Give three business examples of data that must be processed to provide useful information.? ?When would a business use mobile computing or web-based information systems in their oper
asnwer the question
Give three business examples of data that must be processed to provide useful information.
When would a business use mobile computing or web-based information systems in their operations? Discuss an example of a business function that could be implemented on each platform, and explain why that platform would be preferred over the other platform.
Give two examples of phenomena that are a social concern because of information technology. Explain.
In which situations does one need to make a decision? Give three examples not mentioned in the chapter.
Give three examples in which raw data also serves as useful information.
An SIS often offers a corporation short-lived advantages. How so?
What conditions must exist in an organization planning an SIS?
Adobe encourages PC users to download its Acrobat Reader and Flash Player free of charge. How does this eventually help Adobe strategically? If they give the application away, how does their generosity help them make money?
Can an off-the-shelf computer program be used as an SIS? Why or why not?
In what respect does business strategy resemble military strategy?
Why is it so important to have a quick response of online investment ISs? Give an example of how such systems are critical.
In the supply chain, shipping software helps mainly in two ways. What are they?
What is the purpose of accounting?
Discuss the main characteristics of radio frequency identification (RFID).
Although technologically the full linking of the SCM systems of suppliers and buyers is feasible, many buyers are reluctant to do so. Why?
What factors make one computer more powerful than another?
Identify the four basic operations a computer must handle.
Among the external storage devices discussed in this chapter, all but one store data on the surface of some material, and one in circuitry. Which one stores data in circuitry?
What does footprint mean in hardware? When is a footprint important in the office?
Comment on this statement: large computers, such as mainframes and supercomputers, have no future. (True or false and why?)
Kenneth J. Sousa Effy Oz
MANAGEMENT
INFORMATION
SYSTEMS Seventh Edition
Chapter 1
Business Information Systems:
An Overview
Objectives
• Explain why information technology matters
• Define digital information and explain why digital
systems are so powerful and useful
• Explain why information systems are essential to
business
• Describe how computers process data into
useful information for problem solving and
decision making
• Identify the functions of different types of
information systems in business
2
Objectives (cont’d.)
• Describe careers in information technology
• Identify major ethical and societal concerns
created by widespread use of information
technology
3
Does Information Technology Matter?
• Examples of IT applied by businesses
– Social media for engaging customers
– Mobile banking
• Today’s business professionals must know how
to develop and use IT
4
The Power of Digital Systems
• Binary counting system uses only two digits:
0 and 1
• Digital systems: computers and devices that
use the binary system
– Can represent any information as a combination
of zeroes and ones
• Information can be represented, stored,
communicated, and processed digitally
5
The Power of Digital Systems (cont’d.)
• Digital information is stored and communicated
by means of electromagnetic signals
– Extremely fast
– Exact copy of the original is possible
• Accuracy and speed make digital systems
powerful, useful, and important
6
The Purpose of Information Systems
• Businesses use information systems to:
– Make sound decisions
– Solve problems
• Problem: any undesirable situation
• Decision: arises when more than one solution to
problem exists
• Both problem solving and decision making
require information
7
The Purpose of Information Systems
(cont’d.)
• Keys to success in business
– Gathering correct information efficiently
– Storing information
– Using information
• Information systems support daily operations
8
Data, Information, and Information
Systems
• Commonly used terms
– Data
– Information
– System
• Important to understand similarities and
differences among terms
9
Data vs. Information
• Data: a given or fact
– Can be number, statement, or picture
– Is the raw material in the production of
information
• Information: facts or conclusions that have
meaning within context
– Composed of data that has been manipulated
10
Data Manipulation
• Survey is common method of collecting data
• Reading data can be extremely time consuming
• Manipulating the data may provide valuable
information
• Examples: categorizing and producing statistics
– May be applied to marketing and manufacturing
practices
11
Generating Information
• Process: the manipulation of data
– Usually produces information
– May produce more data
• A piece of information (output of a process) in
one context may be considered data (input to a
process) in another context
12
13
Figure 1.1 Input-process-output
Information in Context
• Not all information is useful
• Characteristics of useful information
– Relevant
– Complete
– Accurate
– Current
– Economical
14
What Is a System?
• System: array of components that work together
to achieve goal or goals
• A system:
– Accepts input
– Processes input
– Produces output
15
What is a System? (cont’d.)
• Characteristics of a system:
– May have multiple goals
– May contain subsystems
• Subsystem: component of a larger system
– Has subgoal that contributes to main goal
– Can receive input from and transfer output to
other subsystems
16
17
Figure 1.3 Several subsystems make up this corporate accounting system
What is a System? (cont’d.)
• Closed system: has no connections with other
systems
• Open system: interfaces and interacts with
other systems
– Often a subsystem of a bigger system
– Subsystems by definition are always open
• Information system (IS): all components that
work together to process data and produce
information
18
Information and Managers
• Systems thinking: considering an organization
in terms of subsystems
– Powerful management approach that creates a
framework for problem solving and decision
making
– Helps keep managers focused on overall goals
• Database: collection of electronic records
• Information systems automate information
exchange among subsystems
19
Information and Managers (cont'd.)
• Information map: description of data and
information flow within an organization
– Shows a network of information subsystems that
exchange information with each other and with
the outside world
• Information technology: technologies that
facilitate construction and maintenance of
information systems
20
Information Systems in Organizations
• Consist of data, hardware, software,
telecommunications, people, and procedures
• Computer-based information system includes
one or more computers at its center
– Computers collect, store, and process data into
information
– People give instructions via computer programs
21
22
Figure 1.4 Components of an information system
Information Systems in Organizations (cont’d.)
• Trends that have made information systems (ISs)
important in business
– Growing capacity and decreasing costs of data
storage devices
– Increasing variety and ingenuity of computer
programs
– Cloud computing capabilities
23
Information Systems in Organizations (cont'd.)
• Trends that have made ISs important in
business (cont’d.)
– Affordable Software as a Service (SaaS)
applications due to
• Quick, reliable communication lines
• Internet and web access
– Growth of the Internet
– Increasing computer literacy of the workforce
• Organizations must continuously upgrade IS
features and employee skills
24
The Four Stages of Processing
• Input: enter data into the IS
– Transaction: a business event, usually entered
as input
– Transaction processing system (TPS): a
system that records transactions
– Input devices include keyboards, bar code
readers, voice recognition systems, and touch
screens
• Processing: changing and manipulating the
data
25
The Four Stages of Processing (cont’d.)
• Output: get information out of the IS
– Output devices include printers and speakers
• Storage: maintaining vast amounts of data and
information
– Storage devices include optical discs
26
Computer Equipment for Information
Systems
• Different technologies are used to support the
four data processing functions
– Input devices: receive input
– Computers: process data
– Output devices: display information
– Storage devices: store data
– Network devices and communication lines:
transfer data
• Telecommunications: communication that
occurs between computers over distances
27
28
Figure 1.5 Input, process, output, storage and networking devices
From Recording Transactions to
Providing Expertise
• Different types of information systems serve
different functions
• Capabilities of applications have been combined
and merged
• Management Information Systems (MISs)
support management activities
– Planning, controlling, and making decisions
29
Transaction Processing Systems
• Transaction processing system (TPS): most
widely used ISs
– Records data collected at point where
organization transacts business with other parties
• Point-of-sale (POS) machines: record sales
– Include cash registers, ATMs, and purchase order
systems
30
Supply Chain Management (SCM) Systems
• Supply chain: sequence of activities involved in
producing and selling products or services
– For products, activities include:
• Marketing, purchasing raw materials,
manufacturing and assembly, packing and
shipping, billing, collection, and after-sale services
– For services, activities include:
• Marketing, document management, and monitoring
customer portfolios
31
SCM Systems (cont’d.)
• SCM systems support supply chain activities
– Also known as enterprise resource planning
systems
• SCM systems eliminate the need to reenter data
captured elsewhere in the organization
• Enterprise application: separate business
process subsystems connected to form one
large IS
32
Customer Relationship
Management (CRM) Systems
• CRM systems help manage relations with
customers
– Used in combination with telephones to provide
customer service
– Often linked to Web applications that track online
transactions
• Retaining loyal customers is less expensive than
acquiring new ones
33
Business Intelligence (BI) Systems
• BI systems glean relationships and trends from
raw data to help organization compete
– Often contain statistical models
– Access large pools of data
• Data warehouse: large database that usually
stores transactional records
34
Decision Support Systems (DSSs) and
Expert Systems (ESs)
• DSS: supports decision making
– Relies on models to produce tables
– Extrapolates data to predict outcomes
– Helps answer “What if?” questions
• ES: supports knowledge-intensive decision
making
– Uses artificial intelligence techniques
– Can preserve the knowledge of retiring experts
35
Geographic Information Systems (GIS)
• GIS: ties data to physical locations
• Represents data on a map in different formats
• May reflect demographic information in addition
to geographic information
• May use information from global positioning
system (GPS) satellites
– Examples: Google Earth, Mapquest
36
Information Systems
in Business Functions
• Functional business area: services within a
company that support main business
– Includes accounting, finance, marketing, human
resources, etc.
– Part of a larger enterprise system
37
Accounting
• Accounting information systems:
– Help record transactions
– Produce periodic statements
– Create required reports for law
– Create supplemental reports for managers
– Contain controls to guarantee adherence to
standards
38
Finance
• Finance systems:
– Facilitate financial planning and business
transactions
• Tasks include organizing budgets, managing
cash flow, analyzing investments, and making
decisions
39
Marketing
• Marketing’s purpose is to pinpoint likely
customers and promote products
• Marketing information systems help:
– Analyze demand for products in regions and
demographic groups
– Identify trends in demand for products/services
– Determine how advertising campaigns affect
profit
• Web provides opportunity to collect marketing
data as well as promote products and services
40
Human Resources
• Human resource (HR) management systems
assist in:
– Record-keeping
– Employee evaluation
– Employee benefits
41
Web-Empowered Enterprises
• E-commerce: buying and selling goods and
services through Internet
• Internet is a vast network of computers
connected globally
• Web has a profound impact on information
systems
– A place to conduct e-commerce
– An emerging advertising medium
42
Careers in Information Systems
• Information technology professionals are
increasingly in demand
• U.S. Bureau of Labor Statistics estimates a 22
percent increase in demand for computer and
information technology specialists for the
decade 2010–2020
43
Systems Analyst
• Systems analyst:
– Starts career as programmer or
programmer/analyst
– Researches, plans, and recommends software
and systems choices
– Responsible for developing cost analyses, design
considerations, implementation timelines, and
feasibility studies
• Requires excellent communication and
presentation skills
44
Database Administrator (DBA)
• DBA is responsible for databases and data
warehouses
– Develops and acquires database applications
– Must adhere to federal, state, and corporate
regulations to protect privacy of customers and
employees
– Responsible for securing the database
45
Network Administrator
• Network administrator: acquires, implements,
manages, maintains, and troubleshoots
networks
• Implements security
– Firewalls
– Access codes
46
System Administrator
• System administrator (“sys admin”): manages
an organization’s computer operating systems
– Must ensure that operating systems work
together, support business requirements, and
function properly
– Responsible for backup and recovery, adding and
deleting user accounts, and performing system
upgrades
47
Mobile Applications Developer
• Mobile applications developer skills
– Technical expertise: software development tools
for mobile devices and programming languages
– Ability to determine users’ needs
• Communication and system design skills
48
Webmaster
• Webmaster: creates and maintains Web site
– Must be familiar with Web transaction software,
payment-processing software, security software
– Manages both the intranet and extranet
• Involved in creatively representing the
organization on the web
49
Chief Security Officer (CSO)
• CSO: supervises security of information system
– Also called chief information security officer
(CISO)
• Position exists due to growing threat to
information security
• Usually reports to chief information officer (CIO)
50
Chief Information Officer (CIO) and
Chief Technology Officer (CTO)
• CIO: responsible for all aspects of information
system
– Often a corporate vice president
– Must have technical understanding of information
technologies as well as business knowledge
• CTO: has similar duties as CIO
51
52
Figure 1.6 Traits of a successful CIO
Summary
• Business professionals are expected to know
how to develop and use IT
• Computer-based information systems pervade
almost every aspect of our lives
• A system is a set of components that work
together to achieve a common goal
• Subsystem: a system performs a limited task
that produces an end result, which must be
combined with other products from other
systems to reach an ultimate goal
53
Summary (cont’d.)
• Data processing has four stages
• Any IS that helps in management is a
management information system (MIS)
• Many different types of ISs
• Enterprise application systems (SCM or ERP) tie
together different functional areas of a business
• ISs are used in many business functions,
including accounting, finance, marketing, and
human resources
54
Summary (cont’d.)
• The job prospects for IT professionals are bright
• IT has created societal concerns regarding
privacy, identity theft, spam, and Web
annoyances
55
,
Kenneth J. Sousa Effy Oz
MANAGEMENT
INFORMATION
SYSTEMS Seventh Edition
Chapter 2
Strategic Uses of Information
Systems
Objectives
• Explain what business strategy and strategic
moves are
• Illustrate how information systems can give
businesses a competitive advantage
• Identify basic initiatives for gaining a competitive
advantage
• Explain what makes an information system a
strategic information system
2
Objectives (cont'd.)
• Identify fundamental requirements for
developing strategic information systems
• Explain circumstances and initiatives that make
one IT strategy succeed and another fail
3
Strategy and Strategic Moves
• Strategy: framework, or approach, to obtaining
an advantageous position
• Business strategy: a plan to help an organization
outperform its competitors
– Often done by creating new opportunities, not
beating rivals
• Information system may be built to solve a
problem or to seize an opportunity
4
Strategy and Strategic Moves (cont'd.)
• Strategic information system (SIS): an
information system that helps seize opportunities
• Strategic advantage: using strategy to
maximize a company’s strengths
• Competitive advantage: having maximized an
organization’s strengths to beat its rivals
• Innovative companies battle to create “got-to-
have-it” technology
– Example: mobile payment technology
5
Achieving a Competitive Advantage
• Competitive advantage is achieved when a for-
profit company increases its profits significantly,
usually through i
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