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)
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