2. What is IS?
IS – a set of interrelated components working together
to collect, retrieve, process, store, and distribute
information for the purpose of facilitating planning,
control, coordination, analysis, and decision making in
business organizations
Input-process-output perspective
People-organization-technology perspective
6. Technology – the means by which data is transformed and organized for
business use:
Hardware
Software
Database
Telecommunication
People – the users of IS
Organization -- a collection of functional units working together to
achieve a common goal
7. Functional units of business
organizations:
production
sales/marketing
finance/accounting
human resources
maximize profit by
producing goods and/or
services
8. Functional Areas of Business
The manufacturing and production function is
responsible for producing the firm's goods and services.
There are three stages of the manufacturing/
production process:
inbound logistics
production
outbound logistics
9. Functional Areas of Business
The sales and marketing function is responsible for
finding customers for the firm's product or service and
selling the firm's product or service to those customers.
The sales and marketing process consists of
identifying and creating markets
developing markets
maintaining markets
10. Functional Areas of Business
The finance and accounting function is responsible for
managing the firm's financial assets and maintaining the
firm's financial records. The finance process involves
managing the firm's financial assets, whereas the
accounting process is involved primarily in financial
record keeping.
11. Functional Areas of Business
The human resource function is responsible for
attracting and maintaining an appropriate work force
for the firm. The human resources process entails
attracting the work force
developing the firm's work force to meet the firm's
personnel needs
maintaining the work force
14. IS in Business
Business functions
Business processes
A series of interrelated activities through which work is
organized and focused to produce a product or service
Business levels
Strategic (long range planning)
Tactical (co-ordinate & supervise)
Operational (produce product & service)
17. Role of IS in Business
Competitive advantage
Low-cost (value chain)
Market niche
Product differentiation
Customer loyalty
Globalization
People (language)
Organization (culture)
Technology (telecommunication)
18. The value chain views the firm as a series of basic
activities that add value to a firm's products or services
(Fig. 3-2)
Primary activities
•inbound logistics,
•operations,
•outbound logistics,
•sales and marketing
•service
Support activities
•administration and management
•human resources
•technology and procurement.
19. Quality
Process simplification
Benchmarking
Customer focus
Cycle time reduction
Improve design & production
Error reduction
Reengineering
Business processes redesign
Ethical & social responsibility
Information rights & privacy
Intellectual property
Accountability & liability
Quality of life
20. IS Approach to Problem Solving
Systems Analysis
Systems Design
21. Systems Analysis & Design
Systems Analysis
Problem analysis (what)
Information gathering (where & why)
Decision making (how)
Establish objectives
Determine feasibility
Choose best solution
Systems Design (Input, Process, Output, Procedures, Control)
Logical design
22. Systems Analysis & Design
Systems Design
Logical design (what will the system do?)
Input: content, format, source, volume, frequency, timing
Process: rule, model, formula, timing
Output: content, format, organization, volume, freq., timing
Storage: data, format, organization, relationship, volume
Procedure: manual activities, rule, sequence, timing, location
Control: security, accuracy, validity, supervision
Physical design (how the system will work?)
Input: keyboard, voice, scanner
Process: PC, operating system, software
Output: print-outs, files, audio
Storage: tape, CD
Procedure: batching, backup, auditing, data entry
Control: batch control, password, audit logs
Implementation (coding, testing, training)