BUA 235: Information Systems & Technology for Business

Week 1: Introductions

Who am I?

• Lecturer of Management Information Systems at the University of Maine Business School. Currently working towards the completion of a Ph.D. in Information Systems from Nova Southeastern University in Ft. Lauderdale, Florida.

• Research interests include online learning environments (OLE), information security (InfoSec), computer privacy, and telecommunication technology.

What’s IS?

• Some terms thrown around– IS = Information Systems?– IT = Information technology– EC = Ecommerce– MIS = Management of IS– CIS = Computer Information Systems– Etc.

An OLD definition of IS

• Mason & Mitrof (1973), Mgmt.Science– “An information system consists of at least one

person of a certain psychological type who faces a problem within some organizational context for which he needs evidence to arrive at a solution (i.e., to select some course of action) and that the evidence is made available to him through some mode of presentation.”

Another, more recent definition

• Zmud (1995), MIS Quarterly– IS is the “…development and communication of

knowledge concerning both the management of information technology and the use of information technology for managerial and organizational purposes.”

A “point of view” about IS

• Lee (2001), MIS Quarterly editorial– “Research in the information systems field examines more

than just the technological system, or just the social system, or even the two side-by-side; in addition, it investigates the phenomenon that emerge when the two interact. This embodies both a research perspective and a subject matter that differentiate the academic field of the Information Systems from other disciplines. In this regard, the so-called reference disciplines are actually poor models for our own field. They focus on the behavioral or the technological, but not on the emergent socio-technical phenomenon that set our field apart.”

Socio-Technical Phenomena

Intro to Course

• This is a Survey course: in it we will introduce topics to you related to;

• IT /IS in Decision making• Hardware & Software• Network and Telecommunications• Wireless Computing• Database design, development, & deployment• Information and Network Security

More….

• Enterprise Systems;

– Supply Chain Management (SCM)– Customer Relationship Management (CRM)

– Enterprise Resource Planning (ERP)

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What Information Systems (IS) is not?

• IS is not computer science

• IS is not computer engineering

• So what is it?

Information Systems

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Five-Component Framework for IS

Source:Kroenke, D. M. (2007). Using MIS. Upper Saddle River, NJ: Pearson Education Inc.

Hardware Software Data Procedures People

Bridge

Instructions

Actors

Computer Side Human Side

Automation moves work from human side to computer side

Increased degree of difficulty of change

Information Systems used in Business

• Information technology is everywhere in business.

• If you are learning about business you need to learn about Information technology

Information Systems• Information technology

creates efficiency and enhances organizational effectiveness

• Many organizational systems are interrelated:

• “Sales are dependant upon inventory, inventory are dependant upon production etc…”

• Accounting systems• Finance systems• HR systems• Sales systems• Marketing systems• Operations Management

systems• Management Information

systems• Executive Information Systems• Etc…

– Etc…• Etc…

Knowledge Management Systems

• All together, these systems provide organizations with information.

– We use this information to make informed decisions

• This information over time becomes organizational knowledge

– The collection of knowledge is a KMS…

Information Technology• Any computer-based tool that we use to work

with information and support the information and information processing needs of an organization.

• Information technology doesn’t equal success or even represents success

• IT is most useful when it leverages the talents of the people who use it.

• Information Technology in and of itself is not even useful unless the right people are involved who know how to use and manage it effectively

Management Information Systems

• MIS: “ Is the function that plans for, develops, implements, and maintains IT hardware, software, and applications that people use to support the goals of an organization”

• Most organizations (large and Medium sized) have a departments called the IT Dept, IS Dept, or the MIS Dept.

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What is Information?

“Information is knowledge derived from data”or“information is data presented in meaningful

context” (Kroenke, 2007, p. 10)

“Data is … recorded facts or figures” (Kroenke, 2007, p. 10)

Difference between Data & Information

DataInformation

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Data, information, and knowledge

Data

Information

Knowledge

Wisdom?Knowledge Management Systems

Several Parts to IT

• Information: data converted into meaningful and useful context

• IT Resources: People, Available IT, and Information: All linked to achieve the goals and objectives of a business

• IT Culture: Organizational cultures influence how people will use their available information

Information is Power!

• Lets face it: those armed with information have power

– Organizational culture effects how is used and shared:

– Four common information-sharing cultures exist in organizations today

• Information-Functional: Employees (such as a manager) uses information as a means of influence or power over others.

• Information-Sharing: Employees across departments trust each other to use information to improve performance

• Information-Inquiring: Employees across depts. Search for information to better understand the future and align themselves with current trends & new directions

• Info-discovery: employees across depts. are open to new insights about radical changes and seek ways to create competitive advantages

IT Impact on Business• Several business functions

have benefitted greatly from information technology:

• Reduces costs / Improve Productivity

• Improve Customer Satisfaction / Loyalty

• COMPETITIVE ADVANTAGE

• Business majors and those who intend to work in business areas such as;

– Accounting– Finance– Human resources– Or operations management

• You will need to be familiar with and understand what roles IT plays in your organization

Roles & Responsibility in IT• Historically organizations

have had positions such as CEOs, CFOs, & COOs.

• Organizations now recognize the need to put specific IT staff in strategic positions

• Examples now include:

– Chief Information Officer (CIO)

– Chief technology Officer (CTO)

– Chief Security Officer (CSO)

– Chief Privacy Officer (CPO)

– Chief Knowledge Officer (CKO)

Gap between Business Personnel & IT Personnel

• Business personnel have their language and IT personnel have theirs: This gap interferes with businesses ability to make effective and efficient decisions

• Many of the IT roles we looked at are leaders now in improving communication between the two areas (business and IT)

IT MetricsIT Metrics

• Information systems primary goal is to improve efficiency and effectiveness

• Metrics (quantifiable measurements) provide businesses with the information they need to improve performance in business processes

• Key Performance Indicators (KPIs): requires input from both business staff and IT staff to develop

Digital Dashboards

• Digital Dashboards provide users with one single interface through which they can view information from a variety of sources that have been chosen specifically for that user. In addition, dashboards allow a user to view the information offline, adding portability to the mix.

How does a DD Work?1. DDs retrieve and store data in a centralized access

point:

1. Generally speaking using a combination of web design, relational database design, and a client/server network

2. Uses OLAP files: (Online analytical processing) which allows users to look at data in a way that is meaningful to them.

3. Synchronizes files from a server and makes then available both online and offline to users

Examples of a Digital Dashboard

Efficiency & Effectiveness Metrics come in many forms

Efficiency• Throughput: amount of info that

can travel through systems at any point

• Transaction speeds

• System availability

• Information accuracy

• Web traffic

• Response time

Effectiveness• Usability

• Customer satisfaction

• Conversion rates

• Financial metrics (I.E, ROIs, Cost-benefit analysis, etc…

The 5 Forces Model1. Buyer Power

2. Supplier Power

3. Threat of Substitute products of services

4. Threat of New Entrants

5. Rivalry among existing competitors

• Michael Porter’s 5 forces analysis is a tool useful to aid organizations decision’s related to entering a new industry of industry segment

Next Week: Chapter 2