An Essential Field of Study in Business • What are the differences among the following fields: – Management Information Systems (MIS) – Computer Information Systems (CIS) – Information Technology (IT) – Computer Sciences (CS) – Computer Engineering 1 Why an MBA or Engineering Student needs to know MIS/CIS/IT? • • • • The role of IT in business Use a IT as a tool Understand how to use IT as a competitive weapon Understand the impact of IT on business – Good or bad – Predicate next wave of the technologies • Become IT/IS/CS literacy • Know how to deal with IT people • While you may know/use some of the IT technologies, the course provides a systematic review for the theory or practices. 2 Real World Case - Amazon.Com • “In the physical world, it’s old saw: location, location, location” • “Three most important things are for us are Technology, Technology, and Technology” Jeff Bezos, CEO of Amazon • Computerized Warehouse at Fernley, Nevada • Turnover rate for the warehouse is 20 times 3 Real World Case - Amazon.Com (Continue) • “The trouble with most companies is that they make judgment-based decisions when data-based decision can be made.” 4 Roles of IS in Business Support Strategies for Competitive Advantage Support Business Decision Making Support Business Processes and Operations 5 Roles of e-Business in Business The Internet Suppliers and Other Business Partners Extranets Company Boundary Supply chain management: Procurement, Distribution, and Logistics Intranets Engineering and Research Manufacturing and Production Accounting and Finance Intranets Customer relationship management: Marketing Sales Customer Service Extranets Consumers and Business Customers 6 Expanding Roles of IS in Business and Management Electronic Business & Commerce: 1990s – 2000s Internet-Based E-Business and ECommerce systems Strategic and End User Support: 1980s – 1990s End User Computing Systems Executive Information Systems Expert Systems Strategic Information Systems Decision Support: 1970s – 1980s Decision Support Systems Management Reporting: 1960s – 1970s Management Information Systems Data Processing: 1950s – 1960s Electronic Data Processing Systems Expanding Participation of End Users and Managers in IS Trends in Information Systems 7 Types of Information Systems Information Systems Operations Support Systems Transaction Processing Systems Process Control Systems Management Support Systems Enterprise Collaboration Systems Management Information Systems Decision Support Systems Control Processing Team and Prespecified Interactive Business of Industrial Workgroup Reporting Decision Transactions Processes Collaboration for Managers Support Executive Information Systems Information Tailored for Executives 8 Other Information Systems • • • • • Expert Systems (ES) Knowledge Management Systems Functional Business Systems Strategic Information Systems (SIS) Cross-Functional Information Systems 9 Managerial Challenges of IT Hershey Foods: Failure & Success with IT • Problems with ERP Software • $112 Million Project – – Order Processing Problems – Multiple Vendor Applications Being Installed Simultaneously • Initial Problems to Implement • Recent Success with Upgrades 10 Roles of e-Business in Business WESCO International E-Business Sales and Supplier System • Distributor of Electrical Products and Supplies – Over 6,000 Employees – 5 Distribution Centers – 360 Branches Worldwide – Over 100,000 Customers • New E-Business Ordering System • Increased Sales and Cut Costs • Est. $12 million Savings Annually 11 Developing IS Solutions Investigate Analyze Maintain Design Implement 12 Challenges of Ethics and IT • Ethical Responsibilities • Be a Responsible End-User Applications of IT Potential Harms Potential Risks Possible Responses Customer Relationship Management Infringements on Privacy Customer Boycotts Codes of Ethics Human Resources Management Inaccurate Information Work Stoppages Incentives Collusion Government Intervention Certification Business Intelligence Systems 13 Systems Concepts: A Foundation What is a System? • • • • • Input Processing Output Feedback Control 14 Information System Model The Community Competitors Management Feedback Information Systems Economic Resources Business Resources Goods & Services Input Processing Output Financial Institutions Labor Unions Customers Control Stockholders Suppliers Government Agencies Stakeholders in the Business Environment 15 Components of an Information Systems 1. 2. 3. 4. 5. People Resources - End Users - - IS Specialists Hardware - Machines - Media Software - Programs - Procedures Data Resources - Data and Knowledge Bases Network Resources - Communications Media and Networks 16 Kodak, HP, and Amersham Biosciences Challenges would include: • Silo syndrome - The Cost of Employee Time Spent on Research, Preparing Reports and Developing Support for the Sales Staff Without an Easy Way to Access the Information • Data is Being Collected, but Kodak and HP are not Good at Sharing and Updating the Data • Unused Valuable Marketing Information and Other Intellectual Property 17 Kodak, HP, and Amersham Biosciences How successful is the Eloquent software tool is described by Kodak and HP: • Ability to Deliver a Full Range of Product Information – Includes Text, Synchronized Video, Graphics, Audio and Search Capabilities to Globally Dispersed Sales Organizations • Allowing People to get More Done and Spend More Face Time with Customers as Opposed to Calling on the Phone to Kodak 18 End of Lecture • Read the Syllabus • Orient yourself to the course requirements and expectations 19