Introduction to Information Systems

1. Chapter 1 Introduction to Information Systems

3. Cases on Information systems • American airlines • creating new businesses • Baxter company • competitive advantage • Mrs. Fields • organizational consequences • Open Market • fast evolution: business risk

4. Information systems IS and IS resources Management Challenges PEOPLE Business applications Information technologies Hardware Software Information Systems Resources Development processes Foundation concepts Data Networks O’Brien p7-8

5. The importance of Information Systems • An information system is a set of people , procedures and resources that: • collect • transform • disseminates information in an organization. • Information is used for better management • Companies cannot operate any more without automated information systems O’Brien p 7-8

6. 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

7. Properties of Information SystemsEnterprise Perspective • Worldwide information Society • Knowledge workers • Information create use dissiminate • Use information technology to manage people,finances, material, energy, … • Ethical aspects • social aspects: have - have not • privacy aspects: supermarket O’Brien p 8

8. Ethical considerations Applications of ICT • Improve market • knowledge • Improve • response • capabilities • Improve • persuasive • communications • Improve • strategy • selection Potential harms Potential risks Possible responses How likely are legal actions, consumer boy -cotts, strikes, other threats to occur • self-regulation • Advocacy • Education • Codes of ethics • Incentives • certification • Infrigements on • privacy • Inaccurate • information • Collusion • Exclusion from • essential • facilities O’Brien p 9

9. The Role of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations O’Brien p 11

10. The Internetwork- enterprises The Internet Intranets Extranets Enterprise Intranets Intranets Supplier Client Intranets Electronic Commerce Other Organizations

11. Before managers took all decisions only 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 Today everybody can take decisions a 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 Business Process Reengineering O’Brien p 16

12. Information Systems Information Systems Knowledge needed by managerial end users Management of IS Resources and activities Development of IS Solutions to business problems Applications of IS To operations management and strategic advantage Technology of IS Hardware , software , Telecommunications, and Data Management Foundation concepts of IS Fundamental Behavioral and Technical Aspects

13. The System Concept O’Brien 18 -19 System: A group of interrelated components or interacting elements forming a unified whole. • input • processing • output • feedback • control } - environment - other systems O’Brien p 21

14. Other System Concepts • Subsystem • Interface • Open System • Adaptive system O’Brien p 23

15. Stakeholders in the Business Environment The community Competitors Control Management Customers Suppliers Feedback Information Systems Economic Resources: People Money Material Land Facilities Energy Information Organizational Processes: Production Marketing Finance Personnel Other Processes Goods and Services: Products Services Payments Contributions Information Other Effects Government Agencies Stockholders Input PROCESSING Output Financial Institutions Labor Unions O’Brien p 24

16. Components of an Information System O’Brien 21 - 25 Communications media and network support People Resources : End users and IS specialists Data Resources Data , Model , and Knowledge Bases Control of System Performance Input of Data Resources Processing Data into Information Output of Information Products Machines and Media Hardware Resources Software Resources Programs and Procedures Storage of Data resources Communications media and network support O’Brien p 25 Network resources

17. IS Resources and Products People Resources • Specialists: system analysts, programmers, operators • End users : anyone else using the system Hardware Resources • Machines: computers, video monitors, disks, printers, scanners • Media: floppies, tapes, disks, plastic cards, paper forms, ... Software Resources system, application, procedures • Programs: 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

18. Data raw facts or observations meaningless time independent machine efficient general purpose Information informative value time dependent human efficient specific based on previous knowledge Data versus Information O’Brien 24 Different types of information can be derived from the same source of data .

19. Expanding Roles of Information Systems O’Brien 28 1950s-1960s: Data Processing • electronic data processing systems transaction processing, record keeping, traditional accounting 1960s-1970s: Management reporting • Management Information Systems mgt. reports for pre-specified information to support decision making 1970s-1980s: Decision Support • Decision Support Systems Interactive ad hoc support of the managerial decision process

20. Expanding Roles of Information Systems (cont) • 1980s-1990s: Strategic and End User Support • End User Computing Systems: direct productivity support • Executive Information Systems:Critical Information • Expert Systems: Knowledge based expert advise for end users • Strategic 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

21. Types of Information Systems O’Brien 29 O’Brien p 32-33

22. IT - usage in the Company

23. Nolan curve Four stages of DP growth: maturity control contagion initiation

24. NOLAN phases Stage Initiation contagion control maturity orientation cost reduction new functions moratorium database inquiry organization where first used dispersed central controlled distributed manager operations manager middle manager middle manager director management view lax selling controlling a resource applications supporting diversification databases end-user computing control little very little strong normal user involvement interviews , manuals PC's project groups transparent

25. Information systems in the Company

26. Electronic Banking • account status • exchange rates • economic information • bank transfers • order checks • reports • batch payments ( SWIFT, ...) Security via magnetic cards, password , control totals

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

28. 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

29. Other Applications • Transport • just in time • routing • shipping • Insurance • Tourism • Department stores