BUS 710:
Foundations of Information
Systems
Introduction to Course
Introduction to Information Management
Agenda
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Introductions
Name cards
Syllabus – course overview
Lecture:
– Introduction to Information Management
• Group discussions
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BUS 710 - Fall 2003
Your Instructor
• Name: Jakob Iversen
• Background:
– Danish Citizen
– Software Engineer: Master’s Degree, 1996,
Aalborg University, Denmark
– Ph.D. in Computer Science, 2000, Aalborg
University, Denmark. Thesis title: ”Data-Driven
Intervention in software Process Improvment”
– Assistant Professor at UW Oshkosh from Fall 2000
– Primary research interest: Software development
and Software Process Improvement (SPI)
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BUS 710 - Fall 2003
Course Goals
• Understand the relationship of the IS
function to the general organization.
• Understand basic IS hardware and
software concepts and terms at the
computer and network levels.
• Understand basic database concepts.
• Understand basic telecommunications
and networking concepts, including the
Internet.
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BUS 710 - Fall 2003
Course Goals – cont.
• Understand the business implications of
the Internet and eCommerce.
• Understand IS project development
methodologies.
• Develop team (group) work skills.
• Practice oral communication skills.
• Be ready for additional IS coursework at
the graduate level.
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BUS 710 - Fall 2003
Course Overview / Policy
• Read before class – ask questions
• Communication
– Web page and email (all slides will be available on
web)
• Assignments/Exams/Grading
– Final Exam
– Team Presentations
– Individual assignments
50%
30%
20%
• Changes, suggestions, etc.
• Schedule may change
• Check your email
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BUS 710 - Fall 2003
Next Week
• Until next time
– Make sure your student account is working
– Check email address listed on Blackboard
– Continue group discussions
• Blackboard groups will be created
– Access Course Web site
• http://www.uwosh.edu/faculty_staff/iversen/710-Osh
• Check out Individual Assignment 1
• Next Thursday
– Hardware and Software
– Stair, Chapter 2
– First two team presentations
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BUS 710 - Fall 2003
CHAPTER 1
INTRODUCTION
BUSINESS AND INFORMATION
TECHNOLOGY
Why did YOU take this course?
• Well, since this is a required course ...
Why do you think it is required?
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BUS 710 - Fall 2003
Why You Need to Learn About
Information Technology
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IT
IT
IT
IT
IT
is Generally Interesting
Facilitates Work in Organizations
Offers Career Opportunities
is Used by All Departments
is Crucial to Society
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What Is Information?
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Transforming Data into Information
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What is a Computer-Based
Information System?
• Collects, processes, stores, analyzes,
disseminates information
• Specific purpose
• Uses information technology
• What information system did/will you
interact with today?
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Functions of Information Systems
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Components of Information Systems
Information Technology (IT)
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Information Technology (IT)
Components of Information Systems
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Capabilities of Information Systems
• Fast and Accurate Transactions
• Large Capacity, Fast Access Storage
• Fast Communications (machine to machine, human to
human)
• Reduce (and cause) Information Overload
• Span Boundaries
• Provide Support for Decision Making
• Provide a Competitive Weapon
• General Technological Trends for IT...
– What trends have you observed?
– What do you think will happen in the future?
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BUS 710 - Fall 2003
Types of Business Information Systems
• Electronic Commerce
• Transaction Processing Systems
– Supports basic transactions in a company
• Enterprise Resource Planning (ERP)
– Unified system for an entire corporation
• Information and Decision Support Systems
– Systems that help managers make decisions
• Special-Purpose Business Information
Systems
– Artificial Intelligence, Expert Systems, and Virtual
Reality
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Organizations and Information Systems
• Organization
– A formal collection of people and other
resources established to accomplish a set
of goals
• Value Chain
– A series (chain) of activities that includes
inbound logistics, warehouse and storage,
production, finished product storage,
outbound logistics, marketing and sales,
and customer service
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General Model of an Organization
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Porter’s Value Chain
Firm Infrastructure
Human Resource Management
Technology Development
Upstream
Companies
Suppliers' Value
Chain
Downstream
Companies
Procurement
Inbound
Logistics
Operations
Outbound
Logistics
Marketing and
Sales
Service
Customers'
Value Chain
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Manufacturing Value Chain
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Technology Diffusion and Infusion
• Technology diffusion
– A measure of how widely technology is
spread throughout an organization
• Technology infusion
– The extent to which technology is deeply
integrated into an area or department
• Technology may be widely diffused but
only highly infused in a few areas
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BUS 710 - Fall 2003
Porter’s Competitive Forces Model
• Competition
– a significant and (ideally) long-term benefit
to a company over its competition
– at the core of a firm’s success or failure
• Porter’s Model can be used to develop
strategies for companies to increase
their competitive edge
• The model demonstrates how IT can
enhance competitiveness
• 5 major forces: … Next slide…
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BUS 710 - Fall 2003
Porter’s Five Forces Model
New Entrants
Threat of
New Entrants
Industry
Competitors
Suppliers
Bargaining Power
of Suppliers
Intensity of
Rivalry
Bargaining
Power of Buyers
Buyers
Threat of
Substitutes
Substitute
Products
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Strategic Planning
• Altering the industry structure
• Creating new products and services
• Improving existing product lines and
services
• Using information systems for strategic
purposes
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Competitive Advantage Factors and
Strategies
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Competitive Advantage Factors and
Strategies
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Other Strategies
• Cost leadership strategy - producing at lowest
cost
• Differentiation strategy - being unique
• Focus strategy - selecting a narrow-scope
segment
• Growth strategy - increasing market share
• Alliances strategy - working with business
partners
• Internal efficiency strategy - improving the
manner in which business processes are executed
• Customer-oriented strategy - concentrating on
making customers happy
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Three Stages in the Use of IS
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The Evolution of IS
Stage 1:
Cost reduction
and Productivity
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Stage 2:
Competitive
Advantage
Stage 3:
Performance-Based
Management
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Measuring Performance
• Productivity
– A measure of the output achieved divided by the input
requirement
– Productivity=(Output/Input) x 100%
• Quality
– The ability of a product (including services) to meet or
exceed customer expectations
• Return on Investment (ROI)
– One measure of IS value that investigates the additional
profits or benefits that are generated as a percentage of the
investment in information systems technology
• Total Cost of Ownership (TCO)
– Measuring both expense and benefits of a system. For a PC,
includes purchase price, training, software, support, etc.
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Total Cost of Ownership (TCO)
• Obvious costs
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Hardware
Software license fees
Personnel
HW + SW
deployment
Support + service
Custom application
development
Upgrades
Energy + space
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• Not-so-obvious costs
– System downtime –
lost productivity,
opportunities
– Being locked into a
technology
– Moving to other
technologies and
platforms
– Having non-standard
configurations
– Amount of training
required
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Information Systems Personnel
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Three IS Functions
• Operations
– Maintains and supports the use of
corporate information systems
• Systems Development
– Development of corporate information
systems
• Support
– Provides assistance to users
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Major IS Issues
• Outsourcing
– What services are best delivered by in-house
expertise and what should be outsourced?
– Cost savings, access to larger labor pool
– On-shore, off-shore, near-shore
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Centralized vs. Decentralized organization
Showing value of IS to the organization
Disaster/Business Recovery
Security
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IT Jobs
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BUS
www.salary.com
http://www.computerworld.com/careertopics/careers/story/0,10801,75368,00.html
http://marketing.dice.com/rateresults/
710 - Fall 2003
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The 10 Fastest-Growing Occupations
2003-2010
Read more in September 2003 issue of Business 2.0 (page 97)
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BUS 710 - Fall 2003