Why Do People Need Information?

◦ Individuals - Entertainment and enlightenment

◦ Businesses - Decision making, problem solving and control

Data /Information

Data: raw facts

Information: collection of facts organized in such a way that they have value beyond the facts themselves

Organizing -

Divide the task to activities

Delegating authority

Staffing-

Right person at the right job.

Directing-

Motivating

Communicating

Controlling –

Controlling and planning are the two faces of the same coin

Control ensures that activities are being performed as per plans

MI is required by the managers in decision making

MI refers to the quality of information in terms of

- timeliness

- accuracy

- completeness

- adequate

System

• is a group of interrelated or interacting elements forming a unified whole

- E.g-sun & planets, human body

• is a group of interrelated components working together toward a common goal by accepting inputs & producing outputs in an organized transformation process

A set of elements or components that interact to accomplish goals

Input

Processing mechanism

Feedback

Output

System boundary

System has 3 basic components or functions,

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

e.g-raw material

Processing –involves transformation processes that convert input into output

e.g – mathematical calculation

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

e.g-finished products

Feedback -is about the performance of a system

Control – monitoring & evaluating feedback to determine whether a system is moving toward the achievement of its goals.

The control function then makes necessary adjustments to a system’s input and processing components to ensure that it produces proper output.

e.g – sales executive in allotting the territories

A system does not exist in a vacuum, it exists & functions in an environment containing other systems

Subsystem –A system that is a component of a larger system, where the larger system is its environment.

System boundary –A system is separated from its environment and other systems by its system boundary.

Interface- Several systems may share the same environment. Some of these systems may be connected to one another by means of a shared boundary, or interface.

Information System

A set of interrelated components that collect, manipulate, and disseminate data and information, and provide feedback to meet an objective

Examples: ATMs, airline reservation systems, payroll systems

WHY INFORMATION SYSTEMS?

Three important reasons why IS makes a difference to the success of a business

• Foundation of doing business

• Productivity

• Strategic opportunity and advantage

• 3.Strategic Opportunity and Advantage

• Create competitive advantage: IS makes it possible to develop competitive advantages.

• New Business Models: Dell Computer has built its competitive advantage on an IS enabled build-to-order business model that other firms have not been able to imitate.

• Create new services: eBay.com

• Differentiate yourself from your competitors: Flipkart.com

IMPACT OF IT IN BUSINESS FIRMS

1. Internet growth and technological Convergence

2. Transformation of Business Enterprise

3. Growth of a globally connected economy

4. Growth of knowledge and information-based economies

5. Emergence of the digital firm

IMPACT OF IT IN BUSINESS FIRMS..

2.Transformation of the Business Enterprise

• Flattening

• Decentralization

• Flexibility

• Location independence

• Low transaction and coordination costs

• Collaborative work and teamwork

3. Globalization

• Management and control in a global marketplace

• Competition in world markets

4.Rise of the Information Economy

• Knowledge and information-based economies

• New products and services

6. The Emerging Digital Firm

• Is one in which nearly all of the organization's significant business relationships with customers, suppliers and employees are digitally enabled.

Core business processes are accomplished through digital networks and linking multiple organist ions

• Business processes refer to the set of logically related tasks developed to achieve specific business results

Eg: developing a new product, hiring of employees

Advantages

Sense and respond to their environment far more rapidly than traditional firms

Flexible

In Digital firms, both time shifting and space shifting are the norm

Operational excellence-improves efficiency

Improved decision making-real time information

Competitive advantage

Collaboration

survival

Why Study Information Systems?

improve the efficiency and effectiveness of their business processes,

managerial decision making,

workgroup collaboration, thus strengthening their competitive positions in a rapidly changing marketplace.

Why Study Information Systems

Internet-based systems have become a necessary ingredient for business success in today’s dynamic global environment.

Information technologies are playing an expanding role in business.

Require to survive and prosper

What business wants to do in 5 years often depends on its system

Information Systems vs. Information Technology

Information Systems (IS) – all components and resources necessary to deliver information and information processing functions to the organization

Information Technology (IT) – various hardware components necessary for the system to operate

The information system emphasizes 4 major concepts that can be applied to all types of information systems

*People, hardware, software, data, and networks.

*People resources include end users and IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and network resources include communications media and networks.

*Data resources are transformed by information processing activities into a variety of information products for end users.

*Information processing consists of input, processing, output, storage, and control activities.

People resources-People are required for the operation of all information systems

End users- are people who use an information system or the information it produces.

IS specialists –are people who develop and operate information systems

System analysts-design information systems based on the information requirements of end users.

System developers-create computer programs based on the specifications of systems analysts.

System operators-monitor and operate large computer systems and networks.

Hardware resources-include all physical devices and materials used in information processing.

Machines-physical devices (computers, peripherals, telecommunications networks, etc.)

Media- all tangible objects on which data are recorded (paper, magnetic disks etc.)

Computer system –which consist of central processing units containing microprocessors, and a variety of interconnected peripheral devices

Computer peripherals-which are devices such as a keyboard or electronic mouse for input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources.

Software resources-include all sets of information processing instructions

Program –a set of instructions that causes a computer to perform a particular task

Procedures-set of instructions used by people to complete a task

Examples of software

System software-such as an operating system program, that controls and supports the operations of a computer system.

Application software-are programs that direct processing for a particular use of computers by end users.

Data resources-Data constitutes a valuable organizational resource

Databases - a collection of logically related records or files. A database consolidates many records previously stored in separate files so that a common pool of data records serves many applications.

Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules of inference about various subjects.

Network resources-

Telecommunications networks like the Internet, intranets, and extranets have become essential to the successful electronic business and commerce operations of all types of organizations and their computer-based information systems . Network resources include:

Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and microwave, and satellite wireless systems.

Network support (people, hardware, software, and data resources that directly support the operation and use of a communications network).

Information system activities – information processing(data processing) include the following

Input of Data Resources:

*Data about business transactions and other events must be captured and prepared for processing by the input activity. Input typically takes the form of data entry activities such as recording and editing.

*Once entered, data may be transferred onto a machine-readable medium such as magnetic disk, until needed for processing.

Processing of Data into Information:

Data is typically subjected to processing activities such as calculating, comparing, sorting, classifying, and summarizing. These activities organize, analyze, and manipulate data, thus converting them into information for end users.

A continual process of correcting and updating activities must maintain quality of data stored in an information system.

IS support an organization's

• Business processes & operations-involves dealing with information systems that support the business processes and operations in a business.

E.g-customer purchases, keep track of inventory, sales trend

• Decision making by employees & managers-help decision makers to make better decisions and attempt to gain a competitive advantage.

e.g-what kind of merchandise need to be added or discontinued

• Strategies for competitive advantage-help decision makers to gain a strategic advantage over competitors requires innovative use of information technology.

e.g-store manager might take a decision to install touch screen kiosks, on line shopping

e-business is defined as the use of Internet technologies to work and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.

Enterprise collaboration systems. Involve the use of software tools to support communication, coordination, and collaboration among the members of networked teams and workgroups. An internetworked e-business enterprise depends on intranets, the Internet, extranets, and other networks to implement such systems.

Electronic commerce is the buying and selling, and marketing and servicing of products, services, and information over a variety of computer networks. An internetworked e-business enterprise uses the Internet, intranets, extranets, and other networks to support every step of the commercial process.

MANAGERIAL CHALLENGES OF INFORMATION TECHNOLOGY

• Should not be measured only in terms of its efficiency – minimizing the cost & time -----------

• Success should be measured in terms of effectiveness, in supporting the business strategy

• Mismanagement and misapplication of IS

A MIS is

• An integrated user machine system

• For providing information

• To support the operations, management, analysis,& decision making functions

• In an organization

The system utilizes

• Computer hardware & software

• Manual procedures

• Models for analysis, planning & control& decision making

• A database

MIS is the

marriage

Management information and system

MIS provide,

MI required by the managers in decision making

MI refers to the quality of information in terms of

- timeliness

- accuracy

- completeness

- adequate

Functions of MIS

Data capturing

Processing of data

Storage of information

Retrieval of information

Dissemination of MI

Jefferson State University

People – students

Hardware – computer system & printer

Software-word processing & networked operating system

Data – case (text)

Output – final document

Input – system accepts input in the form of data entered by students

Processing – word processing software processes this input (text) & represents in the form of report for storage or for printing

Output – a copy of the document saved on disk, display the same on the screen or printed.

Storage – on disk drive & secondary memory

Control – warning message