Cases on Information systems
American airlinescreating new businesses
Baxter companycompetitive advantage
Mrs. Fieldsorganizational consequences
Open Market fast evolution: business risk
IS and IS resources
Information systems
Information Systems
Resources
ManagementChallenges
Businessapplications
Developmentprocesses
Foundationconcepts
Informationtechnologies
PEOPLE
Software Hardware
Data Networks
O’Brien p7-8
The importance of Information Systems
An information system is a set of people , procedures and resources that:collecttransformdisseminatesinformation in an organization.
Information is used for better management
Companies cannot operate any more without automated information systems
O’Brien p 7-8
Properties of Information SystemsEnterprise Perspective
major functional area of business important cost that poses a resource
management problem important factor for efficiency, productivity,
customer service and satisfaction source of management information and support important ingredient in strategic advantage and
competitive position vital , dynamic , and challenging career
opportunity
O’Brien p 10
Properties of Information SystemsEnterprise Perspective
Worldwide information Society Knowledge workers
Information create
use
dissiminate Use information technology to manage people,
finances, material, energy, … Ethical aspects
social aspects: have - have notprivacy aspects: supermarket
O’Brien p 8
Ethical considerations
• Improve marketknowledge
• Improve response capabilities
• Improvepersuasivecommunications
• Improve strategyselection
Applications of ICT
• Infrigements onprivacy
• Inaccurateinformation
• Collusion• Exclusion from
essentialfacilities
Potential harms Potential risks
How likely are legal actions, consumer boy -cotts, strikes,other threats tooccur
Possible responses
• self-regulation• Advocacy• Education• Codes of ethics• Incentives• certification
O’Brien p 9
The Role of Information Systems
Support of StrategicAdvantage
Support ofManagerial
Decision Making
Support ofBusiness Operations
O’Brien p 11
The Internetwork- enterprises
The Internet
Intranets
Intranets
Intranets
Intranets
Extranets
Client
Enterprise
Supplier
Other Organizations
Electronic Commerce
Business Process Reengineering
Before
managers took all decisions
only experts can do complex jobs
information is available on only one specific place
Collaborators in the field need an office to receive, store, consult and send information
Today
everybody can take decisions
a generalist can do the work of an expert based on available information
information is available for everybody at the same moment in time
collaborators can send and receive information from everywhere
O’Brien p 16
Information SystemsInformation Systems Knowledge needed by managerial end users
Managementof IS
Resources and activities
Development of ISSolutions to business problems
Applications of ISTo operations management and strategic advantage
Technology of ISHardware , software , Telecommunications, and Data Management
Foundation concepts of ISFundamental Behavioral and Technical Aspects
The System Concept
System:
A group of interrelated components or interacting elements forming a unified whole.
inputprocessingoutputfeedbackcontrol
} - environment- other systems
O’Brien 18 -19
O’Brien p 21
Stakeholders in the Business Environment
The community Competitors
Supp
liers
Gov
ernm
ent A
genc
ies
Cus
tom
ers
Stoc
khol
ders
Financial Institutions Labor Unions
Management
Information Systems
Economic Resources:PeopleMoneyMaterialLandFacilitiesEnergyInformation
Organizational Processes:
ProductionMarketingFinance
PersonnelOther Processes
Goods and Services:ProductsServicesPaymentsContributionsInformationOther Effects
Control
Feedback
Input PROCESSING Output
O’Brien p 24
Communications media and network support
Components of an Information System
People Resources :
End users and IS specialists Data Resources
Data , Model , and Knowledge Bases
Software Resources
Programs and Procedures
Mac
hine
s an
d M
edia
Hard
war
e Re
sour
ces
Communications media and network supportNetwork resources
Control of System Performance
Storage of Data resources
Input ofData
Resources
ProcessingData into
Information
Output ofInformation
Products
O’Brien 21 - 25
O’Brien p 25
IS Resources and ProductsPeople Resources
Specialists: system analysts, programmers, operatorsEnd users : anyone else using the system
Hardware ResourcesMachines: computers, video monitors, disks, printers, scannersMedia: floppies, tapes, disks, plastic cards, paper forms, ...
Software Resources system, application, proceduresPrograms: OS , spreadsheet programs, payroll programs , ....Procedures: data entry, error correction, paycheck distribution, ...
Data Resources database, model base, knowledge baseProduct descriptions, customer records, inventory databases,...
Network resourcesCommunication media, network support, ...
O’Brien p 26-27
Data versus Information
Dataraw facts or observationsmeaninglesstime independentmachine efficientgeneral purpose
Information informative value time dependenthuman efficientspecificbased on previous
knowledge
Different types of information can be derived from the same source of data .
O’Brien 24
Expanding Roles of Information Systems
1950s-1960s: Data Processingelectronic data processing systems
transaction processing, record keeping, traditional accounting
1960s-1970s: Management reportingManagement Information Systems
mgt. reports for pre-specified information to support decision making
1970s-1980s: Decision SupportDecision Support Systems
Interactive ad hoc support of the managerial decision process
O’Brien 28
Expanding Roles of Information Systems (cont)
1980s-1990s: Strategic and End User SupportEnd User Computing Systems: direct productivity supportExecutive Information Systems:Critical Information Expert Systems: Knowledge based expert advise for end usersStrategic Information Systems: for competitive advantage
1990s – 2000s : Global internetworking Internetworked information systems for end-user, enterprise, and inter-organizational computing,
collaboration, including global operations and management on the internet and other interconnected enterprise and global networks.
O’Brien p 31
Types of Information Systems
T ra nsa ctionProcessing
System s
ProcessC ontro l
System s
O fficeAutom a tion
System s
O pera tionsInform a tion
System s
Inform a tionR eportingSystem s
D ecisionSupportSystem s
ExecutiveInform a tion
System s
Ma na gem entInform a tion
System s
Inform a tion System
O’Brien 29
O’Brien p 32-33
NOLAN phases
Stage Initiation contagion control maturity
orientation cost reductionnew functionsmoratorium database inquiry
organizationwhere first useddispersed central controlled distributed
manager operationsmanager
middle managermiddle managerdirector
management viewlax selling controlling a resource
applications supporting diversificationdatabases end-user computing
control little very little strong normal
user involvementinterviews ,manuals
PC's project groupstransparent
Information systems in the Company
Marketing Production Finances Personel
sales productionplanning
budgetting human resources
marketing purchasing general ledger payroll
promotion distribution billing cost estimations
price setting engineering analyticalbookkeeping
applications
new products operations financialoperations
contracts
orders stockmanagement
A/C payable training
quality control A/C receivable
Electronic Banking
account status exchange rates economic information bank transfers order checks reports batch payments ( SWIFT, ...)
Security via magnetic cards, password , control totals
Decision Support financial models what-if analyze goal seeking risk analysis statistical analysis management models graphical representations personal databases
Hospital Information Systems
patient registration laboratory management radiology medical files pharmacy stock management and purchasing human resources and scheduling billing and A/C receivable book keeping operation theater