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Basic Themes. Information  Information helps meet goals  Systems are artifacts  Organizations run on information  Systems provide careers  . GOAL. Organization. Principles and Learning Objectives-1.

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Basic themes
Basic Themes

  • Information 

  • Information helps meet goals 

  • Systems are artifacts 

  • Organizations run on information 

  • Systems provide careers 

MIS 300 Chapter 1


Principles and learning objectives 1

GOAL

Organization

Principles and Learning Objectives-1

  • The value of information is directly linked to how it helps decision makers achieve the organization’s goals

    • Distinguish data from information and describe the characteristics used to evaluate the quality of data

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Information

MIS 300 Chapter 1


Principles and learning objectives 2
Principles and Learning Objectives -2

  • Knowing the potential impact of information systems and having the ability to put this knowledge to work can result in a successful personal career, organizations that reach their goals, and a society with a higher quality of life

    • Identify the basic types of business information systems and discuss who uses them, how they are used, and what kinds of benefits they deliver

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MIS 300 Chapter 1


Principles and learning objectives 3
Principles and Learning Objectives-3

  • System users, business managers, and information systems professionals must work together to build a successful information system

    • Identify the major steps of the systems development process and state the goal of each

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MIS 300 Chapter 1


Principles and learning objectives 4
Principles and Learning Objectives-4

  • The use of information systems to add value to the organization can also give an organization a competitive advantage

    • Identify the value-added processes in the supply chain and describe the role of information systems within them

    • Identify some of the strategies employed to lower costs or improve service

    • Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage

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MIS 300 Chapter 1


Principles and learning objectives 5
Principles and Learning Objectives-5

  • Information systems personnel are the key to unlocking the potential of any new or modified system

    • Define the types of roles, functions, and careers available in information systems

    • Can (and will) also include many users

    • Will (most certainly) include all workers

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MIS 300 Chapter 1


Introduction
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

What is Information, really? Why have it?

MIS 300 Chapter 1


What your mother taught you

See

Think

Say

Do

What Your Mother Taught You

Something

Happens

Response

Required

MIS 300 Chapter 1


What herbert simon won the nobel prize for

Intelli-gence

Design

Choice

Execution

What Herbert Simon Won the Nobel Prize For

Something

Happens

MgmtDecision

Required

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What s behind the model of rational decision making

Optimize or Satisfice?

Intelli-gence

Reflect against what is known

Select one alternative course of action

Implement the decision

All activity depends on requirements and resources available

What’s Behind the Model of Rational Decision Making

Gather information about pertinent events

Something

Happens

MgmtDecision

Required

MIS 300 Chapter 1


What s wrong with this model

Intelli-gence

Design

Choice

Execute

What ‘s Wrong with This Model?

Something

Happens

MgmtDecision

Required

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Information concepts data versus information

Information is “information” only to the extent that it informs a user or consumer. That means that the informationness of an experience depends on the observer and what the observer has to do (intention)!

Information Concepts: Data Versus Information

  • Data: raw facts

    • Alphanumeric, image, audio, and video

  • Information

    • Organized collection of facts

    • Have value beyond the facts themselves

Recordings of machines’ experiences

data or other information

components themselves

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Basic themes

Data Versus Information (continued) informs a user or consumer. That means that the informationness of an experience depends on the observer and what the observer has to do (intention)!

Figure 1.1: Defining and Organizing Relationships Among Data Creates Information

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Basic themes

Selecting, organizing and manipulating, conditioned by existing models and subsequent need for action.

Data Versus Information (continued)

Figure 1.2: The Process of Transforming Data into Information

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The characteristics of valuable information
The Characteristics of Valuable Information existing models and subsequent need for action.

Table 1.2: Characteristics of Valuable Information

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The characteristics of valuable information continued
The Characteristics of Valuable Information (continued) existing models and subsequent need for action.

Table 1.2: Characteristics of Valuable Information (continued)

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What is an information system
What Is an Information System? existing models and subsequent need for action.

This is only one view. A system is much more complex. A behavioral view will keep in mind intentions, skills, judgments, and prior knowledge (theory)

Figure 1.3: The Components of an Information System

MIS 300 Chapter 1


Computer based information systems
Computer-Based Information Systems existing models and subsequent need for action.

  • Manual versus computerized information systems

  • Computers are NOT necessary in information systems, but they have certain efficiencies

  • Computer-based information system (CBIS)

    • Hardware, software, databases, telecommunications, people, and procedures

    • Collect, manipulate, store, and process data into information

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Computer based information systems continued

The infrastructure (left) existing models and subsequent need for action.

What you ex-perience (above)

Computer-Based Information Systems (continued)

Figure 1.4: The Components of a Computer-Based Information System

MIS 300 Chapter 1


Business information systems
Business Information Systems existing models and subsequent need for action.

  • Most common types of information systems used in business organizations:

    • Electronic and mobile commerce systems 

    • Transaction processing systems 

    • Management information systems 

    • Decision support systems 

    • Specialized business information systems 

      These are detailed next.

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Electronic and mobile commerce
Electronic and Mobile Commerce existing models and subsequent need for action.

  • E-commerce: any business transaction executed electronically between parties such as:

    • Companies (B2B)

    • Companies and consumers (B2C)

    • Consumers and other consumers (C2C)

    • Business and the public sector

    • Consumers and the public sector

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Transaction processing systems
Transaction Processing Systems existing models and subsequent need for action.

  • Transaction: business-related exchange

    • Payments to employees

    • Sales to customers

    • Payments to suppliers

  • Transaction processing system (TPS)

    • A collection of people, procedures, software, databases, devices

    • Records completed business transactions

MIS 300 Chapter 1


Transaction processing systems continued
Transaction Processing Systems (continued) existing models and subsequent need for action.

Figure 1.7: A Payroll Transaction Processing System

The inputs (numbers of employee hours worked and pay rates) go through a transformation process to produce outputs (paychecks)

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Enterprise resource planning
Enterprise Resource Planning existing models and subsequent need for action.

  • Integrated programs that manage all business operations

  • Coordinate planning, inventory control, production, and ordering among others

  • Historically based in production systems

  • Hard to translate to other types of business

  • Necessarily complex

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Management information systems
Management Information Systems existing models and subsequent need for action.

  • Management information system (MIS)

    • A collection of people, procedures, software, databases, devices

    • Provides information to managers/decision makers

  • Primary focus is operational efficiency

  • MIS outputs

    • Scheduled reports

    • Demand reports

    • Exception reports

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Management information systems continued
Management Information Systems (continued) existing models and subsequent need for action.

Figure 1.8: Functional management information systems draw data from the organization’s transaction processing system

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Decision support systems
Decision Support Systems existing models and subsequent need for action.

  • Decision support system (DSS)

    • A collection of people, procedures, software, databases, devices

    • Supports problem-specific decision making

  • Focus is on decision-making effectiveness

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Decision support systems continued
Decision Support Systems (continued) existing models and subsequent need for action.

Figure 1.9: Essential DSS Elements

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Systems development
Systems Development existing models and subsequent need for action.

  • Systems development

    • Creating or modifying existing business systems

  • Systems investigation: gain an understanding

  • of the problem to be solved or opportunity to be addressed

  • Systems analysis: define problems and opportunities of the existing system

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Systems development continued
Systems Development (continued) existing models and subsequent need for action.

  • Systems design: determine how the new system will work to meet the business needs defined during systems analysis

  • Systems implementation: create or acquire the various system components defined in the design step, assembling them, and putting the new system into operation

  • Systems maintenance and review: check and modify the system so that it continues to meet changing business needs

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Organizations and information systems
Organizations and Information Systems existing models and subsequent need for action.

  • Organization: a collection of people and other resources established to accomplish a set of goals

  • An organization is a system

    • Inputs: resources (materials, people, money)

    • Outputs: goods or services

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Organizations and information systems continued
Organizations and Information Systems (continued) existing models and subsequent need for action.

Figure 1.13: A General Model of an Organization

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Organizations and information systems continued1
Organizations and Information Systems (continued) existing models and subsequent need for action.

  • Value chain: a series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service

  • Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities

  • Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service

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Organizations and information systems continued2
Organizations and Information Systems (continued) existing models and subsequent need for action.

Figure 1.14: The Value Chain of a Manufacturing Company

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Organizations in a global society
Organizations in a Global Society existing models and subsequent need for action.

  • As companies rely on virtual structures and outsourcing to a greater extent, businesses can operate around the world

  • Challenges to operating in a global society

    • Every country has a set of customs, cultures, standards, politics, and laws

    • Language barriers

    • Difficulty in managing and controlling operations in different countries

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Competitive advantage
Competitive Advantage existing models and subsequent need for action.

  • 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

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Factors that lead firms to seek competitive advantage
Factors That Lead Firms to Seek Competitive Advantage existing models and subsequent need for action.

  • Rivalry among existing competition

  • Threat of new entrants

  • Threat of substitute products and services

  • Bargaining power of customers and suppliers

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Strategic planning for competitive advantage
Strategic Planning for Competitive Advantage existing models and subsequent need for action.

  • Change the structure of the industry

  • Create new products or services

  • Improve existing products or services

  • Use information systems for strategic purposes

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Strategic planning for competitive advantage continued
Strategic Planning for Competitive Advantage (continued) existing models and subsequent need for action.

Table 1.5: Competitive Advantage Factors and Strategies

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Strategic planning for competitive advantage continued1
Strategic Planning for Competitive Advantage (continued) existing models and subsequent need for action.

Table 1.5: Competitive Advantage Factors and Strategies (continued)

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Return on investment and the value of information systems
Return on Investment and the Value of Information Systems existing models and subsequent need for action.

  • Earnings growth

  • Market share

  • Customer awareness and satisfaction

  • Total cost of ownership

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Careers in information systems
Careers in Information Systems existing models and subsequent need for action.

  • Degree programs

    • Degrees in information systems

    • Business degrees with a global or international orientation

  • Computer systems are making IS professionals’ work easier

  • Opportunities in information systems are not confined to single countries

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Careers in information systems continued
Careers in Information Systems (continued) existing models and subsequent need for action.

Figure 1.16: The Three Primary Responsibilities of Information Systems

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Roles functions and careers in the is department
Roles, Functions, and Careers in the IS Department existing models and subsequent need for action.

  • 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

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Typical is titles and functions
Typical IS Titles and Functions existing models and subsequent need for action.

  • Chief information officer (CIO): uses IS department equipment and personnel

  • LAN administrators: set up and manage the network hardware, software, and security processes

  • Internet careers

    • Strategists

    • Programmers

    • Web site operators

    • Chief Internet officer

  • Other IS careers

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Summary
Summary existing models and subsequent need for action.

  • Data: raw facts

  • Information: organized collection of facts

  • System components: input, processing, output, and feedback

  • Computer-based information system (CBIS)

    • Hardware, software, databases, telecommunications, people, and procedures

    • Collect, manipulate, store, and process data into information

MIS 300 Chapter 1


Summary continued
Summary (continued) existing models and subsequent need for action.

  • Transaction processing system (TPS): a collection of people, procedures, software, databases, and devices used to record completed business transactions

  • Management information system (MIS): a collection of people, procedures, software, databases, and devices used to provide routine information to managers and decision makers

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Summary continued1
Summary (continued) existing models and subsequent need for action.

  • Decision support system (DSS): a collection of people, procedures, software, databases, and devices used to support problem-specific decision making

  • Systems development: creating or modifying existing business systems

  • Competitive advantage: significant, long-term benefit to a company over its competition

  • Primary responsibilities in information systems: operations, systems development, and support

MIS 300 Chapter 1