example: using sensors to monitor chemical processes in a petroleum refinery Enterprise Collaboration Systems Enhance team and workgroup communication Examples: email. video conferencing 1-19 .Types of Operations Support Systems Transaction Processing Systems Record and process business transactions Examples: sales processing.
Two Ways to Process Transactions Batch Processing Accumulate transactions over time and process periodically Example: a bank processes all checks received in a batch at night Online Processing Process transactions immediately Example: a bank processes an ATM withdrawal immediately 1-20 .
Management Support Systems What do they do? Provide information and support for effective decision making by managers Management information systems Decision support systems Executive information systems 1-21 .
Types of Management Support Systems Management Information Systems (MIS) Reports and displays Example: daily sales analysis reports Decision Support Systems (DSS) Interactive and ad hoc support Example: a what-if analysis to determine where to spend advertising dollars Executive Information Systems (EIS) Critical information for executives and managers Example: easy access to actions of competitors 1-22 .
organization.Other Information Systems Expert Systems Provide expert advice Example: credit application advisor Knowledge Management Systems Support creation. and dissemination of business knowledge throughout company Example: intranet access to best business practices 1-23 .
finance. e-commerce Web systems Functional Business Systems Focus on operational and managerial applications of basic business functions Examples: accounting. or marketing 1-24 .Other Information Systems Strategic Information Systems Help get a strategic advantage over customer Examples: shipment tracking.
IT Challenges and Opportunities 1-25 .
Measuring IT Success Efficiency Minimize cost. and use of information resources Effectiveness Support business strategies Enable business processes Enhance organizational structure and culture Increase customer and business value 1-26 . time.
Developing IS Solutions 1-27 .
Challenges and Ethics of IT Application of IT Customer relationship management Human resources management Business intelligence systems Potential Harm Infringements on privacy Inaccurate information Collusion 1-28 .
Challenges and Ethics of IT Potential Risks Consumer boycotts Work stoppages Government intervention Possible Responses Codes of ethics Incentives Certification 1-29 .
Ethical Responsibilities What uses of IT might be considered improper or harmful to other individuals or society? What is the proper business use of the Internet or a company¶s IT resources? How can you protect yourself from computer crime? 1-30 .
IT Careers Economic downturns have affected all job sectors. and Asia-Pacific countries However. the Middle East. with new jobs emerging daily Shortages of IT personnel are frequent The long-term job outlook is positive and exciting 1-31 . IT employment opportunities are strong. including IT Rising labor costs are pushing jobs to India.
IT Careers 1-32 .
IT Careers Job increases will be driven by« Rapid growth in computer system design and related services The need to backfill positions Information sharing and client/server environments The need for those with problem-solving skills Falling hardware and software prices. which will fuel expanded computerization of operations 1-33 .
The IS Function The IS function is« A major functional area of business An important contributor to operational efficiency. morale. customer service and satisfaction A major source of information and support for decision making A vital ingredient in developing competitive products and services in the global marketplace A dynamic and challenging career opportunity A key component of today¶s networked business 1-34 . employee productivity.
software. strategic business value. telecommunications networks Applications: to support inter-connected information systems Development: developing ways to use information technology includes designing the basic components of information systems Management: emphasizes the quality. and security of an organization¶s information systems 1-35 . data management.System Concepts: A Foundation System concepts help us understand« Technology: hardware.
and other facts that affect their jobs Control costs Provide Internet access to passengers 1-36 .500 pilots Trained on the latest technology and procedures Plugged into the corporate infrastructure Informed about schedules.Real World Case: Lufthansa Lufthansa wants to« Keep 3. weather events.
Case Study Questions Are many of Lufthansa¶s challenges identified in the case similar to those being experienced by other businesses in today¶s global economy? What other tangible and intangible benefits. might a mobile workforce enjoy as a result of deploying mobile technologies? 1-37 . beyond those identified by Lufthansa.
and what others might be needed in today¶s business environment? 1-38 . What steps did they take to manage the risk.Case Study Questions Lufthansa was clearly taking a big risk with their decision to deploy notebook computers to their pilots.
What is a System? A system is« A set of interrelated components With a clearly defined boundary Working together To achieve a common set of objectives By accepting inputs and producing outputs In an organized transformation process 1-39 .
Basic Functions of a System Input Capturing and assembling elements that enter the system to be processed Processing Transformation process that converts input into output Output Transferring transformed elements to their ultimate destination 1-40 .
a self-monitoring. processing.Cybernetic System All systems have input. adds feedback and control: Feedback is data about the performance of a system Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal 1-41 . and output A cybernetic system. selfregulating system.
A Cybernetic System 1-42 .
A Business as a System 1-43 .
or interface Types of systems« Open Adaptive 1-44 .Other System Characteristics If a system is one of the components of a larger system. it is a subsystem The larger system is an environment Several systems may share the same environment Some may be connected via a shared boundary.
Components of an IS 1-45 .
Information System Resources People Resources Specialists End users Hardware Resources Machines Media Software Resources Programs Procedures 1-46 .
customer records. employee files. and paper forms 1-47 . audio responses. communications processors.Information System Resources Data Resources Product descriptions. inventory databases Network Resources Communications media. network access and control software Information Resources Management reports and business documents using text and graphics displays.
quantities. or salesperson 1-48 . sales territory. and dollar amounts Sales information is amount of sales by product type.Data Versus Information Data are raw facts about physical phenomena or business transactions Information is data that has been converted into meaningful and useful context for end users Examples: Sales data is names.
sorting. graphic images Storage of data resources Data elements and databases Control of system performance Monitoring and evaluating feedback 1-49 . comparisons. forms. and so on Output of information products Messages.IS Activities Input of data resources Data entry activities Processing of data into information Calculations. reports.
output.Recognizing Information Systems Business professionals should be able to look at an information system and identify« The people. and control activities 1-50 . processing. storage. software. and network resources they use The type of information products they produce The way they perform input. data. hardware.
Supplier of airplane parts and components Had lost track of its inventory Price-tracking software didn¶t work with inventory control or purchasing forecasting Sent wrong parts to wrong customers Sales falling Needed a middleware vision Get all the software to work together 1-51 . Inc.Case 3: Aviall.
Case Study Questions Why do you think that Aviall failed in their implementation of an airplane parts and components inventory control system? How has information technology brought new business success to Aviall? How did IT change Aviall¶s business model? How could other companies use Aviall¶s approach to the use of IT to improve their business success? 1-52 .
Case 4: Continental Airlines Building customer loyalty has become crucial for success in the airline industry Continental employs CallMinder systems to« Monitor calls and keystrokes Data mine keystrokes and voice calls This technology resulted in« Fewer calls going to the help desk Higher customer satisfaction Reduction of flight confirmation calls Cost savings in excess of $1 million 1-53 .
Case Questions What are the business benefits of the CallMiner system? How can new technologies like CallMiner help companies improve their customer service and gain a competitive edge in the marketplace? Andre Harris refers to calls to reconfirm a flight as ³quite frankly.´ Why are they classified as low value? Why do you think so many customers are placing such calls? 1-54 . low-value calls.
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