Chap001 and Chap002 for QUIZ

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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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    ;