3 Information system vs Information Technology Information Systems is a large umbrella referring to systems designed to create, store, manipulate, or disseminate information.Information technologytechnology dealing with information processing, storage, and transmission.This includes in particular computer technology and the different communication technologies (electronic, radiowave, optical etc.).
4 Information system vs Information Technology Information technology can be considered as a subset of information systems. It deals with the technology part of any information system, and as such deals with hardware, servers, operating systems and software etc.A system is always a combination of people, machines, processes and technology. And IT is just a part of the system. Since a part can never be identical to whole, information systems is never going to be identical to information technology. Designing of a system takes much more than technology as people and processes are also involved.
5 Information system vs Information Technology ‘Information systems’is in essence bridging the gap between business and the ever growing field of computers.On the other hand, information technology is all about managing technology and making use of it for the betterment of business.
6 Foundation ConceptsFundamental behavioral, technical, business, and managerial concepts about the components and roles of information systems.Example: Basic information systems concepts derived from general systems theory
7 Business Applications The major uses of information systems for the operations, management, and competitive advantage of the E-Business enterpriseIncludes electronic business, commerce, collaboration, and decision making using the Internet, intranets, and extranets
8 Development Processes How business professionals and information specialists plan, develop, and implement information systems to meet E-Business opportunities using several strategic planning and application development approaches
9 Management Challenges The challenges of effectively and ethically managing E-business technologies, strategies, and security at the end user, enterprise, and global levels of a business
10 Information Technologies Major concepts, developments, and management issues in information techologyHardware, software, networks, data resource management, and Internet based technologiesOur main focus
11 What is an Information System? Simple Definition:It can be any organized combination of people, hardware, software, communications networks and data resources that collects, transforms, and communicates information in an organization.Hardware – physical deviceSoftware – processing instructions and proceduresCommunications channels – networksStored Data – data resources
12 What is a System? Generic Def’n: IS Def’n A group of interrelated or interacting elements forming an unified wholeIS Def’nA group of interrelated components working together toward a common goal by accepting inputs and accepting outputs in an organized transformation process
13 Basic System Components InputCapturing and assembling elements that enter the system to be processed. Ex: raw materials, energy, dataProcessingInvolves transformation processes that convert input into output. Ex. Manufacturing processes, mathematical calculationsOutputInvolves transferring elements that have been produced by a transformation process to their ultimate destination. Ex: finished products to their human users
14 Additional Components FeedbackData about the performance of a system. Ex: Data about sales performance is feedback to a sales managerControlMonitoring and evaluating feedback and control components to determine whether a system is moving toward the achievement of its goal. Ex. Reassigning salespeople after evaluating their performanceSystem makes necessary adjustments to input and processing to make sure produces desired output
15 Other Characteristics EnvironmentOther systems that the system interacts withSubsystemA system that is a component in a larger systemInterfaceMeans in which a system is connected to anotherOpen systemA system that interacts with other systems in its environmentAdaptive SystemA system that has the ability to change itself or its environment in order to survive
16 Diagram of a System Environment Other Systems Manufacturing Process Input ofRaw MaterialsOutput ofFinished ProductsEnvironmentOther SystemsControl byManagementControlSignalsFeedbackSystem Boundary
17 Components of an IS Four major concepts People, hardware, software, data and networks are the five basic resources of information systemsPeople resources include end users, IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and networks include communications media and networks
18 Components of an IS Four major concepts continued… Data resources are transformed by information processing activities into a variety of information products for end usersInformation processing consists of input, processing, output, storage, and control activities
20 Information System Resources People ResourcesEnd Users – the people who use an information system or the information it produces. Ex: Accountants, salespeople, customersIS Specialists – the people who develop and operate information systems based on the requirements of end users. Ex: programmers, analysts, system operators
21 Information System Resources Hardware ResourcesMachines, such as computers and other devices, and media, such as paper, disksComputer Systems such as the personal computer (desktop), mainframe, or laptopComputer peripherals such as keyboard, mouse, monitor, scanner, printer, disks
22 Information System Resources Software ResourcesPrograms – sets of operating instructions that direct and control computer hardwareProcedures – sets of information processing instructions that people need
23 Information System Resources Software Resources continuedSystem Software – such as operating system that supports the operations of a computer system. Ex. Windows 98Application Software – programs that direct processing for a particular use of computers by end users. Ex. ExcelProcedures – operating instructions for people who will use an IS. Ex. Instructions for filling out a form.
24 Information System Resources Data ResourcesTypes of dataText dataImage dataAudio dataData StorageDatabases – hold processed and organized dataKnowledge bases – hold knowledge in a variety of forms such as facts, rules, and case examples of successful business practices
25 Information System Resources Data Resources continued…Data Vs. InformationData – raw facts or observations, objective measurements of the characteristics of entities such as people, places, things and eventsInformation – data that has been converted to a meaningful and useful context for specific end users.
26 Information System Resources Data Resources continued…Data is subjected to a value-added processIts form is aggregated, manipulated and organizedIts content is analyzed and evaluatedIt is placed in a proper context for a human userCalled data processing or information processing
27 Information System Resources Data Resources continued…West Charles Mann79154 TM ShoesMonthly Sales Reportfor West RegionSales Rep: Charles MannEmp NoItem Qty Sold PriceTM Shoes $100
28 Information System Resources Network ResourcesCommunication media – Twisted pair wire, coaxial cable, fiber-optic cable and microwave, cellular, and satellite technologiesNetwork support – people and all of the hardware, software, and data technologies that directly support the operation and use of a communication network.
29 Information System Activities Input of Data ResourcesData about business transactions and other events must be captured and prepared for processingInput typically takes the form of data entry activities such as recording and editingEnd users typically enter data directly into a computer system or record it on some physical media such as a paper form
30 Information System Activities Processing of Data into InformationData is subjected to processing activities such as calculating, comparing, sorting, classifying and summarizingThis organizes, analyzes, and manipulated data, turning it into informationThe quality of data stored in an information system must be maintained by a continual process of correcting and updating activities
31 Information System Activities Output of Information ProductsThe goal of information systems is the production of appropriate information products for end usersExamples are messages, reports, forms and graphic images which may be provided by video displays, audio responses, paper products, and multimedia
32 Information System Activities Information QualityInformation that is outdated, inaccurate, or hard to understand is not meaningful, useful, or valuable to end usersInformation products should have characteristics, attributes, and qualities that make the information more valuable to the end usersInformation has three dimensions of time, form, and content
33 Information System Activities Information Quality continued..
34 Information System Activities NameFieldPayrollRecordFilePersonnelDatabaseStorage of Data ResourcesData and information are retained in an organized manner for later useStored data is commonly organized into fields, records, files, and databases
35 Information System Activities Control of System PerformanceAn IS should produce feedback about its input, processing, output, and usage activitiesThis feedback must be monitored and evaluated to determine if the system is meeting performance standardsActivities must be adjusted so that proper information products are produced for end users
36 Business Processes and Operations Roles of IS in BusinessSupport ofStrategicAdvantageBusinessDecision MakingBusiness Processes and Operations
37 History of Information Systems DataProcessingManagementReportingDecisionSupportStrategic &End UserElectronicCommerce- TPSInformationSystems- Ad hocReportsComputingExec Info SysExpert SystemsSISBusiness &-InternetworkedE-Business &
38 The E-Business Enterprise The use of Internet technologies to inter-network and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.
39 The E-Business Enterprise E-Business enterprises rely on information technologies such as the Internet to:Reengineer and revitalize internal business processesImplement electronic commerce systems among businesses and their customers and suppliersPromote enterprise collaboration among business teams and workgroup
40 The E-Business Enterprise Enterprise collaboration systemsInvolve the use of groupware tools to support communication, coordination, and collaboration among members of networked teams and workgroupsElectronic CommerceThe buying and selling, marketing and servicing of products, services and information over a variety of computer networks
41 The E-Business Enterprise Types of networksThe InternetIntranets – the network existing inside an enterpriseExtranets – networks existing between enterprises
42 The Internetworked Business ManufacturingandProductionEngineering &ResearchAccounting,Finance, andManagementSuppliers and Other Business PartnersProcurement, Distribution, and LogisticsAdvertising Sales Customer ServiceConsumer and Business CustomersCompanyBoundaryIntranetsThe InternetExtranets
43 Types of Information Systems TransactionProcessingSystemsProcessControlEnterpriseCollaborationOperationsSupportManagementInformationDecisionExecutiveInformation Systems
44 Operations Support Systems Role is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databasesExamplesTransaction Processing Systems – record and process data from business transactions in one of two ways – batch process and real-time processProcess Control Systems – monitor and control physical processes such petroleum refiningEnterprise Collaboration Systems – enhance team and workgroup communications and productivity
45 Management Support Systems Focus on providing information and support for effective decision making by managementExamplesManagement Information Systems – provide information in forms of reports and displays to managers and other professionalsDecision Support Systems – giver direct computer support during the decision making processExecutive Information Systems – provide critical information from a wide variety of internal and external sources in an easy to use displays
46 Other Classifications Expert Systems – provide expert advice for operational chores like equipment diagnosticsKnowledge Management Systems – support the creation, organization, and distribution of business knowledge to employees and managersFunctional Information Systems – focus on operational and managerial applications in support of basic business functions such as accountingStrategic Information Systems – apply information technology to a firm’s products, services, or business practices to gain a competitive advantage
47 Developing Information Systems Development Cycle
48 Managerial Challenges of IT Information systems and their technologies must be managed to support the business strategies, business processes, and organizational structures and culture of an enterprise to increase its customer and business value
49 Managerial Challenges of IT Business StrategiesBusiness ProcessesBusiness NeedsCustomer RelationshipsBusiness PartnersSuppliersBusiness CustomersEthical ConsiderationsPotential Risks?Potential Laws?Possible Responses?IS Human ResourcesIS DevelopmentIT InfrastructureIS PerformanceOrganization Structureand CultureUser Acceptance
50 Ethics and IT Ethical Responsibilies What use of IT may be considered improper, irresponsible, or harmful to other individuals or society?How to protect yourself from computer crime?Use of Internet in the business environment?
51 The IS FunctionA major functional area of business that is as important to business success as the functions of accounting, finance, operations management, marketing, and human resource managementAn important contributor to operational efficiency, employee productivity and morale, and customer service and satisfactionA major source of information and support needed to promote effective decision making by managers and business professionals
52 The IS FunctionA vital ingredient in developing competitive products and services that give an organization a strategic advantage in the global marketplaceA dynamic, rewarding, and challenging career opportunity for millions of men and womenA key component of the resources, infrastructure, and capabilities of today’s e-business enterprises