Introduction to Information Systems

Cases on Information systems

American airlinescreating new businesses

Baxter companycompetitive advantage

Mrs. Fieldsorganizational consequences

Open Market fast evolution: business risk

IS and IS resources

Information systems

Information Systems

Resources

ManagementChallenges

Businessapplications

Developmentprocesses

Foundationconcepts

Informationtechnologies

PEOPLE

Software Hardware

Data Networks

O’Brien p7-8

The importance of Information Systems

An information system is a set of people , procedures and resources that:collecttransformdisseminatesinformation in an organization.

Information is used for better management

Companies cannot operate any more without automated information systems

O’Brien p 7-8

Properties of Information SystemsEnterprise Perspective

major functional area of business important cost that poses a resource

management problem important factor for efficiency, productivity,

customer service and satisfaction source of management information and support important ingredient in strategic advantage and

competitive position vital , dynamic , and challenging career

opportunity

O’Brien p 10

Properties of Information SystemsEnterprise Perspective

Worldwide information Society Knowledge workers

Information createusedissiminate

Use information technology to manage people, finances, material, energy, …

Ethical aspectssocial aspects: have - have notprivacy aspects: supermarket

O’Brien p 8

Ethical considerations

• Improve marketknowledge

• Improve response capabilities

• Improvepersuasivecommunications

• Improve strategyselection

Applications of ICT

• Infrigements onprivacy

• Inaccurateinformation

• Collusion• Exclusion from

essentialfacilities

Potential harms Potential risks

How likely are legal actions, consumer boy -cotts, strikes,other threats tooccur

Possible responses

• self-regulation• Advocacy• Education• Codes of ethics• Incentives• certification

O’Brien p 9

The Role of Information Systems

Support of StrategicAdvantage

Support ofManagerial

Decision Making

Support ofBusiness Operations

O’Brien p 11

The Internetwork- enterprises

The Internet

Intranets

Intranets

Intranets

Intranets

Extranets

Client

Enterprise

Supplier

Other OrganizationsElectronic Commerce

Business Process Reengineering

Beforemanagers took all

decisionsonly experts can do

complex jobs

information is available on only one specific place

Collaborators in the field need an office to receive, store, consult and send information

Todayeverybody can take

decisionsa generalist can do the

work of an expert based on available information

information is available for everybody at the same moment in time

collaborators can send and receive information from everywhere

O’Brien p 16

Information SystemsInformation Systems Knowledge needed by managerial end users

Managementof IS

Resources and activities

Development of ISSolutions to business problems

Applications of ISTo operations management and strategic advantage

Technology of ISHardware , software , Telecommunications, and Data Management

Foundation concepts of ISFundamental Behavioral and Technical Aspects

The System Concept

System:A group of interrelated components or interacting elements forming a unified whole.

inputprocessingoutputfeedbackcontrol } - environment

- other systems

O’Brien 18 -19

O’Brien p 21

Other System Concepts

Subsystem

Interface

Open System

Adaptive system O’Brien p 23

Stakeholders in the Business Environment

The community Competitors

Supp

liers

Gove

rnm

ent A

genc

ies

Cust

omer

sSt

ockh

olde

rs

Financial Institutions Labor Unions

Management

Information Systems

Economic Resources:PeopleMoneyMaterialLandFacilitiesEnergyInformation

Organizational Processes:

ProductionMarketingFinance

PersonnelOther Processes

Goods and Services:ProductsServicesPaymentsContributionsInformationOther Effects

Control

Feedback

Input PROCESSING Output

O’Brien p 24

Communications media and network support

Components of an Information System

People Resources :

End users and IS specialists Data Resources

Data , Model , and Knowledge Bases

Software Resources

Programs and Procedures

Mach

ines

and

Medi

aHa

rdwa

re R

esou

rces

Communications media and network supportNetwork resources

Control of System Performance

Storage of Data resources

Input ofData

Resources

ProcessingData into

Information

Output ofInformation

Products

O’Brien 21 - 25

O’Brien p 25

IS Resources and ProductsPeople Resources

Specialists: system analysts, programmers, operatorsEnd users : anyone else using the system

Hardware ResourcesMachines: computers, video monitors, disks, printers, scannersMedia: floppies, tapes, disks, plastic cards, paper forms, ...

Software Resources system, application, proceduresPrograms: OS , spreadsheet programs, payroll programs , ....Procedures: data entry, error correction, paycheck

distribution, ...Data Resources database, model base, knowledge base

Product descriptions, customer records, inventory databases,... Network resources

Communication media, network support, ...

O’Brien p 26-27

Data versus Information

Dataraw facts or observationsmeaninglesstime independentmachine efficientgeneral purpose

Information informative value time dependenthuman efficientspecificbased on previous

knowledge

Different types of information can be derived from the same source of data .

O’Brien 24

Expanding Roles of Information Systems

1950s-1960s: Data Processingelectronic data processing systems

transaction processing, record keeping, traditional accounting

1960s-1970s: Management reportingManagement Information Systems

mgt. reports for pre-specified information to support decision making

1970s-1980s: Decision SupportDecision Support Systems

Interactive ad hoc support of the managerial decision process

O’Brien 28

Expanding Roles of Information Systems (cont)

1980s-1990s: Strategic and End User SupportEnd User Computing Systems: direct productivity supportExecutive Information Systems:Critical Information Expert Systems: Knowledge based expert advise for end usersStrategic Information Systems: for competitive advantage

1990s – 2000s : Global internetworking Internetworked information systems for end-user, enterprise, and inter-organizational computing,

collaboration, including global operations and management on the internet and other interconnected enterprise and global networks.

O’Brien p 31

Types of Information Systems

T ra nsa ctionProcessing

System s

ProcessContro l

System s

O fficeAutom a tion

System s

O pera tionsInform a tion

System s

Inform a tionR eportingSystem s

D ecisionSupportSystem s

ExecutiveInform a tion

System s

Ma na gem entInform a tion

System s

Inform a tion System

O’Brien 29

O’Brien p 32-33

IT - usage in the Company

Nolan curve

Four stages of DP growth:

contagioncontrol

maturity

initiation

NOLAN phases

Stage Initiation contagion control maturity

orientation cost reductionnew functionsmoratorium database inquiry

organizationwhere first useddispersed central controlled distributed

manager operationsmanager

middle managermiddle managerdirector

management viewlax selling controlling a resource

applications supporting diversificationdatabases end-user computing

control little very little strong normal

user involvementinterviews ,manuals

PC's project groupstransparent

Information systems in the Company

Marketing Production Finances Personel

sales productionplanning

budgetting human resources

marketing purchasing general ledger payroll

promotion distribution billing cost estimations

price setting engineering analyticalbookkeeping

applications

new products operations financialoperations

contracts

orders stockmanagement

A/C payable training

quality control A/C receivable

Electronic Banking

account status exchange rates economic information bank transfers order checks reports batch payments ( SWIFT, ...)

Security via magnetic cards, password , control totals

Decision Support financial models what-if analyze goal seeking risk analysis statistical analysis management models graphical representations personal databases

Hospital Information Systems patient registration laboratory management radiology medical files pharmacy stock management and purchasing human resources and scheduling billing and A/C receivable book keeping operation theater

Other Applications Transport

just in timeroutingshipping

Insurance

Tourism

Department stores