BUS 710: Foundations of Information

SystemsIntroduction to Course

Introduction to Information Management

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Agenda

• Introductions• Name cards• Syllabus – course overview • Lecture:

– Introduction to Information Management

• Group discussions

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Your Instructor

• Name: Jakob Iversen• Background:

– Danish Citizen– Software Engineer: Master’s Degree, 1996,

Aalborg University, Denmark– Ph.D. in Computer Science, 2000, Aalborg

University, Denmark. Thesis title: ”Data-Driven Intervention in software Process Improvment”

– Assistant Professor at UW Oshkosh from Fall 2000

– Primary research interest: Software development and Software Process Improvement (SPI)

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Course Goals

• Understand the relationship of the IS function to the general organization.

• Understand basic IS hardware and software concepts and terms at the computer and network levels.

• Understand basic database concepts.• Understand basic

telecommunications and networking concepts, including the Internet.

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Course Goals – cont.

• Understand the business implications of the Internet and eCommerce.

• Understand IS project development methodologies.

• Develop team (group) work skills.• Practice oral communication skills.• Be ready for additional IS

coursework at the graduate level.

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Course Overview / Policy

• Read before class – ask questions• Communication

– Web page and email (all slides will be available on web)

• Assignments/Exams/Grading– Final Exam 50%– Team Presentations 30%– Individual assignments 20%

• Changes, suggestions, etc.• Schedule may change• Check your email

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Next Week

• Until next time– Make sure your student account is working– Check email address listed on Blackboard– Continue group discussions

• Blackboard groups will be created

– Access Course Web site• http://www.uwosh.edu/faculty_staff/iversen/710-Os

h

• Check out Individual Assignment 1

• Next Thursday– Hardware and Software– Stair, Chapter 2– First two team presentations

CHAPTER 1INTRODUCTION

BUSINESS AND INFORMATION TECHNOLOGY

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Why did YOU take this course?

• Well, since this is a required course ... Why do you think it is required?

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• IT is Generally Interesting• IT Facilitates Work in Organizations• IT Offers Career Opportunities• IT is Used by All Departments• IT is Crucial to Society

Why You Need to Learn About Information Technology

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What Is Information?

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Transforming Data into Information

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What is a Computer-Based Information System?

• Collects, processes, stores, analyzes, disseminates information

• Specific purpose• Uses information technology

• What information system did/will you interact with today?

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Functions of Information Systems

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Components of Information Systems

Information Technology (IT)

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Components of Information Systems

Info

rmat

ion

Tec

hn

olog

y (I

T)

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Capabilities of Information Systems

• Fast and Accurate Transactions• Large Capacity, Fast Access Storage• Fast Communications (machine to machine,

human to human)• Reduce (and cause) Information Overload• Span Boundaries• Provide Support for Decision Making• Provide a Competitive Weapon

• General Technological Trends for IT...– What trends have you observed?– What do you think will happen in the future?

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Types of Business Information Systems

• Electronic Commerce• Transaction Processing Systems

– Supports basic transactions in a company

• Enterprise Resource Planning (ERP)– Unified system for an entire corporation

• Information and Decision Support Systems– Systems that help managers make decisions

• Special-Purpose Business Information Systems– Artificial Intelligence, Expert Systems, and

Virtual Reality

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Organizations and Information Systems

• Organization– A formal collection of people and other

resources established to accomplish a set of goals

• 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

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General Model of an Organization

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Porter’s Value Chain

InboundLog istics

Ope ra-tions

Out-bound

Log istics

M arke -ting and

Sale s

F irm In frastructu re

Human Re source M anage me nt

Te chno logy De v e lopme nt

Procure me nt

Se rv ice Custome rs'Value Chain

Downstre amCompan ie s

Supp lie rs' ValueChain

Upstre amCompan ie s

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Manufacturing Value Chain

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Technology Diffusion and Infusion

• Technology diffusion– A measure of how widely technology is

spread throughout an organization

• Technology infusion– The extent to which technology is

deeply integrated into an area or department

• Technology may be widely diffused but only highly infused in a few areas

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Porter’s Competitive Forces Model

• Competition – a significant and (ideally) long-term

benefit to a company over its competition– at the core of a firm’s success or failure

• Porter’s Model can be used to develop strategies for companies to increase their competitive edge

• The model demonstrates how IT can enhance competitiveness

• 5 major forces: … Next slide…

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Porter’s Five Forces Model

Suppliers Buyers

New Entrants

SubstituteProducts

Industry Competitors

Intensity of Rivalry

Threat ofNew Entrants

Bargaining Powerof Suppliers

Threat ofSubstitutes

Bargaining Power of Buyers

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Strategic Planning

• Altering the industry structure• Creating new products and

services• Improving existing product lines

and services• Using information systems for

strategic purposes

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Competitive Advantage Factors and Strategies

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Competitive Advantage Factors and Strategies

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Other Strategies

• Cost leadership strategy - producing at lowest cost

• Differentiation strategy - being unique• Focus strategy - selecting a narrow-scope

segment• Growth strategy - increasing market share• Alliances strategy - working with business

partners• Internal efficiency strategy - improving

the manner in which business processes are executed

• Customer-oriented strategy - concentrating on making customers happy

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Three Stages in the Use of IS

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The Evolution of IS

Stage 1:Cost reduction and Productivity

Stage 2:Competitive Advantage

Stage 3:Performance-Based

Management

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Measuring Performance

• Productivity – A measure of the output achieved divided by the input

requirement– Productivity=(Output/Input) x 100%

• Quality– The ability of a product (including services) to meet or

exceed customer expectations

• Return on Investment (ROI)– One measure of IS value that investigates the additional

profits or benefits that are generated as a percentage of the investment in information systems technology

• Total Cost of Ownership (TCO)– Measuring both expense and benefits of a system. For a

PC, includes purchase price, training, software, support, etc.

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Total Cost of Ownership (TCO)

• Obvious costs– Hardware– Software license

fees– Personnel– HW + SW

deployment– Support + service– Custom application

development– Upgrades– Energy + space

• Not-so-obvious costs– System downtime –

lost productivity, opportunities

– Being locked into a technology

– Moving to other technologies and platforms

– Having non-standard configurations

– Amount of training required

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Information Systems Personnel

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Three IS Functions

• Operations– Maintains and supports the use of

corporate information systems

• Systems Development– Development of corporate

information systems

• Support– Provides assistance to users

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Major IS Issues

• Outsourcing– What services are best delivered by in-house

expertise and what should be outsourced?– Cost savings, access to larger labor pool– On-shore, off-shore, near-shore

• Centralized vs. Decentralized organization

• Showing value of IS to the organization• Disaster/Business Recovery• Security

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IT Jobs

• www.salary.com• http://www.computerworld.com/careertopics/careers/story/0,10801,75368,00.ht

ml• http://marketing.dice.com/rateresults/

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The 10 Fastest-Growing Occupations 2003-2010

Read more in September 2003 issue of Business 2.0 (page 97)