Introduction to Information Systems

IBM: Five in 5: http://www.youtube.com/watch?v=tuisda1q6ns

The Plan

Me: Madhu Rao The Course: MBA560: Management of ITMBA560: Management of IT The Course Structure and Requirements Introductions BreakBreak Introduction to Information Systems

EXTERNAL PARTNERSHIPS

5. Develop a Collaborative

Relationship with External Partners

EXTERNAL PARTNERSHIPS

5. Develop a Collaborative

Relationship with External Partners

PROJECT AND PORTFOLIO

MANAGEMENT

3. Manage Projects and Portfolios

Effectively

PROJECT AND PORTFOLIO

MANAGEMENT

3. Manage Projects and Portfolios

Effectively

IT AND BUSINESS PARTNERSHIPS

4. Ensure Partnerships within the Department and

with the Business

IT AND BUSINESS PARTNERSHIPS

4. Ensure Partnerships within the Department and

with the Business

PEOPLE

1. Recruit, Train, and Retain World Class IT

Employees

PEOPLE

1. Recruit, Train, and Retain World Class IT

Employees

INFRASTRUCTURE

2. Build and Maintain a Robust IT

Infrastructure

INFRASTRUCTURE

2. Build and Maintain a Robust IT

Infrastructure

If all of these five principles are addressed it is easier to…

Fosters an understanding about which non-strategic aspects can be addressed by third parties to….

Provides IT credibility to….

Enables IT to…

Sustainable IT Excellence

MBA560: Management of Information TechnologyMBA560: Management of Information Technology

Source: High, P (2009), World Class IT

Create ability to….

Peer Introductions

Introduce one other person to the rest of the class Name Preferred name How far along into the MBA program Where are they from Work Family Hobbies

Data Vs. Information

392: Chocolate Chip Cookies342: Coffee Powder341: Red Curry Paste392: Chocolate Chip Cookies391: Keebler Fudge Sticks……

Region: RedmondStore: QFC Store 32

Item# Description Units Sold

392 Choc Chip Ck 2397

YTD Sales

$6972.78

Data

Information

Data vs. Information

The eternal question Data

“Streams of raw fact representing events occurring in organizations or their environments before they have been organized and arranged into a form suitable for human interpretation”

Information “Data that have been shaped into a form that

is meaningful and useful” What then is “knowledge”

The Transformation: From Data to Wisdom

DataData is transformed into informationinformation Resources used to organize data into categories

Examples include monthly reports, regional summaries, etc.

InformationInformation is transformed into knowledgeknowledge Knowledge is understanding patterns, rules and contexts.

KnowledgeKnowledge is transformed into wisdomwisdom Collective and individual experience in applying knowledge

to solve a problem Wisdom is where, when and how to apply knowledge

The transformation…Data, Information, Knowledge, Wisdom

Where is the Life we have lost in living?

Where is the wisdom we have lost in knowledge?

Where is the knowledge we have lost in information?

-T.S. Eliott, “The Rock”, 1934-T.S. Eliott, “The Rock”, 1934

Information? What’s the big deal?

Globalization Transformation of Industrial

Economies The Changing Organization

Emergence of Global Economy

Management and control in a global marketplace

Competition in global markets Global workgroups Global delivery systems

From Industrial to Post-Industrial Societies Knowledge- and information-based economies Productivity New products and services Shorter product life-cycle Turbulent operating environment

Transformation of the Organization

Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and team activities

So, what is an Information System, anyway?

What is a System?

A System

A System

InputInput

A System

InputInput ProcessProcess

A System

InputInput OutputOutputProcessProcess

A System

InputInput OutputOutputProcessProcess

feedbacfeedbackk

A System

InputInput OutputOutputProcessProcess

feedbacfeedbackk

CustomersCompetitors

Suppliers Government

What is an Information System?

a set of interrelated components that collect (or retrieve) process store distribute

information in order to support decision making coordination and control

Approaches to Information Systems

InformationSystems

Management Science

Computer ScienceOperations Research

Psychology

Economics

Sociology

Behavioral Approaches

Technical Approaches

Information Architecture

Levels within a firm Functional Areas Types of Systems Foundation of technology

Levels and Functions within an Organization

Levels Operational Management Strategic

Functions Sales and Marketing Manufacturing and Production Finance and Accounting Human Resources

Org

aniz

atio

n st

ruct

ure strategic

management

operoper

Sales and Sales and MarketingMarketing

Manufacturing and Manufacturing and ProductionProduction

Human ResourcesHuman Resources Finance and Finance and AccountingAccounting

strategic

management

operoper

Sales and Sales and MarketingMarketing

Manufacturing and Manufacturing and ProductionProduction

Human ResourcesHuman Resources Finance and Finance and AccountingAccounting

Hardware Software Data and Storage Networks

IT InfrastructureIT Infrastructure

InformationInformationArchitectureArchitecture

Level of the System

Operational-level systems Keep track of elementary activities and

transactions Sales, receipts, payroll, etc.

Purpose is to answer routine questions and track flow of transactions

Level of the System Management-level systems

Keep track of monitoring, controlling decision making, and administrative work of middle management Periodic reports

Some may be used for non-routine decisions What-if analysis

Typically draws information from operational systems Strategic-level systems

Assist senior management in making long-term decisions

Typically non-routine, unstructured decision making activities

Information System Integration

Management Level

Strategic Level

Operational Level

Management Level

Information System Integration

Management Level

Strategic Level

Operational Level

Management Level

TPSTPS

Information System Integration

Management Level

Strategic Level

Operational Level

Management Level

TPSTPS

MISMISDSSDSS

Information System Integration

Management Level

Strategic Level

Operational Level

Management Level

TPS

MISDSS

ESS

Information System Integration

Management Level

Strategic Level

Operational Level

Management Level

TPSTPS

MISMISDSSDSS

ESSESS

Information System Integration

Management Management LevelLevel

Strategic LevelStrategic Level

Operational LevelOperational Level

Management Management LevelLevel

TPSTPS

MISMISDSSDSS

ESSESS

Information System Integration

Management Management LevelLevel

Strategic LevelStrategic Level

Operational LevelOperational Level

Management Management LevelLevel

TPSTPS

MISMISDSSDSS

ESSESS

Business Processes and IS

BPs are a set of interrelated activities aimed at achieving a specific result.

Examples Manufacturing and Production

Checking quality Assembling a product

Sales and Marketing Identifying customers Selling a product

Some processes go across functional areas

Cross-functional business process

Sales

Accounting

ManufacturingAnd

Production

GenerateGenerateOrderOrder

SubmitSubmitOrderOrder

CheckCheckCreditCredit

ApproveApproveCreditCredit

Generate Generate InvoiceInvoice

Assemble Assemble ProductProduct

Ship Ship ProductProduct

Order Fulfillment Process

Enterprise Applications

Various systems described earlier operate within their level and functional area Operational: TPS Management: MIS and DSS Strategic: ESS

But what about information systems that go across multiple levels and functions?

Known as Enterprise Applications For example, SCM and CRM

Sales and Sales and MarketingMarketing

Manufacturing and Manufacturing and ProductionProduction

Human ResourcesHuman Resources Finance and Finance and AccountingAccounting

Hardware Software Data and Storage Networks

Suppliers, other Business partners

Processes

Processes

SCMSCMSystemsSystems

CRMCRMSystemsSystems

Customers, distributorsEnterpriseEnterprise

SystemsSystems

KnowledgeKnowledgeManagementManagementSystemsSystems

Enterprise Resource Planning SystemsEnterprise Resource Planning Systems

The old way….

Manufacturing and Production

Manufacturing and Production

Finance andAccounting

Sales andMarketing

HR

Finance andAccounting

Sales andMarketing

HR

Information SystemsInformation Systems

Functional AreasFunctional Areas

The new way….

Manufacturing and Production

Finance andAccounting

Sales andMarketing HR

Enterprise-wideBusiness Processes

Enterprise System

Next Class

Value of IT

Read Nicholas Carr Article!