BUSI 240Introduction to Information

SystemsTuesday & Thursday 8:05am – 9:30am

Wyant Lecture Hall

Please initial the roster on the back table.

The course syllabus is available at:http://home.apu.edu/~jbirch/BUSI240

Or

http://online.apu.edu

Foundations of Information Systems in Business

Why should you study information systems?How does a firm use information systems?

What are the components of an information system?

Chapter

1a

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

10-3

Virus attacks Android phones in China: researchersA powerful virus targeting smart phones in China running Google Inc's Android operating system

may represent the most sophisticated bug to target mobile devices to date, security researchers said on Thursday.

Anti-virus firm Lookout Mobile Security estimates that the number of phones that have been infected by the virus, dubbed Geinimi, ranges from the tens of thousands to hundreds of thousands.

Current Events – What’s going on?

10-4

Verizon iPhone Unveiled, Apple Likely Prepping iPad 2, New MacBooksApple unveiled the Verizon iPhone 4 Jan. 11, which means it's time for analysts to focus more intensely on possible release dates for the next iPad and MacBooks.

Apple and Verizon unveiled a CDMA-based (Code Division Multiple Access-based) iPhone 4 at a high-profile event Jan. 11 in New York City. The announcement broke AT&T’s exclusive lock on the smartphone in the United States. http://www.eweek.com/c/a/Desktops-and-Notebooks/Verizon-iPhone-Unveiled-Apple-Likely-Prepping-iPad-2-New-MacBooks-425001/

Current Events – What’s going on?

10-5

Snow in 49 States: Snow in 49 out of 50 StatesSince Tuesday the National Weather Service has reported that 49 out of the 50 states in the country has snow on the ground.

The only state without snow is Florida. Even Hawaii has seven inches of snow atop Mauna Kea. A little over 70 percent of the United States is currently covered in snow, which is more than double the number in December.

Meteorologists say that although this is very rare, it has happened before. On Feb. 10, 2010, 49 out of 50 states were white. During that occurrence Hawaii was the odd one out. On Jan. 19, 1977, all states with the exception of South Carolina had snow.http://www.longislandpress.com/2011/01/12/snow-in-49-states-snow-in-49-out-of-50-states/

Current Events – What’s going on?

Foundations of Information Systems in Business

Why should you study information systems?How does a firm use information systems?

What are the components of an information system?

Chapter

1a

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Technology Changes will impact you and your career!

Goal of this course

To familiarize you with the concepts of Information Systems and Strategies that will assist you in managing your business.

Goal of this course (Cont’d)

Every role within a business is touched by information systems and information technology in one way or another. It is imperative that you, as an employee and future manager, be able to discern how information systems and information technology can assist you and provide the business with a competitive advantage.

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Focus of this course

Primary focus is on Information SystemsSecondary focus is on Information

TechnologyIts not about the technology – technology changes

rapidly while information systems are longer lasting

Both Information Systems and Information Technologies can provide a significant competitive advantage for organizations.

What I expect you to know by the last class.

The difference between “data” and “information” The difference between “memory” and “storage” The difference between a kilobyte, megabyte,

gigabyte and terabyte The difference between ERP, CRM and SCM

systems

A few suggestions….

Your final grade is based on points – not on an accumulation of grades.

You start the class with zero points and earn your way to your final grade

If you have an issue or problem, communicate – send me an email

If you know you’re not going to meet the deadline for a quiz or assignment – email me BEFORE the deadline

If you miss a deadline on an assignment, turn it in late – partial points will be awarded.

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Why study Information Systems and Information Technology?

Vital component of successful businesses Helps businesses expand and compete Businesses use IS and IT

To improve efficiency and effectiveness of business processes

For managerial decision making For workgroup collaboration

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What is a system?

A system Is a set of interrelated components With a clearly defined boundary Working together to achieve a common set of

objectives

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Information System

INPUT PROCESS OUTPUT

1-16

Basic Information System

TIMECARDPAYROLL

PAYCHECK

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What is an Information System?

An organized combination of PeopleHardwareSoftwareCommunications networksData resourcesPolicies and procedures

That stores, retrieves, transforms, and disseminates information in an organization

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Information System (IS) versus Information Technology (IT)

IS is all the components and resources necessary to deliver information and functions to the organization

IT is hardware, software, networking and data management

In theory, IS could be paper based But we will focus on Computer-Based Information

Systems (CBIS)

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IS Knowledge Framework for Business Professionals

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What should a Business Professional know about IS?

Foundation Concepts: fundamental behavioral, technical, business and managerial concepts

Information Technology: Hardware, software, networks, data management and Internet-based technology

Business Applications: Major uses of the IS in the organization

Development Processes: How to plan, develop and implement IS to meet business opportunities

Management Challenges: The challenges of effectively and ethically managing IT

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What does IS do for a business?

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Business Applications expanding role over time

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What is E-business?

The use of Internet technologies to work and empower business processes,

electronic commerce, and enterprise collaboration

within a company and with its customers, suppliers, and other business stakeholders.

An online exchange of value.

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How e-business is being used

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E-business use

Reengineer internal business processesEnterprise collaboration systems: support

communications, coordination and collaboration among teams and work groups, e.g., virtual teams

Electronic commerce: buying, selling, marketing and servicing of products and services over computer networks

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Types of IS

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Operations support systems

What are they?Efficiently process business transactionsControl industrial processesSupport communications and collaborationUpdate corporate databases

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Types of Operations Support Systems

Transaction Processing SystemsRecord and process data from business

transactionsExamples: sales processing, inventory systems,

accounting systemsProcess Control Systems

Monitor and control physical processesExample: in a petroleum refinery use sensors to

monitor chemical processesEnterprise Collaboration Systems

Enhance team and work group communicationsExamples: e-mail, videoconferencing

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Two ways to process transactions

Batch Processing:Accumulate transactions over time and process

periodicallyExample: a bank processes all checks received

in a batch at nightOnline Processing:

Process transactions immediatelyExample: a bank processes an ATM withdrawal

immediately

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Management Support Systems

What are they?Provide information and support for effective decision

making by managers

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Types of Management Support Systems

Management Information Systems (MIS)Provide reports and displays to managersExample: daily sales analysis reports

Decision Support Systems (DSS)Provide interactive ad hoc support for decision makingExample: A what-if-analysis to determine where to

spend advertising dollarsExecutive Information Systems (EIS)

Provide critical information for executives and managers

Example: easy access to actions of competitors

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Operational or Management Systems

Expert SystemsProvide expert adviceExample: credit application advisor

Knowledge Management SystemsSupport creation, organization and dissemination of

business knowledge throughout companyExample: Intranet access to best business practices

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Classifications of IS by scope

Functional business systemsFocus on operational and managerial applications of basic

business functionsExamples: support accounting, finance or marketing

Strategic information systemsHelp get a strategic advantage over its customersExamples: shipment tracking, e-commerce web systems

Cross-functional information systemsSystems that are combinations of several types of

information systemsProvide support for many functions

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Challenges and Opportunities of IT

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Measuring success of an IS

EfficiencyMinimize cost, time and use of information resources

EffectivenessSupport business strategiesEnable business processesEnhance organizational structure and culture Increase the customer and business value

What’s the difference between Efficiency and Effectiveness?

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Developing IS Solutions

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What is a system?

A system Is a set of interrelated componentsWith a clearly defined boundaryWorking together to achieve a common set of

objectivesBy accepting inputs and producing outputs in an

organized transformation process

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Systems have three basic functions:

Input involves capturing and assembling elements that enter the system to be processed

Processing involves transformation process that convert input into output

Output involves transferring elements that have been produced by the transformation process to their ultimate destination

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Cybernetic system

All systems have input, processing and outputA cybernetic system, a self-monitoring, self-

regulating system, adds feedback and control:Feedback is data about the performance of a systemControl involves monitoring and evaluating feedback to

determine whether a system is moving towards the achievement of its goal

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A Cybernetic system

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A business as a system

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Information systems model

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Components of an IS

PeopleEnd users: the people who use the IS or the

information from the ISIS specialists: the people who develop and operate IS

Hardware ResourcesAll physical devices used in information processingMachines, data media, peripherals

Software ResourcesAll information processing instructions including

programs and proceduresSystem software, application software and procedures

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Components of an IS (cont.)

Data ResourcesFacts about the business transactionsProcessed and organized informationDatabases of organized data

Network ResourcesCommunications mediaNetwork infrastructure: hardware and softwareThe Internet, intranets and extranets

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Data versus Information

Data are raw facts about physical phenomena or business transactions

Information is data that has been converted into meaningful and useful context for end users

Example:Sales data is names, quantities and dollar amountsSales information is amount of sales by product type,

sales territory or salesperson

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IS Activities

Input of data resourcesData entry activities

Processing of data into informationE.g., calculate, compare, sort, classify, summarize

Output of information productsMessages, reports, forms and graphic images

Storage of data resourcesData elements and databases

Control of system performanceMonitoring and evaluating feedback

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Recognizing IS

As a business professional, you should be able to look at an IS and identify

The people, hardware, software, data and network resources they use

The type of information products they produce The way they perform input, processing, output,

storage and control activities

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IT Careers

Outsourcing of basic programming to India, the Middle-East and Asia-Pacific countries

Strong employment opportunities in other areas in IS

Shortage of qualified IS personnel Long-term job outlook positive and exciting

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Career Opportunities in IS

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Job growth

Among the fastest growing occupations through 2012Systems Analyst,Database administrators, Other managerial-level positionsNetwork specialistsInformation security

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IS Function represents

Major functional area of businessImportant contributor to operational efficiency,

employee productivity, morale, customer service and satisfaction

Major source of information and support for effective decision making

Vital ingredient in developing competitive products and services in the global marketplace

Dynamic and challenging career opportunityKey component of today’s networked business