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Transcript of Chap01 management
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McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.
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463-390 Management Information System
Assist. Prof. Dr. Wiphada Wettayaprasit
http://www.cs.psu.ac.th/wiphada
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Information systems framework
Ch 1,2
Ch 3,4,5,6
Ch 13,14
Ch 11,12
Ch 7,8,9,10
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Information systems
framework
Ch 1,2
Ch 3,4,5,6
Ch 13,14
Ch 11,12
Ch 7,8,9,10
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McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Foundations of
Information Systems in Business
Chapter
1
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1. Understand the concept of a system and how itrelates to information systems
2. Explain why knowledge of information
systems is important for business professionals Identify five areas of information systems
knowledge needed
Learning Objectives
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3. Give examples to illustrate how businessapplications of information systems can
support a firms Business processes
Managerial decision making Strategies for competitive advantage
4. Provide examples of information systems from
your experiences with business organizationsin the real world
Learning Objectives
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Learning Objectives
5. Identify challenges that a business managermight face in managing the successful, ethical
development and
use of information technology
6. Provide examples of the components
of real world information systems
7. Become familiar with the myriad of career
opportunities in information systems
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Foundation Concepts
Why study information systems and informationtechnology? Vital component of successful businesses
Helps businesses expand and compete
Improves efficiency and effectiveness ofbusiness processes
Facilitates managerial decision making and
workgroup collaboration
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Case 1: Heidelberg, Honeywell, Eaton
Smart services, smart products Using information technology to monitor,
intervene, assist
Machines relay information via the Internet
and wireless systems Optimized performance
Minimized maintenance and repair costs
Less unanticipated downtime Increased value justifies premium charge
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Case Study Questions
1. Why should manufacturing companies buildsmart products and provide smart services?
What business benefits can be gained?
Provide examples beyond those discussed in
this case
2. What information technologies are used
by the companies in this case to build smart
products and provide smart services? What other IT components might be used?
Give examples of the capabilities they would
provide
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Case Study Questions
3. What are some limitations of a smart productsand smart services strategy?
Give several examples that a business might
encounter
Explain how it might overcome them
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What is a System?
A set of interrelated components With a clearly defined boundary
Working together
To achieve a common set of objectives
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What is an Information System?
An organized combination of People
Hardware and software
Communication networks
Data resources Policies and procedures
This system
Stores, retrieves, transforms, and disseminatesinformation in an organization
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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, software, networking, data
management Our focus will be on computer-based
information systems (CBIS)
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What Should Business Professionals Know?
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Fundamental Roles of IS in Business
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Trends in Information Systems
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What is E-Business?
Using Internet technologies to empower Business processes
Electronic commerce
Collaboration within a company
Collaboration with customers, suppliers, andother business stakeholders
In essence, an online exchange of value
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How E-Business is Being Used
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E-Business Use
Reengineering Internal business processes
Enterprise collaboration systems Support communications, coordination and
coordination among teams and work groups
Electronic commerce Buying, selling, marketing, and servicing of
products and services over networks
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Types of Information Systems
1) Operations Support Systems Efficiently process business transactions
Control industrial processes
Support communication and collaboration
Update corporate databases 2) Management Support Systems
Provide information as reports and displays
Give direct computer support to managers during
decision-making
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Purposes of Information Systems
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1) Operations Support Systems
What do they do? Efficiently process business transactions
Control industrial processes
Support communications and collaboration
Update corporate databases
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Types of Operations Support Systems
1.1 Transaction Processing Systems Record and process business transactions
Examples: sales processing, inventory systems,
accounting systems
1.2 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
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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 withdrawalimmediately
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2) 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
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Types of Management Support Systems
2.1 Management Information Systems (MIS) Reports and displays
Example: daily sales analysis reports
2.2 Decision Support Systems (DSS) Interactive and ad hoc support
Example: a what-if analysis to determine where
to spend advertising dollars
2.3 Executive Information Systems (EIS) Critical information for executives and managers
Example: easy access to actions of competitors
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3) Other Information Systems
3.1 Expert Systems Provide expert advice
Example: credit application advisor
3.2 Knowledge Management Systems Support creation, organization, and dissemination
of business knowledge throughout company
Example: intranet access to best business
practices
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Other Information Systems
3.4 Strategic Information Systems Help get a strategic advantage over customer Examples: shipment tracking, e-commerce Web
systems
3.5 Functional Business Systems Focus on operational and managerial applications
of basic business functions
Examples: accounting, finance, or marketing
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IT Challenges and Opportunities
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Measuring IT Success
Efficiency Minimize cost, time, and use of information
resources
Effectiveness Support business strategies
Enable business processes
Enhance organizational structure and culture
Increase customer and business value
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Developing IS Solutions
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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
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Challenges and Ethics of IT
Potential Risks Consumer boycotts Work stoppages
Government intervention
Possible Responses Codes of ethics
Incentives
Certification
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Ethical Responsibilities
What uses of IT might be considered improperor harmful to other individuals or society?
What is the proper business use of the Internet
or a companys IT resources?
How can you protect yourself from computer
crime?
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IT Careers
Economic downturns have affected all jobsectors, including IT
Rising labor costs are pushing jobs to India,
the Middle East, and Asia-Pacific countries
However, IT employment opportunities are
strong, with new jobs emerging daily
Shortages of IT personnel are frequent
The long-term job outlook is positive and
exciting
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IT Careers
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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/serverenvironments
The need for those withproblem-solving skills
Falling hardware and software prices, which willfuel expanded computerization of operations
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The IS Function
The IS function is A major functional area of business
An important contributor to operational
efficiency, employee productivity, morale,
customer service and satisfaction A major source of information and support for
decision making
A vital ingredient in developing competitiveproducts and services in the global marketplace
A dynamic and challenging career opportunity
A key component of todays networked business
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System Concepts: A Foundation
System concepts help us understand Technology:hardware, software, data
management, 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, strategic
business value, and security of an organizations
information systems
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Real World Case: Lufthansa
Lufthansa wants to Keep 3,500 pilots
Trained on the latest technology and procedures
Plugged into the corporate infrastructure
Informed about schedules, weather events, and otherfacts that affect their jobs
Control costs
Provide Internet access to passengers
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Case Study Questions
Are many of Lufthansas challenges identified inthe case similar to those being experienced by
other businesses in todays global economy?
What other tangible and intangible benefits,beyond those identified by Lufthansa, might a
mobile workforce enjoy as a result of deploying
mobile technologies?
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Case Study Questions
Lufthansa was clearly taking a big risk with theirdecision to deploy notebook computers to their
pilots. What steps did they take to manage the
risk, and what others might be needed in todays
business environment?
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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
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Basic Functions of a System
Input Capturing and assembling elements that enter thesystem to be processed
Processing
Transformation process that converts input intooutput
Output
Transferring transformed elements to theirultimate destination
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Cybernetic System
All systems have input,processing, and output A cybernetic system,a self-monitoring, self-
regulating system, adds feedback and control: Feedback is data about the performance of a
system Controlinvolves monitoring and evaluating
feedback to determine whether a system is
moving toward the achievement of its goal
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A Cybernetic System
A B i S
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A Business as a System
Oth S t Ch t i ti
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Other System Characteristics
If a system is one of the components of a largersystem, 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,
or interface
Types of systems Open
Adaptive
C t f IS
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Components of an IS
I f ti S t R
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Information System Resources
1 People Resources Specialists End users
2 Hardware Resources Machines
Media
3 Software Resources
Programs Procedures
I f ti S t R
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Information System Resources
4 Data Resources Product descriptions, customer records, employeefiles, inventory databases
5 Network Resources Communications media, communications
processors, network accessand control software
6 Information Resources
Management reports and business documentsusing text and graphics displays, audio responses,
and paper forms
D t V I f ti
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Data Versus Information
Dataare raw facts about physical phenomena orbusiness transactions
Informationis data that has been converted
into meaningful and useful context for end users Examples:
Sales data..is names, quantities,and dollar
amounts
Sales informationis amount of salesby
product type, sales territory, or salesperson
IS A ti iti
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IS Activities
Inputof data resources Data entryactivities
Processingof datainto information Calculations, comparisons, sorting, and so on
Outputof information products Messages, reports, forms, graphic images
Storageof data resources
Data elements and databases Controlof system performance
Monitoring and evaluating feedback
R i i I f ti S t
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Recognizing Information Systems
Business professionals should be able to look atan information system and identify
The people, hardware, software, data, and
network resources they use
The type of information products they produce
The way they perform input, processing, output,
storage, and control activities
C 3 A i ll I
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Case 3: Aviall, Inc.
Supplier of airplane parts and components Had lost track of its inventory
Price-tracking software didnt 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
Case St d Q estions
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Case Study Questions
Why do you think that Aviall failed in theirimplementation of an airplane parts and
components inventory control system?
How has information technology brought new
business success to Aviall? How did IT changeAvialls business model?
How could other companies use Avialls
approach to the use of IT to improve theirbusiness success?
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Case Questions
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Case Questions
What are the business benefits of the CallMinersystem?
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 quite frankly, low-value calls. Why are they
classified as low value? Why do you think so
many customers are placing such calls?