Foundations of Information Systems in Business Chapter One Module I – Foundation Concepts IS 605
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Foundations of Information Systems
in Business
Chapter OneModule I – Foundation Concepts
IS 605
• An Essential Field of Study in Business
• What are the differences among the following fields: – Management Information Systems (MIS)– Computer Information Systems (CIS)– Information Technology (IT)– Computer Sciences (CS)– Computer Engineering
Foundation Concepts: Information Systems in Business
Why an MBA Student need to know MIS/CIS/IT?
• The role of IT in business• Use a IT as a tool• Understand how to use IT as a competitive weapon• Understand the impact of IT on business
– Good or bad– Predicate next wave of the technologies
• Become IT/IS/CS literacy• Know how to deal with IT people• While you may know/use some of the IT technologies,
the course provides a systematic review for the theory or practices.
Real World Case - Amazon.ComReal World Case - Amazon.Com
• “In the physical world, it’s old saw: location, location, location”
• “Three most important things are for us are Technology, Technology, and Technology” Jeff Bezos, CEO of Amazon
• Computerized Warehouse at Fernley, Nevada• Turnover rate for the warehouse is 20 times
Real World Case - Amazon.Com Real World Case - Amazon.Com (Continue)(Continue)
• “The trouble with most companies is that they make judgment-based decisions when data-based decision can be made.”
Roles of IS in Business
SupportBusiness Processes and Operations
SupportBusiness Decision
Making
SupportStrategies
for CompetitiveAdvantage
Roles of e-Business in Business
Suppliers and OtherBusiness Partners
The InternetThe Internet ExtranetsExtranetsCompanyBoundary
Consumers andBusiness Customers
ExtranetsExtranets
Supply chain management:Procurement, Distribution, and Logistics
Customer relationship management:Marketing Sales Customer Service
Engineering andResearch
Manufacturingand Production
Accounting andFinance
IntranetsIntranets
IntranetsIntranets
Trends in Information Systems
Data Processing: 1950s – 1960sElectronic Data Processing Systems
Management Reporting: 1960s – 1970sManagement Information Systems
Decision Support: 1970s – 1980sDecision Support Systems
Electronic Business & Commerce: 1990s – 2000sInternet-Based E-Business and E-
Commerce systemsStrategic and End User Support: 1980s – 1990sEnd User Computing SystemsExecutive Information SystemsExpert SystemsStrategic Information Systems
Ex
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Ex
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Ro
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IS i
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Types of Information Systems
EnterpriseCollaboration
Systems
ManagementInformation
Systems
ProcessControlSystems
TransactionProcessing
Systems
DecisionSupportSystems
ExecutiveInformation
Systems
OperationsSupportSystems
ManagementSupportSystems
InformationSystems
ProcessingProcessingBusinessBusiness
TransactionsTransactions
ControlControlof Industrialof IndustrialProcessesProcesses
Team andTeam andWorkgroupWorkgroup
CollaborationCollaboration
PrespecifiedPrespecifiedReportingReporting
for Managersfor Managers
InteractiveInteractiveDecisionDecisionSupportSupport
InformationInformationTailored forTailored forExecutivesExecutives
Support of
Support of
Busines
s
Busines
s
Operat
ions
Operat
ions
Support of
Support ofManagerial
Managerial
Decision Making
Decision Making
Other Information Systems• Expert Systems (ES)
• Knowledge Management Systems
• Functional Business Systems
• Strategic Information Systems (SIS)
• Cross-Functional Information Systems
• Problems with ERP Software• $112 Million Project –
– Order Processing Problems– Multiple Vendor Applications Being
Installed Simultaneously• Initial Problems to Implement
• Recent Success with Upgrades
Hershey Foods:Failure and Success with IT
Managerial Challenges of IT
• Distributor of Electrical Products and Supplies– Over 6,000 Employees– 5 Distribution Centers – 360 Branches Worldwide– Over 100,000 Customers
• New E-Business Ordering System• Increased Sales and Cut Costs• Est. $12 million Savings Annually
WESCO InternationalE-Business Sales and Supplier System
Roles of e-Business in Business
Developing IS Solutions
InvestigateInvestigate
AnalyzeAnalyze
DesignDesign
ImplementImplement
MaintainMaintain
Challenges of Ethics and IT• Ethical Responsibilities• Be a Responsible End-User
Applicationsof IT
PotentialHarms
PotentialRisks
PossibleResponses
CustomerCustomerRelationshipRelationshipManagementManagement
HumanHumanResourcesResourcesManagementManagement
BusinessBusinessIntelligenceIntelligenceSystemsSystems
Infringe-Infringe-ments onments onPrivacyPrivacy
InaccurateInaccurateInformationInformation
CollusionCollusion
CustomerCustomerBoycottsBoycotts
WorkWorkStoppagesStoppages
GovernmentGovernmentInterventionIntervention
Codes ofCodes ofEthics Ethics
IncentivesIncentives
CertificationCertification
Systems Concepts: A Foundation
What is a System?• Input
• Processing
• Output
• Feedback
• Control
Information System ModelStakeholders in the Business Environment
The CommunityThe Community CompetitorsCompetitors
Financial InstitutionsFinancial Institutions Labor UnionsLabor Unions
Go
ve
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ies
Go
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Su
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liers
Su
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liers
Cu
sto
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us
tom
ers
Sto
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old
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Sto
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old
ers
Management
Information Systems
InputInput ProcessingProcessing OutputOutput
ControlControl
FeedbackFeedback
EconomicResources
BusinessResources
Goods &Services
Components of an Information Systems 1. People Resources
- End Users - - IS Specialists
2. Hardware- Machines - Media
3. Software- Programs - Procedures
4. Data Resources- Data and Knowledge Bases
5. Network Resources- Communications Media and
Networks
Software Resources- System Software- Application Software- Procedures
Data Resources- Data Bases - Knowledge Bases
Data vs. Information
Components of an Information Systems (Continue)
Kodak, HP, andAmersham Biosciences
What is the business challenge What is the business challenge facing companies like Kodak and facing companies like Kodak and HP in supporting their global HP in supporting their global sales forces? How successfully is sales forces? How successfully is the Eloquent software tool the Eloquent software tool helping these two companies meet helping these two companies meet this challenge? Explain.this challenge? Explain.
Kodak, HP, andAmersham Biosciences
• Silo syndrome - The Cost of Employee Time Spent on Research, Preparing Reports and Developing Support for the Sales Staff Without an Easy Way to Access the Information
• Data is Being Collected, but Kodak and HP are not Good at Sharing and Updating the Data
• Unused Valuable Marketing Information and Other Intellectual Property
Challenges would include:Challenges would include:
Kodak, HP, andAmersham Biosciences
• Ability to Deliver a Full Range of Product Information – Includes Text, Synchronized Video,
Graphics, Audio and Search Capabilities to Globally Dispersed Sales Organizations
• Allowing People to get More Done and Spend More Face Time with Customers as Opposed to Calling on the Phone to Kodak
How successful is the Eloquent How successful is the Eloquent software tool is described by software tool is described by Kodak and HP:Kodak and HP:
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