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Why Do People Need Information?

Individuals - Entertainment and

enlightenment

Businesses - Decision making andproblem solving


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Data:The raw materials in the production ofinformation (oz)

Data:Streams of raw facts representing eventssuch as business transactions (Laudon)

Information: (oz)

Data that have meaningData that have been manipulated

Information:Clusters of facts that aremeaningful and useful to human beings in the

processes such as making decisions (Laudon)

Data vs. Information


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What Is an InformationSystem?

Figure 1-2

Data and Information


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Computer-based ISs take data as rawmaterial, process it, and produce informationas output.

Input-process-output

Generating Information


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Functions of anInformation System

Figure 1-3


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Information in Context

Information must be relevant tothe problem

Partial information is often worse

than no information

Wrong information may lead todisaster

The latest Information Available

The cost of obtaining Information


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System:A set of components that worktogether to achieve a common goal

Subsystem:One part of a system

Closed system:Stand-alone system that hasno contact with other systems

Open system:System that interfaces withother systems

What Is a System?


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Creates a frameworkfor problem

solving and decision making.

Keeps managers focused on

overall goalsand operations ofbusiness.

Information and Managers


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Business Processes

Information Processing Activities

Business Value

Management Activities

SupplyChainManagement

Enterprise

Management

Customer

Management

Knowledge

Management

DataCollectionandStorage

TransformationIntoBusinessSystems

Dissemination

Planning Coordinating Controlling ModelingandDecision Making

FirmProfitability

andStrategicPosition


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Synergy Occurs

when

combinedresourcesproduceoutput thatexceeds thesum of theoutputs of

the sameresourcesemployedseparately

The Benefits ofHuman-Computer Synergy

Qualities of humans and computers that contribute to synergy


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Components of an information system

In an organization, anInformation Systems consists of:

Data

Hardware Software Telecommunications

People

Procedures


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Information Systems

ORGANIZATIONS TECHNOLOGY

MANAGEMENT

INFORMATION

SYSTEMS


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Activities in anInformation System

INPUT OUTPUTPROCESS

FEEDBACK


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Input:Data are collected and entered intocomputer.

Data processing:Data are manipulatedinto information using mathematical, statistical,and other tools.

Output:Information is displayed or presented.

Storage:Data and information are maintainedfor later use.

The Four Stages of Data

Processing

Input

Data

processing

Output

Storage


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Input-process-output-storage devices

Computer Equipment

for Information System

Input devicesintroduce data into theIS.

The computerprocesses datathroughthe IS.

Output devicesdisplayinformation.

Storage devices storedata and information.


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Major BusinessFunctions

Sales and marketing

Manufacturing

Finance

Accounting

Human resources


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Management

Levels:

Senior managers:make long-range strategicdecisions about products and services

Middle managers:Carry out the programsand plans of senior management

Operational managers:monitor the firmsdaily activities


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Marketing

FinanceAccounting

HumanResources

InformationSystems

in Business


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Manufacturing

ServiceRetail

Government

ISs inDifferent Business

Sectors

NewBusinesses


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CONTEMPORARY APPROACHESTO INFORMATION SYSTEMS

TechnicalApproaches

Behavioral

Approaches

ManagementScience

Operations

Research

Sociology

Economics

Computer

Science

Psychology


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Socio-Technical Systems

Optimize systems performance:

Technology and organization

Organizations mutually adjust to one

another until fit is satisfactory


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Socio-technical Systems

SOURCE: Liker, et al, 1987

The Interdependence Between


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The Interdependence BetweenOrganizations and InformationSystems - Toward Digital Firm


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The Widening Scope ofInformation Systems

1950s:Technical changes

1960s-70s:Managerial controls

1980s-90s:Institutional core activities

Today: Digital information websextending beyond the enterprise


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The Widening Scope ofInformation Systems


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Information SystemsFrom Recording Transactions

to Providing Expertise

Transaction Processing Systems (TPS)

Management Information Systems (MIS)

Types of MISs

Decision Support Systems (DSS)

Executive Information Systems (EIS) Expert Systems (ES)

Geographic Information Systems (GISS)


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Shared Data Resources

Most effective way to operate:different systemsshare same data from same pool

Companys database: one of the most powerful

resources


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E-Commerce

Business-to-business and business-to-consumertransactions take place in

electronic form via computer networks.

Database management onlinemakesinformation cheaper to distribute.


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The Internet

International network of networks

Universal technology platform: Anycomputer can communicate with anyother computer

World Wide Web and Web sites


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New Options forOrganizational Design

Flattening organizations

Separating work from location

Reorganizing work-flows

Increasing flexibility

Redefining organizational boundaries


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Flattening Organizations& Information Systems


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The Digital Firm

Electronic commerce

Electronic business

Digital market: Information systems

links, buyers and sellers toexchange information, products,services, payments


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Electronic Commerce

Internet links buyers, sellers

Lower transaction costs

Goods and services advertised, bought,exchanged worldwide

Business-to-business transactionsincreasing


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Customers On-line marketing On-line sales Built-to-order products Customer service Sales force automation

Suppliers Procurement Supply chain management

Business partners Joint design Outsourcing

Remote offices and work groups Communicate plans and policies Group collaboration Electronic communication Scheduling

Factories Just-in-time production Continuous inventory

replenishment Production planning

ELECTRONIC BUSINESS

Electronic Commerce

THE EMERGING DIGITAL FIRM


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Electronic Business

Electronic Business: Executing all thefirms business processes with Internettechnology

Intranet:Business builds private, securenetwork based on Internet technology

Extranet: Extension of intranet toauthorized external users

Information Architecture and


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Information Architecture andInformation TechnologyInfrastructure


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