Good Morning! APR2101 Business Information & Communication 2 - - PowerPoint PPT Presentation

APR2101 Business Information & Communication 2 March 2017

Good Morning!

Digital Natives vs. Digital Immigrants

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Information Systems (IS)

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

• bjective

Examples: ATMs, airline reservation systems, RU‐MIS

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Data, Information, and Knowledge

• Data: raw facts
• Information: collection of facts organized in

such a way that they have value beyond the facts themselves

• Knowledge: awareness and understanding of

a set of information and ways that information can be made useful to support a specific task

• r reach a decision

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Data, Information, and Knowledge

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Data, Information, and Knowledge

Data, Information, and Knowledge

Data Transformation Process Information

Applying knowledge by selecting, organizing and manipulating data

The Value of Information

• If information is not accurate or complete,

people can make poor decisions, costing thousands, or even millions, of dollars

• Information can be of little value to the
• rganization if not relevant, not delivered to

decision makers in a timely fashion, or too complex to understand

The Value of Information

• Valuable information

– Can help people and their organizations perform tasks more efficiently and effectively – Can help managers decide whether to invest in additional information systems and technology

• Depending on the type of data you need:

– Some characteristics become more important than others

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The Value of Information

• Directly linked to how it helps decision makers

achieve their organization’s goals

• For example, value of information might be

measured in:

– Time required to make a decision – Increased profits to company

System

• System:

– Set of elements or components that interact to accomplish goals

• Components of any system:

– Inputs – Processing mechanisms – Outputs – Feedback

System

System Performance and Standards

• Efficiency: measure of what is produced

divided by what is consumed

• Effectiveness: extent to which system attains

its goals

• System performance standard: a specific
• bjective of the system

Information Systems

• Information system (IS) is a set of interrelated

elements that:

– Collect (input) – Manipulate (process) – Store – Disseminate (output) data and information – Provide a corrective reaction (feedback mechanism) to meet an objective

Information Systems

Input, Processing, Output, Feedback

• Input:

– Activity of gathering and capturing raw data

• Processing:

– Converting data into useful outputs

• Output:

– Production of useful information, usually in the form of documents and reports

• Feedback:

– Information from the system that is used to make changes to input or processing activities

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Manual vs. Computerized IS

An information system can be:

– Manual – Computerized

Computer‐Based Information Systems

• Single set of hardware, software, databases,

telecommunications, people, and procedures: – That are configured to collect, manipulate, store, and process data into information

• Increasingly, companies are incorporating CBIS into their

products and services – CBIS integrated into BMW vehicles to determine if something is wrong with car, recommend needed repair work, check on available parts to make repair, and schedule service appointment with the dealer

Computer‐Based Information Systems

CBIS (continued)

• Hardware:

– Consists of computer equipment used to perform input, processing, storage, and output activities

• Software:

– Consists of the computer programs that govern the operation of the computer

• Database:

– Organized collection of facts and information, typically consisting of two or more related data files

CBIS (continued)

• Telecommunications

– The electronic transmission of signals for communications

• Networks

– Connect computers and equipment to enable electronic communication

• Internet

– World’s largest computer network, consisting

• f thousands of interconnected networks, all

freely exchanging information

CBIS (continued)

• Web

– Network of links on the Internet to documents containing text, graphics, video, and sound (‘multimedia’)

• Intranet:

– Internal network that allows people within an organization to exchange information and work on projects

• Extranet:

– Network based on Web technologies that allows selected

• utsiders, such as business partners and customers, to

access authorized resources of a company’s intranet

CBIS (continued)

• People:

– The most important element in most computer‐ based information systems

• Procedures:

– Include strategies, policies, methods, and rules for using the CBIS

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Business Information Systems

• Most common types of information systems:

– Those designed for electronic and mobile commerce, transaction processing, management information, and decision support

• Some organizations employ:

– Special‐purpose systems, such as virtual reality, that not every organization uses

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Business Information Systems

IS in Functional Areas of Business

• Finance and accounting
• Sales and marketing
• Manufacturing
• Human resource management
• Legal information systems

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Business Information Systems

Information Systems in Industry

• Airline industry, Transportation industry
• Investment firms, banks
• Publishing companies
• Healthcare organizations
• Retail companies
• Power management and utility companies
• Professional services

Electronic and Mobile Commerce

• E‐commerce:

– Any business transaction executed electronically between:

• Companies (business‐to‐business, B2B)
• Companies and consumers (business‐to‐consumer,

B2C)

• Consumers and other consumers (consumer‐to‐

consumer, C2C)

• Business and the public sector
• Consumers and the public sector

Electronic and Mobile Commerce

• Mobile commerce (m‐commerce):

– The use of mobile, wireless devices to place orders and conduct business

• E‐procurement

– Use of information systems and the Internet to acquire parts and supplies

• E‐commerce:

– Offers many advantages for streamlining work activities

• Electronic business (e‐business):

– Uses information systems and the Internet to perform all business‐related tasks and functions

Electronic and Mobile Commerce

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Enterprise Systems: TPS and ERP

• Transaction: any business‐related exchange,

such as payments to employees, sales to customers, and payments to suppliers

• Transaction processing system (TPS): an
• rganized collection of people, procedures,

software, databases, and devices used to record completed business transactions

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Enterprise Systems: TPS and ERP

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Enterprise Resource Planning Systems

• Enterprise resource planning:

– Set of integrated programs that:

• Manages the vital business operations for an entire

multisite, global organization

– Most ERP systems provide integrated software to support manufacturing and finance

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Information and Decision Support Systems

• Management information systems (MIS):

– Organized collection of people, procedures, software, databases, and devices that:

• Provides routine information to managers and decision

makers

• Focuses on operational efficiency
• Provide standard reports generated with data and

information from the TPS or ERP

Information and Decision Support

Information and Decision Support

• Decision support system (DSS):

– Organized collection of people, procedures, software, databases, and devices that support problem‐specific decision making – Focus is on making effective decisions – Used when problem is complex and information needed to determine appropriate action is difficult to obtain

Information and Decision Support

Specialised Information Systems

• Knowledge Management Systems (KMS)
• Artificial Intelligence (AI)
• Expert Systems
• Virtual Reality (VR)

Specialised Information Systems

• Knowledge management systems (KMSs):

an organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience

• Artificial intelligence (AI):

field in which the computer system takes

• n the characteristics of human

intelligence

Artificial Intelligence

Problem Solving Decision Making

Systems Investigation and Analysis

• Systems investigation

– Goal is to gain understanding of the problem to be solved or opportunity to be addressed

• Systems analysis

– Defines problems and opportunities of the existing system

Systems Design, Implementation, and Maintenance and Review

• Systems design

– Determines how the new system will work to meet the business needs defined during systems analysis

• Systems implementation

– Creating or acquiring the system components defined in the design step, assembling them, and putting the new system into operation

• Systems maintenance and review

– Checking and modifying the system so that it continues to meet changing business needs

IS in Society, Business, and Industry

• Information systems:

– Have been developed to meet the needs of all types of organizations and people – Speed and widespread use opens users to a variety of threats from unethical people

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Security, Privacy, and Ethical Issues in Information Systems and the Internet

• Computer‐related mistakes and waste are a concern
• Ethical issues concern what is generally considered

right or wrong

• Individual privacy an important social issue

– Personal information can be inadvertently disclosed, lost or stolen – Many Internet sites collect personal and financial information

• Social networks can cause problems in

the workplace

Security, Privacy, and Ethical Issues in Information Systems and the Internet

• To protect against threats to your privacy and data:

– Install security and control measures

• Number of laws have been passed to protect people from

invasion of their privacy

• Use of information systems:

– Raises work concerns, including job loss through increased efficiency and potential health problems

Computer and Information Systems Literacy

• Computer literacy:

– Knowledge of hardware, software, databases and telecommunications and the ways they function

• Information systems literacy:

– Knowledge of how data and information are used by individuals, groups, and organizations – Encompasses how and why this technology is applied

Information Systems in the Functional Areas of Business

• Functional areas and operating divisions of

business:

– Finance and accounting – Sales and marketing – Manufacturing – Human resource management – Legal information systems

Information Systems in Industry

• Industries:

– Airline and transportation industry – Investment firms and banks – Publishing companies – Healthcare maintenance organizations (HMOs) – Retail companies – Power management and utility companies – Professional services and management consulting firms

Global Challenges in Information Systems

• Cultural and language challenges
• Time and distance challenges
• Infrastructure challenges
• Currency challenges
• Product and service challenges
• Technology transfer issues
• State, regional, and national laws
• Trade agreements

IS in Society, Business, and Industry

• Information systems must

be implemented thoughtfully and carefully

• Information systems face a variety of threats

from unethical people

End of part 1!

Welcome back! Information Systems in Organizations

Organizations and Information Systems

• Organization:

– Formal collection of people and other resources established to accomplish a set of goals – A system with inputs and outputs – Constantly uses money, people, materials, machines and other equipment, data, information, and decisions

Organizations and Information Systems

Organizations and Information Systems

Organizations and Information Systems (continued)

• Supply chain management (SCM)

– Determines:

• What supplies are required for value chain
• What quantities are needed to meet customer demand
• How supplies should be processed into finished goods

and services

• How shipment of supplies and products to customers

should be scheduled, monitored, and controlled

Organizations and Information Systems (continued)

• Customer relationship management (CRM)

programs:

– Help companies manage all aspects of customer encounters including marketing and advertising, sales, customer service, and programs to retain loyal customers – Can get customer feedback to help design new products and services

Organizational Structures

• Organizational structure:

– Organizational subunits and the way they relate to the overall organization – Depends on organization’s goals and its approach to management

• Types of organizational structures:

– Traditional – Project – Team – Virtual

Organizational Structures (continued)

• Traditional organizational structure:

– Hierarchy of decision making and authority flows:

• From the strategic management at the top down to
• perational management and non‐management

employees

– Flat organizational structure:

• Empowers employees at lower levels

– Empowerment:

• Gives employees and their managers more

responsibility and authority to make decisions

Organizational Structures (continued)

Organizational Structures (continued)

• Project and team organizational structures:

– Project organizational structure:

• Centered on major products or services
• Many project teams are temporary

– Team organizational structure:

• Centered on work teams or groups
• Team can be temporary or permanent, depending on

tasks

Organizational Structures (continued)

• Virtual organizational structure and

collaborative work:

– Virtual organizational structure:

• Uses individuals, groups, or complete business units in

geographically dispersed areas

• Can reduce costs for an organization

– Allows collaborative work:

• Managers and employees can effectively work in

groups, even those composed of members from around the world

Organizational Culture and Change

• Culture:

– Set of major understandings and assumptions shared by a group

• Organizational culture:

– Major understandings and assumptions

• Organizational change:

– How organizations plan for, implement, and handle change

Organizational Culture and Change (continued)

• Sustaining change results in improvements in

supply of raw materials, the production process, and the products and services offered

• Disruptive change completely transforms an

industry or can create a new industry

– Disruptive technologies may not have good performance, low cost, or even strong demand – Disruptive technologies may, over time, replace existing technologies

Reengineering and Continuous Improvement

• Reengineering:

– Process redesign – Radical redesign of business processes,

• rganizational structures, information systems,

and values of the organization to achieve a breakthrough in business results

• Continuous improvement:

– Constantly seeking ways to improve business processes and add value to products and services

Quality

• Ability of a product or service to meet or

exceed customer expectations

• Techniques used to ensure quality:

– Total quality management – Six Sigma

Outsourcing, On‐Demand Computing, and Downsizing

• Outsourcing:

– Contracting with outside professional services to meet specific business needs

• On‐demand computing:

– Also called on‐demand business or utility computing – Rapidly responding to the organization’s flow of work as the need for computer resources varies

• Downsizing:

– Reducing number of employees to cut costs

Productivity

• A measure of output achieved divided by

input required

• Higher level of output for a given level of input

means greater productivity

• Lower level of output for a given level of input

means lower productivity

• Productivity = (Output / Input) × 100%
• Can be based on factors such as the amount
• f raw materials used, resulting quality, or

time to

Return on Investment and the Value of Information Systems

• Return on investment (ROI):

– One measure of IS value – Investigates the additional profits or benefits that are generated as a percentage of the investment in IS technology

• Earnings growth

– The increase in profit that the system brings

Return on Investment and the Value of Information Systems (continued)

• Market share and speed to market:

– The percentage of sales that a product or service has in relation to the total market

• Customer awareness and satisfaction:

– Performance measurement is based on feedback from internal and external users

• Total cost of ownership:

– The sum of all costs over the life of the information system

Risk

• Managers must consider the risks of

designing, developing, and implementing systems

• Information systems can sometimes be costly

failures

Please find your Review Questions on the course Web page. Thank you!