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BUSI 240Introduction to Information
Systems Tuesday & Thursday 8:05am – 9:30am
yant !ecture "a##
Please initial the roster on the backtable.
The course syllabus is available at:
http://home.apu.edu/~jbirch/BUSI!"#r
http://home.apu.edu/~jbirch/BUSI240http://home.apu.edu/~jbirch/BUSI240
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$oundations of Information
Systems in Businesshy shou#d you study information systems%
"o does a 'rm use information systems%
hat are the com(onents of an informationsystem%
h a
p t e r
1
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc !ll
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hy study Information Systemsand Information Techno#o)y%
*ita# com(onent of successfu# +usinesses
"e#(s +usinesses e,(and and com(ete
Businesses use IS and IT To im(ro-e e.ciency and e/ecti-eness of
+usiness (rocesses
$or mana)eria# decision main)
$or or)rou( co##a+oration
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hat is a system%
1 systemIs a set of interre#ated com(onents
ith a c#ear#y de'ned +oundary
orin) to)ether to achie-e a common set ofo+ecti-es
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Information System
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Basic Information System
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hat is an InformationSystem%
1n or)anied com+ination ofeo(#e
"ardare
Softareommunications netors
6ata resources
o#icies and (rocedures
That stores7 retrie-es7 transforms7 anddisseminates information in an or)aniation
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Information System IS -ersusInformation Techno#o)y IT
IS is a## the com(onents and resourcesnecessary to de#i-er information and functionsto the or)aniation
IT is hardare7 softare7 netorin) and datamana)ement
In theory7 IS cou#d +e (a(er +ased
But e i## focus on om(uterBasedInformation Systems BIS
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IS ;no#ed)e $rameor forBusiness rofessiona#s
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hat shou#d a Businessrofessiona# no a+out IS%
$oundation once(ts: fundamenta# +eha-iora#7technica#7 +usiness and mana)eria# conce(tsInformation Techno#o)y: "ardare7 softare7
netors7 data mana)ement and Internet+asedtechno#o)yBusiness 1((#ications:
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hat does IS do for a+usiness%
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Business 1((#ications e,(andin)ro#e o-er time
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hat is =+usiness%
The use of Internet techno#o)iesto or and em(oer +usiness (rocesses7
e#ectronic commerce7 and enter(rise
co##a+orationithin a com(any and ith its customers7
su((#iers7 and other +usiness staeho#ders>
1n on#ine e,chan)e of -a#ue>
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"o e+usiness is +ein) used
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=+usiness use
?een)ineer interna# +usiness (rocesses
=nter(rise co##a+oration systems: su((ortcommunications7 coordination and
co##a+oration amon) teams and or )rou(s7e>)>7 -irtua# teams
=#ectronic commerce: +uyin)7 se##in)7maretin) and ser-icin) of (roducts and
ser-ices o-er com(uter netors
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Ty(es of IS
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@(erations su((ort systems
hat are they%=.cient#y (rocess +usiness transactions
ontro# industria# (rocesses
Su((ort communications and co##a+orationU(date cor(orate data+ases
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Ty(es of @(erations Su((ortSystems
Transaction rocessin) Systems?ecord and (rocess data from +usiness
transactions=,am(#es: sa#es (rocessin)7 in-entory systems7
accountin) systemsrocess ontro# Systems
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To ays to (rocess transactions
Batch rocessin):1ccumu#ate transactions o-er time and (rocess
(eriodica##y
=,am(#e: a +an (rocesses a## checs recei-edin a +atch at ni)ht
@n#ine rocessin):rocess transactions immediate#y
=,am(#e: a +an (rocesses an 1T< ithdraa#immediate#y
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Ty(es of
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@(erationa# or
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#assi'cations of IS +y sco(e
$unctiona# +usiness systems
$ocus on o(erationa# and mana)eria# a((#ications of+asic +usiness functions
=,am(#es: su((ort accountin)7 'nance or maretin)
Strate)ic information systems
"e#( )et a strate)ic ad-anta)e o-er its customers
=,am(#es: shi(ment tracin)7 ecommerce e+systems
rossfunctiona# information systemsSystems that are com+inations of se-era# ty(es of
information systems
ro-ide su((ort for many functions
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ha##en)es and @((ortunities ofIT
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6e-e#o(in) IS So#utions
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hat is a system%
1 systemIs a set of interre#ated com(onents
ith a c#ear#y de'ned +oundary
orin) to)ether to achie-e a common set ofo+ecti-es
By acce(tin) in(uts and (roducin) out(uts in anor)anied transformation (rocess
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y+ernetic system
1## systems ha-e in(ut7 (rocessin) and out(ut
1 cy+ernetic system7 a se#fmonitorin)7 se#fre)u#atin) system7 adds feed+ac and contro#:
$eed+ac is data a+out the (erformance of asystem
ontro# in-o#-es monitorin) and e-a#uatin)feed+ac to determine hether a system is
mo-in) toards the achie-ement of its )oa#
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1 y+ernetic system
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1 +usiness as a system
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Information systems mode#
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om(onents of an IS
eo(#e=nd users: the (eo(#e ho use the IS or the
information from the ISIS s(ecia#ists: the (eo(#e ho de-e#o( and o(erate IS
"ardare ?esources1## (hysica# de-ices used in information (rocessin)
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om(onents of an IS (cont.)
6ata ?esources$acts a+out the +usiness transactions
rocessed and or)anied information
6ata+ases of or)anied dataetor ?esourcesommunications media
etor infrastructure: hardare and softare
The Internet7 intranets and e,tranets
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6ata -ersus Information
6ata are ra facts a+out (hysica# (henomenaor +usiness transactions
Information is data that has +een con-erted
into meanin)fu# and usefu# conte,t for endusers
=,am(#e:Sa#es data is names7 Cuantities and do##ar
amountsSa#es information is amount of sa#es +y (roduct
ty(e7 sa#es territory or sa#es(erson
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IS 1cti-ities
In(ut of data resources6ata entry acti-ities
rocessin) of data into information
=>)>7 ca#cu#ate7 com(are7 sort7 c#assify7 summarie@ut(ut of information (roducts
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?eco)niin) IS
1s a +usiness (rofessiona#7 you shou#d +e a+#eto #oo at an IS and identify The (eo(#e7 hardare7 softare7 data and
netor resources they use
The ty(e of information (roducts they (roduce
The ay they (erform in(ut7 (rocessin)7 out(ut7stora)e and contro# acti-ities
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IT areers
@utsourcin) of +asic (ro)rammin) to India7the
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areer @((ortunities in IS
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Do+ )roth
1mon) the fastest )roin) occu(ationsthrou)h 20E2Systems 1na#yst7
6ata+ase administrators7@ther mana)eria##e-e# (ositions
etor s(ecia#ists
Information security
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IS $unction re(resents
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=thica# cha##en)es of ITa((#ications
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=thica# res(onsi+i#ities
hat uses of IT mi)ht +e considered im(ro(eror harmfu# to other indi-idua#s or society%
hat is the (ro(er +usiness use of the Internet
or a com(anyAs IT resources%"o can you (rotect yourse#f from com(uter
crime%
i
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Strate)ic IT
Techno#o)y is no #on)er an afterthou)ht informin) +usiness strate)y7 +ut the actua#cause and dri-er>
IT can chan)e the ay +usinesses com(ete>1 strate)ic information system is1ny ind of information system
That uses IT to he#( an or)aniation
Fain a com(etiti-e ad-anta)e?educe a com(etiti-e disad-anta)e
@r meet other strate)ic enter(rise o+ecti-es
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om(etiti-e $orces and Strate)ies
titi $
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om(etiti-e $orces
If a +usiness ants to succeed must de-e#o(strate)ies to counter these forces:?i-a#ry of com(etitors ithin its industry
Threat of ne entrants into an industry and itsmarets
Threat (osed +y su+stitute (roducts hich mi)htca(ture maret share
Bar)ainin) (oer of customersBar)ainin) (oer of su((#iers
$i titi St t i
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$i-e om(etiti-e Strate)ies
ost !eadershi(Become #ocost (roducers"e#( su((#iers or customers reduce costsIncrease cost to com(etitors=,am(#e7 rice#ine uses on#ine se##er +iddin) so
+uyer sets the (rice
6i/erentiation Strate)y6e-e#o( ays to di/erentiate a 'rmAs (roducts
from its com(etitorsan focus on (articu#ar se)ment or niche of
maret=,am(#e7
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om(etiti-e Strate)ies (cont.)
Inno-ation Strate)y$ind ne ays of doin) +usinessUniCue (roducts or ser-ices@r uniCue marets?adica# chan)es to +usiness (rocesses to a#ter the
fundamenta# structure of an industry=,am(#e7 1maon uses on#ine fu##ser-ice customer
systemsFroth Strate)y=,(and com(anyAs ca(acity to (roduce=,(and into )#o+a# marets6i-ersify into ne (roducts or ser-ices=,am(#e7 a#
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om(etiti-e strate)ies (cont.)
1##iance Strate)y=sta+#ish #ina)es and a##iances ithustomers7 su((#iers7 com(etitors7 consu#tants
and other com(anies
Inc#udes mer)ers7 acCuisitions7 oint -entures7-irtua# com(anies
=,am(#e7 a#
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Usin) these strate)ies
The strate)ies are not mutua##y e,c#usi-e@r)aniations use one7 some or a##
Usin) IT for these strate)ies
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Usin) IT for these strate)ies
@ther com(etiti-e strate)ies
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@ther com(etiti-e strate)ies
!oc in customers and su((#iers1nd #oc out com(etitors
6eter them from sitchin) to com(etitors
Bui#d in sitchin) costs
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@ e co (e e s a e) es(cont.)
Inc#ude IT com(onents in (roducts
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ustomerfocused +usiness
hat is the +usiness -a#ue in +ein) customerfocused%;ee( customers #oya#
1ntici(ate their future needs
?es(ond to customer concerns
ro-ide to(Cua#ity customer ser-ice
$ocus on customer -a#ue
Gua#ity not (rice has +ecome (rimarydeterminant of -a#ue
"o can e (ro-ide customer
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(-a#ue%
Trac indi-idua# (references;ee( u( ith maret trends
Su((#y (roducts7 ser-ices and information
anytime7 anyherero-ide customer ser-ices tai#ored to
indi-idua# needs
Use ustomer ?e#ationshi(
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Internet
*a#ue hain
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*a#ue hain
*ie the 'rm as a chain of +asic acti-ities thatadd -a#ue to its (roducts and ser-ices
1cti-ities are eitherrimary (rocesses direct#y re#ated to
manufacturin) or de#i-erin) (roducts
Su((ort (rocesses he#( su((ort the daytodayrunnin) of the 'rm and indirect#y contri+ute to(roducts or ser-ices
Use the -a#ue chain to hi)h#i)ht herecom(etiti-e strate)ies can +est +e a((#ied toadd the most -a#ue
Usin) IS in the -a#ue chain
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Usin) IS in the -a#ue chain
Business rocess
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?een)ineerin)a##ed B? or ?een)ineerin)$undamenta# rethinin) and radica# redesi)n
@f +usiness (rocesses
To achie-e im(ro-ements in cost7 Cua#ity7 s(eedand ser-ice
otentia# (ay+ac hi)h
?is of fai#ure is a#so hi)h
"o B? di/ers from +usiness
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im(ro-ement
1 crossfunctiona# (rocess
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1 cross functiona# (rocess
?een)ineerin) order mana)ement
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?een)ineerin) order mana)ement
1)i#ity
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1)i#ity
1)i#ity is the a+i#ity of a com(any to (ros(erIn a ra(id#y chan)in)7 continua##y fra)mentin)
F#o+a# maret for hi)hCua#ity7 hi)h(erformance7 customercon')ured (roducts and
ser-ices
1n a)i#e com(any can mae a (ro't ithBroad (roduct ran)es
Short mode# #ifetimes
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$our strate)ies for a)i#ity
1n a)i#e com(any:ro-ides (roducts as so#utions to their
customersA indi-idua# (ro+#ems
oo(erates ith customers7 su((#iers andcom(etitors to +rin) (roducts to maret asCuic#y and coste/ecti-e#y as (ossi+#e
@r)anies so that it thri-es on chan)e and
uncertainty!e-era)es the im(act of its (eo(#e and the
no#ed)e they (ossess
"o IT he#(s a com(any +e a)i#e
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"o IT he#(s a com(any +e a)i#e
*irtua# om(any
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*irtua# om(any
1 -irtua# com(any uses IT to #ineo(#e7
@r)aniations7
1ssets7
1nd ideas
reates interenter(rise information systems to #in customers7 su((#iers7 su+contractors and
com(etitors
1 -irtua# com(any
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1 -irtua# com(any
Strate)ies of -irtua#i
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com(anies
;no#ed)e reation
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)
;no#ed)ecreatin) com(any or #earnin)or)aniationonsistent#y creates ne +usiness no#ed)e
6isseminates it throu)hout the com(any
1nd +ui#ds in the ne no#ed)e into its(roducts and ser-ices
To inds of no#ed)e
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)
=,(#icit no#ed)e6ata7 documents and thin)s ritten don or
stored on com(uters
Tacit no#ed)e The Hhoto no#ed)e hich reside in
orersA minds
1 no#ed)ecreatin) com(any maes such
tacit no#ed)e a-ai#a+#e to others
;no#ed)e issues
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)
hat is the (ro+#em ith or)aniationa#no#ed)e +ein) tacit%
hy are incenti-es to share this no#ed)eneeded%
;no#ed)e mana)ementtechniCues
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techniCues
Source: Adapted from Marc Rosenberg, e-Learning: Strategies for Delivering Knowledge in the Digital Age
(New York: McGraw-Hill !""#$ %&'"&
;no#ed)e mana)ement systems;
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;