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
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
Functional units of business organizations: • production • sales/marketing • finance/accounting • human resources maximize profit by producing goods and/or services
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
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
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.
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
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)
Role of IS in Business Competitive advantage • Low-cost (value chain) • Market niche • Product differentiation • Customer loyalty Globalization • People (language) • Organization (culture) • Technology (telecommunication)
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.
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
IS Approach to Problem Solving Systems Analysis Systems Design
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
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)