Introduction to Information SystemsCIS 2200Kannan MohanDepartment of CISZicklin School of Business, Baruch College

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Learning Objectives

• Why are we here?

• What has changed because of IT?

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• What is IT? What is IS?• Does IT matter?• If yes, how?• How can organizations use IT to gain competitive

advantage?• Why do some IT investments fail while others

succeed?

Fundamental Questions

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• Information technology: The hardware and software a business uses to achieve objectives

• Information system: Interrelated components that manage information to:• Support decision making and control• Help with analysis, visualization, and product creation

What is an Information System?

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Functions of an Information System

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Dimensions of Information Systems

Information Systems

Organization Technology

People

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Information Systems Interaction Model

THE EXTERNAL ENVIRONMENT

THE IMPLEMENTATION PROCESS

INITIATION BUILD/BUY INTRODUCTION ADAPTATION

THE ORGANIZATION

FIRM STRATEGY

BUSINESS PROCESSES

STRUCTURE & CULTURE

IT INFRASTRUCTURE

THE INFORMATION

SYSTEM

CO

NSE

QU

ENC

ES

USE

Source: (Silver et al, 1995)1-8

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Radically Changing Business Landscapes

• Access to computing and telecommunications • Changing the way firms advertise and people

communicate • Lowered computing costs• Pervasive impact of technology – across business

disciplines

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Radically Changing Business Landscapes• Sophisticated, high-powered computing is turning

into a utility via:• Cloud computing • Software as a service

• New technologies have also: • Fueled globalization• Fueled data-driven decision making• Raised privacy and security concerns

How has IT impacted…..?• Accounting• Finance• Marketing• HR• Operations• Law

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Information Systems Careers• Programmers • Experts in user-interface design, process design, and

strategy• Consulting and field engineering • Chief information officer • “C-level” specialties in emerging areas

• Chief information security officer (CISO)• Chief privacy officer (CPO)

Business Drivers of Information System• Operational excellence • New products, services, and business models• Customer and supplier intimacy• Improved decision making• Competitive advantage• Survival

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Operational Excellence• Improved efficiency results in higher profits• Helping improve efficiency and productivity• E.g. Wal-Mart: • Power of combining information systems and best

business practices to achieve operational efficiency—and $348 billion in sales in 2007

• Most efficient store in world as result of digital links between suppliers and stores

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• Enabling firms to create new products, services, and business models • Business model: How a company produces, delivers, and

sells its products and services

• E.g. Music industry • Drastic changes in business models in recent years• Apple: Successful innovations – iPod, iTunes, etc.

New Products, Services, and Business Models

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• Customers who are served well become repeat customers who purchase more • Mandarin Oriental hotel• Uses IT to foster an intimate relationship with its customers,

keeping track of preferences, etc.

• Close relationships with suppliers result in lower costs • JCPenney• IT to enhance relationship with supplier in Hong Kong

Customer and Supplier Intimacy

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• Managers being swamped with data that is not timely or helpful

• Real-time data improves ability of managers to make decisions • Verizon: Web-based digital dashboard to update

managers with real-time data on customer complaints, network performance, and line outages

Improved Decision Making

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• Often results from achieving business objectives• Advantages over competitors:• Charging less for superior products, better performance,

and better response to suppliers and customers• Toyota: Uses TPS (Toyota Production System) to achieve

high levels of efficiency and quality

Competitive Advantage

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• Investment in IS out of necessity• Simply the cost of doing business• Keeping up with competitors - ATMs?• Federal and state regulations and reporting requirements

Survival

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Summary• How can IT transform your business?• How has IT impacted the various areas of

business?• What are the key business drivers for IS?• What are the dimensions and functions of IS?

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