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Chapter 1Information

Systems:The Big Picture

PowerPoint PresentationPowerPoint Presentation

Jack Van DeventerJack Van Deventer

Ward EagenWard Eagen

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Textbook Overview Ch 1 – IS: The Big Picture Ch 1 – IS: The Big Picture Ch 2 – IS for Competitive AdvantageCh 2 – IS for Competitive Advantage Ch 3 – Database ManagementCh 3 – Database Management Ch 4 – Telecommunications and the InternetCh 4 – Telecommunications and the Internet Ch 5 – E-Business, Intranets, and ExtranetsCh 5 – E-Business, Intranets, and Extranets Ch 6 – Organizational Information SystemsCh 6 – Organizational Information Systems Ch 7 – Enterprise-Wide ISCh 7 – Enterprise-Wide IS Ch 8 – IS Development and AcquisitionCh 8 – IS Development and Acquisition Ch 9 – IS Ethics, Computer Crime, and SecurityCh 9 – IS Ethics, Computer Crime, and Security

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Textbook Overview

Appendix A – IS Hardware Appendix A – IS Hardware Appendix B – IS SoftwareAppendix B – IS Software Appendix C – NetworkingAppendix C – Networking

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Chapter 1 Objectives Understand the term information systems (IS)Understand the term information systems (IS) Understand IS components:Understand IS components:

Technology, people, organizationsTechnology, people, organizations

Understand IS career opportunitiesUnderstand IS career opportunities Understand types of information systemsUnderstand types of information systems Understand IS and organizational success or Understand IS and organizational success or

failurefailure Understand the future of IS managementUnderstand the future of IS management

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Case: Whistler.com Powers Up

Whistler.com has contracted Fusepoint Managed Whistler.com has contracted Fusepoint Managed Services to handle its entire IT infrastructure for Services to handle its entire IT infrastructure for Vancouver’s 2010 Winter Olympic Games onlineVancouver’s 2010 Winter Olympic Games online

It believes that “digging deeper into information It believes that “digging deeper into information sources is the new direction”sources is the new direction”

““Where we see the opportunity in this overall Where we see the opportunity in this overall space is with people buying IT like it’s electricity”space is with people buying IT like it’s electricity”

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Information Systems Defined

Combinations of hardware, software, and Combinations of hardware, software, and telecommunications networks that people telecommunications networks that people build and use to collect, create, and build and use to collect, create, and distribute useful data in organizationsdistribute useful data in organizations

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SakTel Pushes Broadband

SaskTel will spend $121 million expanding high- SaskTel will spend $121 million expanding high- speed Internet to rural areasspeed Internet to rural areas

Its goal is to bring high bandwidth to communities Its goal is to bring high bandwidth to communities as small as 100as small as 100––200 people and it is exploring 200 people and it is exploring fixed wireless to reach 95% of the provincial fixed wireless to reach 95% of the provincial populationpopulation

Considering it a social responsibility, SaskTel says Considering it a social responsibility, SaskTel says “you just don’t know if you’re ever going to make “you just don’t know if you’re ever going to make money at that”money at that”

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Key Elements of Information Systems

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Knowledge as a Business Resource

Knowledge WorkerKnowledge Worker A well-educated professional who creates, A well-educated professional who creates,

modifies, or synthesizes knowledge in one’s modifies, or synthesizes knowledge in one’s professionprofession

Knowledge SocietyKnowledge Society Also called digital society, new economyAlso called digital society, new economy Working with brains instead of handsWorking with brains instead of hands The importance of educationThe importance of education Digital divideDigital divide

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Accounting and Finance: Scotiabank Global FinanceGlobal Finance magazine rated Scotiabank as magazine rated Scotiabank as

Best Canadian Internet bankBest Canadian Internet bank Scotiabank seeks constant improvement through a Scotiabank seeks constant improvement through a

monthly customer satisfaction surveymonthly customer satisfaction survey—it —it has a has a 94% satisfaction index94% satisfaction index

Cost and ROI are questions, but the retention of Cost and ROI are questions, but the retention of online customers is strategic in repositioning the online customers is strategic in repositioning the bank to be in the wealth-management businessbank to be in the wealth-management business

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Data

DataData: raw material, unformatted information: raw material, unformatted information

InformationInformation: processed data (meaningful): processed data (meaningful) KnowledgeKnowledge: understanding relationships between : understanding relationships between

pieces of informationpieces of information

WisdomWisdom: knowledge accumulated and applied: knowledge accumulated and applied

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Theory or Practice

Generally in Canada, colleges tend to be Generally in Canada, colleges tend to be hands-on and universities tend to be theory-hands-on and universities tend to be theory-based: What is more important?based: What is more important?

How can you be strategic about finance and How can you be strategic about finance and marketing if you do not know the tool?marketing if you do not know the tool?

How one resolves this is a continuing How one resolves this is a continuing debate in higher education and business.debate in higher education and business.

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Technology and Information Systems

Computer-Based Information SystemsComputer-Based Information Systems One type of technologyOne type of technology TechnologyTechnology – any mechanical and/or electrical – any mechanical and/or electrical

means to supplement, extend, or replace human means to supplement, extend, or replace human activityactivity

Information Technology (IT)Information Technology (IT) – machine technology – machine technology controlled by or using informationcontrolled by or using information

The goal of IS is to provide useful data to usersThe goal of IS is to provide useful data to users IS can be local or global, organizational or IS can be local or global, organizational or

enterprise-wideenterprise-wide

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Careers: Operations Management

TrendsTrends Virtual corporationsVirtual corporations Network infrastructureNetwork infrastructure How wired is your firm?How wired is your firm?

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The People Side of IS

Despite economic ups and downs…Despite economic ups and downs… Labour shortages predictedLabour shortages predicted

U.S. Bureau of Labor StatisticsU.S. Bureau of Labor Statistics http://stats.bls.gov/emp/emptab3.htmhttp://stats.bls.gov/emp/emptab3.htm

Ranked among best jobs availableRanked among best jobs available

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Human Resource Management

Communication between IT workers (who get Communication between IT workers (who get satisfaction from making something that works) satisfaction from making something that works) and, for example, accountants (who focus on the and, for example, accountants (who focus on the impact to the business) is a problem in many firmsimpact to the business) is a problem in many firms

Few computer science programs integrate business Few computer science programs integrate business and marketing with their technical training and marketing with their technical training

From the other side, too few leaders are From the other side, too few leaders are comfortable with the technology issuescomfortable with the technology issues

There needs to be a shared perspective between IT There needs to be a shared perspective between IT and non-IT managers before strategy can evolveand non-IT managers before strategy can evolve

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Careers in IS

Systems AnalystSystems Analyst Systems ProgrammerSystems Programmer Systems ConsultantSystems Consultant Database AdministratorDatabase Administrator WebmasterWebmaster IS DirectorIS Director Chief Information OfficerChief Information Officer ProfessorProfessor Government scientistGovernment scientist

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Chief Information Officer (CIO) Responsible for organization’s ISResponsible for organization’s IS Executive levelExecutive level Became prominent in 1980sBecame prominent in 1980s ChallengesChallenges

Tightening budgetsTightening budgets Expectation managementExpectation management

SubordinatesSubordinates Mid-level managersMid-level managers IS directorsIS directors Project managersProject managers

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IS Managerial Personnel1.1. CIOCIO2.2. IS directorIS director3.3. Account ExecutiveAccount Executive4.4. Info Centre ManagerInfo Centre Manager5.5. Development ManagerDevelopment Manager6.6. Project ManagerProject Manager7.7. Maintenance ManagerMaintenance Manager8.8. Systems ManagerSystems Manager9.9. IS planning ManagerIS planning Manager10.10. Operations ManagerOperations Manager11.11. Programming ManagerProgramming Manager

12.12. Systems Programming Systems Programming ManagerManager

13.13. Manager of Emerging Manager of Emerging TechnologiesTechnologies

14.14. Telecommunications ManagerTelecommunications Manager15.15. Network ManagerNetwork Manager16.16. Database AdministratorDatabase Administrator17.17. Auditing or Computer Auditing or Computer

Security ManagerSecurity Manager18.18. Quality Assurance ManagerQuality Assurance Manager19.19. WebmasterWebmaster

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The High Value of IS Personnel

Supply and DemandSupply and Demand Aggressive recruitingAggressive recruiting High salariesHigh salaries Broad demandBroad demand

Large and small companiesLarge and small companiesUrban and ruralUrban and rural

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Integrating Skills and Knowledge

TechnologyTechnology Hardware, software, networkingHardware, software, networking

BusinessBusiness Business, management, social, Business, management, social,

communicationscommunications SystemsSystems

Integration, development methods, Integration, development methods, critical thinking, problem solvingcritical thinking, problem solving

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Hot Skills in IS Workers Office / E-mailOffice / E-mail LanguagesLanguages ApplicationsApplications RDBS AdministrationRDBS Administration Development ToolsDevelopment Tools InternetworkingInternetworking Operating SystemsOperating Systems NOS LAN AdministrationNOS LAN Administration NetworkingNetworking

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The Organizational Side of IS1.1. Transaction Processing SystemTransaction Processing System2.2. Management Information SystemManagement Information System3.3. Executive Information SystemExecutive Information System4.4. Decision Support SystemDecision Support System5.5. Expert SystemExpert System6.6. Functional Area Information SystemFunctional Area Information System7.7. Office Automation System (a.k.a. Personal Productivity Software)Office Automation System (a.k.a. Personal Productivity Software)8.8. Collaboration SystemCollaboration System9.9. Customer Relationship Management SystemCustomer Relationship Management System10.10. Electronic Commerce SystemElectronic Commerce System11.11. Enterprise Resource Planning SystemEnterprise Resource Planning System

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Marketing: Ticketmaster

Ticketmaster grew from a small company that Ticketmaster grew from a small company that handled tickets for college events at Arizona State handled tickets for college events at Arizona State University in 1978 to the world’s largest online University in 1978 to the world’s largest online ticket resource and moreticket resource and more

Much of the success is due to Ticketmaster’s Much of the success is due to Ticketmaster’s Citysearch Web sites, which are online guides for Citysearch Web sites, which are online guides for 128 cities or regions worldwide128 cities or regions worldwide

Ticketmaster is constantly integrating cutting-edge Ticketmaster is constantly integrating cutting-edge technologies and systems into its business (e.g., technologies and systems into its business (e.g., wireless and handheld technologies)wireless and handheld technologies)

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Operations Management

With just in time (JIT) manufacturing, a few With just in time (JIT) manufacturing, a few minutes can mean thousands of dollarsminutes can mean thousands of dollars

Global positioning systems (GPS) are used in Global positioning systems (GPS) are used in tracking material but have shortcomings because tracking material but have shortcomings because they require line-of-sight transmissionthey require line-of-sight transmission

Bell Mobility and Sedum Corp. of Vancouver Bell Mobility and Sedum Corp. of Vancouver have developed a new service combining Bell’s have developed a new service combining Bell’s cellular network with GPS technology, allowing cellular network with GPS technology, allowing tracking in bad weather, indoors, etc.tracking in bad weather, indoors, etc.

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Disaster Plans for IS

That IS is crucial to corporate success is That IS is crucial to corporate success is illustrated by the need for disaster planningillustrated by the need for disaster planning

Power Blackout 2003Power Blackout 2003 Are companies prepared now?Are companies prepared now?

What’s at stake?What’s at stake? The consequences of failing to planThe consequences of failing to plan

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When Things Go Wrong

Blackouts, blizzards, and terrorist acts underscore Blackouts, blizzards, and terrorist acts underscore the importance of contingency plans for IS, yet the importance of contingency plans for IS, yet little time is given to disaster recovery strategylittle time is given to disaster recovery strategy

44% of Canadian firms surveyed do not have a 44% of Canadian firms surveyed do not have a disaster recovery plan in placedisaster recovery plan in place

Why? The biggest challenge is fundingWhy? The biggest challenge is funding And existing plans are rarely testedAnd existing plans are rarely tested 25% of companies have a disaster recovery plan 25% of companies have a disaster recovery plan

for their midrange data centres (payroll and HR), for their midrange data centres (payroll and HR), and only 1/3 of these have actually tested itand only 1/3 of these have actually tested it

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The Dual Nature of IS

Systems can dictate success or failureSystems can dictate success or failure Case 1: Denver International AirportCase 1: Denver International Airport Case 2: Federal ExpressCase 2: Federal Express Factors affecting success/failure:Factors affecting success/failure:

Size and complexity of projectSize and complexity of project Size and nature of organizationSize and nature of organization

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IS for Competitive Advantage

Strategic SystemsStrategic Systems Competition: doing things faster, better, Competition: doing things faster, better,

cheapercheaper How can systems gain one’s organization a How can systems gain one’s organization a

competitive advantage?competitive advantage?

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Global Perspective

Offshore outsourcing is pushing beyond its roots Offshore outsourcing is pushing beyond its roots in India: The programming skills needed now in India: The programming skills needed now exist in China, the Philippines, Russia, Eastern exist in China, the Philippines, Russia, Eastern Europe, etc. Europe, etc.

A 25% cost savings for an offshore outsourcing A 25% cost savings for an offshore outsourcing contract is realisticcontract is realistic

Most outsourcing firms have management Most outsourcing firms have management personnel in North America to mitigate the riskpersonnel in North America to mitigate the risk

Outsourcing has become a worldwide search for Outsourcing has become a worldwide search for the right mix of talent, resources, and cost savingsthe right mix of talent, resources, and cost savings

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International Outsourcing

Round-the-clock productivityRound-the-clock productivity Cost savingsCost savings

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IS Within the Firm

Traditionally a love/hate relationshipTraditionally a love/hate relationship ““Techies” vs. mere “users” (us vs. them)Techies” vs. mere “users” (us vs. them) Poor service, lousy attitudesPoor service, lousy attitudes

Now: progress toward better customer serviceNow: progress toward better customer service Better relationships within the companyBetter relationships within the company Cooperation, not rivalryCooperation, not rivalry

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IT Personalities

IT workers are near the bottom of the list in IT workers are near the bottom of the list in perceiving the importance of communicationperceiving the importance of communication

The irony of those charged with communication in The irony of those charged with communication in the company not being keen on communicating the company not being keen on communicating themselves has negative effects on the status and themselves has negative effects on the status and mobility of IT people, but this is changingmobility of IT people, but this is changing

As the significance of IT to the business grows, IT As the significance of IT to the business grows, IT is being seen as core and not a cost centreis being seen as core and not a cost centre

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The Spread of Technology in Organizations

Technology infiltrates business unitsTechnology infiltrates business units Dual role for IS workers:Dual role for IS workers:

Work with IS technical groupWork with IS technical group Work with business unit (marketing, finance, etc.)Work with business unit (marketing, finance, etc.)

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The Spread of Technology in Organizations

Benefits of centralized IS functionBenefits of centralized IS function Coordinated planningCoordinated planning Consistent managementConsistent management Systems compatibility and connectivitySystems compatibility and connectivity

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Human Resource Planning for IS

The human resource challenge:The human resource challenge: Tech workers need to understand businessTech workers need to understand business Business workers must understand technologyBusiness workers must understand technology

Fluctuations in hiring tech workers:Fluctuations in hiring tech workers: Downsizing issuesDownsizing issues Recruiting issuesRecruiting issues

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Career Prospects and Opportunities

IS applies to nearly every functional area IS applies to nearly every functional area within a firmwithin a firm

One may become indispensable in a firm One may become indispensable in a firm through mastering tech skillsthrough mastering tech skills

Anticipated growth in tech hiringAnticipated growth in tech hiring

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Staying Current with IS News

Great sources for IS current info:Great sources for IS current info: informationweek.cominformationweek.com computerworld.comcomputerworld.com cio.comcio.com cipa.comcipa.com CanadaIT.comCanadaIT.com GlobeTechnology.comGlobeTechnology.com

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Coming Attractions:

Bright Future for Organic Displays Organic Displays (Organic Light Emitting Device) Organic Displays (Organic Light Emitting Device)

are being developed at the University of Torontoare being developed at the University of Toronto Thin as paper, and just as flexible, OLED is Thin as paper, and just as flexible, OLED is

considered the next major display technology and considered the next major display technology and will replace LCDs in the futurewill replace LCDs in the future

Some products are available now but common Some products are available now but common commercial use won’t occur until at least 2010commercial use won’t occur until at least 2010

OLED produces an extremely clear image that can OLED produces an extremely clear image that can be viewed from multiple angles, but currently be viewed from multiple angles, but currently OLED screens have a very limited life spanOLED screens have a very limited life span

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Canucks @ Microsoft, Eh?

Why are there so many Canadians at Microsoft?Why are there so many Canadians at Microsoft? Higher salaries, more opportunities, and more Higher salaries, more opportunities, and more

interesting research attracts manyinteresting research attracts many Microsoft is a model co-op student employer, Microsoft is a model co-op student employer,

giving many Canadian students (15-30 Waterloo giving many Canadian students (15-30 Waterloo University students a semester) meaningful work University students a semester) meaningful work and contracts after graduationand contracts after graduation

Brain drain? The term is just not meaningful in the Brain drain? The term is just not meaningful in the current global marketcurrent global market