Lecture 01-Fundamentals of is[1]

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UBAI 2043 UBAI 2043 IT for Management IT for Management

Ms. Ng Shwu Shing Room number: H1-200 nsshing@utar.edu.my

UBAI 2043 UBAI 2043 IT for Management IT for Management

Ms. Ng Shwu Shing Room number: H1-200 nsshing@utar.edu.my

Introduction to Unit

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Main Text• Turban, E., McLean, E., Wetherbe, J., Leidner, D. (2010)

Information Technology for Management (7th ed), New Jersey: John Wiley & Sons.

Additional Texts• Laudon, K.C., & Laudon, J.P. (2010). Management

Information Systems: Managing the Digital Firm (11th ed.). New Jersey: Prentice Hall.

• O’Brien, James A. (2007) Introduction to Information Systems (13th ed), New York: McGraw-Hill.

• Rainer, R. K. et al. (2007). Introduction to Information Systems, New Jersey: John Wiley & Sons.

Assessment Details Weight

Coursework Group Assignment Report

Assignment presentation

20%

20%

Examination 2.5-hour written exam 60%

TOTAL 100%

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Fundamentals of Fundamentals of Information Technology Information Technology & Information Systems& Information Systems

Fundamentals of Fundamentals of Information Technology Information Technology & Information Systems& Information Systems

Lecture 1

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• What do you know?• Systems• What is an Information System?• Organisational Levels• Components of IS• Activities of IS• Information• IS vs IT• Trends in Technology• Roles of IS• Organisational Systems• People in Organisation

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• Understand the concept of computer, information systems, systems, component and activities of IS in different level of organisation.

• Describe the difference between data, information and knowledge.

• Understand the trend of technology • Understand the role of IS in organisation• Describe the various organisational systems

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Some examples are:• ATM machines and banks in general.• Grocery store checkout line cash registers

with bar code scanners and the ability to use bank cards and credit cards for purchases.

• Educational institutions rely on IT. The registrar’s office, financial aid office and the library are just a few examples.

What are some of universal use of information technologies in many aspects of Malaysian life?

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An IS Framework for Business Professionals

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DIGITAL ENTERPRISE

• = an organization that uses computers and IS to perform or support its activities

• Digital Enterprise uses IT to accomplish these objectives:– Reach and engage customers more

effectively– Boost employee productivity– Improve operating efficiency

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A set of elements or components that interact to accomplish common goals.

• Examples of system:• Living organisms• A business organization• Environmental ecosystem• Political organization

Source: Stair, pg 8-14

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ManufacturingProcess

Input ofRaw Materials

Output ofFinished Products

Environment

Other Systems

Control byManagement

ControlSignals

ControlSignals

FeedbackSignals

FeedbackSignals

System Boundary

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Information System Is A System

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that collect, process, store, and distribute information to

support decision making and control in an organization.

Definition of Information System

People Software Hardware Networks Data

Resources

Information System a set of interrelated components

Procedures

Source: Stair, pg 15-21

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Strategic

Management

Operational

CEO, President, Chairman, ..

Branch Managers, Unit Manager, Functional Managers, Dean, Head of Department

Supervisors, Clerk, Operation manager

Source: O’Brien, pg 9

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• Hardware

• Software

• Data

• Network

• Procedures

• People

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People required for operation of information system

People Resources

End Users Specialists

People who use information system:

e.g: - accountant

- sales persons

- engineers

- clerks

- customers

- managers

People who develop & operate information

system:

e.g: - system analyst

- software developers

- system operators

- Personnel – managers,

clerk

i. People

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Includes all physical devices and materials used in

information processing

Hardware Resources

Computer Systems

Computer Peripherals

Consist of CPU & interconnected peripheral

devices:

e.g: - laptop

- desktop

- micro computer systems

- midrange computer systems

- large mainframe computer systems

Computer devices:

e.g: - keyboard

- electronic mouse

- printer

- video screen

- magnetic disks

- optical disks

ii. Hardware

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All sets of information processing instructions to properly

capture, process & disseminate information

Software Resources

System Software Application Software

Control use of all system resources (hardware, software, data); operating system

e.g - Unix, Linux, Windows

iii. Software

Programs that perform specific tasks for users

e.g - payroll program, - word processing program- sales analysis program

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Data Resources

Numbers Video

Example - Product descriptions

- Customer Records

- Employee Files

- Inventory database

TextImage Audio

All data in the forms of alphanumeric, text, image, audio

and video.

iv. Data

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v. Network

Network resources emphasizes on communication

technologies and networks

Network Resources

Communication media Network

Support

i. Wire base

e.g – twisted pair cable

- coaxial cable

- fiber-optic cable

ii. Wireless

e.g – microwave

- cellular

- satellite

Technologies to support communication network:

i. Communication processors

e.g: - modems, multiplexers

ii. Communication control software

e.g: - Network Operating Software

- Internet Browser

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vi. Procedure

Procedures include the strategies, policies, methods & rules for

using Computer based Information System.

Procedures Resources

StrategiesRules

Policies Methods

Examples of Procedures:1. Procedures about when each program is to be run or executed.2. Procedures on who can have access to facts in the database.3. Procedures on what is to be done in case a disaster, such as fire that renders

the IS unusable.

Source: Stair, pg 21

1.22Source: O’Brien, pg 24-34

Input ofData

Resources

Input ofData

Resources

Processing Data

Processing Data

Output ofInformation

Products

Output ofInformation

Products

Control of System PerformanceControl of System Performance

Storage of Data ResourcesStorage of Data Resources

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INPUT OUTPUTPROCESS

FEEDBACK

Example of Activities

Source: Stair, pg 9

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Information in the form of: • Email• web pages• reports• memos and handouts• lectures• telephone calls• meetings and tutorials

Example :1. University / College :

- information about students, departments, tutorial groups, faculties, lecturers, computer labs

2. Business Organisation - information about stakeholders, government policies, recruitment, profit and loss, training, etc

3. Hospital- information about medicines, doctors, nurses, laboratories, outpatients, wards, ambulance, etc

Primary purpose of IS is Information. Information Flows in Organisations

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Data vs Information vs Knowledge

• Data– Streams of raw facts representing events, activities and transactions that are

captured, recorded, stored and classified but not organized to convey any specific meaning.

• Information– Data that has been organized so that they have meaning and useful to the

recipient in the processes such as making decisions. Information comes from the data that have been processed.

• Knowledge– Information that has been organized and processed to convey understanding,

experience and expertise as they apply to a current problem or activity

Primary Purpose of IS is to collect data, processes it into information then converts information into knowledge for a specific purpose.

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Post Employment Data

Medical / Accident Record

Disciplinary Actions

Compensation & Benefits

Retirement & Termination

Scholarship / Loans

Individual Reference

Payroll

Quarters

Training Accomplishment

Resignation Data

Human

Resource

Information

System

Human Resource Development Reports

Compensation Reports

Monthly Payroll

Employee Benefits Records

Turnover & Absenteeism Reports

Human Resource Planning Reports

Competency Inventories

Other Reports

Example Data vs Information

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• IT refers to the technological side of an IS which includes the hardware, software, database, networks and so on.

• IT can be viewed as a subsystem of an IS.

• Sometimes, the term IT is used interchangeably with IS.

IT = Hardware + Software + Database + Telecommunication + Network

IS = IT + People + Data + Procedures + Management

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• Internet• Mobile Computing and M-Commerce• Wireless networks• Pervasive Computing• Smart Devices• The Network Computer• Optical Networks• Storage Area Networks• Intranets & Extranets• The Internet

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Support Strategies forCompetitive Advantage

SupportBusiness Decision Making

Support Business Processes and Operations

Be better than competitorExample: Install Kiosks, create e-commerce

Help managers to make decisions. Example: What product need to increase?What product need to reduce?

Support in day to day business operationsExample:

-Record customer purchase-Keep tract inventory-Pay employeesSource: O’Brien, pg 9

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Information System - Classification By Support

Function

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Personal and Productivity systems

• To support individuals.

• Known as personal information management (PIM), system intends to support the activities that we perform to ease our life.

• A popular PIM tool is the personal digital assistant (PDA), with the functions such as calculators, calendars, schedulers and computer memory.

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TPS

• Transaction Processing System.

• Ex: POS systems

• Face or perform repetitive information processing

• In banking, TPS cover deposit and withdrawals.

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Functional and Management Information Systems

• Functional Systems: Put in place in each department to ensure that business strategies come to fruition in an efficient manner.

• Eg: HR system, Production systems, Marketing systems etc.

• MIS: used for planning, monitoring, and control. • Eg: Generate a sales forecast by region report• Help Marketing mgr for advertising and pricing.

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Enterprise (Integrated) Systems

• A system that provides support to both functional departments and business processes.

• One of the most popular enterprise applications is Enterprise Resource Planning (ERP), which enables companies to plan and manage the resources of an entire organization.

• Other example such as CRM, KM and etc.

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Interorganizational Systems (IOSs)

• The systems that connect two or more organizations, supported by EDIs.

• Enable computers to process large amounts of information that flow between organizations.

• In addition, they enable computers to ‘talk’ with other computers in different organizations.

• Connect buyers and sellers.

• Eg: order electronically, bill electronically and pay electronically.

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Global Systems

• IOSs that connect companies located in two or more countries are referred as global information systems.

• Eg: If you have customers from other countries who buy from you online, you may need the support of a global system.

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Very large and Special Systems.

• Eg: Natinal Health Care System in Denmark.

• In Denmark, all 5.3 million Danish residents and 150,000 healthcare professionals have access to the “Danish National e-Health Portal”. Its facilitates communications between doctors and patients, increase collaboration among healthcare providers, government agencies, pharmacies, healthcare professionals.

• The technology includes complicated software and hardware from IBM and other vendors.

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• TPS automates routine and repetitive tasks that are critical to the operation of the organization, such as preparing a payroll, billing customers, Point-of-Sale, and Warehouse operations

• Data collected from this operation supports the MIS and DSS systems employed by Middle Management

• Computerizes the primary and most of the secondary activities on the Value Chain

• Primary purpose to perform transactions and collect data

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• These systems access, organize, summarize, and display information for supporting routine decision making in the functional areas. Geared toward middle managers, MIS are characterized mainly by their ability to produce periodic reports such as a daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget

• Typical uses would be in Replenishment, Pricing Analysis (Markdowns) and Sales Management

• Decisions supported are more structured• Primary purpose to process data into information

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• ESS systems or Enterprise Information Systems (EIS) were originally implemented to support senior management. These systems have been expanded to support other managers within the enterprise

• At the senior management level they support Strategic Activities which deals with situations that may significantly change the manner in which business is done

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An information system (IS) support each department in a corporation.

1. Marketing and Sales Systems2. Human Resources System3. Finance and Accounting Systems

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Turban, E., McLean, E., Wetherbe, J., Leidner, D. (2010) Information Technology for Management (7th ed), Wiley.

O’Brien, J. A. (2005). Introduction to Information Systems (12th ed.), New York, McGraw-Hill.

Stair, Ralph M. and Reynolds, George W. (2002) Principles of Information Systems (7th ed), Massachussets, Thomson Course Technology.

References