CHAPTER 1 Introduction to Information Systems CHAPTER 1: Introduction to Information Systems 1.1 Why Should I Study Information Systems? 1.2 Overview of Computer-B2ased Information Systems 1.3 How Does IT Impact Organizations? 1.4 Importance of Information Systems to Society Copyright John Wiley & Sons Canada 2 LEARNING OBJECTIVES 1. Begin the process of becoming an informed user of your organization’s information systems. 2. Define the terms data, information, and knowledge, and give examples of each. 3. Define the terms information technology, information system, computer-based information system, and application, and give examples of each. Copyright John Wiley & Sons Canada 3 LEARNING OBJECTIVES (continued) 4. Identify three ways in which you depend on information technology in your daily life. 5. Discuss three ways in which information technology can impact managers and three ways in which it can impact non-managerial workers. 6. List three positive and three negative societal effects of the increased use of information technology. Copyright John Wiley & Sons Canada 4 OPENING CASE CASE 1.1 Will Blackberry Survive? THE PROBLEM In 2012, BlackBerry (formerly Research In Motion or RIM) was losing money. The Canadian company laid off thousands of employees in an attempt to reduce costs by as much as $1 billion. After several other wireless products, RIM, founded in 1985, had a highly successful BlackBerry e-mail service in 1999. BlackBerry is no longer an only player. Instead, we have seen several competitors constantly introduce new smart phones (hardware) and the operating systems and applications that run on them (software). The problem is that the environment for smart phones changed dramatically; how will Blackberry respond to the increased competition? Copyright John Wiley & Sons Canada 5 Opening Case The IT Solution RIM must compete with Apple and Android phones, providing the functionality of the iPhone, while leading in its corporate stronghold. In early 2013, RIM renamed its company BlackBerry and launched new smart phones that focused on its traditional strengths. They were well-built phones with a versatile message centre. The new BlackBerry phones were accompanied by an aggressive marketing campaign, which included marketing to software developers to encourage them to develop more apps for the phone. Copyright John Wiley & Sons Canada 6 Opening Case The Results Media coverage of the 2013 BlackBerry phones was high, with articles about features and reviews comparing the BlackBerry with other phones (such as the Apple iPhone 5) resulting in favourable comments for the BlackBerry. BlackBerry (as a company) is still alive, selling its phones and talking about more new products to come. Copyright John Wiley & Sons Canada 7 Opening Case Discussion – Think about the effect of competition in the marketplace. What could Blackberry (RIM) have done earlier to be maintain their market position against competitors who entered the market later? – Can a company rely on one product in order to survive? Why or why not? Copyright John Wiley & Sons Canada 8 OPENING CASE What we learned from this case? – The opening case illustrates how rapid changes in information technology can make products obsolete and drive nonresponsive businesses to the brink of destruction. It is you, the consumer, who drives this demand. – Case 1.1 is a dramatic example of the far-reaching effects of IT on individuals, organizations, and our planet. In this textbook, there are other examples of the significant impacts of IT on individuals and societies, the global economy, and our physical environment. Copyright John Wiley & Sons Canada 9 DEFINITIONS • • • Information technology (IT): relates to any computerbased tool that people use to work with information and to support the information and information-processing needs of an organization. Information system: (IS): collects, processes, stores, analyzes, and disseminates information for a specific purpose. The purpose of IS: to get the right information to the right people at the right time in the right amount and in the right format to support business process and decision making. Copyright John Wiley & Sons Canada 10 E-MEALZ © Alex/iStockphoto IT’s about (small) business 1.1 – In 2003, Jane created a meal-planning service, E-Mealz (now called eMeals, www.emeals.com), that she could both use herself and offer to other families.. Jane and a few employees create a weekly meal plan for different-sized families. They then draw up a grocery list with prices from various grocery stores. Customers pay for the service—in January 2013, the cost was $1.25 to $1.75 a week—and they receive their grocery list at the beginning of the week. – The eMeals website promotes her products and convinces customers to sign up for her service. She uses Twitter and Facebook, and visitors can submit their own recipes. Members can sign up for newsletters, and they can manage their accounts to determine which particular plan they will join. The website offers plans for couples and families, and it provides information about a host of nutritional needs, all of which is updated weekly. Copyright John Wiley & Sons Canada 11 E-MEALZ Discussion – Provide two examples of how Jane uses information technology to provide her service. – Provide two additional examples of how Jane might use information technology to improve her service. Be specific. Copyright John Wiley & Sons Canada 12 1.1 WHY SHOULD I STUDY INFORMATION SYSTEMS? Homo Conexus – You are the most connected generation in history. – You practice continuous computing. – You are surrounded by a personal, movable information network. Copyright John Wiley & Sons Canada Yuri Acurs/Shutterstock 13 THE INFORMED USER – YOU! • • An informed user is a person knowledgeable about information systems and information technology Figure 1.1 IT skills open many doors because IT is so widely used. Copyright John Wiley & Sons Canada 14 WHY BE AN INFORMED USER? • Reasons why you should be an informed user: – – – – – You will benefit more from your organization’s IT applications because you will understand what is “behind” those applications. You will be in a position to enhance the quality of your organization’s IT applications with your input. Even as a new graduate, you will quickly be in a position to recommend the IT applications that your organization will use. Being an informed user will keep you abreast of both new information technologies and rapid developments in existing technologies. You will understand how using IT can improved your organizations performance and teamwork as well as your own productivity. Copyright John Wiley & Sons Canada 15 BUILD YOUR OWN MULTINATIONAL COMPANY • • • • • www.domystuff.com www.vworker.com www.webgrity.com www.b2kcorp.com www.guru.com https://www.elance.com/ © Alex Gumerov/iStockphoto Copyright John Wiley & Sons Canada 16 DIGITAL NOMADS • A digital nomad is someone who uses information technologies such as smart phones, wireless Internet access, and Web-based applications to work remotely from anywhere. Copyright John Wiley & Sons Canada 17 IT OFFERS CAREER OPPORTUNITIES • IT is vital to the operation of modern business, it offers many employment opportunities such as: – Chief Information Officer (CIO), IS Director, Project Manager, Systems Analyst, Database Administrator, Operations Manager, Webmaster • For further details about current careers in IT see: • http://www.computerworld.com/careertopics/careers • http://www.monster.ca Copyright John Wiley & Sons Canada 18 MANAGING INFORMATION RESOURCES • Traditional Functions of MIS Department – Example: manage systems development and systems project management • Consultative Functions of MIS Department – Example: create business alliances with business partners Copyright John Wiley & Sons Canada 19 COMPUTER-BASED INFORMATION SYSTEMS Figure 1.2 Binary code, the foundation of information and knowledge is the key to making complex decisions. Copyright John Dharmasena-Fotolia.com; Wiley & Sons Canada (Source: © janaka Exactostock/SuperStock; uttamgurjar/Shutterstock) 20 COMPUTER-BASED INFORMATION SYSTEMS Figure 1.3 It takes technology with appropriate procedures to make a CBIS John Wiley & Sons Canada (Source: Nasonov/Shutterstock; AngelaCopyright Waye/Shutterstock; alexmillos/Shutterstock; broukoid/ Shutterstock; Mike Flippo/Shutterstock 21 TYPES OF INFORMATION SYSTEMS Figure 1.4 Information Technology Inside an Organization Copyright John Wiley & Sons Canada 22 APPLICATION PROGRAMS • An application (or app) is a computer program designed to support a specific task or business process. Angela Waye/Shutterstock Copyright John Wiley & Sons Canada 23 MAJOR CAPABILITIES OF INFORMATION SYSTEMS Table 1.3 Copyright John Wiley & Sons Canada 24 IT’S ABOUT BUSINESS E-Discovery Software – www.autonomy.com – http://www.blackstonediscovery.com – http://www.clearwellsystems.com http:/// Copyright John Wiley & Sons Canada 25 TYPES OF INFORMATION SYSTEMS Figure 1.5 Information Systems Among Multiple Organizations Copyright John Wiley & Sons Canada 26 TYPES OF INFORMATION SYSTEMS Breadth of Support of Information Systems – – – – – – Functional area information systems Enterprise resource planning system Transaction processing systems Interorganizational information systems Supply Chain Electronic Commerce (e-commerce) Copyright John Wiley & Sons Canada 27 TYPES OF INFORMATION SYSTEMS (CONTINUED) Support for Organizational Employees – – – – – Knowledge Workers Office automation systems Business intelligence systems Expert systems Dashboards Copyright John Wiley & Sons Canada 28 1.3 HOW DOES IT IMPACT ORGANIZATIONS? • • • • • • Reduces the number of middle managers Changes the manager’s job May eliminate jobs Impacts employees at work Impacts employees’ health & safety Provides opportunities for people with disabilities Copyright John Wiley & Sons Canada 29 ERGONOMIC PRODUCTS Source: Media Bakery Copyright John Wiley & Sons Canada 30 1.4 IMPORTANCE OF INFORMATION SYSTEMS TO SOCIETY IT is important to our society as a whole: – IT Affects Our Quality of Life – Robot Revolution on the Way – Improvements in Healthcare Copyright John Wiley & Sons Canada 31 THE ROBOT REVOLUTION • • • See video of Big Dog robot in action See products in the field of robotics http://www.irobot.com/us/ See video of telepresence robot in action © Stockbrokerxtra/Age Fotostock America, Inc. Copyright John Wiley & Sons Canada 32 IMPROVEMENTS IN HEALTH CARE • • See video of daVinci Surgical Robot See video of Laerdal Sim Man in action Copyright John Wiley & Sons Canada 33 CHAPTER CLOSING • • • • MIS supports all other functional areas in an organizations. MIS Is responsible for providing the information that each functional area needs in order to make decisions. The objective of MIS personnel is to help users improve performance and solve business problems using IT. MIS personnel must understand both the information requirements and the technology associated with each functional area. They must think “business needs” first and “technology” second. Copyright John Wiley & Sons Canada 34 Copyright Copyright © 2014 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (the Canadian copyright licensing agency) is unlawful. 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