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Introduction. Information system (IS) Set of interrelated components: collect, manipulate, disseminate data and information Provide feedback to meet an objective Examples : ATMs, airline reservation systems, course reservation systems, frequency cards. Computer-Based Information Systems.
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Introduction • Information system (IS) • Set of interrelated components: collect, manipulate, disseminate data and information • Provide feedback to meet an objective • Examples: ATMs, airline reservation systems, course reservation systems, frequency cards
Knowledge Check • A CBIS consists of all the following EXCEPT • Hardware • Software • People • Telecommunication equipment • All are part of a CBIS
Information Concepts: Data Versus Information • Data: raw facts • Age, gender, hours worked last tuesday • Information • Organized collection of facts • Have value beyond the facts themselves • % employees who are female, number of students under 21, total hours worked company-wide last tuesday
Data Versus Information (continued) Process: converting data into information Knowledge: understanding of information and its applications for a specific task Example: Best Buy sale on TVs
Information is an intangible asset. How do you calculate its value?
Knowledge Check • Which of these consists of raw facts, such as an employee's name? • Information • Data • Knowledge • Process
Knowledge Check • If a checking account was viewed from a systems perspective, which of the following would be considered as processing? a. A check used for paying a telephone bill b. A telephone bill c. A notice of an overdraft d. Entering a check into the check register
Business Information Systems • Most common types of information systems used in business organizations: • Transaction processing systems • Enterprise Resource Planning (ERP) • Management information systems • Decision support systems
Organizational Culture and Change • Organizational culture • Major understandings and assumptions • Influences information systems • Organizational change • How organizations plan for, implement, and handle change • Information systems can be used to induce organizational change.
Technology Diffusion, Infusion, and Acceptance • Technology diffusion: measure of widespread use of technology • Technology infusion: extent to which technology permeates a department • Technology acceptance model (TAM): specifies factors that can lead to higher acceptance and usage of technology • Ease of Use • Usefulness
Competitive Advantage and Information Systems • Competitive Advantage - Significant, long-term benefit to a company over its competition • Ability to establish and maintain a competitive advantage is vital to a company’s success • Information Systems can help organizations develop and maintain a competitive advantage by • Changing the structure of the industry • Creating new products or services • Improving existing products or services
Factors That Lead Firms to Seek Competitive Advantage • Porter’s Five-forces model identifies key factors • Rivalry among existing competitors • Threat of new entrants • Threat of substitute products and services • Bargaining power of buyers • Bargaining power of suppliers
Strategic Planning for Competitive Advantage • Cost leadership • Deliver the lowest possible products and services • Differentiation • Deliver different products and services • Niche strategy • Deliver to a small, niche market • Altering the industry structure • Change the industry to become more favorable to organization
Strategic Planning for Competitive Advantage (continued) • Creating new products and services • Introduce periodically or frequently • Improving existing product lines and service • Make real or perceived improvements • Other strategies • Growth in sales • First to market • Customizing products and services
Roles, Functions, and Careers in the IS Department • Primary responsibilities in information systems • Operations: focuses on the efficiency of information • Systems development: focuses on development projects and ongoing maintenance and review • Support: provides user assistance
Typical IS Titles and Functions • Chief information officer (CIO): uses IS department equipment and personnel to meet goals • LAN administrators: set up and manage the network hardware, software, and security processes • Internet careers • Strategists • Programmers • Web site operators • Chief Internet officer • Systems Analyst • Systems Designer