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Strategic Business Objectives of Information Systems

• Operational excellence
• New products, services, and business models
• Customer and supplier intimacy
• Improved decision-making
• Competitive advantage
• Survival

Systems for Different Management Groups

• Transaction processing systems
• Serve operational managers and staff
• Perform and record daily routine transactions

Management Information Systems

• Serve middle management
• Provide reports on firm's current performance
• Based on data from transaction processing systems (TPS)

Decision Support Systems

• Serve middle management
• Support non-routine decision making

Executive Support Systems

• Support senior management
• Address non-routine decisions

E-Business, E-Commerce, and E-Government

• E-business: Use of digital technology and internet to drive major business processes
• E-commerce: Subset of e-business; buying and selling through internet
• E-government: Using internet technology to drive information and services to citizens, employees, and businesses

Relationship Between Organizations and Information Technology

• Relationship influenced by organizational structure, business processes, politics, culture, and environment
• Management decisions

Porter's Competitive Forces Model

• Five competitive forces shape the firm's fate:
  • Traditional competitors
  • New market entrants
  • Substitute products and services
  • Customers
  • Suppliers

Information System Strategies for Dealing with Competitive Forces

• Four generic strategies for dealing with competitive forces, enabled by using Information Technology:
  • Low-cost leadership
  • Product differentiation
  • Focus on market niche
  • Strengthen customer and supplier intimacy

Information Requirements of Key Decision-Making Groups in a Firm

• Decision Characteristics:
  • Unstructured
  • Semi-structured
  • Structured
• Examples of Decisions
  • Senior Management: Decision on market entry/exit, approving budgets, long-term goals
  • Middle Management: Developing marketing plans, developing departmental budgets, designing corporate websites.
  • Operational Management: Determining overtime, restocking inventory , offering credit to customers.
  • Individual Employees and Teams: Determining overtime eligibility , restocking inventory etc..

The Decision Making Process

• Intelligence: Discovering, identifying, and understanding problems in the organization
• Design: Identifying and exploring solutions to the problem
• Choice: Choosing among the solution alternatives
• Implementation: Making the chosen alternative work and monitoring its success

Information Systems Concepts

• Big data: Massive datasets collected from social media, online, and in-store customer data.
• Businesses: Collections of business processes.
• Information technology: Hardware and software used to achieve business objectives.
• Information system: Interrelated components for managing information
• Data: Streams of raw facts.
• Information: Data shaped into a meaningful form
• Activities in an information system: Input, processing, output
• Feedback: Output returned to the organization for evaluation.
• Operational managers and rank-and-file employees: Make structured decisions (TPS routine)
• Intelligence: Discovering, identifying, and understanding problems.
• Choice: Choosing solutions.
• Implementation: Making choices work and monitoring progress.
• Goal: Providing accurate real-time information to decision-makers

Systems for Business Intelligence

• Data and software tools for data organizing and analyzing.

E-business, E-Commerce, and E-Government

• E-business: Use of digital technology and the internet for major business processes.
• E-commerce: Subset of e-business; buying and selling through the internet
• E-government: Using the internet to provide information and services.

Social Business

• Using social networking platforms to engage employees, customers, and suppliers.

What is an Organization?

• Technical definition
• Behavioral definition

Customers and Suppliers

• Customers: Can customers easily switch to competitors' products or services?
• Suppliers: Market power of suppliers when the firm cannot raise prices quickly.

Data Management

• Database: Group of related files
• File: Group of records
• Record: Group of related fields
• Field: Group of words or numbers
• Entity: Person, place, thing stored
• Attribute: Characteristics describing an entity
• Database management system (DBMS): Interfaces between applications and physical data files, separates logical and physical data views.

Other Concepts

• Blockchain: Distributed ledgers in a peer-to-peer distributed database

• Big data: Massive datasets (unstructured/semi-structured) from various sources (e.g., web traffic, social media, sensors)

• Data warehouse: Stores current and historical data from many core operational transaction systems.

• Data marts: Subset of data warehouses, focusing on one area/business

• Data mining: Finding patterns in data sets

• Text mining: Extracting key elements from large unstructured data sets

• Web mining: Analyzing web data for useful patterns.