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Information Information Systems in Systems in BusinessBusiness
(Chapters 1 and 2)
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Starter QuestionsStarter QuestionsIn what types of companies is IT
important?
In what types of companies is IT not important?
What types of IT do businesses use?
Is IT good or evil?
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How much money are How much money are we talking about?we talking about?
Figure 1-1, Capital Investment
text section 1.1
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ScopeScope
In U.S.A. in 2008$840B on IS hardware and software60 million businesses on the web138 million people shopped online34 million per day researched
products64 million got their news onlineinternet advertising grew 25% to $28B
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IS ActivitiesIS Activities((whatwhat IS does) IS does)
Supply Chain Management
Customer Management
Planning
Controlling
Modeling and Decision Making
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Strategic Business Strategic Business Objectives of Information Objectives of Information SystemsSystems((whywhy use an IS?) use an IS?) operational excellence new products and services customer and supplier intimacy improved decision making competitive advantage survival
text section 1.1
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Return on IT Return on IT InvestmentInvestment
Figure 1-8 in textbook
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ExercisesExercisesChapter 1, Management Decision Chapter 1, Management Decision ProblemsProblemspage 31page 31
Problem #1 - Snyders Snacks1. Assess the impact of the current situation.
2. Suggest a simple solution and assess the potential ROI.
Problem #2 - Dollar General1. Would an additional system produce a
positive ROI? Why or why not?
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Types of Information Types of Information SystemsSystemsTransaction Processing Systems
◦ records the routine daily business transactions
Management Information Systems
◦ uses TPS data to create standard reports
Decision Support Systems◦ models MIS data to allow analysis and
answering what-if questions
Executive Support Systems◦ adds external info to DSS info
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Type of System Information Inputs Information Outputs Users
Transaction Processing Systems (TPS)
Transactions; daily events
Detailed reports; lists; summaries
Operations personnel; first-line supervisors
Management Information Systems (MIS)
Summary transaction data; high-volume data; simple models
Summary and exception reports
Middle managers
Decision Support Systems (DSS)
Optimized for data analysis, analytic models and data analysis tools.
Interactive; simulations; analysis
Professionals, staff managers
Executive Support Systems (ESS)
Aggregate data; external, internal
Projections; responses to queries
Senior managers
Types of Information Types of Information SystemsSystems
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Enterprise ApplicationsEnterprise ApplicationsERP - Enterprise Resource Planning
SCM - Supply Chain Management
CRM -Customer Relationship Management
KMS -Knowledge Management Systems
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Misc NotesMisc NotesInterface Design
◦TPS often uses text interfaces or hand-held scanners
◦DSS are always heavy on graphics and help
Importance of Info Systems◦41% of jobs are "interaction" jobs
also the fastest growing sector
◦25% are "transaction" jobs◦15% are blue-color "production"
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The IS DepartmentThe IS Department
Chief Information Officer
IS Managers
Systems Analysts
Programmers
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ExerciseExercise
Chapter Two, Management Decision Problem #2, page 67, Henry's Hardware
1.What is the business impact of current situation?
2.How could an Info System help?
3.What data needs to be input?
4.What info does the IS need to output?
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AssignmentAssignment
Debate Groups◦Start organizing tonight