Student Guide In Introduction to Information Systems

Prepared By Prof DrAbdul Hamid M RagabDept of Information SystemsCollege of Computing and Information TechnologyKing AbdulAziz University, Jeddah

Ref. Book : Introduction to Information Systems, 14e ,James A. O'Brien ,2008

Learning ObjectivesUnderstand the concept of a system and how it relates to information systems.Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.Give examples to illustrate how the business applications of information systems can support a firms business processes, managerial decision making, and strategies for competitive advantage.*

Learning ObjectivesProvide examples of several major types of information systems from your experiences with business organizations in the real world.Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business.

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Learning ObjectivesProvide examples of the components of real world information systems. Illustrate that in an information system, people use hardware, software, data and networks as resources to perform input, processing, output, storage, and control activities that transform data resources into information products.Demonstrate familiarity with the myriad of career opportunities in information systems.

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Case 1: Sew What? Inc.: The Role of IT in Small Business SuccessSew What? provides custom theatrical draperies and fabrics for stages, concerts, fashion shows, and special events worldwide.After launching the company web site, they acquired clients from all over the world and their revenue has been growing more than 45% per year.Sew What? runs most of its business with Intuits Quick-Books Enterprise Solutions & Dell PowerEdge servers.Recently, the National Federation of Independent Businesses (NFIB) and Dell Inc. presented Sew What? Small Business Excellence Award in recognition of its innovative use of technology to improve its customers experience.*

Case Study QuestionsHow do information technologies contribute to the business success of Sew What? Give several examples from the case regarding the business value of information technology that demonstrate this conclusion.If you were a management consultant to Sew What? Inc., what would you advise Megan Duckett to do at this point to be even more successful in her business? What role would information technology play in your proposals? Provide several specific recommendations.How could the use of information technology help a small business you know be more successful? Provide several examples to support your answer.*

Real World Internet ActivitySearch the Internet to help you evaluate the business performance of Sew What? Inc. and its competitors at the present time. What conclusions can you draw from your research about Sew What?s prospects for the future?Report your findings and recommendations for Sew What?s continued business success to the class.Small businesses have been slower to integrate information technology into their operations than larger companies.Discuss the reasons for this state of affairs, identifying several possible IT solutions and their business benefits that could help small businesses be more successful.*

Why study Information Systems and Information Technology?Vital component of successful businessesHelps businesses expand and competeBusinesses use IS and IT To improve efficiency and effectiveness of business processesFor managerial decision makingFor workgroup collaboration

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What is a system?A system Is a set of interrelated componentsWith a clearly defined boundaryWorking together to achieve a common set of objectives*

What is an Information System?An organized combination of PeopleHardwareSoftwareCommunications networksData resourcesPolicies and proceduresThat stores, retrieves, transforms, and disseminates information in an organization*

Information System (IS) versus Information Technology (IT)IS is all the components and resources necessary to deliver information and functions to the organizationIT is hardware, software, networking and data management

In theory, IS could be paper based But we will focus on Computer-Based Information Systems (CBIS)

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IS Knowledge Framework for Business Professionals*

What should a Business Professional know about IS?Foundation Concepts: fundamental behavioral, technical, business and managerial conceptsInformation Technology: Hardware, software, networks, data management and Internet-based technologyBusiness Applications: Major uses of the IS in the organizationDevelopment Processes: How to plan, develop and implement IS to meet business opportunitiesManagement Challenges: The challenges of effectively and ethically managing IT*

Fundamental Roles of IS in BusinessSupport of business processes and operations.Support of decision making by employees and managers.Support of strategies for competitive advantage.*

What does IS do for a business?*

Trends in Information Systems*

What is E-business?The use of Internet technologies to work and empower business processes, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders.An online exchange of value.

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How e-business is being used*

E-business useReengineer internal business processesEnterprise collaboration systems: support communications, coordination and collaboration among teams and work groups, e.g., virtual teamsElectronic commerce: buying, selling, marketing and servicing of products and services over computer networks

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Types of IS*

Operations support systemsWhat are they?Efficiently process business transactionsControl industrial processesSupport communications and collaborationUpdate corporate databases

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Types of Operations Support SystemsTransaction Processing SystemsRecord and process data from business transactionsExamples: sales processing, inventory systems, accounting systemsProcess Control SystemsMonitor and control physical processesExample: in a petroleum refinery use sensors to monitor chemical processesEnterprise Collaboration SystemsEnhance team and work group communicationsExamples: e-mail, videoconferencing*

Two ways to process transactionsBatch Processing:Accumulate transactions over time and process periodicallyExample: a bank processes all checks received in a batch at nightOnline Processing:Process transactions immediatelyExample: a bank processes an ATM withdrawal immediately*

Management Support SystemsWhat are they?Provide information and support for effective decision making by managers*

Types of Management Support SystemsManagement Information Systems (MIS)Provide reports and displays to managersExample: daily sales analysis reportsDecision Support Systems (DSS)Provide interactive ad hoc support for decision makingExample: A what-if-analysis to determine where to spend advertising dollarsExecutive Information Systems (EIS)Provide critical information for executives and managersExample: easy access to actions of competitors*

Operational or Management SystemsExpert SystemsProvide expert adviceExample: credit application advisorKnowledge Management SystemsSupport creation, organization and dissemination of business knowledge throughout companyExample: Intranet access to best business practices*

Classifications of IS by scopeFunctional business systemsFocus on operational and managerial applications of basic business functionsExamples: support accounting, finance or marketingStrategic information systemsHelp get a strategic advantage over its customersExamples: shipment tracking, e-commerce web systemsCross-functional information systemsSystems that are combinations of several types of information systemsProvide support for many functions*

Challenges and Opportunities of IT*

Measuring success of an ISEfficiencyMinimize cost, time and use of information resourcesEffectivenessSupport business strategiesEnable business processesEnhance organizational structure and culture Increase the customer and business valueWhats the difference between Efficiency and Effectiveness?*

Developing IS Solutions*

Ethical challenges of IT applications*

Ethical responsibilitiesWhat uses of IT might be considered improper or harmful to other individuals or society?What is the proper business use of the Internet or a companys IT resources?How can you protect yourself from computer crime?*

Challenges of IT CareersOutsourcing of basic programming to India, the Middle-East and Asia-Pacific countriesStrong employment opportunities in other areas in ISShortage of qualified IS personnelLong-term job outlook positive and exciting

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Career Opportunities in IS*

Job growthAmong the fastest growing occupations through 2012Systems Analyst,Database administrators, Other managerial-level positionsNetwork specialistsInformation security

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IS Function representsMajor functional area of businessImportant contributor to operational efficiency, employee productivity, morale, customer service and satisfactionMajor source of information and support for effective decision makingVital ingredient in developing competitive products and services in the global marketplaceDynamic and challenging career opportunityKey component of todays networked business*

Case 2: Autosystems: The Business Value of a Successful IT System for a small ManufacturerAutosystems is an automotive lighting designer and manufacturer located in Belleville, Ontario.A few years ago it installed the ActivEntry shop floor reporting system to move shop floor information into the manufacturing planning and control system.They now have the ability to capture labor, efficiency, production, scrap, etc., on time and by work center, for every cell, and are able to talk about that every day in their team meetings.Production managers can review information from all three plants.*

Case Study QuestionsWhy did Autosystems decide to install the ActivEntry system? Why did the company feel it was necessary to integrate it with its TRANS4M system?Which three business benefits, of the many that resulted from the use of ActivEntry, gave the company the most business value? Defend your choices.What changes are already being planned to improve the use of ActivEntry? What other improvements should the company consider? Why?*

Real world activitiesGo to the Infor Global Solutions Web site, www.infor.com, to find other stories that describe the business value of manufacturing planning and control systems.Discover any common reasons for the success of these companies with their systems? Present your findings to the class.Search the Internet for examples of problems that companies have had with manufacturing systems. Discuss your findings and what solutions you can propose to help companies avoid the problems you discovered.*

Real World Group ActivitySearch the Internet for examples of problems that companies have had with manufacturing systems. Discuss your findings and what solutions you can propose to help companies avoid the problems you discovered.*

What is a system?A system Is a set of interrelated componentsWith a clearly defined boundaryWorking together to achieve a common set of objectivesBy accepting inputs and producing outputs in an organized transformation process*

Systems have three basic functions:Input involves capturing and assembling elements that enter the system to be processedProcessing involves transformation process that convert input into outputOutput involves transferring elements that have been produced by the transformation process to their ultimate destination

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Cybernetic systemAll systems have input, processing and outputA cybernetic system, a self-monitoring, self-regulating system, adds feedback and control:Feedback is data about the performance of a systemControl involves monitoring and evaluating feedback to determine whether a system is moving towards the achievement of its goal

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A Cybernetic system*

A business as a system*

Information systems model*

Components of an ISPeople ResourcesEnd users: the people who use the IS or the information from the ISIS specialists: the people who develop and operate ISHardware ResourcesAll physical devices used in information processingMachines, data media, peripheralsSoftware ResourcesAll information processing instructions including programs and proceduresSystem software, application software and procedures*

Components of an IS (cont.)Data ResourcesFacts about the business transactionsProcessed and organized informationDatabases of organized dataNetwork ResourcesCommunications mediaNetwork infrastructure: hardware and softwareThe Internet, intranets and extranets*

Data versus InformationData are raw facts about physical phenomena or business transactionsInformation is data that has been converted into meaningful and useful context for end usersExample:Sales data is names, quantities and dollar amountsSales information is amount of sales by product type, sales territory or salesperson*

IS ActivitiesInput of data resourcesData entry activitiesProcessing of data into informationE.g., calculate, compare, sort, classify, summarizeOutput of information productsMessages, reports, forms and graphic imagesStorage of data resourcesData elements and databasesControl of system performanceMonitoring and evaluating feedback*

Recognizing ISAs a business professional, you should be able to look at an IS and identifyThe people, hardware, software, data and network resources they useThe type of information products they produceThe way they perform input, processing, output, storage and control activities

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Case 3: Heidelberg, Honeywell and Eaton: Using IT to Build Smart Products and ServicesToday it will not be enough for a companies to offer valuable services for their products but they will have to provide smart services.To provide smart services, companies must use information technology to build smart products, products with awareness and connectivity into the products themselves.Typically, smart products can detect that a part is approaching failure and alert users, thus giving the company opportunity to provide maintenance services and enjoy the resulting benefits.*

Case Study QuestionsWhy should manufacturing companies build smart products and provide smart services? What business benefits can they gain? Provide several examples beyond those discussed in this case.What information technologies are used by the companies in this case to build smart products and provide smart services? What other IT components might be used? Give examples of the capabilities they would provide.What are some limitations of a smart products and smart services strategy? Give several examples of challenges that a business might encounter, and explain how it might overcome them.*

Real World Internet ActivityUse the Internet to investigate how Heidelberg, Honeywell, and Eaton are proceeding in their use of smart products and services. Discover if they are expanding this approach and what benefits they are claiming for this strategy.Now expand your Internet investigation to other manufacturing companies to find several that are building smart products and offering smart services. What business value are they claiming for themselves and their customers? If this search is fruitless, select several companies from your Internet research and explain how and why they might employ a smart products and services strategy.*

Real World Group ActivityWhat security and privacy concerns might consumers have about Eatons Home Heartbeat service? Discuss the rationale for these concerns, and consider what could be done to reduce any threats to security and privacy posed by such services while also improving the value of this new use of information technology.*

********You might just as well ask why study accounting, finance, operations management, marketing, human resources, management. Most business majors include a class in IS.

*Almost everything is a systemOne system can be made up of other systems or can be part of a bigger system*This is a simple definition that we will expand upon later

Whats an example?Smoke signals to transmit informationCard catalogs in a libraryBook bag with day planner, notebooks, that allows you organize inputs from lectures, presentations and discussions. The output is homework and good exam gradesCash register at restaurantOther examples?

*Definition of IS from prior slide:An organized combination of PeopleHardwareSoftwareCommunications networksData resourcesPolicies and proceduresThat stores, retrieves, transforms, and disseminates information in an organizationIn theory, an IS could be pencil and paper based

**Refers back to figure 1.2 on prior slideFoundation Concepts: Examples: general systems theory, competitive strategies. Covered in chapters 1, 2Information Technology: Covered in chapters 3-6Business Applications: Chapter 7: applications in functional areas, Chapter 8: electronic commerce applications and Chapter 9: decision makingDevelopment Processes: By both business professionals and IS specialists. Chapter 10.Management Challenges: Managing IT at the end user, enterprise and global levels of a business. Chapter 11 is security challenges and Chapter 12 is how to manage IT in global businesses.

**Examples of business processes: record purchases, track inventory, pay employees, etc. Business would stop without such IS.Examples of decision making: what lines of merchandise need to be added, what kind of investment required.Examples of competitive advantage: put kiosk in store to connect to e-commerce website. Help gain advantage over competitor without such a kiosk.*Note that while IS has expanded, they are still doing the same basic things that theyve been doing.What has changed is: more integration of functions, greater connectivity across components, better use for maximum advantage of business and strategic opportunities**********Support either operations or management applications*In reality most systems are Cross-functional*****What uses of IT might be considered improper or harmful to other individuals or society? Improper uses might include collecting data that you dont need, not protecting personal customer data, etc.

What is the proper business use of the Internet or a companys IT resources? Is it proper to use the companys computers to surf the web, send personal e-mail, etc.

How can you protect yourself from computer crime? Virus and spam protection, never replying to phishing, etc. *********Repeating definition from earlier but adding accepting inputs, producing outputs, and transformation***A cybernetic system has both feedback and control. A home thermostat accepts the desired room temperature as input and sends a message to fire the furnace. The thermostat provides feedback to shut the system down when the desired temperature is reached.*A business can be viewed as a system. This system does not operate in a vacuum rather it functions in an environment containing other systems. A business is an open system in that it interacts with other systems in the environment. It is also an adaptive system in that it can change itself or its environment in order to survive.*Major components of an information: people, hardware, software, data and networks.These components perform input, processing, output, storage, and control activities.*Hardware:Peripherals include keyboard, mouse, video screen, printer

*Communications media: twisted pair wire, coaxial cable, wireless technologies

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