Information Systems in Business PDF

Information Systems in Business Bidgoli, MIS, 10 th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or or posted posted to atopublicly a publicly accessible accessible website,...

Information Systems in Business Bidgoli, MIS, 10 th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or or posted posted to atopublicly a publicly accessible accessible website, website, in whole in whole or part. or in in part.  Learning Objectives (1 of 2) Discuss common applications of computers and information systems Explain the differences between computer literacy and information literacy Define transaction-processing systems Define management information systems Describe the four major components of an information system Discuss the differences between data and information 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.  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 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.  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 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.  Computer Literacy and Information Literacy (1 of 2) Computer literacy Skill in using productivity software, as well as having a basic knowledge of hardware and software, the Internet, and collaboration tools and technologies Software examples: word processors, spreadsheets, database management systems, and presentation software 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.  Computer Literacy and Information Literacy (2 of 2) Information literacy: understanding the role of information in generating and using Business Intelligence (BI) BI provides historical, current, and predictive views of business operations and environments and gives organizations a competitive advantage in the marketplace 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.  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 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.  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 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.  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 and public sectors 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.  Exhibit 1.3 Major Components of an Information System 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: sales and personnel records External: customers, competitors, suppliers, government agencies, financial institutions, labor and population statistics, as well as economic conditions 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 (2 of 2) Has a time orientation Past data: performance reports Current data: operational reports Future data: 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 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.  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 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.  Process Generates 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 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.  Information (1 of 3) 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 Consistency and accuracy Relevance 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.  Information (2 of 3) Needs to provide either a base for users to explore different options or insight into tasks Usefulness is affected by the information system’s user interface Graphical user interfaces (GUIs) are used because they are flexible and easy 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.  Information (3 of 3) 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 Users also need to be able to make use of informal information when solving problems Rumors Unconfirmed reports Stories 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.  Examples of Information Systems (1 of 2) A university database collects data including student names, ages, genders, majors, and nationalities. The query feature in a university DBMS can generate information such as: Number of students in each major Which major is growing the fastest Average age of the student body Which country is home to the most international students Ratio of male to female students Forecasting models can be used to estimate the fastest growing major and help with decisions on faculty hiring and facilities planning. 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.  Examples of Information Systems (2 of 2) A textile company can use a database to store data on products, suppliers, sales personnel, and costs. The information system’s process component analyzes the data to provide information such as: Which salesperson generated the highest sales Which product generated the highest (or lowest) sales Which region generated the highest sales Forecasting models can help predict the next sales period Information can be used to allocate advertising budgets to products or regions 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.  Using Information Systems and Information Technologies Information technologies The Internet Computer networks Database systems Point-of-sale (POS) systems Radio-frequency-identification (RFID) tags 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.  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, and money 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.  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 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.  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 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.  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 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.  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 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.  Using Information Technologies for a Competitive Advantage (1 of 3) Michael Porter: three strategies for successfully competing in the marketplace Overall cost leadership Differentiation Focus 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.  Using Information Technologies for a Competitive Advantage (2 of 3) Information systems Help organizations reduce the cost of products and services Help bottom-line and top-line strategies Use enterprise systems to create an efficient and effective link between suppliers and consumers 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.  Using Information Technologies for a Competitive Advantage (3 of 3) Differentiation strategies Making products and services different from competitors Focus strategies Focusing on specific market segments to achieve a cost or differentiation advantage 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.  Porter’s Five Forces Model: Understanding the Business Environment (1 of 3) Analyzes a firm’s position in the marketplace and how information systems can make it more competitive Five forces Buyer power Supplier power Threat of substitute products or services Threat of new entrants Rivalry among existing competitors 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. Exhibit 1.4: The Five Forces Model 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.  Porter’s Five Forces Model (2 of 3) Buyer power High when customers have many choices and low when customers have few choices Supplier power High when customers have fewer options and low when customers have more options Threat of substitute products or services High when many alternatives to an organization’s products and services are available 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.  Porter’s Five Forces Model (3 of 3) 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 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.  The IT Job Market (1 of 6) Categories of IT jobs Operations and help desk Programming Systems design Web design and Web hosting Network design and maintenance Database design and maintenance Robotics and artificial intelligence 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.  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 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.  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 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.  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 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.  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 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.  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 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.  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 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.  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 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.  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 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.  Summary (1 of 3) Computers and information systems are used to reduce costs and gain a competitive advantage in the marketplace Information systems are designed to collect data, process it, and deliver timely, relevant, and useful information for making decisions Four major components of an information system: Data, database, process, information 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.  Summary (2 of 3) Porter’s Five Forces Model Buyer power high when customers have many options Supplier power high when customers have fewer options Threat of substitute products or services high when alternatives are available Threat of new entrants low when duplicating a product or service is difficult Rivalry among competitors high when they occupy the same marketplace position 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.  Summary (3 of 3) IT jobs fall into these broad categories: Operations and help desk Programming Systems design Web design and Web hosting Network design and maintenance Database design and maintenance Robotics and artificial intelligence 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.