Lec 8


Published on


Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Lec 8

  1. 1. Foundation Of Information Systems In Business
  2. 2. Learning Objectives: <ul><li>Understand the concept of a system and how it relates to information systems. </li></ul>
  3. 3. What Is An Information System? <ul><li>An Information System can be any organized combination Of: </li></ul><ul><li>- people, </li></ul><ul><li>- hardware, </li></ul><ul><li>- software, </li></ul><ul><li>- communications networks, </li></ul><ul><li>- policies. </li></ul>
  4. 4. What Is An Information System? (continued) <ul><li>People rely on modern information systems to communicate using a variable: </li></ul><ul><li>- physical devices (hardware). </li></ul><ul><li>- information processing instruction and </li></ul><ul><li>procedures (software). </li></ul><ul><li>- communications channels (network). </li></ul><ul><li>- stored data (data resources). </li></ul>
  5. 5. Examples Of Information Systems: <ul><li>Smoke signals for communication </li></ul><ul><li>Card catalog in a library </li></ul><ul><li>The cash register </li></ul>
  6. 6. Real World Case: Heidelberg: Using IT To Build Smart Products And Services <ul><li>Consider Heidelberger Druckmaschinen AG of Germany, the number one maker of high end end printing presses for printers and print media producers throughout the world. For all of its long history, the company has offered repair services to its customers. </li></ul><ul><li>Several years ago, Heidelberg developed the ability to monitor its equipment remotely using built in sensors, networking microprocessors, and other information technologies. </li></ul>
  7. 7. Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) <ul><li>Heidelberg soon found that it could provide </li></ul><ul><li>maintenance much more cost effectively with the smart </li></ul><ul><li>products. </li></ul><ul><li>Now with its machines communicating continuously </li></ul><ul><li>over the internet, relaying information about their status </li></ul><ul><li>between the print shops and Heidelberg’s regional and </li></ul><ul><li>global technical support specialists, the company has </li></ul><ul><li>the access and insight to optimize printing performance </li></ul><ul><li>in customer’s shops and minimize maintenance and </li></ul><ul><li>repair costs for Heidelberg as well as its customers. </li></ul>
  8. 8. Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) <ul><li>With such smart services, Heidelberg now offers total </li></ul><ul><li>supports of its products, which for example, can extend </li></ul><ul><li>even to the removal and resale of its machines. </li></ul><ul><li>Thus the self monitoring and networking capabilities </li></ul><ul><li>built into its products provide a strategy opportunity for </li></ul><ul><li>Heidelberg to use information technology to become a </li></ul><ul><li>partner in the successful operations of its customers, </li></ul><ul><li>while reducing its costs and creating new sources of </li></ul><ul><li>revenue from smart services. </li></ul>
  9. 9. Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) <ul><li>Questions: </li></ul><ul><li>Why should manufacturing companies build smart products and provide smart services? </li></ul><ul><li>What business benefits can be gained? </li></ul><ul><li>Provide several examples beyond discussed in this case </li></ul>
  10. 10. Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) <ul><li>Questions (continued) </li></ul><ul><li>What information technologies are used by the companies in this case to build smart products and provide smart services? </li></ul><ul><li>What are some limitations of a smart products and smart services strategies? </li></ul><ul><li>Use the internet to investigate how Heidelberg, is proceeding in its use of smart products and services. </li></ul>
  11. 11. Computer Based Information System & Information Technologies: <ul><li>1. Computer hardware technologies. </li></ul><ul><li>2. Computer software technologies. </li></ul><ul><li>3. Telecommunications network technologies. </li></ul><ul><li>4. Data resource management technologies. </li></ul>
  12. 12. The Major Areas Of Information Systems Knowledge Needed By Business Professionals <ul><li>1. Foundation concepts. </li></ul><ul><li>concept about the components and roles of information systems. </li></ul><ul><li>2. Information technologies. </li></ul><ul><li>hardware, software, networks, data management, many internet based technologies. </li></ul>
  13. 13. The Major Areas Of Information Systems Knowledge Needed By Business Professionals (continued) <ul><li>3. Business applications. </li></ul><ul><li>operations, management, competitive advantage of a business. </li></ul><ul><li>4. Development processes. </li></ul><ul><li>plan, develop, and implement information systems to meet business opportunities. </li></ul><ul><li>5. Management challenges. </li></ul><ul><li>the challenges of effectively and ethically managing information technology at end user, enterprise, and global levels of a business. </li></ul>
  14. 14. The Fundamental Roles Of Information System In Business <ul><li>There are three fundamental reasons: </li></ul><ul><li>1. Support of its business processes and operations. </li></ul><ul><li>2. Support of decision making by its employees and managers. </li></ul><ul><li>3. Support of its strategies for competitive advantage. </li></ul>
  15. 15. Trends In Information Systems: <ul><li>1. Data processing: 1950s – 1960s </li></ul><ul><li>- electronic data processing systems </li></ul><ul><li>-- transaction processing, record keeping, </li></ul><ul><li>and traditional accounting applications. </li></ul><ul><li>2. Management reporting: 1960s – 1970s </li></ul><ul><li>- management information systems </li></ul><ul><li>-- management reports of pre specified </li></ul><ul><li>information to support decision making. </li></ul>
  16. 16. Trends In Information Systems (continued): <ul><li>3. Decision support: 1970s – 1980s </li></ul><ul><li>- decision support systems </li></ul><ul><li>4. Strategic and User Support: 1980s – 1990s </li></ul><ul><li>- end user computing systems </li></ul><ul><li>- executive information systems </li></ul><ul><li>- expert systems </li></ul><ul><li>- strategic information systems </li></ul>
  17. 17. Trends In Information Systems (continued): <ul><li>4. Electronic Business and Commerce: 1990s – 2000s </li></ul><ul><li>- internet based e business and e </li></ul><ul><li>commerce systems </li></ul>
  18. 18. The Role Of “E Business” In Business <ul><li>Many business today are using internet technologies to Web enable business process and to create innovative e business application. </li></ul>
  19. 19. The Role Of E Business In Business (continued) <ul><li>E business: </li></ul><ul><li>the use of internet technologies to work and empower business process, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders. </li></ul>
  20. 20. Business Today Manufacturing and production Accounting and finance Engineering and research Supply chain management: procurement, distribution, and logistics Customer relationship management: Marketing, Sales, Customer Service Company Boundary Internet Internet
  21. 21. Business Today (continued) Company Boundary Suppliers and other business partners Consumers and business customers Extranets Extranets
  22. 22. Business Today (continued) <ul><li>Intranet: </li></ul><ul><li>the internet and internet like networks inside the enterprise. </li></ul><ul><li>Extranet: </li></ul><ul><li>the internet and internet like networks between an enterprise and its trading partners. </li></ul>
  23. 23. Business Today (continued) <ul><li>Electronic commerce: </li></ul><ul><li>the buying, selling, marketing, and servicing of products, services, and information over a variety of computer networks. </li></ul>
  24. 24. Types Of Information Systems Information Systems Operations Support Systems Management Support Systems
  25. 25. Types Of Information Systems (continued) Operations Support Systems Specialized Processing Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems
  26. 26. Types Of Information Systems (continued) Management Support Systems Management Information Systems Decision Support Systems Executive Information Systems Specialized Processing Systems
  27. 27. Types Of Information Systems (continued) <ul><li>Operations support systems: </li></ul><ul><li>- Transaction processing systems </li></ul><ul><li>-- process data resulting from business </li></ul><ul><li>transactions, update operational </li></ul><ul><li>databases, and produce business </li></ul><ul><li>documents. </li></ul><ul><li>Examples: Sales and inventory, </li></ul><ul><li>processing and accounting </li></ul><ul><li>systems. </li></ul>
  28. 28. Types Of Information Systems (continued) <ul><li>Operations support systems (continued): </li></ul><ul><li>- Process control systems. </li></ul><ul><li>-- minor and control industrial process. </li></ul><ul><li>Examples: Petroleum refining, power </li></ul><ul><li>generation, steel producing </li></ul><ul><li>systems. </li></ul>
  29. 29. Types Of Information Systems (continued) <ul><li>Operations support systems (continued): </li></ul><ul><li>- Enterprise collaboration systems. </li></ul><ul><li>-- support team, workgroup, and enterprise </li></ul><ul><li>communications and collaboration. </li></ul><ul><li>Examples: email, chat, video </li></ul><ul><li>conferencing groupware </li></ul><ul><li>systems. </li></ul>
  30. 30. Types Of Information Systems (continued) <ul><li>Management support systems: </li></ul><ul><li>- Management information systems </li></ul><ul><li>-- provide information in the form of pre </li></ul><ul><li>specified reports and displays to support </li></ul><ul><li>business decision making. </li></ul><ul><li>Examples: Sales analysis, </li></ul><ul><li>production performance, </li></ul><ul><li>cost trend reporting systems. </li></ul>
  31. 31. Types Of Information Systems (continued) <ul><li>Management support systems (continued): </li></ul><ul><li>- Decision support systems </li></ul><ul><li>-- provide interactive ad hoc support for the </li></ul><ul><li>decision making processes of managers </li></ul><ul><li>and other business professionals. </li></ul><ul><li>Examples: product pricing, </li></ul><ul><li>profitability forecasting, </li></ul><ul><li>risk analysis. </li></ul>
  32. 32. Managerial Challenges Of Information Technology The Business Enterprise: Strategies/Processes/Structure/Culture Information Technology Customer Value Business Value Business/IT Challenges Business/IT Developments Business/IT Goals
  33. 33. Managerial Challenges Of Information Technology (continued) <ul><li>Speed and flexibility requirements of product development, manufacturing, and delivery cycles, </li></ul><ul><li>Integration of e business and e commerce into the organization’s strategies, process, structure, and culture </li></ul>Business/IT Challenges Business/IT Developments * Use of the internet, intranets, extranets, and the WEB Business/IT Goals <ul><li>Give customers what they want, when and how they want it, at the lowest cost </li></ul><ul><li>Coordination of manufacturing and business process with suppliers and customers </li></ul>
  34. 34. Developing Information System (IS) Solutions Investigate Analyze Design Implement Maintain
  35. 35. The IS (Information System) Functions: <ul><li>A major functional area of business equally as important to business success, as the function of: </li></ul><ul><li>- accounting, </li></ul><ul><li>- finance, </li></ul><ul><li>- operations management, </li></ul><ul><li>- marketing, </li></ul><ul><li>- human resource management. </li></ul>
  36. 36. The IS (Information System) Functions (continued): <ul><li>An important contributor to: </li></ul><ul><li>- operational efficiency, </li></ul><ul><li>- employee productivity, </li></ul><ul><li>- customer service and satisfaction. </li></ul><ul><li>A major source of information and support needed to promote effective decision making by managers and business professionals. </li></ul>
  37. 37. The IS (Information System) Functions (continued): <ul><li>A vital ingredient in developing competitive products and services that give an organization a strategic advantage in the global market place. </li></ul>
  38. 38. Foundation Concepts: The Components Of Information Systems: <ul><li>Technology: </li></ul><ul><li>the computer network are systems of information processing component that use a variety of: hardware, </li></ul><ul><li>software, </li></ul><ul><li>data management, </li></ul><ul><li>and telecommunication network technologies. </li></ul><ul><li>Applications: </li></ul><ul><li>the electronic business and commerce applications involve interconnected business information systems. </li></ul>
  39. 39. Foundation Concepts: The Components Of Information Systems (continued): <ul><li>Development: </li></ul><ul><li>that developing ways to use information technology in business includes designing the basic components of information system. </li></ul><ul><li>Management: </li></ul><ul><li>the managing information technology emphasizes the quality, strategic business value, security. </li></ul>
  40. 40. What Is A System? <ul><li>Systems have three basic functions: </li></ul><ul><li>1. Input: </li></ul><ul><li>Involves capturing and assembling elements that enter the system to be processed. </li></ul><ul><li>Example: - raw materials, </li></ul><ul><li>- energy, </li></ul><ul><li>- data. </li></ul>
  41. 41. What Is A System? (continued) <ul><li>Systems have three basic functions (continued): </li></ul><ul><li>2. Processing: </li></ul><ul><li>involves transformation processes that convert input </li></ul><ul><li>into output. </li></ul><ul><li>Example: - manufacturing process, </li></ul><ul><li>3. Output: </li></ul><ul><li>involves transferring elements that have been </li></ul><ul><li>produced by a transformation process to their </li></ul><ul><li>ultimate destination. </li></ul><ul><li>Example: - finished products, </li></ul><ul><li>- human services </li></ul>
  42. 42. Stakeholders In The Business Environment Management Information System Economic Resources: people, money, material, machines, land, facilities, energy, information Business Process: market, develop, produce, and deliver, products and services, support customers, other processes Goods and Services: products, services, payments, contributions, information, other effects INPUT PROCESSING OUTPUT CONTROL FEEDBACK Financial Institutions, Labor Unions, Stockholders, Customers, Competitors, The Community, Government Agencies, Suppliers
  43. 43. Components Of An Information System Control System Performance Input Of Data Resources Processing Data Into Information Output Of Information Products Storage Of Data Resources PEOPLE RESOURCES (end users and IS specialists); SOFTWARE RESOURCES (programs and procedures); HARDWARE RESOURCES (machines and media); NETWORK RESOURCES (communications media and network support); DATA RESOURCES (data and knowledge bases); SYSTEM ACTIVITIES
  44. 44. Examples Of Information System Resources And Products Information Systems Resources And Products People Resources Hardware Resources Software Resources Data Resources Network Resources Information Products
  45. 45. Information Systems Resources And Products <ul><li>People resources: </li></ul><ul><li>- specialist (system analysts, software </li></ul><ul><li>developers, system operators). </li></ul><ul><li>- end users (anyone else who uses </li></ul><ul><li>information systems). </li></ul><ul><li>Hardware resources: </li></ul><ul><li>- machines (computers, video monitor, magnetic disk </li></ul><ul><li>drives, printers, optical scanners). </li></ul><ul><li>- media (floppy disks, magnetic tape, optical disks, </li></ul><ul><li>plastic cards, paper forms). </li></ul>
  46. 46. Information Systems Resources And Products (continued) <ul><li>Software resources: </li></ul><ul><li>- programs (operating system program, spreadsheet </li></ul><ul><li>programs, word processing programs). </li></ul><ul><li>- procedures (data entry procedures, error correction </li></ul><ul><li>procedures). </li></ul><ul><li>Data resources: </li></ul><ul><li>- product description, customer records, employee </li></ul><ul><li>files, inventory databases. </li></ul>
  47. 47. Information Systems Resources And Products (continued) <ul><li>Network resources: </li></ul><ul><li>- communications media, communication </li></ul><ul><li>processors, network access and control </li></ul><ul><li>software. </li></ul><ul><li>Information products: </li></ul><ul><li>- management reports and business </li></ul><ul><li>documents using text and graphics displays, </li></ul><ul><li>audio responses, and paper forms. </li></ul>
  48. 48. Business Examples INFORMATION SYSTEM ACTIVITIES <ul><li>Input. (optical scanning of bar coded tags on </li></ul><ul><li>merchandise) </li></ul><ul><li>Processing. (calculating employee pay, taxes, and </li></ul><ul><li>other payroll deductions) </li></ul><ul><li>Output. (producing reports and displays about sales </li></ul><ul><li>performance) </li></ul><ul><li>Storage. (maintaining records on customers, </li></ul><ul><li>employees, and products) </li></ul><ul><li>Control. (generating audible signals to indicate proper </li></ul>
  49. 49. Recognizing Information Systems <ul><li>As a business professional, You should be able </li></ul><ul><li>to recognize the fundamental components of </li></ul><ul><li>information systems You encounter. </li></ul><ul><li>You should be able to identify: </li></ul><ul><li>** The people, hardware, software, data, and network resources they use. </li></ul><ul><li>** The types of information products they produce. </li></ul><ul><li>** The way thy perform input, processing, output, storage, and control activities. </li></ul>