Chapter 1

Information Systems in Business

Important Announcement

Bring your book to class.

What is an Information System

Organized combination of

1. Hardware

2. Software

3. Communications Networks

4. Data

5. People

Computer Hardware Technologies

Examples Dell PowerEdge 2600 File Server Apple PowerBook G4 Sony LCD Flat Panel Monitor iPod IDAutomation USB Barcode Scanner RFID Chip

Computer Software Technology

Examples Windows XP Graphics Card Driver Software PowerPoint mySAP Customer Relationship Management Peachtree Accounting iTunes Software

Telecommunications Network Technologies

Examples Ethernet Netgear Wireless Router Cable Modem Cell Phone WiFi, WiMax Bluetooth

Data Resource Management Technologies

Examples IBM DB2 8.2 Microsoft SQL Server 2000 Oracle Database 10g MySQL Data Mining Software

People Technology

People are the 5th component of an Information System

Everyone forgets the importance of people in an information system.

Example: End User, Data Entry Person, Manager, Programmer, DB Administrator, Cashier, Secretary, Professor.

Historical Perspective

Information Systems have been around a long time.

People have always been the backbone of an IS

The only thing that’s changed in the complexity of the information

and the complexity of the technology.

Historical Perspective

Previous to computers, telephones were probably the biggest innovation that improved information systems.

Previous to telephones, Paper was the big innovation.

What will be the next big thing?

What will we learn?

In this course, we will concentrate on

Foundational Concepts, Information Technologies,

and Business Applications

Foundational Concepts

Chapters 1 and 2 Components of Information Systems Types of Information Systems Roles they play Attributes of Information Competitive Strategy concepts

Information Technologies

We are concentrating on Databases Chapter 5

We are NOT covering software, hardware, and network technologies.

If you are interested in these topics take CSIS-010 Introductory course CSIS-116 Advanced course

Business Applications

Chapter 7, 8, 9, and 10 How are information systems used? Most important aspect of this course Understanding how an information system

can support decision making and give a company a competitive advantage is not trivial.

What we won’t learn

We won’t learn how Information Systems are developed?

This is important but beyond the scope of this course. Take CSIS-116.

We will briefly cover some challenges involved in managing information technology, but not in great detail. Think about an MBA this material interests you.

Information Systems Serve 3 Roles

IS can support 3 different level in business

Role of IS has evolved over time

Role of IS has evolved over time

Expanding Role of IS

Information Systems are being used in more areas, especial at the strategic level.

At the same time, Information Systems are expanding participation of End Users (The Grunts)

Biggest advantages of IS: Information can flow up the pyramid faster and more effectively.

Types of Information Systems

Transaction Processing System (TPS)

Supports Operations Updates Operational Databases Examples:

ATM Machine System – Banking Transactions Cash Register System – Point of Sale Transactions Accounting System – Checking Account Transactions Even Pay-per-view or OnDemand is a TPS

Process Control Systems (PCS)

Supports Operations Monitor and Control

Industrial/Manufacturing Process Examples:

Petroleum Refining Power Generation Automobile Manufacturing

Enterprise Collaboration Systems (ECS)

Supports Operations (Surprised?) Teamwork, communication, and collaboration Examples:

E-mail Chat Video Conferencing Calendaring Journaling Workflow File Sharing

Management Information System (MIS)

Supports Management (duh?) Analysis & Reporting Charts, Graphs, Summary Tools Examples:

SCT Banner – Managing College Information (Siena uses it)

Spreadsheet (Excel) – One of the first and most basic Oracle's Corporate Performance Management

Decision Support System (DSS)

Support Management What-if Analysis, Decision Modeling, Scenario

Building, Highly interactive, ad hoc. Examples

Enterprise Decision Manager 2.0  Fair Isaac Corporation

AIMMS 3.6 Most DSS’s are custom developed for specific

companies; very few out-of-the-box products.

Executive Information Systems

Supports high-level strategic management Provides critical info from other systems (MIS

and DSS). Typically integrates external information such

as economic developments and news about related markets and competitors.

Helps strategic decision making, not necessarily tactical. Tactical – doing things right Strategic – doing the right things

Information Flow

Executive Information System

Executives

MIS

TPS

PCS

Operational Systems and Staff

DSSManagers

Enterprise C

ollaboration System

SystemInformationFlow

InformationExchange/Communication

Information Flow

Executive Information System

Executives

MIS

TPS

PCS

Operational Systems and Staff

DSSManagers

Enterprise C

ollaboration System

Operations

Management