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© 2003 Prentice Hall, Inc. 1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Information Systems Today Leonard Jessup and Joseph Valacich Leonard Jessup and Joseph Valacich

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Page 1: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-1

Chapter 1

Information Systems:The Big Picture

Information Systems TodayInformation Systems TodayLeonard Jessup and Joseph ValacichLeonard Jessup and Joseph Valacich

Page 2: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-2

Page 3: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-3

Textbook Overview Ch 1 – IS: The Big Picture Ch 1 – IS: The Big Picture Ch 2 – IS for Competitive AdvantageCh 2 – IS for Competitive Advantage Ch 3 – Database ManagementCh 3 – Database Management Ch 4 – Telecommunications and the InternetCh 4 – Telecommunications and the Internet Ch 5 – E-Commerce, Intranets, and ExtranetsCh 5 – E-Commerce, Intranets, and Extranets Ch 6 – Organizational Information SystemsCh 6 – Organizational Information Systems Ch 7 – Enterprise-Wide ISCh 7 – Enterprise-Wide IS Ch 8 – IS Development and AcquisitionCh 8 – IS Development and Acquisition Ch 9 – IS Ethics, Crime, and SecurityCh 9 – IS Ethics, Crime, and Security

Page 4: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-4

Textbook Overview

Appendix A – IS Hardware Appendix A – IS Hardware Appendix B – IS SoftwareAppendix B – IS Software Appendix C – Computer NetworkingAppendix C – Computer Networking

Page 5: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-5

Chapter 1 Objectives Understand the term information systems (IS)Understand the term information systems (IS) Understand IS components:Understand IS components:

Technology, people, organizationsTechnology, people, organizations

Understand IS career opportunitiesUnderstand IS career opportunities Understand types of information systemsUnderstand types of information systems Understand IS and organizational success or Understand IS and organizational success or

failurefailure Understand the future of IS managementUnderstand the future of IS management

Page 6: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-6

Case: IS at Washington State University

Automating educational processesAutomating educational processes Online AdministrationOnline Administration

RegistrationRegistration Financial aidFinancial aid GradesGrades

Online Course ManagementOnline Course Management SyllabiSyllabi AssignmentsAssignments Online class discussionsOnline class discussions

Page 7: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-7

Information Systems Defined

Combinations of hardware, software, and Combinations of hardware, software, and telecommunications networks that people telecommunications networks that people build and use to collect, create, and build and use to collect, create, and distribute useful data in organizationsdistribute useful data in organizations

Page 8: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-8

Key Elements of Information Systems

Page 9: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-9

Knowledge as a Business Resource

Knowledge WorkerKnowledge Worker A well-educated professional who creates, A well-educated professional who creates,

modifies, or synthesizes knowledge in one’s modifies, or synthesizes knowledge in one’s professionprofession

Knowledge SocietyKnowledge Society Also called digital society, new economyAlso called digital society, new economy Working with brains instead of handsWorking with brains instead of hands The importance of educationThe importance of education Digital divideDigital divide

Page 10: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-10

Data

DataData: raw material, unformatted information: raw material, unformatted information

InformationInformation: processed data (meaningful): processed data (meaningful) KnowledgeKnowledge: understanding relationships between : understanding relationships between

pieces of informationpieces of information

WisdomWisdom: knowledge accumulated and applied: knowledge accumulated and applied

Page 11: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-11

Technology and Information Systems

Computer-Based Information SystemsComputer-Based Information Systems One type of technologyOne type of technology TechnologyTechnology – any mechanical and/or electrical means – any mechanical and/or electrical means

to supplement, extend, or replace human activityto supplement, extend, or replace human activity Information Technology (IT)Information Technology (IT) – machine technology – machine technology

controlled by or using informationcontrolled by or using information

The goal of IS is to provide useful data to usersThe goal of IS is to provide useful data to users IS can be local or global, organizational or enterprise-IS can be local or global, organizational or enterprise-

widewide

Page 12: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-12

Careers: Operations Management

TrendsTrends Virtual CorporationsVirtual Corporations Network InfrastructureNetwork Infrastructure How wired is your firm?How wired is your firm?

Page 13: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-13

The People Side of IS

Despite economic ups and downs…Despite economic ups and downs… Labor shortages predictedLabor shortages predicted

U.S. Bureau of Labor StatisticsU.S. Bureau of Labor Statistics http://stats.bls.gov/emp/emptab3.htmhttp://stats.bls.gov/emp/emptab3.htm

Ranked among best jobs availableRanked among best jobs available

Page 14: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-14

Careers in IS

Systems AnalystSystems Analyst Systems ProgrammerSystems Programmer Systems ConsultantSystems Consultant Database AdministratorDatabase Administrator WebmasterWebmaster IS DirectorIS Director Chief Information OfficerChief Information Officer ProfessorProfessor Government scientistGovernment scientist

Page 15: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-15

Chief Information Officer (CIO) Responsible for organization’s ISResponsible for organization’s IS Executive levelExecutive level Became prominent in 1980sBecame prominent in 1980s ChallengesChallenges

Tightening budgetsTightening budgets Expectation managementExpectation management

SubordinatesSubordinates Mid-level managersMid-level managers IS directorsIS directors Project managersProject managers

Page 16: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-16

IS Managerial Personnel1.1. CIOCIO2.2. IS directorIS director3.3. Account ExecutiveAccount Executive4.4. Info Center ManagerInfo Center Manager5.5. Development ManagerDevelopment Manager6.6. Project ManagerProject Manager7.7. Maintenance ManagerMaintenance Manager8.8. Systems ManagerSystems Manager9.9. IS planning ManagerIS planning Manager10.10. Operations ManagerOperations Manager11.11. Programming ManagerProgramming Manager

12.12. Systems Programming Systems Programming ManagerManager

13.13. Manager of Emerging Manager of Emerging TechnologiesTechnologies

14.14. Telecommunications ManagerTelecommunications Manager15.15. Network ManagerNetwork Manager16.16. Database AdministratorDatabase Administrator17.17. Auditing or Computer Auditing or Computer

Security ManagerSecurity Manager18.18. Quality Assurance ManagerQuality Assurance Manager19.19. WebmasterWebmaster

Page 17: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-17

The High Value of IS Personnel

Supply and demandSupply and demand Aggressive recruitingAggressive recruiting High salariesHigh salaries Broad demandBroad demand

Large and small companiesLarge and small companiesUrban and ruralUrban and rural

Page 18: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-18

Integrating Skills and Knowledge

TechnologyTechnology hardware, software, networkinghardware, software, networking

BusinessBusiness business, management, social, business, management, social,

communicationscommunications SystemsSystems

Integration, development methods, Integration, development methods, critical thinking, problem solvingcritical thinking, problem solving

Page 19: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-19

Hot Skills in IS Workers Office / E-mailOffice / E-mail LanguagesLanguages ApplicationsApplications RDBS AdministrationRDBS Administration Development ToolsDevelopment Tools InternetworkingInternetworking Operating SystemsOperating Systems NOS LAN AdministrationNOS LAN Administration NetworkingNetworking

Page 20: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-20

The Organizational Side of IS1.1. Transaction Processing SystemTransaction Processing System2.2. Management Information SystemManagement Information System3.3. Executive Information SystemExecutive Information System4.4. Decision Support SystemDecision Support System5.5. Expert SystemExpert System6.6. Functional Area Information SystemFunctional Area Information System7.7. Office Automation System (a.k.a. Personal Productivity Software)Office Automation System (a.k.a. Personal Productivity Software)8.8. Collaboration SystemCollaboration System9.9. Customer Relationship Management SystemCustomer Relationship Management System10.10. Electronic Commerce SystemElectronic Commerce System11.11. Enterprise Resource Planning SystemEnterprise Resource Planning System

Page 21: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-21

Disaster Plans for IS

That IS is crucial to corporate success is That IS is crucial to corporate success is illustrated by the need for disaster planningillustrated by the need for disaster planning

September 11September 11 Are companies prepared now?Are companies prepared now?

What’s at stakeWhat’s at stake The consequences of failing to planThe consequences of failing to plan

Page 22: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-22

The Dual Nature of IS

Systems can dictate success or failureSystems can dictate success or failure Case 1: Denver International AirportCase 1: Denver International Airport Case 2: Federal ExpressCase 2: Federal Express Factors affecting success/failure:Factors affecting success/failure:

Size and complexity of projectSize and complexity of project Size and nature of organizationSize and nature of organization

Page 23: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-23

IS for Competitive Advantage

Strategic SystemsStrategic Systems Competition: doing things faster, better, Competition: doing things faster, better,

cheapercheaper How can systems gain one’s organization a How can systems gain one’s organization a

competitive advantage?competitive advantage?

Page 24: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-24

International Outsourcing

Round-the-clock productivityRound-the-clock productivity Cost savingsCost savings

Page 25: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-25

IS Within the Firm

Traditionally a love/hate relationshipTraditionally a love/hate relationship ““Techies” vs. mere “users” (us vs. them)Techies” vs. mere “users” (us vs. them) Poor service, lousy attitudesPoor service, lousy attitudes

Now: progress toward better customer serviceNow: progress toward better customer service Better relationships within the companyBetter relationships within the company Cooperation, not rivalryCooperation, not rivalry

Page 26: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-26

Staying Current with IS News

Great sources for IS current info:Great sources for IS current info: informationweek.cominformationweek.com computerworld.comcomputerworld.com cio.comcio.com

Page 27: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-27

The Spread of Technology in Organizations

Technology infiltrates business unitsTechnology infiltrates business units Dual role for IS workers:Dual role for IS workers:

Work with IS technical groupWork with IS technical group Work with business unit (marketing, finance, etc.)Work with business unit (marketing, finance, etc.)

Page 28: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-28

The Spread of Technology in Organizations

Benefits of centralized IS functionBenefits of centralized IS function Coordinated planningCoordinated planning Consistent managementConsistent management Systems compatibility and connectivitySystems compatibility and connectivity

Page 29: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-29

Human Resource Planning for IS

The human resource challenge:The human resource challenge: Tech workers need to understand businessTech workers need to understand business Business workers must understand technologyBusiness workers must understand technology

Fluctuations in hiring tech workersFluctuations in hiring tech workers Downsizing issuesDownsizing issues Recruiting issuesRecruiting issues

Page 30: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-30

Career Prospects and Opportunities

IS applies to nearly every functional area IS applies to nearly every functional area within a firmwithin a firm

One may become indispensable in a firm One may become indispensable in a firm through mastering tech skillsthrough mastering tech skills

Anticipated growth in tech hiringAnticipated growth in tech hiring

Page 31: © 2003 Prentice Hall, Inc.1-1 Chapter 1 Information Systems: The Big Picture Information Systems Today Leonard Jessup and Joseph Valacich

© 2003 Prentice Hall, Inc. 1-31

Coming Attractions:

Is it a phone or computer? Wireless Pocket PCWireless Pocket PC

Merging mobile phones with personal Merging mobile phones with personal digital assistant (PDA) technology digital assistant (PDA) technology

Communicate, collaborate, and coordinateCommunicate, collaborate, and coordinate