1.1 © 2007 by Prentice Hall Announcement This is BISI 3230 Management Information Systems session...

1.1 © 2007 by Prentice Hall

Announcement • This is BISI 3230 Management Information Systems

session 01. – If you are not student of this session, Please leave right now.

• No credit will be given to students who are not registered with this session.

• Please come on time. Students come in late more than 5 minutes will NOT get credit

• Please ensure to check your attendance each time you come to class

• Course materials:– http://faculty.tnstate.edu/jsiekpe– http://www.prenhall.com/laudon


1Chapter

Business Business Information Systems Information Systems

in Your Careerin Your Career

Business Business Information Systems Information Systems

in Your Careerin Your Career


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 an Information System?

The Components of an Information System


Computer-Based Information Systems

• Manual versus computerized information systems

• Computer-based information system (CBIS)– Hardware, software, databases,

telecommunications, people, and procedures– Collect, manipulate, store, and process data into

information


Computer-Based Information Systems (continued)

The Components of a Computer-Based Information System


Information Concepts: Data Versus Information

• Data: raw facts– Alphanumeric, image, audio, and video

• Information– Organized collection of facts– Have value beyond the facts themselves


Defining and Organizing Relationships Among Data Creates Information

Data Versus Information (continued)


The Process of Transforming Data into Information

Data Versus Information (continued)


Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 1 Business Information Systems in Your CareerChapter 1 Business Information Systems in Your Career

• Operational excellenceOperational excellence

• New products, services, and business modelsNew products, services, and business models

• Customer and supplier intimacyCustomer and supplier intimacy

• Improved decision makingImproved decision making

• Competitive advantageCompetitive advantage

• SurvivalSurvival

Business Objectives of Information SystemsBusiness Objectives of Information Systems

The Role of Information Systems in Business Today



Operational Excellence:Operational Excellence:• Improved efficiency results in higher profitability

• Information systems and technologies help to improve higher levels of efficiency and productivity

• Wal-Mart is the champion of combining information systems and best business practices to achieve operational efficiency—and $285 billion in sales in 2005

• Wal-Mart is the most efficient store in the world as a result of digital links between its suppliers and stores




• Information systems and technologies enable firms Information systems and technologies enable firms to create new products, services, and business to create new products, services, and business modelsmodels

• A business model includes how a company A business model includes how a company produces, delivers, and sells its products and produces, delivers, and sells its products and servicesservices

• The music industry has seen drastic changes in The music industry has seen drastic changes in business models in recent yearsbusiness models in recent years

• Apple has been very successful at introducing new Apple has been very successful at introducing new products and adopting a new business model products and adopting a new business model

New products, services, and business models:New products, services, and business models:




• Customers who are served well become repeat customers who purchase more

• Close relationships with suppliers result in lower costs

• The Mandarin Oriental in Manhattan uses information systems and technologies to foster an intimate relationship with its customers including keeping track of their preferences

• JCPenney uses information systems to enhance its relationship with its supplier in Hong Kong

Customer and supplier intimacy:Customer and supplier intimacy:




• A company’s bottom line can be hurt by managers being swamped with data that are neither timely nor helpful, forcing them to use guesswork

• Real-time data have improved the ability of managers to make decisions

• Verizon uses a Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages

Improved decision making:Improved decision making:




• Achieving the previously mentioned business objectives often leads to competitive advantage

• Advantages over competitors include charging less for superior products, better performance, and better response to suppliers and customers

• Dell Computer is one of the best examples of establishing competitive advantage as the company has continued to be profitable during a time when PC prices have been falling steadily

Competitive advantage:Competitive advantage:




• Businesses may need to invest in information systems out of necessity

• Necessity arises from keeping up with competitors, such as when Citibank introduced ATMs

• Necessity also arises from federal and state regulations, such as the Toxic Substances Control Act and the Sarbanes-Oxley Act

Survival:Survival:



• Information systems literacy: Broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information systems as well as technical knowledge about computers.

• Computer literacy: Knowledge about information technology, focusing on under-standing how computer-based technologies work

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

A Business Perspective on Information Systems

WHY INFORMATION SYSTEMS?


It Isn’t Simply Technology: The Role of People and Organizations

• OrganizationsOrganizations

• PeoplePeople

• TechnologyTechnology

Dimensions of Information Systems Dimensions of Information Systems


Information Systems Are Information Systems Are More Than Computers More Than Computers


Understanding Information Systems: A Business Problem-Solving Approach

• Few business problems are simple or Few business problems are simple or straightforwardstraightforward

• Most business problems involve a number of major Most business problems involve a number of major factors that can be categorized as organization, factors that can be categorized as organization, technology, and peopletechnology, and people

The Problem-Solving ApproachThe Problem-Solving Approach




• Problem identificationProblem identification

• Solution designSolution design

• ChoiceChoice

• ImplementationImplementation

• Problem solving is a process, not an eventProblem solving is a process, not an event

A Model of the Problem-Solving ProcessA Model of the Problem-Solving Process



Problem Solving Is a Continuous Four-Step Process Problem Solving Is a Continuous Four-Step Process


Figure 1-4

During implementation and thereafter, the outcome must be continually measured and the information about how well the solution is working is fed back to the problem solvers. In this way, the identification of the problem can change over time, solutions can be changed, and new choices made, all based on experience.




• Four elements of critical thinking:Four elements of critical thinking:

• Maintaining doubt and suspending judgment

• Being aware of different perspectives

• Testing alternatives and letting experience guide

• Being aware of organizational and personal limitations

The Role of Critical Thinking in Problem SolvingThe Role of Critical Thinking in Problem Solving




• When firms cannot achieve their business When firms cannot achieve their business objectives, these objectives become challengesobjectives, these objectives become challenges

• Information systems often present solutions to Information systems often present solutions to these challengesthese challenges

The Connection Between Business Objectives, The Connection Between Business Objectives, Problems, and SolutionsProblems, and Solutions




• Success in today’s job market requires a broad set Success in today’s job market requires a broad set of skillsof skills

• Job candidates must have problem-solving skills as Job candidates must have problem-solving skills as well as technical skills so that they can carry well as technical skills so that they can carry specific tasksspecific tasks

• The service sector will account for 95 percent of the The service sector will account for 95 percent of the new jobs that are created or open up by 2012new jobs that are created or open up by 2012

Information Systems and Your Career



• AccountingAccounting

• FinanceFinance

• MarketingMarketing

• Operations Management in Services and Operations Management in Services and ManufacturingManufacturing

• Information SystemsInformation Systems

• OutsourcingOutsourcing

How Information Systems Will Affect Business CareersHow Information Systems Will Affect Business Careers

Information Systems and Your Career


Chapter 1

Discussion Questions:


Why is it important to understand the difference between computer literacy and information literacy?

Answer:• Information literacy is more concerned with creating

information useful to an organization and its employees, whereas computer literacy addresses the simple use of computers. As technology uses spread beyond traditional computers, information literacy enables employees and organizations to meet the business objectives.


Discuss the three elements of an information system (hardware, software and persware) that managers must consider. Which of the three do you consider the most important?

Answer:• Hardware is centered mostly on the input and output

components of an information system. Software is centered mostly on the processing component. Persware is centered on the feedback component and on how employees can effectively use an information system. Opinions vary on which element is most important; this text stresses the importance of the persware element.


Which of the six business objectives do you think is the most important? How can information systems help a business meet these objectives?

Answer:RecallRecall• Operational excellence Operational excellence • New products, services, and business modelsNew products, services, and business models• Customer and supplier intimacyCustomer and supplier intimacy• Improved decision makingImproved decision making• Competitive advantageCompetitive advantage• SurvivalSurvival


Discuss the three different perspectives of viewing problems–organizations, people, and technology–in relationship to critical thinking skills.

• Answer:• From critical thinking skills the same problem can be viewed from From critical thinking skills the same problem can be viewed from

three different perspectives. three different perspectives. 1.1. The organization perspective includes business processes, structure, The organization perspective includes business processes, structure,

culture, and politics of the business. culture, and politics of the business. 2.2. The people perspective considers all employees, managers, and The people perspective considers all employees, managers, and

executives and the interrelationship of the groups. executives and the interrelationship of the groups. 3.3. The technology perspective focuses on the firm’s IT infrastructure The technology perspective focuses on the firm’s IT infrastructure

and how the various components work together.and how the various components work together.


Review Questions

1. Information systems are too important to be left to computer specialists. Do you agree? Why or why not?

Answer sketch:• information systems are more than just technology • Information systems development and usage

involves organization, management, and technology dimensions ….. Discuss these dimensions to further your answer


Review Questions

2. If you were setting up the Web sites for Major League Baseball, what people, organization, and technology issues might you encounter?

Answer sketch:

• A good starting point is to use Table 1.1 on page 19 to flush out some suggestions.


Review Questions

3. List and describe six reasons why information systems are so important for business today.

Answer sketch:• Six reasons why information systems are so

important for business today include: • Operational excellence• New products, services, and business models• Customer and supplier intimacy• Improved decision making• Competitive advantage• Survival

– A brief description of each will improve your answer


Review Questions

4. What is an information system? What activities does it perform?

Answer sketch:a set of interrelated components that work together to collect,

process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.


Review Questions

5. What is the difference between data and information?

Answer sketch:• Data are streams of raw facts representing events

occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use.

• Information is data that have been shaped into a form that is meaningful and useful to human beings.

1.1 © 2007 by Prentice Hall Announcement This is BISI 3230 Management Information Systems session...

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