Introduction to Information Systems - Chapter 1

Chapter 1 Introduction to Information Systems Major subjects 1. Why Should I Study Information Systems? 2. MIS & IT Jobs 3. Data vs Information vs (knowledge) 4. Types of Information Systems 5. How Does IT Impact Organizations? 6. Importance of Information Systems to Society...

Chapter 1 Introduction to Information Systems Major subjects 1. Why Should I Study Information Systems? 2. MIS & IT Jobs 3. Data vs Information vs (knowledge) 4. Types of Information Systems 5. How Does IT Impact Organizations? 6. Importance of Information Systems to Society 2 1.1 Why Should I Study Information Systems? The Informed User—You! IT Offers Career Opportunities Managing Information Resources The Informed User—You! 1.You benefit more when you understand what is “behind” IT applications 2.You can provide valuable input 3.You can recommend and help select IT applications 4.You will be aware of new technology 5.You understand how IT improves performance 6.Understanding IT is beneficial to entrepreneurs IT Offers Career Opportunities IT is vital to modern business, providing many lucrative career opportunities: o Programmers, business analysts, systems analysts, and designers o Chief information officer (CIO)—executive in charge of the IS function o Career opportunities will remain strong in the future IT Offers Career Opportunities 6 Top Job Rankings: U.S. News & World Report U.S. News & World Report (out of 100) #1 Information Security Analysis #5 Software Developer #6 Data Scientist #11 IT Manager #27 Computer Systems Analyst #32 Web Developer #38 Database Administrator #48 Computer Network Architect #52 Computer System Administrator #68 Computer Support Specialist Top Job Rankings: Glassdoor Glassdoor (out of 50) #1 User Interface Designer #26 Business Analyst #2 Java Developer #27 Systems Engineer #3 Data Scientist #29 Scrum Master #4 Product Manager #32 Software Developer #5 DevOps Engineer #33 Cloud Engineer #6 Data Engineer #46 Automation Engineer #7 Software Engineer #49 Network Engineer #18 Applications Engineer Top Job Rankings: Median Starting Salary Managing Information Resources Managing Information Resources is difficult and complex because: IS has an enormous strategic value to organizations IS’s are very expensive to acquire, operate, and maintain Evolution of the MIS function within the organization MIS personnel vs. end users Changing Role of the IS Department Traditional Function of the MIS Department New (Consultative) Functions of the MIS Department 10 Figure 1.1 MIS provides what users see on their computer screens. 11 Traditional Function of the MIS Department Managing systems development and systems project management Managing computer operations Staffing, training, and developing IS skills Providing technical services Infrastructure planning, development, and control Maintenance 12 New (Consultative) Functions of the MIS Department Initiating and designing specific strategic IS Incorporating the Internet and e-commerce into the business Managing system integration including Internet, Intranets, and Extranets Educating the non-MIS staff about IT Educating the MIS staff about the business Partnering with business-unit executives Managing outsourcing Proactively using business and technical knowledge to seed innovative IT ideas Creating business alliances with business partners 13 1.2 Overview of Computer-Based Information Systems The basic components of computer-based information systems are listed below (the first four are called information technology components)  Hardware  Software  Database  Network  Procedures  People 14  Data and Information Figure 1.3 Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. FIGURE 1.2 Data, Information, and Knowledge. 16  The Interdependence Between Organizations and Information Technology In contemporary systems, there is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do. Major Capabilities of Information Systems Perform high-speed, high-volume numerical computations. Provide fast, accurate communication and collaboration within and among organizations. Store huge amounts of information in an easy-to-access, yet small space. Allow quick and inexpensive access to vast amounts of information, worldwide. Interpret vast amounts of data quickly and efficiently. Automate both semiautomatic business processes and manual tasks. 18 Types of Computer-Based Information Systems 19 Types of Computer-Based Information Systems Breadth of support of ISs Support for organizational employees Breadth of Support of Information Systems: FAIS Functional Area Information Systems (FAISs) o Accounting o Finance o Production & operations management o Marketing o HR  Breadth of Support of Information Systems: ERP and TPS Two information systems support the entire organization: o Enterprise resource planning (ERP) Systems Provide communication among functional area ISs o Transaction processing systems (TPS) Support the “real time” monitoring, collection, storage, and processing of data from the organization’s day-to-day operations Breadth of Support of Information Systems IOS Interorganizational information systems (IOS) o Supports many interorganizational operations o Examples of IOS: Supply chain management (SCM) Electronic commerce (e-commerce) systems Support for Organizational Employees Clerical workers Knowledge workers Functional area information systems Business analytics (BA) or business intelligence (BI) Expert systems (ES) Dashboards (aka digital dashboards)  cronym IS (Executive Information Systems) DSS (Decision Support Systems) MIS (Management Information Systems) PS (Transaction Processing Systems) S (Expert Systems) I (Artificial Intelligence) A/BI (Business Analytics/Business Intelligence) RP (Enterprise Resource Planning) Systems MS(Knowledge Management Systems) CM(Supply Chain Management) RM(Customer Relationship Management)  Functional Area Information Systems (FAIS) Accounting Finance Production & Operations Management Marketing HR 26 FIGURE 1.5 IS that function among multiple orgs 27  FIGURE 1.4 Types of Organizational ISs Type of System Function Example Transaction processing Processes transaction data from terminal Walmart checkout point-of sale business system events Enterprise resource Integrates all functional areas of the Oracle, SAP system Microsoft Office planning organization. Functional area IS Supports the activities within specific System for processing payroll functional area. Decision support system Provides access to data and analysis tools. “What-if” analysis of changes in budget Expert system Mimics human expert in a particular area Credit card approval analysis and makes decisions. Executive dashboard Presents structured, summarized information about Status of sales by product aspects of business important to executives. Supply chain management Manages flows of products, services, and Walmart Retail Link system connecting system information among organizations. suppliers to Walmart Electronic commerce Enables transactions among organizations and between www.dell.com system organizations and customers. 28 1.3 How Does IT Impact Organizations? IT Impacts Entire Industries IT Reduces the Number of Middle Managers IT Changes the Manager’s Job Will IT Eliminate Jobs? IT Impacts Employees at Work 29 How Does IT Impact Organizations? Examples Book Industry Music Industry Video Industry Software Industry Videogame Industry Marketing Industry Recruiting Industry Financial Services Industry Motion Picture Industry DreamWorks Animation Automobile Industry Agriculture Industry Fashion Industry Education Legal Profession 30 IT Reduces the Number of Middle Managers IT makes middle managers more productive. Consequently, IT reduces the number of middle managers required. IT Changes the Manager’s Job Decision making is the most important managerial task IT changes the way managers make decisions IT provides near-real-time information Managers have less time to make decisions IT provides tools for analysis to assist in decision making 31 Will IT Eliminate Jobs? The competitive advantage of replacing people with IT & machines is increasing rapidly Increasing the use of IT in business also: Creates new job categories Requires more employees with IT knowledge and skills 32 IT Impacts Employees at Work IT Impacts Employees’ Health & Safety Job Stress Long-term use of the keyboard & mouse IT Provides Opportunities for People with Disabilities Speech-recognition for employees unable to type due to physical impairment Audible screen tips for employees who are visually impaired 33 FIGURE 1.6 Ergonomic products protect computer users. 34 1.4 Importance of Information Systems to Society IT Affects Our Quality of Life The Robot Revolution Is Here Now IT Impacts Healthcare 35 IT Affects Our Quality of Life IT has changed the way we work Smartphones provide constant access to text, email, and voice communications The lines between time at work and leisure time at home have become blurred Surveys indicate employees take laptops and smartphones on vacation 36 The Robot Revolution is Here Now Baxter LoweBots Walmart shopping cart robots Drones Autonomous Vehicles Alibaba’s keyless and cashless hotel is straight out of the future https://www.youtube.com/watch?v=rnGpSZmj-cA 37 IT Impacts Healthcare IT used in Healthcare to: Make better/faster diagnoses Streamline the process of researching & developing new drugs To enhance the work of radiologists Allow surgeons to use virtual reality to plan complex surgeries & use robots to remotely perform surgery The Emergence of Cognitive Computing: IBM Watson 38