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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

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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



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Functional units of business organizations: organized for business use:

  • production

  • sales/marketing

  • finance/accounting

  • human resources

     maximize profit by producing goods and/or services


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Functional Areas of Business organized for business use:

  • 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


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Functional Areas of Business organized for business use:

  • 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


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Functional Areas of Business organized for business use:

  • 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.


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Functional Areas of Business organized for business use:

  • 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


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Computer vs IS literacy organized for business use:


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IS in Business organized for business use:

  • 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)



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Role of IS in Business organized for business use:

Competitive advantage

  • Low-cost (value chain)

  • Market niche

  • Product differentiation

  • Customer loyalty

    Globalization

  • People (language)

  • Organization (culture)

  • Technology (telecommunication)


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  • 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.


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Quality activities that add value to a firm's products or services (Fig. 3-2)

  • 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


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IS Approach to Problem Solving activities that add value to a firm's products or services (Fig. 3-2)

Systems Analysis

Systems Design


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Systems Analysis & Design activities that add value to a firm's products or services (Fig. 3-2)

  • 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


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Systems Analysis & Design activities that add value to a firm's products or services (Fig. 3-2)

  • 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)


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Technology perspective to problem solving activities that add value to a firm's products or services (Fig. 3-2)


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Organizational perspective to problem solving activities that add value to a firm's products or services (Fig. 3-2)


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People perspective to problem solving activities that add value to a firm's products or services (Fig. 3-2)


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