Liu, Lu 刘鲁

Professor

Department of Information SystemsSchool of Economics & Management BeiHang University

March, 2006

Email: liulu@buaa.edu.cn

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Lecture 1

Information Information Systems:Principles and Systems:Principles and ApproachesApproachesAn Introduction to Information An Introduction to Information

SystemsSystems

Agenda For Today A walk through the course outlineAn introduction to Information Systems

•Why Information Systems?•What is IS?•Approaches to IS•The Challenges of IS

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Main Contents of This Course

1. Concept and role of Information systems (Lec.1, Lec.2)

2. Application of Information System in Organizations (Lec.3, Lec.4, Lec.5, Lec.6)

3. Approaches to Information systems ( Lec.7, Lec.8)

4. Managing Information systems (Lec.9)

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Teaching and Learning Methods

Seminar Individual assignment

Choose a topic Searching, reading and writing Preparing PPT

Presentation and Discussion

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Grading

Component % Presentation 30% Writing Report 20% Final Exam 50%

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1.1 Why IS?

1. Emergence of the global economy

Competition in world markets Management & control in a global marketplace Global work groups Global delivery systems

The success of firms depends on their ability to operate globally

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Global Economy Globally: Means there is no nation’s

boundary Trading, Production,Finance,

Consuming Product,Service, Capital, Information International company, multi-national

company, cross-national company

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Role of Information Systems Company’s ability to operate globally

is based on the utilization of IS New Product Development capability

Capture the requirement of customer Provide personalized products or service

Communication and coordination capability

Operation, Management and control power

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2. Transformation of Industrial Economy

Knowledge- & information-based economies

What is K-economy? How to judge it? Where we are? How to transform or go into K-economy?

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Knowledge- & Information-intense Products or Services

Products that require a great deal of learning and knowledge to produce Examples: Computer software, ….

Service that require a great deal of learning and knowledge to provide Examples: Consulting firms, ….

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Knowledge & Information-intense Organizations

They are devoted entirely to production, processing and distribution of information

Examples: Sina.com Kingdee company

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3.Transformation of the Business Enterprise

Flattening DecentralizationFlexibilityLocation independentLow transaction & coordination costsEmpowermentCollaborative work & teamwork

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Classifications of Organization

Profit-oriented vs. Non-profit Labor intensive vs. Knowledge

intensive Traditional vs. E-enterprise Real vs. Virtual enterprise

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1.2 What is an IS?

Basic concepts Data Information System Information System

In the view of technologyBusiness perspective

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What Is Information? Data: streams of raw

facts Information:data that

have been shaped into a form that is meaningful

Data

Transformation process(applying knowledge by selecting, organizing, and manipulating data)

Information

Valuable Information:Accurate, CompleteReliable, RelevantTimely, AccessibleSecure

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What Is a System?

Process

Process

Process

Inputs Outputs

Feedback

System BoundaryComponents(subsystems)

Environment Interactions

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What Is an Information System?

Inputs Processing

Converting or transforming

data into useful outputs

Outputs

Producing useful

information, usually in the

forms of documents

Feedback

Output that is used to alter inputs or processes

Gathering and capturing data

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Information System: in the View of Technology

A set of interrelated components Collect (or retrieve), process, store

and distribute information To support decision

making,coordination, control analysis and visualization in an organization.

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Functions of an Information System

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

EnvironmentEnvironment

Customers Suppliers Customers Suppliers

Regulatory Regulatory Stockholders CompetitorsStockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

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Information Systems: a Business Respective

An organizational and management solution, based on information technology, to a challenge posed by the environment.

Help manager analyze problems, create new products or services.

Its success depends on organization, management and technology.

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Organization

Key elements of organization:• People: managers, workers• Structure• Operating procedures:SOPs• Politics• Culture

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Relationship Between Organization and IT

ORGANIZATIONSORGANIZATIONS

MEDIATING FACTORSMEDIATING FACTORS:: Environment Environment CultureCultureStructure Structure Standard Operating Procedures Standard Operating Procedures Politics Politics Management Decisions Management Decisions ChanceChance

INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY

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IS in the OrganizationIS in the Organization

The organizationThe organization Senior management

Major end users(divisions)

Information System Department

IT Infrastructure • Hardware• Software•Data Storage• Telecommunication.

Information System Specialists• CIO• Managers• System analysts• System designers• System programmers• Applications programmers• Database administrator• Network administrator

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Major Organizational Functions

Sales and marketing Manufacturing Finance Accounting Human resources

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Management

Managerial functions Planning, organizing, coordinating,

deciding and controlling Managers job

Set strategy and goals Allocate resources Coordinate the work

Managers role at different levels

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Technology

IT Infrastructure Computer hardware Computer software Storage technology Communications technology

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Information Systems

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS

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1.3 Approaches to information systems

SOCIOLOGYSOCIOLOGY

ECONOMICSECONOMICSPSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

MISMIS

TECHNICAL APPROACHESTECHNICAL APPROACHES

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

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Socio-technical Perspective

Technology & Organization Mutually Adjust To One Another Until Fit Is Satisfactory

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New Role of IS in OrganizationsNew Role of IS in Organizations

IS affect how managers decide, plan, and manage their employees, and increasingly shape what products or service are produced, where, when and how.

What a business would like to do often depends on what its systems will be able to do.

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System Interdependence

BUSINESSBUSINESS

StrategyStrategy

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

SOFTWARESOFTWARE DATABASEDATABASE

TELE-TELE-COMMUNICATIONSCOMMUNICATIONS

INTERDEPENDENCEINTERDEPENDENCE

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The Widening Scope of IS

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Digital Firm and the Networked Enterprise

Redesign the organization with IS Flattening organizations Separating work from location Reorganizing work-flows Increasing flexibility of organization The changing management process Redefining organizational boundaries

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Digital Firm: E-commerce and E-business

Electronic MarketMarketplace created by computer and communication technology Linking many buyers and seller

Electronic CommerceProcess of buying and selling goods and services electronically using Internet, networks and other digital technologies

Electronic BusinessUse of Internet and digital technology for organizational communication and the management of the firm

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1.4 Learning to use IS: The challenge and opportunities

Key Management Issues Key Management Issues

11.The strategic business challenge.The strategic business challenge How can business use IT to design organization that are competitive, effective and digitally enabled?

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2. The Globalization Challenge

How can firms understand the business and system requirement of a global economic environment?

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3. The Information Architecture Challenge

How can organizations develop an information architecture that supports their business goals?

Information architecture of the firm Particular form that information technology

takes in an organization to achieve selected goals

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Information Architecture and Information Technology Infrastructure

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4. The information systems investment challenge

How can organizations determine the business value of information systems?

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5. The responsibility and control challenge

How can organizations design systems that people can control and understand?

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Summary

What is an information system? Why does organization need IS? What are management challenges

to building and using IS in organizations?

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Application Cases

Wal-Mart Google.com