The document discusses the role of information systems in business today. It describes how information systems are transforming business through emerging technologies like mobile platforms, big data, and cloud computing. Information systems help businesses achieve strategic objectives like operational excellence, new products/services, customer intimacy, improved decision making, competitive advantage and survival. The growth of information technology investment from 32% to 52% of capital between 1980-2009 is also noted. Key topics covered include digital business processes, strategic uses of information systems, and how systems and business capabilities are interdependent.
The document discusses decision support systems (DSS), including their architecture, characteristics, capabilities, classification, and the steps in designing a DSS. It describes the key components of a DSS architecture as including data management, user interface, model management, and knowledge management. It also classifies DSS as data-driven, model-driven, knowledge-driven, document-driven, communication-driven, and inter/intra-organizational. The design process involves planning, analysis, design, and implementation phases.
The document discusses different types of multidimensional data models (MDDM) used for data warehousing. It describes MDDM as providing both a mechanism for storing data and enabling business analysis. The main types discussed are star schema, snowflake schema, and fact constellation. Star schema has one central fact table connected to multiple dimension tables, resembling a star. Snowflake schema is similar but dimensional tables are normalized into hierarchies. Fact constellation has multiple fact tables sharing some dimensional tables.
General Motors presented a grand strategy for the company that included four main alternatives: stability, growth, combination, and retrenchment. The strategies were mapped based on market growth and competitive position. Growth strategies included market penetration, market development, product development, and integration approaches like backward, forward, and horizontal integration. Diversification could be concentric, horizontal, or conglomerate. The presentation analyzed GM India's product lineup, branding, and proposed a three pillar marketing strategy focusing on integration, partnerships and sustaining efforts.
This document defines a data warehouse as a central repository for integrated data from one or more sources used to support analytical reporting and business intelligence. It stores current and historical data in one place. The concept of data warehousing originated in the late 1980s to provide an architectural model for data flow from operational systems to decision support systems. Key characteristics of a data warehouse include being subject-oriented, integrated, nonvolatile, and time-variant. The document also discusses data marts, types of data stored, and applications of data warehousing and business intelligence.
The document discusses how companies can achieve competitive advantage through the use of information systems. It covers Porter's competitive forces model and how it can help identify opportunities to use IS for competitive strategies. The value chain and value web models are also discussed as ways to identify strategic IS applications. Examples are given of how companies have used IS to pursue strategies like low-cost leadership, product differentiation, market niche focus, and strengthening customer/supplier relationships.
This document discusses trends in enterprise resource planning (ERP) systems, including the move to cloud-based ERP, open source ERP, mobile ERP, and social ERP. It outlines different cloud computing models like public, private and hybrid clouds. It also compares Software as a Service (SaaS) and on-premise ERP systems, discussing factors like upfront costs, customization flexibility, support, and security issues. The document notes that ERP systems will become easier to use and be impacted by technologies like cloud, mobile and social media, with a focus on small and medium enterprises.
Information System Concepts & Types of Information SystemsVR Talsaniya
Best slides on the information system concepts and to understand the types of information systems.
Best for the CA Final Students for Information System Control & Audit (ISCA) subject.
This document describes how to use Excel's Solver tool to solve a linear programming problem involving maximizing revenue from building different types of stores with constraints on construction costs and employee numbers. It provides two methods for setting up the problem in Excel: 1) using tables to organize the data and formulas, and 2) directly entering the constraints and formulas without tables. Both methods yield the same optimal solution of building 2 convenience stores and 9 standard stores to maximize total revenue of $22.4 million.
The document discusses decision support systems (DSS), including their architecture, characteristics, capabilities, classification, and the steps in designing a DSS. It describes the key components of a DSS architecture as including data management, user interface, model management, and knowledge management. It also classifies DSS as data-driven, model-driven, knowledge-driven, document-driven, communication-driven, and inter/intra-organizational. The design process involves planning, analysis, design, and implementation phases.
The document discusses different types of multidimensional data models (MDDM) used for data warehousing. It describes MDDM as providing both a mechanism for storing data and enabling business analysis. The main types discussed are star schema, snowflake schema, and fact constellation. Star schema has one central fact table connected to multiple dimension tables, resembling a star. Snowflake schema is similar but dimensional tables are normalized into hierarchies. Fact constellation has multiple fact tables sharing some dimensional tables.
General Motors presented a grand strategy for the company that included four main alternatives: stability, growth, combination, and retrenchment. The strategies were mapped based on market growth and competitive position. Growth strategies included market penetration, market development, product development, and integration approaches like backward, forward, and horizontal integration. Diversification could be concentric, horizontal, or conglomerate. The presentation analyzed GM India's product lineup, branding, and proposed a three pillar marketing strategy focusing on integration, partnerships and sustaining efforts.
This document defines a data warehouse as a central repository for integrated data from one or more sources used to support analytical reporting and business intelligence. It stores current and historical data in one place. The concept of data warehousing originated in the late 1980s to provide an architectural model for data flow from operational systems to decision support systems. Key characteristics of a data warehouse include being subject-oriented, integrated, nonvolatile, and time-variant. The document also discusses data marts, types of data stored, and applications of data warehousing and business intelligence.
The document discusses how companies can achieve competitive advantage through the use of information systems. It covers Porter's competitive forces model and how it can help identify opportunities to use IS for competitive strategies. The value chain and value web models are also discussed as ways to identify strategic IS applications. Examples are given of how companies have used IS to pursue strategies like low-cost leadership, product differentiation, market niche focus, and strengthening customer/supplier relationships.
This document discusses trends in enterprise resource planning (ERP) systems, including the move to cloud-based ERP, open source ERP, mobile ERP, and social ERP. It outlines different cloud computing models like public, private and hybrid clouds. It also compares Software as a Service (SaaS) and on-premise ERP systems, discussing factors like upfront costs, customization flexibility, support, and security issues. The document notes that ERP systems will become easier to use and be impacted by technologies like cloud, mobile and social media, with a focus on small and medium enterprises.
Information System Concepts & Types of Information SystemsVR Talsaniya
Best slides on the information system concepts and to understand the types of information systems.
Best for the CA Final Students for Information System Control & Audit (ISCA) subject.
This document describes how to use Excel's Solver tool to solve a linear programming problem involving maximizing revenue from building different types of stores with constraints on construction costs and employee numbers. It provides two methods for setting up the problem in Excel: 1) using tables to organize the data and formulas, and 2) directly entering the constraints and formulas without tables. Both methods yield the same optimal solution of building 2 convenience stores and 9 standard stores to maximize total revenue of $22.4 million.
Enterprise Resource Planning (ERP) systems integrate core business processes across various departments into a single system. Nestle implemented a large ERP project called BEST to standardize processes and create a single, integrated system across its brands. The implementation faced challenges but ultimately helped Nestle forecast demand more accurately, improve factory utilization, reduce inventory levels, and save over $370 million by 2001. Agilent also undertook a major ERP implementation using Oracle's E-Business Suite from 2000-2004 to integrate its business processes.
This document outlines a course on fundamentals of business analytics. It introduces topics like introduction to analytics, tools, data, models, and problem solving with analytics. It defines business analytics and describes how analytics uses data, technology, analysis and models to help managers make better decisions. Some potential applications discussed include pricing, customer segmentation, merchandising, and social media analysis. The document also discusses descriptive, predictive and prescriptive analytics and gives an example of using different analytics approaches for seasonal inventory clearance.
Corporate level strategies - strategic management - Manu Melwin Joymanumelwin
Market penetration involves trying to gain additional share of a firm’s existing markets using existing products. Often firms will rely on advertising to attract new customers with existing markets.
Decision Support System - Management Information SystemNijaz N
Refers to class of system which supports in the process of decision making and does not always give a decision itself.
Decision Support Systems supply computerized support for the decision making process.
Cluster analysis is used to group similar objects together and separate dissimilar objects. It has applications in understanding data patterns and reducing large datasets. The main types are partitional which divides data into non-overlapping subsets, and hierarchical which arranges clusters in a tree structure. Popular clustering algorithms include k-means, hierarchical clustering, and graph-based clustering. K-means partitions data into k clusters by minimizing distances between points and cluster centroids, but requires specifying k and is sensitive to initial centroid positions. Hierarchical clustering creates nested clusters without needing to specify the number of clusters, but has higher computational costs.
The document discusses data preprocessing techniques for data mining. It covers why preprocessing is important due to real-world data often being incomplete, noisy, and inconsistent. The major tasks of data preprocessing are described as data cleaning, integration, transformation, reduction, and discretization. Specific techniques for handling missing data, noisy data, and data binning are also summarized.
The document discusses business intelligence and analytics programs and careers. It provides information on topics like data mining, dashboards, enterprise resource planning systems, online analytical processing, and multidimensional data models. It also lists relevant course descriptions and curriculum from technical schools and colleges to prepare for careers in fields like business intelligence specialist, business intelligence developer, and business intelligence report developer.
Data mining involves extracting hidden patterns from data to summarize it into useful information. It analyzes data from different perspectives to find correlations. Data mining is used in marketing to improve customer relationship management, market analysis, return on investment, fraud detection, customer retention, and predicting future trends. Some techniques used are cluster analysis, regression analysis, classification analysis, and association rule learning. For example, Amazon uses customer data to improve customer service while Starbucks uses data to determine optimal store locations.
Simulation is a technique used to model real-world processes and systems. It involves constructing a model of the system using computer software to run experiments over time by varying inputs to understand the system's behavior. Monte Carlo simulation specifically models systems with uncertainty by using random numbers and probability distributions. This document provides examples of using Monte Carlo simulation to model inventory systems, production lines, and service queues to analyze performance and optimize decision making.
1. Information is processed data that provides meaning and context, while data on its own is just raw facts and figures. An information system combines people, technology, and processes to collect, transform, and disseminate useful information within an organization. There are various types of data processing from manual to online methods.
2. Key components of an information system include hardware, software, data, procedures, and people. Examples of information systems are tools for communication and file storage in businesses. Porter's five forces model analyzes competitive pressures from threats of new entrants, substitute products, and bargaining powers of customers and suppliers.
3. Compet
A decision support system (DSS) is a collection of software and hardware that integrates data, documents, models, and knowledge to help organizational decision-making. It aims to increase manager effectiveness and support, not replace, human judgment. A DSS can be passive, actively suggesting solutions, or cooperative by refining solutions with user input. It may provide communication support, data access and manipulation, document management, specialized knowledge, or access to models. DSS can serve individual or multiple users across an organization.
This document defines e-business and e-commerce, and discusses their roles in business. E-business refers to using digital technology and the internet to execute major business processes within a company and with external partners. E-commerce is the part of e-business that deals with buying, selling, marketing and servicing products/services online. The document also discusses internet, intranets and extranets, and different types of information systems used in business like transaction processing systems and management information systems. It covers challenges in information system management and development like changing requirements and lack of user input, and discusses ensuring ethical and responsible use of information technology.
The document discusses business analytics and data visualization. It defines business analytics as the iterative and methodical exploration of an organization's data using statistical analysis to support data-driven decision making. It describes the main areas of business analytics techniques as business intelligence and statistical analysis. It also outlines the four main types of business analytics: descriptive, predictive, prescriptive, and diagnostic. The document further discusses data visualization, consumption of analytics, tools for data visualization, examples of data visualizations, and characteristics of effective graphical displays.
Unit I (8 Hrs)
Introduction to Linear Programming – Various definitions, Statements of basic
theorems and properties, Advantages Limitations and Application areas of Linear
Programming, Linear Programming -Graphical method, - graphical solution
methods of Linear Programming problems, The Simplex Method: -the Simplex
Algorithm, Phase II in simplex method, Primal and Dual Simplex Method, Big-M
Method
Unit II (8 Hrs)
Transportation Model and its variants: Definition of the Transportation Model
-Nontraditional Transportation Models-the Transportation Algorithm-the Assignment
Model– The Transshipment Model
Unit III (8 Hrs)
Network Models: Basic differences between CPM and PERT, Arrow Networks,
Time estimates, earliest completion time, Latest allowable occurrences time,
Forward Press Computation, Backward Press Computation, Representation in
tabular form, Critical Path, Probability of meeting the scheduled date of completion,
Various floats for activities, Critical Path updating projects, Operation time cost trade
off Curve project,
Selection of schedule based on :- Cost analysis, Crashing the network
Sequential model & related problems, processing n jobs through – 1 machine & 2
machines
Unit IV (8 Hrs)
Network Models: Scope of Network Applications – Network definitions, Goal
Programming Algorithms, Minimum Spanning Tree Algorithm, Shortest Route
Problem, Maximal flow model, Minimum cost capacitated flow problem
Unit V (8 Hrs)
Decision Analysis: Decision - Making under certainty - Decision - Making under
Risk, Decision
under uncertainty.
Unit VI (8 Hrs)
Simulation Modeling: Monte Carlo Simulation, Generation of Random Numbers,
Method for
Gathering Statistical observations
The document discusses decision tree algorithms. It begins with an introduction and example, then covers the principles of entropy and information gain used to build decision trees. It provides explanations of key concepts like entropy, information gain, and how decision trees are constructed and evaluated. Examples are given to illustrate these concepts. The document concludes with strengths and weaknesses of decision tree algorithms.
This document introduces data mining. It defines data mining as the process of extracting useful information from large databases. It discusses technologies used in data mining like statistics and machine learning. It also covers data mining models and tasks such as classification, regression, clustering, and forecasting. Finally, it provides an overview of the data mining process and examples of data mining tools.
The document discusses decision tree induction, which is a popular tool for classification and prediction. It describes how decision trees work by having internal decision nodes that split the data into branches, which end at leaf nodes that provide a class label or prediction. It also covers different algorithms for building decision trees like ID3, C4.5, and CART. The key steps in decision tree induction include selecting attributes to split on using metrics like information gain or Gini index, and pruning the fully grown tree to avoid overfitting.
Chap01 Foundations of Information Systems in BusinessAqib Syed
James A. O'Brien, and George Marakas. Management Information Systems with MISource 2007, 8th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091
'Business Analytics with 'R' at Edureka will prepare you to perform analytics and build models for real world data science problems. It is the world’s most powerful programming language for statistical computing and graphics making it a must know language for the aspiring Data Scientists. 'R' wins strongly on Statistical Capability, Graphical capability, Cost and rich set of packages.
Linear Regression Algorithm | Linear Regression in R | Data Science Training ...Edureka!
This Edureka Linear Regression tutorial will help you understand all the basics of linear regression machine learning algorithm along with examples. This tutorial is ideal for both beginners as well as professionals who want to learn or brush up their Data Science concepts. Below are the topics covered in this tutorial:
1) Introduction to Machine Learning
2) What is Regression?
3) Types of Regression
4) Linear Regression Examples
5) Linear Regression Use Cases
6) Demo in R: Real Estate Use Case
You can also take a complete structured training, check out the details here: https://goo.gl/AfxwBc
Introduction to management information systemOnline
The document provides an overview of management information systems and discusses key concepts. It introduces the objectives of studying information systems which include distinguishing data from information and identifying the basic types of business information systems. The document also outlines the lecture which covers information concepts, a business perspective on information, characteristics of valuable information, systems performance standards, manual versus computerized systems, and the positive and negative impacts of information systems.
Enterprise Resource Planning (ERP) systems integrate core business processes across various departments into a single system. Nestle implemented a large ERP project called BEST to standardize processes and create a single, integrated system across its brands. The implementation faced challenges but ultimately helped Nestle forecast demand more accurately, improve factory utilization, reduce inventory levels, and save over $370 million by 2001. Agilent also undertook a major ERP implementation using Oracle's E-Business Suite from 2000-2004 to integrate its business processes.
This document outlines a course on fundamentals of business analytics. It introduces topics like introduction to analytics, tools, data, models, and problem solving with analytics. It defines business analytics and describes how analytics uses data, technology, analysis and models to help managers make better decisions. Some potential applications discussed include pricing, customer segmentation, merchandising, and social media analysis. The document also discusses descriptive, predictive and prescriptive analytics and gives an example of using different analytics approaches for seasonal inventory clearance.
Corporate level strategies - strategic management - Manu Melwin Joymanumelwin
Market penetration involves trying to gain additional share of a firm’s existing markets using existing products. Often firms will rely on advertising to attract new customers with existing markets.
Decision Support System - Management Information SystemNijaz N
Refers to class of system which supports in the process of decision making and does not always give a decision itself.
Decision Support Systems supply computerized support for the decision making process.
Cluster analysis is used to group similar objects together and separate dissimilar objects. It has applications in understanding data patterns and reducing large datasets. The main types are partitional which divides data into non-overlapping subsets, and hierarchical which arranges clusters in a tree structure. Popular clustering algorithms include k-means, hierarchical clustering, and graph-based clustering. K-means partitions data into k clusters by minimizing distances between points and cluster centroids, but requires specifying k and is sensitive to initial centroid positions. Hierarchical clustering creates nested clusters without needing to specify the number of clusters, but has higher computational costs.
The document discusses data preprocessing techniques for data mining. It covers why preprocessing is important due to real-world data often being incomplete, noisy, and inconsistent. The major tasks of data preprocessing are described as data cleaning, integration, transformation, reduction, and discretization. Specific techniques for handling missing data, noisy data, and data binning are also summarized.
The document discusses business intelligence and analytics programs and careers. It provides information on topics like data mining, dashboards, enterprise resource planning systems, online analytical processing, and multidimensional data models. It also lists relevant course descriptions and curriculum from technical schools and colleges to prepare for careers in fields like business intelligence specialist, business intelligence developer, and business intelligence report developer.
Data mining involves extracting hidden patterns from data to summarize it into useful information. It analyzes data from different perspectives to find correlations. Data mining is used in marketing to improve customer relationship management, market analysis, return on investment, fraud detection, customer retention, and predicting future trends. Some techniques used are cluster analysis, regression analysis, classification analysis, and association rule learning. For example, Amazon uses customer data to improve customer service while Starbucks uses data to determine optimal store locations.
Simulation is a technique used to model real-world processes and systems. It involves constructing a model of the system using computer software to run experiments over time by varying inputs to understand the system's behavior. Monte Carlo simulation specifically models systems with uncertainty by using random numbers and probability distributions. This document provides examples of using Monte Carlo simulation to model inventory systems, production lines, and service queues to analyze performance and optimize decision making.
1. Information is processed data that provides meaning and context, while data on its own is just raw facts and figures. An information system combines people, technology, and processes to collect, transform, and disseminate useful information within an organization. There are various types of data processing from manual to online methods.
2. Key components of an information system include hardware, software, data, procedures, and people. Examples of information systems are tools for communication and file storage in businesses. Porter's five forces model analyzes competitive pressures from threats of new entrants, substitute products, and bargaining powers of customers and suppliers.
3. Compet
A decision support system (DSS) is a collection of software and hardware that integrates data, documents, models, and knowledge to help organizational decision-making. It aims to increase manager effectiveness and support, not replace, human judgment. A DSS can be passive, actively suggesting solutions, or cooperative by refining solutions with user input. It may provide communication support, data access and manipulation, document management, specialized knowledge, or access to models. DSS can serve individual or multiple users across an organization.
This document defines e-business and e-commerce, and discusses their roles in business. E-business refers to using digital technology and the internet to execute major business processes within a company and with external partners. E-commerce is the part of e-business that deals with buying, selling, marketing and servicing products/services online. The document also discusses internet, intranets and extranets, and different types of information systems used in business like transaction processing systems and management information systems. It covers challenges in information system management and development like changing requirements and lack of user input, and discusses ensuring ethical and responsible use of information technology.
The document discusses business analytics and data visualization. It defines business analytics as the iterative and methodical exploration of an organization's data using statistical analysis to support data-driven decision making. It describes the main areas of business analytics techniques as business intelligence and statistical analysis. It also outlines the four main types of business analytics: descriptive, predictive, prescriptive, and diagnostic. The document further discusses data visualization, consumption of analytics, tools for data visualization, examples of data visualizations, and characteristics of effective graphical displays.
Unit I (8 Hrs)
Introduction to Linear Programming – Various definitions, Statements of basic
theorems and properties, Advantages Limitations and Application areas of Linear
Programming, Linear Programming -Graphical method, - graphical solution
methods of Linear Programming problems, The Simplex Method: -the Simplex
Algorithm, Phase II in simplex method, Primal and Dual Simplex Method, Big-M
Method
Unit II (8 Hrs)
Transportation Model and its variants: Definition of the Transportation Model
-Nontraditional Transportation Models-the Transportation Algorithm-the Assignment
Model– The Transshipment Model
Unit III (8 Hrs)
Network Models: Basic differences between CPM and PERT, Arrow Networks,
Time estimates, earliest completion time, Latest allowable occurrences time,
Forward Press Computation, Backward Press Computation, Representation in
tabular form, Critical Path, Probability of meeting the scheduled date of completion,
Various floats for activities, Critical Path updating projects, Operation time cost trade
off Curve project,
Selection of schedule based on :- Cost analysis, Crashing the network
Sequential model & related problems, processing n jobs through – 1 machine & 2
machines
Unit IV (8 Hrs)
Network Models: Scope of Network Applications – Network definitions, Goal
Programming Algorithms, Minimum Spanning Tree Algorithm, Shortest Route
Problem, Maximal flow model, Minimum cost capacitated flow problem
Unit V (8 Hrs)
Decision Analysis: Decision - Making under certainty - Decision - Making under
Risk, Decision
under uncertainty.
Unit VI (8 Hrs)
Simulation Modeling: Monte Carlo Simulation, Generation of Random Numbers,
Method for
Gathering Statistical observations
The document discusses decision tree algorithms. It begins with an introduction and example, then covers the principles of entropy and information gain used to build decision trees. It provides explanations of key concepts like entropy, information gain, and how decision trees are constructed and evaluated. Examples are given to illustrate these concepts. The document concludes with strengths and weaknesses of decision tree algorithms.
This document introduces data mining. It defines data mining as the process of extracting useful information from large databases. It discusses technologies used in data mining like statistics and machine learning. It also covers data mining models and tasks such as classification, regression, clustering, and forecasting. Finally, it provides an overview of the data mining process and examples of data mining tools.
The document discusses decision tree induction, which is a popular tool for classification and prediction. It describes how decision trees work by having internal decision nodes that split the data into branches, which end at leaf nodes that provide a class label or prediction. It also covers different algorithms for building decision trees like ID3, C4.5, and CART. The key steps in decision tree induction include selecting attributes to split on using metrics like information gain or Gini index, and pruning the fully grown tree to avoid overfitting.
Chap01 Foundations of Information Systems in BusinessAqib Syed
James A. O'Brien, and George Marakas. Management Information Systems with MISource 2007, 8th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091
'Business Analytics with 'R' at Edureka will prepare you to perform analytics and build models for real world data science problems. It is the world’s most powerful programming language for statistical computing and graphics making it a must know language for the aspiring Data Scientists. 'R' wins strongly on Statistical Capability, Graphical capability, Cost and rich set of packages.
Linear Regression Algorithm | Linear Regression in R | Data Science Training ...Edureka!
This Edureka Linear Regression tutorial will help you understand all the basics of linear regression machine learning algorithm along with examples. This tutorial is ideal for both beginners as well as professionals who want to learn or brush up their Data Science concepts. Below are the topics covered in this tutorial:
1) Introduction to Machine Learning
2) What is Regression?
3) Types of Regression
4) Linear Regression Examples
5) Linear Regression Use Cases
6) Demo in R: Real Estate Use Case
You can also take a complete structured training, check out the details here: https://goo.gl/AfxwBc
Introduction to management information systemOnline
The document provides an overview of management information systems and discusses key concepts. It introduces the objectives of studying information systems which include distinguishing data from information and identifying the basic types of business information systems. The document also outlines the lecture which covers information concepts, a business perspective on information, characteristics of valuable information, systems performance standards, manual versus computerized systems, and the positive and negative impacts of information systems.
An information system is comprised of interrelated components that collect, process, store, and distribute information to support decision making and operations within an organization. It relies on computer hardware and software to process and disseminate data, which has been organized into a meaningful form, to support both formal systems operating with predefined rules and human users. An information system includes input, processing, output, and feedback activities to transform raw data into useful information.
The document discusses management information systems. It defines an information system and its components, including the organizational, management, and technology dimensions. It explains different types of information systems like transaction processing systems, management information systems, decision support systems, and executive support systems. It also discusses how enterprise applications like ERP, SCM, CRM, and KM systems improve organizational performance. Finally, it covers the importance of collaboration and teamwork in business and how technology enables collaboration.
This document provides an overview of information systems in organizations. It defines key concepts like data, information, and knowledge. It discusses why organizations use information systems to achieve operational excellence, develop new products and services, gain customer intimacy, improve decision making, gain competitive advantages, and ensure survival. The dimensions of an information system that must be understood are the organization, management, and technology. A case study of UPS's automated package tracking system is also provided to illustrate how information systems provide benefits.
People and businesses need information for different purposes. For individuals, information provides entertainment and enlightenment, while businesses use information for decision making, problem solving, and control. Data refers to raw facts, while information involves organizing data in a way that provides value beyond the individual facts. An information system is made up of interrelated components that collect, process, store, and disseminate data and information to meet an objective.
This document provides an overview of information systems including:
1. The definition of an information system as a set of interconnected people, technology, and processes to collect, process, store, and distribute information to help coordination, analysis, and decision making.
2. The need for efficient information systems to store data securely, enhance decision making and productivity, and provide data analytics tools.
3. The main types of information systems including transaction processing systems, management information systems, decision support systems, and expert systems.
4. The information requirements for planning including monitoring, evaluation, and careful planning before projects.
5. The importance of coordination and control at various levels of business and industry to harmonize activities
Management Information Systems (MIS) is the study of people, technology, organizations and the relationships among them. MIS professionals help firms realize maximum benefit from investment in personnel, equipment, and business processes by creating information systems for data management and meeting the needs of managers, staff and customers. A management information system gives managers the information they need to make efficient and effective decisions by collecting, processing, storing and disseminating data.
This document provides an overview of an information systems course. It covers three key topics:
1. How information systems are transforming business through emerging technologies like mobile platforms, big data, and cloud computing. It also discusses opportunities from globalization.
2. The role of information systems in achieving strategic business objectives like operational excellence, new products/services, customer intimacy, and competitive advantage.
3. Perspectives on information systems, including their organizational, management, and technology dimensions in a business. It frames information systems as creating value by supporting decision making and business processes.
This document provides an overview of various information systems used in business, including business information systems, enterprise resource planning (ERP) systems, and management information systems (MIS). It describes the key components, objectives, and benefits of these systems. Business information systems provide data to help organizations manage efficiently, using hardware, software, data, procedures, and people. ERP systems integrate various business functions into a shared database. The objectives of MIS are to implement organizational structure and dynamics to better manage organizations and gain competitive advantages through information.
Information systems are transforming business by improving customer experience, reducing costs, and enabling new business models. An information system collects, processes, stores, and distributes data to support decision making across an organization. It has organizational, management, and technological components. Academically, information systems draw from disciplines like computer science, management science, operations research, psychology, economics, and sociology. A sociotechnical perspective views information systems as jointly optimizing social and technical aspects to achieve organizational performance. Complementary assets ensure information systems provide genuine value by supporting the implementation and use of new technologies.
This document discusses various types of information systems. It begins by defining data and information, with data being raw facts and information being organized data that provides additional value. It then covers transaction processing systems, management information systems, executive information systems, and the differences between TPS and MIS. The document also discusses information system infrastructure and architecture, including client/server, enterprise-wide, and internet-based architectures. It provides characteristics and examples of different information systems.
This document provides an overview of management information systems (MIS) and their importance in organizations. It discusses what an information system is, its key components and functions. It explains why information systems are needed for businesses to improve efficiency, make better decisions, and gain competitive advantages. Some key points made include:
- MIS help organizations collect, store, process and distribute important information to support decision making and operations.
- Investing in information systems can boost productivity, increase revenues, and help businesses adapt to changing market conditions.
- As businesses globalize and digitize, information systems are essential tools for coordinating supply chains, communicating internationally, and enabling core business processes.
This document provides an overview of key concepts in information systems. It discusses the value of information and distinguishes between data, information, and knowledge. It describes the components of an information system including inputs, processing, outputs, and feedback. It also discusses different types of business information systems such as transaction processing systems, enterprise resource planning systems, management information systems, and decision support systems. Finally, it provides an overview of the systems development process.
Management Information Systems (MIS) are integrated systems that provide information to support decision-making and operations management in organizations. An MIS captures, processes, stores, and disseminates data to support decision-making at all levels of management. It uses a systems approach and focuses on meeting the information needs of managers. Characteristics of an effective MIS include being management-oriented, need-based, integrated, and future-oriented. An MIS helps improve decision-making, coordination, efficiency, and strategic planning.
Management Information System
1) MIS is a software tool that provides processed information from data to help management make decisions. It provides reports, dashboards, and analyses on topics like market trends, sales, inventory, and stakeholder feedback.
2) There are different types of MIS like regular reports, decision support systems, and executive information systems. MIS has advantages like improved decision making, communication, and ability to adapt to customer needs.
3) Key issues for managers regarding IT include selecting technologies to meet business needs, facilitating adoption of new processes when technologies change work, and ensuring maximum benefit is extracted once implemented. Information systems are transforming businesses through increased digitalization and flexibility.
LECTURE 1: INFORMATION SYSTEMS IN BUSINESS TODAYAiman Niazi
1) The document discusses the role and importance of information systems in business today. It explains that information systems are essential for operational excellence, new products/services, customer relationships, decision making, competitive advantage, and business survival.
2) It describes the components of an information system including its organizational, management, and technology dimensions. It also discusses perspectives on information systems including the business information value chain and importance of complementary assets.
3) The document outlines different approaches to studying information systems including technical, behavioral, and sociotechnical views. It emphasizes the sociotechnical perspective of optimizing both social and technical aspects.
This document discusses various topics related to information systems including:
1. Examples of common information systems used in businesses like point of sale, accounting, and banking software.
2. Key components of information systems including hardware, software, data, networks, and people.
3. Activities of information systems such as input, processing, output, storage, and control of data.
4. Managerial challenges of developing, implementing, and securing information systems to support business goals.
This document provides an overview of information systems concepts. It defines information systems and their key components, including hardware, software, data, networks, and people. It describes common information system activities like input, processing, output, storage, and control. It also discusses trends in information systems like cloud computing, big data, mobile, social, and how e-business applications support business processes, decision making, and competitive advantage. Finally, it covers some managerial challenges of developing, implementing, and managing information systems.
1) Information systems are transforming business through increased use of wireless technology, web sites, web 2.0 technologies, cloud computing, and mobile digital platforms that allow more distributed work, decision making, and collaboration.
2) Businesses heavily invest in information systems to achieve strategic objectives like operational excellence, new products and business models, customer and supplier intimacy, improved decision making, competitive advantage, and survival.
3) An information system consists of interrelated components that collect, process, store, and distribute information to support decision making, coordination, and control.
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2. • How information systems are transforming
business
– Emerging mobile digital platform
– Growing business use of “big data”
– Growth in cloud computing
• Globalization opportunities
– Internet has drastically reduced costs of operating
on global scale
– Increases in foreign trade, outsourcing
– Presents both challenges and opportunities
The Role of Information Systems in Business Today
3. Information technology capital investment, defined as hardware, software, and communications equipment,
grew from 32 percent to 52 percent of all invested capital between 1980 and 2009.
FIGURE 1-1
Information Technology Capital Investment
5. • In the emerging, fully digital firm:
– Significant business relationships are digitally
enabled and mediated.
– Core business processes are accomplished through
digital networks.
– Key corporate assets are managed digitally.
• Digital firms offer greater flexibility in
organization and management.
– Time shifting, space shifting
The Role of Information Systems in Business Today
6. • Growing interdependence between ability to use
information technology and ability to implement
corporate strategies and achieve corporate goals
• Business firms invest heavily in information systems
to achieve six strategic business objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
The Role of Information Systems in Business Today
7. In contemporary systems there is a growing interdependence between a firm’s information systems and its
business capabilities. Changes in strategy, rules, and business processes increasingly require changes in
hardware, software, databases, and telecommunications. Often, what the organization would like to do depends
on what its systems will permit it to do.
Figure 1.2
The Interdependence Between Organizations and Information Technology
8. • Operational excellence:
– Improvement of efficiency to attain higher
profitability
– Information systems, technology an important
tool in achieving greater efficiency and
productivity
– Walmart’s Retail Link system links suppliers to
stores for superior replenishment system
The Role of Information Systems in Business Today
9. • New products, services, and business models:
– Business model: describes how company
produces, delivers, and sells product or service to
create wealth
– Information systems and technology a major
enabling tool for new products, services,
business models
•Examples: Apple’s iPad, Google’s Android OS,
and Netflix
The Role of Information Systems in Business Today
10. • Customer and supplier intimacy:
– Serving customers well leads to customers returning,
which raises revenues and profits.
• Example: High-end hotels that use computers to track
customer preferences and used to monitor and
customize environment
– Intimacy with suppliers allows them to provide vital
inputs, which lowers costs.
• Example: JCPenney’s information system which links
sales records to contract manufacturer
The Role of Information Systems in Business Today
10
11. • Improved decision making
– Without accurate information:
• Managers must use forecasts, best guesses, luck
• Results in:
– Overproduction, underproduction
– Misallocation of resources
– Poor response times
• Poor outcomes raise costs, lose customers
– Example: Verizon’s Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, and
so on
The Role of Information Systems in Business Today
12. • Competitive advantage
– Delivering better performance
– Charging less for superior products
– Responding to customers and suppliers in
real time
– Examples: Apple, Walmart, UPS
The Role of Information Systems in Business Today
13. • Survival
– Information technologies as necessity of business
– Industry-level changes
•Example: Citibank’s introduction of ATMs
– Governmental regulations requiring record-
keeping
•Examples: Toxic Substances Control Act,
Sarbanes-Oxley Act
The Role of Information Systems in Business Today
14. • Information system:
– Set of interrelated components
– Collect, process, store, and distribute
information
– Support decision making, coordination, and
control
• Information vs. data
– Data are streams of raw facts.
– Information is data shaped into meaningful form.
Perspectives on Information Systems
15. Raw data from a supermarket checkout counter can be processed and organized to produce meaningful
information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a
specific store or sales territory.
Figure 1.3
Data and Information
16. • Three activities of information systems
produce information organizations need
– Input: Captures raw data from organization or
external environment
– Processing: Converts raw data into meaningful
form
– Output: Transfers processed information to
people or activities that use it
Perspectives on Information Systems
17. • Feedback:
– Output is returned to appropriate members of
organization to help evaluate or correct input stage.
• Computer/Computer program vs.
information system
– Computers and software are technical foundation
and tools, similar to the material and tools used to
build a house.
Perspectives on Information Systems
18. An information system
contains information about an
organization and its
surrounding environment.
Three basic activities—input,
processing, and output—
produce the information
organizations need. Feedback
is output returned to
appropriate people or activities
in the organization to evaluate
and refine the input.
Environmental actors, such as
customers, suppliers,
competitors, stockholders, and
regulatory agencies, interact
with the organization and its
information systems.
Figure 1.4
Functions of an Information System
19. System/Subsystems
• A system is a collection of parts that work
together to achieve specific goals and
function in an environment.
• Subsystems are units in a system that share
some or all of the characteristics of the
system.
20. Seven Steps in the Conversion of Data into Information
• Data Collection
• Classification
• Sorting
• Processing
• Storing
• Retrieval
• Dissemination
21. Characteristics of Information
Characteristic Description
Subjective value The value of information differs from individual to individual.
Information should be pertinent to the decision maker.
Decision makers should receive the information at the right
time.
Information should be free of errors.
Information should be presented so that it can be readily
used in decision making.
The decision maker should have all necessary information to
make a good decision.
Information should be readily available to those who need it.
Relevance
Timeliness
Accuracy
Meaningful format
Completeness
Accessibility
22. Information Technology and Information System
• IT consists of all the hardware and software that a firm needs to use in order to
achieve its business objectives.
• IT are tools and techniques that support the design and development of IS. They
include hardware, software, databases, telecommunications and client-servers. This is
one of the tool that managers use to cope with change.
• Computer Hardware is the physical equipment, Computer Software consists of the
detailed, preprogrammed instructions that control and coordinate the computer
hardware components in an information system, Data Management Technology
consists of the software governing the organization of data on physical storage media.
Networking and Telecommunications technology consists of both physical devices
and software, network links two or more computers to share data or resources such as
a printer. Intranets are internal corporate networks based on internet technology.
Extranets are private intranets extended to authorized users outside the
organizations. World Wide Web is a service provided by the internet that uses
universally accepted standards for storing, retrieving, formatting, and displaying
information in a page format on the Internet.
• All of these technologies, along with the people required to run and manage them,
represent resources that can be shared throughout the organization and constitute the
firm’s Information Technology (IT) infrastructure.
23. Information System (IS)
• IS is a set of interrelated components that creates,
processes, stores, retrieves and disseminates information
to facilitate organizational decision-making process.
• IS also help managers and workers analyze problems,
visualize complex subjects, and create new products. The
input to such a system is data and processed data becomes
information.
• IS are guided by a set of policies, principles, procedures
and resources.
• IS and IT are interrelated.
24. Management Information System
A management information system (MIS) is a computer system consisting of hardware and software that serves
as the backbone of an organization’s operations. An MIS gathers data from multiple online systems, analyzes
the information, and reports data to aid in management decision-making.
MIS is also the study of how such systems work.
Improved Decision-Making
The purpose of an MIS is improved decision-making, by providing up-to-date, accurate data on a variety of
organizational assets, including:
• Financials
• Inventory
• Personnel
• Project timelines
• Manufacturing
• Real estate
• Marketing
• Raw materials
• R&D
The MIS collects the data, stores it, and makes it accessible to managers who want to analyze the data by
running reports.
Management Information Systems are as the study of information systems in business and management. The
term management information systems (MIS) also designates a specific category of information systems
serving middle management. MIS provide middle managers with reports on the organization’s current
performance. This information is used to monitor and control the business and predict future performance.
25. Using information systems
effectively requires an
understanding of the
organization, management, and
information technology
shaping the systems. An
information system creates
value for the firm as an
organizational and
management solution to
challenges posed by the
environment.
Figure 1.5
Information Systems Are More Than Computers
26. • Organizational dimension of information
systems
– Hierarchy of authority, responsibility
•Senior management
•Middle management
•Operational management
•Knowledge workers
•Data workers
•Production or service workers
Perspectives on Information Systems
27. Business organizations are
hierarchies consisting of three
principal levels: senior
management, middle
management, and operational
management. Information
systems serve each of these
levels. Scientists and
knowledge workers often work
with middle management.
Figure 1.6
Levels in a Firm
28. • Organizational dimension of information systems (cont.)
– Separation of business functions: Specialized tasks performed
are:
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
– Unique business processes: Logically related tasks and
behaviors for accomplishing work. E.g.; Developing a new
product, fulfilling an order
– Unique business culture: Fundamental set of assumptions,
values, and ways of doing things that has been accepted by
most of its members. E.g.; UPS’s first priority is customer
service, which is an aspect of its organizational culture.
– Organizational politics: Conflict is the basis for organizational
politics.
Perspectives on Information Systems
29. • Management dimension of information
systems
– Managers set organizational strategy for
responding to business challenges
– In addition, managers must act creatively:
•Creation of new products and services
•Occasionally re-creating the organization
Perspectives on Information Systems
30. • Technology dimension of information
systems
– Computer hardware and software
– Data management technology
– Networking and telecommunications technology
•Networks, the Internet, intranets and
extranets, World Wide Web
– IT infrastructure: provides platform that system
is built on
Perspectives on Information Systems
31. Major Roles of Information Systems
Support
Strategies for
Competitive Advantage
Support
Business Decision Making
Support
Business Processes and Operations
32. History of the role of Information Systems
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
Electronic
Data
Processing
- TPS
Management
Information
Systems
Decision
Support
Systems
- Ad hoc
Reports
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
33. Globalization challenges and opportunities
•It helps a company to gain a competitive advantage
•The traditional way of doing business has been changed with
the development and use of latest technologies.
•The numbers of smart phone users increased exponentially
and people prefer using internet on those devices.
•Smart devices, email, online conferencing over the Internet
have all become essential tools of business.
•Ecommerce and Internet advertising continue to expand.
•Millions of businesses worldwide have dot-com internet sites
registered.
•Businesses are starting to use social networking tools to
connect their employees, customers, and managers
worldwide. Many fortune 500 companies now have Facebook
pages.
34. Globalization challenges and opportunities
Information Systems enable globalization:
•The emergence of the Internet has drastically reduced the
costs of operating and transacting on a global scale.
•Communication between offices far apart is now instant and
virtually free.
•Customers can now shop online
•Firms achieve extraordinary cost reductions by finding low-
cost suppliers and managing production facilities in other
countries.
35. Business perspective on information
systems:
Information system is instrument for creating
value
Investments in information technology will
result in superior returns:
Productivity increases
Revenue increases
Superior long-term strategic positioning
Perspectives on Information Systems
36. Business information value chain
Raw data acquired and transformed through stages
that add value to that information
Value of information system determined in part by
extent to which it leads to better decisions, greater
efficiency, and higher profits
Business perspective:
Calls attention to organizational and managerial
nature of information systems
Perspectives on Information Systems
37. From a business perspective, information systems are part of a series of value-adding activities for acquiring,
transforming, and distributing information that managers can use to improve decision making, enhance
organizational performance, and, ultimately, increase firm profitability.
Figure 1-7
The Business Information Value Chain
38. Investing in information technology does not
guarantee good returns.
There is considerable variation in the returns
firms receive from systems investments.
Factors:
Adopting the right business model
Investing in complementary assets (organizational
and management capital)
Perspectives on Information Systems
39. Although, on average,
investments in information
technology produce returns far
above those returned by other
investments, there is
considerable variation across
firms.
Figure 1.8
Variation in Returns on Information Technology Investment
40. Complementary assets:
Assets required to derive value from a primary
investment
Firms supporting technology investments with
investment in complementary assets receive
superior returns
Example: Invest in technology and the people to
make it work properly
Perspectives on Information Systems
41. Complementary assets include:
Organizational assets, for example:
Appropriate business model: a plan for the successful
operation of a business, identifying sources of revenue,
the intended customer base, products, and details of
financing.
Efficient business processes
Managerial assets, for example:
Incentives for management innovation
Teamwork and collaborative work environments
Social assets, for example:
The Internet and telecommunications infrastructure
Technology standards
Perspectives on Information Systems
Editor's Notes
New federal security and accounting laws that require companies to store e-mail for 5 years have spurred the growth of digital information, which is increasing at a rate of 5 exabytes annually. Students may be surprised to learn that 5 exabytes of data is equivalent to 37,000 Libraries of Congress. Ask the students to think about what difference it makes to the world economy, or the U.S. economy, if global operations become much less expensive? What are the challenges to American suppliers of goods and services, and to labor?
Emphasize to students that total investment is more than one trillion dollars in 2012, and that more than 540 billion dollars of that was invested in information technology. You could ask them why it is that the percentage of total investment devoted to IT has increased so much since 1980. Other kinds of capital investment are machinery and buildings. Why would firms increase IT investment faster than machinery and buildings? The answer is capital substitution: the price of IT capital has been falling exponentially, whereas the price of machine and buildings has been growing at slightly more than the rate of inflation. Wherever possible, firms would much rather invest in more IT than machinery or buildings because the returns on the investment are greater.
Time shifting and space shifting are connected to globalization. You could ask students to explain why a digital firm is more likely to benefit from globalization than a traditional firm. One answer is that by allowing business to be conducted at any time (time shifting) and any place (space shifting), digital firms are ideally suited for global operations which take place in remote locations and very different time zones.
In the opening case, the UPS Interactive Session later in the chapter, and with many of the Interactive Sessions and opening cases in the book, it will be useful to ask students to explain how various information systems succeeded or failed in achieving the six strategic business objectives. You might ask the students to think about some other business objectives and think about how IT might help firms achieve them. For instance, speed to market is very important to firms introducing new products. How can IT help achieve that objective?
The basic point of this graphic is that in order to achieve its business objectives, a firm will need a significant investment in IT. Going the other direction (from right to left), having a significant IT platform can lead to changes in business objectives and strategies. Emphasize the two-way nature of this relationship. Businesses rely on information systems to help them achieve their goals; a business without adequate information systems will inevitably fall short. But information systems are also products of the businesses that use them. Businesses shape their information systems and information systems shape businesses.
Walmart is the most efficient retailer in the industry and exemplifies operational excellence. You could ask students to name other businesses that they believe exhibit a high level of operational excellence. Do customers perceive operational excellence? Does it make a difference for customer purchasing? What Web sites strike students as really excellent in terms of customer service? If you have a podium computer, you might want to visit the Walmart site and the Amazon site to compare them in terms of ease of use.
You could ask students to name other new products or business models that they’ve encountered and how they might relate to new information systems or new technology. One way to encourage participation is ask students to help you list on the blackboard some really interesting recent digital product innovations. Discussing “green technologies” such as wind, solar, and hybrid vehicles is always fun. In this context, what role will IT be playing in the development of these technologies?
You could ask students what types of companies might rely more on customer and supplier intimacy more than others and which companies they feel have served them exceptionally well. Ask the students to identify online sites that achieve a high degree of customer intimacy. Sites to visit would include Netflix, Amazon, and other sites which have recommender systems to suggest purchase ideas to consumers.
You could ask students if they have ever been recipients of exceptional service from a company made possible by improved decision making and whether or not information systems contributed to that level of service. For example, perhaps they had a power outage and it took a very short (or very long) time for the utility company to correct the error.
Emphasize that achieving any of the previous four business objectives represents the achievement of a competitive advantage as well.
Ask students if they can name any examples of companies that failed to survive due to unwillingness or inability to update their information systems. The Sarbanes-Oxley Act requires that public firms keep all data, including e-mail, on record for 5 years. You could ask students if they appreciate why information systems would be useful toward meeting the standards imposed by this legislation.
These are some basic background understandings needed for the course. A system refers to a set of components that work together (hopefully). Can students think of systems other than information systems? The point of an information system is to make sense out all the confusing data in the environment, and put the data into some kind of order. Information is an ordered set of data that you can understand and act on. If the students want to get a sense of raw data, show them a stock ticker on a Web financial site (or Yahoo/finance). Ask them to tell you what it means? Then show them the current value of the Dow Jones Industrial Index and the S&P 500, and its daily trend (or for that matter switch to a one year view of either of these indexes). Looking at the indexes students can quickly get a grasp of whether the market is up or down, and they could act on that information.
Emphasize the distinction between information and data. You could, for example, ask several students to list their ages and write the numbers on one side of the board—then you could calculate the average age of those students on the other side, oldest student, youngest student, and so forth, to illustrate the difference between raw data and meaningful information.
Use an example similar to the one given in the previous slide to illustrate the three activities involved in the function of an information system. Continuing with that example, the process of asking students their age would represent input, calculating the average age and determining the oldest and youngest age would represent processing, and writing that information on the board would represent output.
Explain to students how the “house” analogy works: assuming that a successful information system is like a completed “house”, computers and software only represent the tools and materials used to build the house. Tools and materials don’t just suddenly become a completed house—outside (human) input is required. Systems need to be designed to fit the firms and the humans who work with the systems.
The point of this diagram is first of all to highlight the three basic activities of information systems, so that students can understand what an information system is doing at its most fundamental level. But the diagram also puts information systems into the context of organizations (firms), and then puts the firm into its respective environment composed of shareholders, higher level authorities (government), competitors, suppliers and customers. Suddenly, students should see that information systems play a central role mediating and interacting with all these players. Hence, systems play a key role in the operations and survival of the firm.
You could also explain this diagram by relating it back to the opening case, as the book does. The two types of input into the Synergy system are manually entered data as well as video. The system processes that data and creates the output, video and statistics about specific types of players and plays.
These three themes (management, organizations, and technology) will reappear throughout the book. Understanding the interaction among these factors and information systems is known as information system literacy. Knowing how to optimize the relationship between technology, organizations, and management is the purpose of this book and course.
Pages 18 and 19 in the text provide more specific details on each level of this hierarchy. You can ask students to talk about an organization where they currently work, or have worked in the past. What was their contact with senior management, middle management, and operational (supervisory) management? Many younger students will have had little or no contact with senior and middle management. Older students most likely will have experience. You might need to provide more description about exactly what senior managers do for the firm (and middle managers).
Ask students to think about how information systems would factor into the day-to-day jobs of each of the three types of workers in the pyramid.
The point of this slide is to let students know there are many organizational factors that will shape information systems. A common observation is that “Every business is different.” Does this mean every business will have different information systems? Every business has its unique culture and politics. Systems reflect these business cultures.
For an example of how information systems shed light on a firm’s unique business processes and culture, you might describe the UPS Interactive Session later in the chapter. The company’s package tracking systems exemplify their commitment to customer service and putting the customer first.
How might information systems assist managers in the development of new products and services? What is meant by re-creating the organization? Why do organizations need to be continually re-created? The answer is that they quickly become obsolete unless they continue to change. Ask students to help you list some organizations that have recently failed, or are about to fail.
Information technology is at the heart of information systems. Although organization and management are important too, it’s the technology that enables the systems and the organizations and managers who use the technology.
The distinction between the Internet and intranets and extranets has to do with their scope. Intranets are private networks used by corporations and extranets are similar except that they are directed at external users (such as customers and suppliers). In contrast, the Internet connects millions of different networks across the globe. Students may not immediately understand this distinction.
Chapter 1
Chapter 1
You could ask students to consider how this view of information systems might contrast with the sociotechnical view or other views. You could also ask them to consider the circumstances under which information systems might not result in increased productivity and revenue.
During this and the next slide, emphasize that the end result of the business information value chain will always be profitability.
Questions for students: What aspects of the business perspective might be lacking? Are there other perspectives that might provide a different picture? (sociotechnical)
The information value chain is one way to visualize the relationship between information activities, business processes, and management activities. You could also ask students if they could imagine any reason to create an information system besides profitability or strategic positioning (it’s not likely that they will think of one, which will prove the point). One reason to create a system that is not primarily profit-oriented is to meet the information reporting requirements of government and other authorities.
Connect this slide to the previous slide. Many firms make significant investments in IT for very little benefit to the bottom line. Discuss why companies experience a wide variety of outcomes in their efforts to invest in IT. Consider the factors we use in this book: organizational and management factors.
Emphasize that each quadrant of the graph represents a different type of firm.
Quadrant 1 represents firms that invest much less in IT but still receive strong returns.
Quadrant 2 represents firms that invest a great deal in IT and receive a great deal in returns.
Quadrant 3 represents firms that invest much less in IT and receive poor returns.
Quadrant 4 represents firms that invest a great deal in IT but receive poor returns.
Ask students where they want their firms to show up? The purpose of the course and book is to show students how to end up in top quadrant (2).
The example used in the book for complementary assets is for automobile companies: these companies rely on investments in highways, other roads, gas stations, repair facilities, and so on to maximize the value of their primary investment. Ask students to provide a different example of another company’s or industries complementary assets.
Emphasize that firms that make significant investment in complementary assets tend to derive greater benefit from information technology investment than those that do not. Consideration of complementary assets should be a part of any firm’s broader view of how to create and implement their information systems. Stress to students that managers must consider dimensions such as complementary assets in order to derive benefit from information systems and be successful.