Introduction to Information Systems Sixth Canadian Edition Rainer, Prince, Sanchez-Rodriguez, Ebrahimi, Splettstoesser CHAPTER 1 Introduction to Information Systems Learning Objective 4 Identify positive and negative societal effects of the increased use of information technology. 2 1.4 Importance of Information Systems to Society • IT Affects Our Quality of Life • The Robot Revolution is Here Now • The Emergence of Cognitive Computing: IBM Watson • IT Impacts Health Care 3 IT Affects Our Quality of Life • IT has changed the way we work o o The lines between time at work and leisure time at home have become blurred Surveys indicate employees take laptops and smartphones on vacation 4 The Robot Revolution is Here Now • Industrial robots versus cobots o Amazon Robotics • Drones • Autonomous vehicles 5 The Emergence of Cognitive Computing: IBM Watson IBM has labelled the type of processing demonstrated by Watson as cognitive computing. Watson has four primary capabilities: • The ability to understand human language, with all of its nuance and ambiguity • The ability to learn and absorb information • The ability to formulate hypotheses • The ability to understand the context of a question 6 IT Impacts Healthcare • IT used in healthcare to: o o o o o Make better/faster diagnoses Streamline the process of researching and developing new drugs To enhance the work of radiologists Allow surgeons to use virtual reality to plan complex surgeries and use robots to remotely perform surgery Allow doctors to discuss complex medical cases via videoconferencing 7 Closing Case: Hybrid Work Means Hybrid Meetings • • • • The background The problems A variety of solutions The conclusion • Questions: 1. What complications arise when some participants are in person and others are remote? 2. What role might AI play in making meetings more productive? 3. How can you use your computer to be better prepared for online meetings? 8 Copyright Copyright © 2024 John Wiley & Sons Canada, Ltd. or the author. All rights reserved. Students and instructors who are authorized users of this course are permitted to download these materials and use them in connection with the course. No part of these materials should be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse this material is available at http://www.wiley.com/go/permissions. 9 Introduction to Information Systems Sixth Canadian Edition Rainer, Prince, Sanchez-Rodriguez, Ebrahimi, Splettstoesser CHAPTER 1 Introduction to Information Systems Learning Objective 3 Discuss ways in which information technology can affect managers and nonmanagerial workers. 2 1.3 How Does IT Impact Organizations? • • • • • IT Impacts Entire Industries IT Reduces the Number of Middle Managers IT Changes the Manager’s Job Will IT Eliminate Jobs? IT Impacts Employees at Work 3 How Does IT Impact Organizations? Examples • • • • • • • • Book Industry Music Industry Video Industry Software Industry Video Game Industry Photography Industry Marketing Industry Recruiting Industry • Financial Services Industry • Motion Picture Industry • Other industries that operate primarily in the physical world 4 IT Reduces the Number of Middle Managers • IT makes middle managers more productive • Consequently, IT reduces the number of middle managers required 5 IT Changes the Manager’s Job • Decision making is the most important managerial task • IT changes the way managers make decisions o o o IT provides near-real-time information Managers have less time to make decisions IT provides tools for analysis to assist in decision making 6 Will IT Eliminate Jobs? • The competitive advantage of replacing people with IT and machines is increasing rapidly • Increasing the use of IT in business also: o o Creates new job categories Requires more employees with IT knowledge and skills 7 IT Impacts Employees at Work • IT impacts employees’ health and safety o o Job stress Long-term use of the keyboard • IT provides opportunities for people with disabilities o o Speech-recognition for employees unable to type due to physical impairment Audible screen tips for employees who are visually impaired 8 FIGURE 1.6 Ergonomic products protect computer users. 9 Copyright Copyright © 2024 John Wiley & Sons Canada, Ltd. or the author. All rights reserved. Students and instructors who are authorized users of this course are permitted to download these materials and use them in connection with the course. No part of these materials should be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse this material is available at http://www.wiley.com/go/permissions. 10 Introduction to Information Systems Sixth Canadian Edition Rainer, Prince, Sanchez-Rodriguez, Ebrahimi, Splettstoesser CHAPTER 1 Introduction to Information Systems Learning Objective 2 Describe the various types of computer-based information systems in an organization. 2 1.2 Overview of Computer-Based Information Systems • Types of Computer-Based Information Systems o o Data, Information, Knowledge IT Infrastructure • IT Components • IT Personnel • IT Services 3 FIGURE 1.2 Data, information, and knowledge. 4 FIGURE 1.3 Computer-based information systems. 5 FIGURE 1.4 IT inside your organization. 6 IT Components • • • • • • Hardware Software Database Network Procedures People 7 Major Capabilities of Information Systems TABLE 1.3 Major Capabilities of Information Systems Perform high-speed, high-volume numerical computations. Provide fast, accurate communication and collaboration within and among organizations. Store huge amounts of information in an easy-to-access yet small space. Allow quick and inexpensive access to vast amounts of information worldwide. Analyze and interpret vast amounts of data quickly and efficiently. Automate both semiautomatic business processes and manual tasks. 8 Types of Computer-Based Information Systems • Breadth of support of ISs • Support for organizational employees 9 Breadth of Support of Information Systems: FAIS • Functional Area Information Systems (FAISs) o o o o o Accounting Finance Production & operations management Marketing HR 10 Breadth of Support of Information Systems: ERP and TPS • Two information systems support the entire organization: o Enterprise resource planning (ERP) Systems • Provide communication among functional area ISs o Transaction processing systems (TPS) • Support the “real time” monitoring, collection, storage, and processing of data from the organization’s day-today operations 11 Breadth of Support of Information Systems IOS • Interorganizational information systems (IOS) o o Supports many interorganizational operations Examples of IOS: • Supply chain management (SCM) • Electronic commerce (e-commerce) systems 12 FIGURE 1.5 IS that function among multiple organizations. 13 IT’s About Business 1.2 • Lululemon’s Success During and Despite Pandemic COVID-19 Pandemic • Questions: 1. What other digital initiatives Lululemon could employ on its website to enhance its revenue from online sales? 2. How can Lululemon better employ social media platforms to increase brand awareness and/or customer satisfaction? 14 Support for Organizational Employees • • • • • • Clerical workers Knowledge workers Functional area information systems Business analytics (BA) or business intelligence (BI) Expert systems (ES) Dashboards (aka digital dashboards) 15 TABLE 1.4 Types of Organizational ISs Types of Organizational Information Systems Type of System Function Example Transaction processing system Processes transaction data from terminal Walmart checkout point-of-sale business events Enterprise resource planning Integrates all functional areas of the organization Oracle, SAP system Functional area IS Supports the activities within a specific functional area System for processing payroll Decision support system Provides access to data and analysis tools “What-if” analysis of changes in budget Expert system Mimics human expert in a particular area and makes decisions Credit card approval analysis Dashboards Present structured, summarized information about aspects of business important to executives Status of sales by product Supply chain management system Manages flows of products, services, and information among organizations Walmart Retail Link system connecting suppliers to Walmart Electronic commerce system Enables transactions among organizations and between organizations and customers www.dell.com 16 Copyright Copyright © 2024 John Wiley & Sons Canada, Ltd. or the author. All rights reserved. Students and instructors who are authorized users of this course are permitted to download these materials and use them in connection with the course. No part of these materials should be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse this material is available at http://www.wiley.com/go/permissions. 17 Introduction to Information Systems Sixth Canadian Edition Rainer, Prince, Sanchez-Rodriguez, Ebrahimi, Splettstoesser CHAPTER 1 Introduction to Information Systems Learning Objective 1 Identify the reasons why being an informed user of information systems is important in today’s world. 2 Opening Case • Plus-Size Clothing Ads on Social Media • Questions: 1. Identify and discuss three ways in which social media can help plus-size clothing brands achieve success. 2. Identify and discuss three ways in which social media can create challenges for plus-size clothing brands. 3. Identify and discuss ways in which social media can impact body size inclusivity positively or negatively. 3 1.1 Why Should I Study Information Systems? • The Informed User—You! • IT Offers Career Opportunities • Managing Information Resources 4 IT’s About Business 1.1 • Informed Users Are an Important Part of Security • Questions: 1. How did a hacker gain access to Uber's systems? 2. Define and discuss social engineering. 3. What steps should organizations take to better secure their systems against social engineering attacks? 5 The Informed User—You! 1. You benefit more when you understand what is “behind” IT applications 2. You will be aware of potential security issues and be more prepared to avoid them 3. You can recommend and help select IT applications 4. You will be aware of new technology 5. You understand how IT improves performance 6. Understanding IT is beneficial to entrepreneurs 6 IT Offers Career Opportunities • IT is vital to modern business, providing many lucrative career opportunities: o o o Programmers, business analysts, systems analysts, and designers Chief information officer (CIO)—executive in charge of the IS function Career opportunities will remain strong in the future 7 Top Job Rankings: Randstad’s list of top jobs in Canada Randstad’s list of top jobs in Canada (out of 15) #1 Software developer #12 Business systems analyst #14 Digital marketing coordinator 8 Top Job Rankings: LinkedIn LinkedIn’s list of fastest-growing job titles over the past five years in Canada (out of 20) #4 Technical program manager #8 Information technology associate #9 Site reliability engineer #13 Security engineer #14 Data engineer #15 E-commerce coordinator #16 Technical product manager #17 Cyber security specialist 9 Top Job Rankings: National Average Salary Indeed (www.ca.indeed.com) - 15 highest paying jobs in Canada in 2023 Job National Average Salary #9 Software engineer manager $143,044 #10 Director of information technology $117,890 #11 Software architect $119,021 #12 Enterprise architect $110,083 15 Data scientist $84,630 10 Managing Information Resources • Managing information resources is difficult and complex because: o o o ISs have an enormous strategic value to organizations ISs are very expensive to acquire, operate, and maintain Evolution of the MIS function within the organization • MIS personnel vs. end users • Changing role of the IS department o o Traditional function of the MIS department New (consultative) functions of the MIS department 11 Figure 1.1 MIS provides what users see on their computer screens. 12 Traditional Function of the MIS Department • Managing systems development and systems project management • Managing computer operations, including the computer centre • Staffing, training, and developing IS skills • Providing technical services • Infrastructure planning, development, and control 13 New (Consultative) Functions of the MIS Department • Initiating and designing specific strategic IS • Incorporating the Internet and e-commerce into the business • Managing system integration including Internet, intranets, and extranets • Educating non-MIS staff about IT • Educating MIS staff about the business • Partnering with business-unit executives • Managing outsourcing • Proactively using business and technical knowledge to seed innovative IT ideas • Creating business alliances with business partners 14 Copyright Copyright © 2024 John Wiley & Sons Canada, Ltd. or the author. All rights reserved. Students and instructors who are authorized users of this course are permitted to download these materials and use them in connection with the course. No part of these materials should be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse this material is available at http://www.wiley.com/go/permissions. 15