Information Systems in Business (Chapters 1 and 2)

Information Information Systems in Systems in BusinessBusiness

(Chapters 1 and 2)

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?

How much money are How much money are we talking about?we talking about?

Figure 1-1, Capital Investment

text section 1.1

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

IS ActivitiesIS Activities((whatwhat IS does) IS does)

Supply Chain Management

Customer Management

Planning

Controlling

Modeling and Decision Making

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

Return on IT Return on IT InvestmentInvestment

Figure 1-8 in textbook

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?

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

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

Enterprise ApplicationsEnterprise ApplicationsERP - Enterprise Resource Planning

SCM - Supply Chain Management

CRM -Customer Relationship Management

KMS -Knowledge Management Systems

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"

The IS DepartmentThe IS Department

Chief Information Officer

IS Managers

Systems Analysts

Programmers

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?

AssignmentAssignment

Debate Groups◦Start organizing tonight