Mis 11th Edition Module 1 PDF

Module 1 Information Systems in Business Bidgoli, MIS, 11th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Learning Objectives (1 of 2) Discuss common...

Module 1 Information Systems in Business Bidgoli, MIS, 11th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Learning Objectives (1 of 2) Discuss common applications of computers and information systems Describe the four major components of an information system Discuss the differences between data and information Explain the differences between computer literacy and information literacy Define transaction-processing systems Define management information systems 2  Learning Objectives (2 of 2) Explain the importance and applications of information systems in functional areas of a business Analyze how information technologies are used to gain a competitive advantage Apply the Five Forces Model and strategies for gaining a competitive advantage Review the IT job market Summarize the future outlook of information systems 3  Computers and Information Systems in Daily Life Many uses Reduce costs Gain a competitive advantage in the marketplace Online classes Grocery and retail stores Telecommuting Social networking Video sharing 4  A New Era of Marketing: YouTube YouTube is a popular video sharing service that can be used as a marketing tool. Corporations can use it to promote their products and services: HK PolyU (http://youtube.com/HongKongPolyU) Different YouTube channels which include video HKPolyU YouTube testimonials, reviews, and documents that promote the channel university’s programs IKEA (http://youtube.com/IKEAHongKong) Free content including commercial ads, practical knowledge and money-saving tips for home IKEA HK YouTube improvements channel 5  Exhibit 1.3 Major Components of an Information System In addition to hardware, software, and human elements, an I.S. includes four major components as below: Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Data (1 of 2) Data component of an information system Considered the input to the system Sources of data Internal (e.g. sales and personnel records) External (e.g. customers, competitors, suppliers, government agencies, financial institutions, labor and population statistics, as well as economic conditions) 7  Data (2 of 2) Has a time orientation Past data (e.g. performance reports) Current data (e.g. operational reports) Future data (e.g. predicted for budgets or cash flow reports) Can be collected in different forms Disaggregated data: helps analyze sales by product, territory, or salesperson Aggregated data: useful for reporting overall performance during a sales quarter 8  Database Collection of relevant data organized in a series of integrated files Essential for the success of any information system Database management system (DBMS) Used to create, organize, and manage databases Reduces personnel time needed to gather, process, and interpret data manually 9  Process Generates1 the most useful type of information for making decisions Transaction-processing reports Models for decision analysis that can be built into the system or accessed from external sources 1. By means of calculation, grouping and ordering 10  Information (1 of 2) Consists of facts analyzed by the process component and is an output of an information system Usefulness qualities Timeliness Integration with other data and information Relevance Consistency and accuracy 11  Information (2 of 2) Usefulness is affected by the information system’s user interface Graphical user interfaces (GUIs) are used because they are flexible and easy Systems should produce information in different formats, including graphics, tables, and exception reports Increases likelihood of users understanding and being able to use the information 12  Examples of Information Systems Example 1: HKCC Stores all student records in databases Built-in query capability (e.g. search the overall GPA of a student) Other types of analysis can be done Example 2: PARKnSHOP Database stores data on products, suppliers, sales personnel, costs Process components Forecasting models 13  Using Information Systems and Information Technologies Information technologies The Internet Computer networks Database systems Point-of-sale (POS) systems Radio-frequency-identification (RFID) tags Information technologies act like specialized tools to fulfill one’s particular information needs such as inputting, processing, outputting, storing or communicating. 14 Computer Literacy and Information Literacy (1 of 2) Computer literacy Having a basic knowledge of hardware and software, the Internet, and collaboration tools and technologies Having skills in using productivity software (e.g. word processors, spreadsheets, etc.) Information literacy Understanding the role of information in generating and using business intelligence 15 Computer Literacy and Information Literacy (2 of 2) Business Intelligence (BI) provides historical, current, and predictive views of business operations and environments gives organizations a competitive advantage in the marketplace 16  The Beginning: Transaction-Processing Systems Transaction-processing systems (TPSs) Focus on data collection and processing Used for cost reduction Applied to structured tasks (e.g., record keeping, simple clerical operations, and inventory control) Require minimal human involvement when automated 17  Management Information Systems (1 of 2) Management information system (MIS) Organized integration of hardware and software technologies, data, processes, and human elements Designed to produce timely, integrated, relevant, accurate, and useful information for decision-making 18  Management Information Systems (2 of 2) Tasks in designing an MIS Define the system’s objectives Collect and analyze data Provide information in a useful format for decision-making purposes MIS applications Used in both private (e.g. forecast sales volume for the next fiscal period) and public sectors (e.g. provide crime statistics, crime forecasts for police department) 19  The Importance of Information Systems (1 of 5) Timely, relevant, and accurate information is a critical tool Enhance a company’s competitive position in the marketplace Manage the four Ms of resources Manpower Machinery Materials Money 20  The Importance of Information Systems (2 of 5) Personnel information system (PIS) or human resource information system (HRIS) Designed to provide information that helps decision makers in personnel carry out tasks effectively Logistics information system (LIS) Designed to reduce the cost of transporting materials while maintaining safe and reliable delivery 21  The Importance of Information Systems (3 of 5) Manufacturing information system (MFIS) Used to manage manufacturing resources Reduce manufacturing costs Increase product quality Improve inventory decisions 22  The Importance of Information Systems (4 of 5) Financial information system (FIS) Used to provide information to financial executives in a timely manner Marketing information system (MKIS) Used to improve marketing decisions Provides timely, accurate, and integrated information about the marketing mix Price, promotion, place, and product 23  The Importance of Information Systems (5 of 5) Marketing technology tools Business, Web, and mobile analytics E-mail marketing Search engine marketing Mobile technologies Marketing automation 24  Using Information Technologies for a Competitive Advantage (1 of 4) Michael Porter: three strategies for successfully competing in the marketplace Overall cost leadership Differentiation Focus 25  Using Information Technologies for a Competitive Advantage (2 of 4) Overall cost leadership Use IS to help organizations reduce the cost of products and services Help bottom-line and top-line strategies Bottom-line strategy → improving efficiency by reducing overall costs Top-line strategy → generating new revenue by offering new products and services to customers, or increasing revenue by selling existing products and services to new customers Use enterprise systems to create an efficient and effective link between suppliers and consumers 26  Using Information Technologies for a Competitive Advantage (3 of 4) Differentiation strategies Making products and services different from competitors Examples: Apple ▶ → designing computers to look much different from PCs & focusing on ease of use Amazon.com ▶ → using personalization technologies to recommend products to customers based on their previous purchases ▶ → using one-click system for fast checkout Video about Personalization 27  Using Information Technologies for a Competitive Advantage (4 of 4) Focus strategies Focusing on specific market segments to achieve a cost or differentiation advantage Example: Blackberry ▶ targets top management users in most multinational companies Apple ▶ market Mac computers to creative professionals 28  Porter’s Five Forces Model: Understanding the Business Environment (1 of 4) Analyzes a firm’s position in the marketplace and how information systems can make it more competitive ➔ The Five Forces Model 29  Porter’s Five Forces Model (2 of 4) Buyer power High when customers have many choices and low when customers have few choices Limit buyers’ choices by offering services that make it difficult for customers to switch (i.e. differentiation strategy) Supplier power High when customers have fewer options and low when customers have more options Use information systems to make their products and services cheaper or offer more services to distinguish themselves from competitors 30  Porter’s Five Forces Model (3 of 4) Threat of substitute products or services High when many alternatives to an organization’s products and services are available Add services to make organization more distinct Add fees to discourage customers from switching to a competitor 31  Porter’s Five Forces Model (4 of 4) Threat of new entrants Low when duplicating a company’s product or service is difficult Focus strategies are used to ensure that the threat remains low Rivalry among existing competitors High when competitors occupy the same marketplace position Low when there are few competitors 32  The IT Job Market (1 of 6) Categories of IT jobs Operations and help desk Network design and maintenance Database design and maintenance Programming Systems design Web design and Web hosting Robotics and artificial intelligence 33  The IT Job Market (2 of 6) Chief technology officer (CTO)/chief information officer (CIO) Oversees long-range planning and monitors new developments that can affect a company’s success Chief privacy officer (CPO) Responsible for managing the risks and business impacts of privacy laws and policies 34  The IT Job Market (3 of 6) Manager of information systems services Responsible for managing hardware, software, and personnel in the information systems department Systems analyst Responsible for the design and implementation of information systems Should have a thorough understanding of business systems and functional areas within a business organization 35  The IT Job Market (4 of 6) Network administrator Oversees a company’s internal and external network systems Provides network and cybersecurity Database administrator (DBA) Responsible for database design and implementation Required to have knowledge and understanding of data warehouses and data-mining tools 36  The IT Job Market (5 of 6) Computer programmer Writes programs or software segments that allow the information system to perform a specific task Webmaster Designs and maintain the organization’s Web site Have been in high demand owing to the popularity of e-commerce applications 37  The IT Job Market (6 of 6) IT-related jobs created in recent years include: Data scientist Social media/online-community manager Social media architect Telework manager or coordinator Search engine optimization specialist Business architect Mobile technology expert Enterprise mobile developer Cloud architect 38  Outlook for the Future (1 of 3) Predictions for the future Hardware and software costs will decline Artificial intelligence and related technologies will improve and expand Computer literacy of users will improve Networking technology will improve Personal computers will improve in power and quality More affordable, easier to maintain 39  Outlook for the Future (2 of 3) Internet growth will continue Place small and large organizations on the same footing Make e-collaboration easier Computer criminals will become more sophisticated Protecting personal information will become more difficult 40  Outlook for the Future (3 of 3) Some trends that should continue Ubiquitous computing and the Internet of Things (IoT) 3D and 4D printing Pervasive analytics, context-aware computing Smart machines and devices Cloud computing Software-defined applications and infrastructures Security 41  Summary After studying this chapter, can you answer these three key questions? How does information system(IS) differ from information technology(IT)? How can information system(IS) gain competitive advantage(CA) for companies? What are the future outlooks of information technology? 42  Key Terms Data Transaction Processing System (TPS) Disaggregated Data Management Information System (MIS) Aggregated Data Personnel Information System (PIS) Database Logistic Information System (LIS) Process Manufacturing Information System (MFIS) Information Financial Information System (FIS) Graphical User Interface (GUI) Marketing Information System (MKIS) Computer Literacy Chief Information Officer (CIO) Information Literacy Chief Privacy Officer (CPO) Business Intelligence Computer Criminals 43  Key Concepts Usefulness qualities of information are timeliness, integration with other data and information, relevance, together with consistency and accuracy. Overall cost leadership is to use IS to help organizations reduce the cost of products and services. Differentiation strategies are making products and services different from competitors Focus strategies are focusing on specific market segments to achieve a cost or differentiation advantage Porter’s Five Forces Model analyzes a firm’s position in the marketplace and how information systems can make it more competitive 44  Reviewed Exercise 1. In addition to hardware, software, and human elements, an information system includes ________, database, ________ and information. A. data, company B. company, process C. process, data D. knowledge, intelligence 2. Operation reports are examples of A. current data. B. past data. C. future data. D. uncertain data. 3. The four usefulness qualities of information bearing the highest concern in a company include ________, integration with other data and information, ________ and consistency and accuracy. A. variability, authority B. reasonableness, predictability C. responsibility, correspondence D. timeliness, relevance 4. Which one of the following related to business intelligence usage and generation? A. Information literacy. B. Computer literacy. C. Staff numeracy. D. Company flexibility. 45 Reviewed Exercise 46