Announcement
• This is BISI 3230 Management Information Systems
session 01.
– If you are not student of this session, Please leave right now.
• No credit will be given to students who are not registered
with this session.
• Please come on time. Students come in late more than 5
minutes will NOT get credit
• Please ensure to check your attendance each time you
come to class
• Course materials:
– http://faculty.tnstate.edu/jsiekpe
– http://www.prenhall.com/laudon
1.1
© 2007 by Prentice Hall
Chapter 1
Business
Information Systems
in Your Career
1.2
© 2007 by Prentice Hall
Introduction
• Information system (IS)
– Set of interrelated components: collect,
manipulate, disseminate data and information
– Provide feedback to meet an objective
– Examples: ATMs, airline reservation systems,
course reservation systems
1.3
© 2007 by Prentice Hall
What Is an Information System?
The Components of an Information System
1.4
© 2007 by Prentice Hall
Computer-Based Information
Systems
• Manual versus computerized information
systems
• Computer-based information system (CBIS)
– Hardware, software, databases,
telecommunications, people, and procedures
– Collect, manipulate, store, and process data into
information
1.5
© 2007 by Prentice Hall
Computer-Based Information
Systems (continued)
The Components of a Computer-Based Information
System
1.6
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Information Concepts: Data Versus
Information
• Data: raw facts
– Alphanumeric, image, audio, and video
• Information
– Organized collection of facts
– Have value beyond the facts themselves
1.7
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Data Versus Information
(continued)
Defining and Organizing Relationships Among Data
Creates Information
1.8
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Data Versus Information
(continued)
The Process of Transforming Data into Information
1.9
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Business Objectives of Information Systems
• Operational excellence
• New products, services, and business models
• Customer and supplier intimacy
• Improved decision making
• Competitive advantage
• Survival
1.10
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Operational Excellence:
• Improved efficiency results in higher profitability
• Information systems and technologies help to
improve higher levels of efficiency and
productivity
• Wal-Mart is the champion of combining
information systems and best business practices
to achieve operational efficiency—and $285
billion in sales in 2005
• Wal-Mart is the most efficient store in the world
as a result of digital links between its suppliers
and stores
1.11
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
New products, services, and business models:
• Information systems and technologies enable firms
to create new products, services, and business
models
• A business model includes how a company
produces, delivers, and sells its products and
services
• The music industry has seen drastic changes in
business models in recent years
• Apple has been very successful at introducing new
products and adopting a new business model
1.12
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Customer and supplier intimacy:
• Customers who are served well become repeat
customers who purchase more
• Close relationships with suppliers result in lower
costs
• The Mandarin Oriental in Manhattan uses
information systems and technologies to foster an
intimate relationship with its customers including
keeping track of their preferences
• JCPenney uses information systems to enhance its
relationship with its supplier in Hong Kong
1.13
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Improved decision making:
• A company’s bottom line can be hurt by managers
being swamped with data that are neither timely nor
helpful, forcing them to use guesswork
• Real-time data have improved the ability of
managers to make decisions
• Verizon uses a Web-based digital dashboard to
update managers with real-time data on customer
complaints, network performance, and line outages
1.14
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Competitive advantage:
• Achieving the previously mentioned business
objectives often leads to competitive advantage
• Advantages over competitors include charging less
for superior products, better performance, and
better response to suppliers and customers
• Dell Computer is one of the best examples of
establishing competitive advantage as the company
has continued to be profitable during a time when
PC prices have been falling steadily
1.15
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
The Role of Information Systems in Business Today
Survival:
• Businesses may need to invest in information
systems out of necessity
• Necessity arises from keeping up with competitors,
such as when Citibank introduced ATMs
• Necessity also arises from federal and state
regulations, such as the Toxic Substances Control
Act and the Sarbanes-Oxley Act
1.16
© 2007 by Prentice Hall
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
A Business Perspective on Information Systems
• Information systems literacy: Broad-based
understanding of information systems that includes
behavioral knowledge about organizations and
individuals using information systems as well as
technical knowledge about computers.
• Computer literacy: Knowledge about information
technology, focusing on under-standing how
computer-based technologies work
1.17
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
It Isn’t Simply Technology: The Role of People and Organizations
Dimensions of Information Systems
• Organizations
• People
• Technology
Information Systems Are
More Than Computers
1.18
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
The Problem-Solving Approach
• Few business problems are simple or
straightforward
• Most business problems involve a number of major
factors that can be categorized as organization,
technology, and people
1.19
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
A Model of the Problem-Solving Process
• Problem identification
• Solution design
• Choice
• Implementation
• Problem solving is a process, not an event
1.20
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
Problem Solving Is a Continuous Four-Step Process
During implementation and thereafter, the
outcome must be continually measured and the
information about how well the solution is
working is fed back to the problem solvers. In
this way, the identification of the problem can
change over time, solutions can be changed,
and new choices made, all based on experience.
1.21
Figure 1-4
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
The Role of Critical Thinking in Problem Solving
• Four elements of critical thinking:
• Maintaining doubt and suspending judgment
• Being aware of different perspectives
• Testing alternatives and letting experience guide
• Being aware of organizational and personal limitations
1.22
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Understanding Information Systems: A Business Problem-Solving Approach
The Connection Between Business Objectives,
Problems, and Solutions
• When firms cannot achieve their business
objectives, these objectives become challenges
• Information systems often present solutions to
these challenges
1.23
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Information Systems and Your Career
• Success in today’s job market requires a broad set
of skills
• Job candidates must have problem-solving skills as
well as technical skills so that they can carry
specific tasks
• The service sector will account for 95 percent of the
new jobs that are created or open up by 2012
1.24
© 2007 by Prentice Hall
Essentials of Business Information Systems
Chapter 1 Business Information Systems in Your Career
Information Systems and Your Career
How Information Systems Will Affect Business Careers
• Accounting
• Finance
• Marketing
• Operations Management in Services and
Manufacturing
• Information Systems
• Outsourcing
1.25
© 2007 by Prentice Hall
Chapter 1
Discussion Questions:
1.26
© 2007 by Prentice Hall
Why is it important to understand the
difference between computer
literacy and information literacy?
Answer:
• Information literacy is more concerned with creating
information useful to an organization and its employees,
whereas computer literacy addresses the simple use of
computers. As technology uses spread beyond traditional
computers, information literacy enables employees and
organizations to meet the business objectives.
1.27
© 2007 by Prentice Hall
Discuss the three elements of an information
system (hardware, software and persware)
that managers must consider. Which of the
three do you consider the most important?
Answer:
•
Hardware is centered mostly on the input and output
components of an information system. Software is centered
mostly on the processing component. Persware is centered
on the feedback component and on how employees can
effectively use an information system. Opinions vary on
which element is most important; this text stresses the
importance of the persware element.
1.28
© 2007 by Prentice Hall
Which of the six business objectives do you
think is the most important? How can
information systems help a business meet
these objectives?
Answer:
Recall
•
Operational excellence
•
New products, services, and business models
•
Customer and supplier intimacy
•
Improved decision making
•
Competitive advantage
•
Survival
1.29
© 2007 by Prentice Hall
Discuss the three different perspectives of
viewing problems–organizations, people,
and technology–in relationship to critical
thinking skills.
•
•
1.
2.
3.
1.30
Answer:
From critical thinking skills the same problem can be viewed from
three different perspectives.
The organization perspective includes business processes, structure,
culture, and politics of the business.
The people perspective considers all employees, managers, and
executives and the interrelationship of the groups.
The technology perspective focuses on the firm’s IT infrastructure
and how the various components work together.
© 2007 by Prentice Hall
Review Questions
1. Information systems are too important to be left
to computer specialists. Do you agree? Why or
why not?
Answer sketch:
• information systems are more than just technology
• Information systems development and usage
involves organization, management, and technology
dimensions ….. Discuss these dimensions to further
your answer
1.31
© 2007 by Prentice Hall
Review Questions
2. If you were setting up the Web sites for
Major League Baseball, what people,
organization, and technology issues might
you encounter?
Answer sketch:
• A good starting point is to use Table 1.1 on
page 19 to flush out some suggestions.
1.32
© 2007 by Prentice Hall
Review Questions
3. List and describe six reasons why information
systems are so important for business today.
Answer sketch:
• Six reasons why information systems are so
important for business today include:
•
•
•
•
•
•
–
1.33
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
A brief description of each will improve your answer
© 2007 by Prentice Hall
Review Questions
4.
What is an information system? What activities does it
perform?
Answer sketch:
a set of interrelated components that work together to collect,
process, store, and disseminate information to support
decision making, coordination, control, analysis, and
visualization in an organization. In addition to supporting
decision making, coordination, and control, information
systems may also help managers and workers analyze
problems, visualize complex subjects, and create new
products.
1.34
© 2007 by Prentice Hall
Review Questions
5. What is the difference between data and
information?
Answer sketch:
• Data are streams of raw facts representing events
occurring in organizations or the physical
environment before they have been organized and
arranged into a form that people can understand and
use.
• Information is data that have been shaped into a
form that is meaningful and useful to human beings.
1.35
© 2007 by Prentice Hall