Document Sample
HTML_ XHTML and CSS Powered By Docstoc
					    Class overview,
     Introduction to
information system

       Dr. Liu
       Spring 2009
Class overview
   Introduction to Information age / computer
   Business initiatives
   DBMS
   Decision making
   System development
   Network & security
   Emerging technology
   Introduction to Information Age
   Define MIS and IT
   Key Resources in MIS
       Information
       People
       Technology
         Brief review of Computer HW/SW

   IT in Business vision
       How IT support Business
       IT Career in Business
   IT in your life
Information Age
   Changing the Face of Business
Disruptive Technologies - IT
   Case1: Blockbuster (late fee)– Netflix
   Netflix – rent from the Web and keep as long
    as you want - Disruptive technologies
   Blockbuster solution…
       No more late fees (will forgo $300 million annually
        because of this)
       Keep for a week
       After a week, either buy movie or pay $1.25
        restocking fee
   Class poll…
    1.   Favorite method of renting videos?
    2.   Average length (in days) you keep a movie?
    3.   Watch the movie the day you get it?
   Have you moved away from Blockbuster? To
   Will Blockbuster’s no-late fee model help?
    Why or why not?
   Will real video-on-demand through
    cable/satellite end “renting” movies?
Introduction to Information age
   Information age – a time when knowledge is
   Knowledge worker – you; works with and
    produces information as a product
        Finance – cash flow statements
        Accounting – P&L statement
        Marketing – brand advertising material
        Education - Annual grade report
Introduction to MIS and IT
   IT – computer-based tools that people use to
    work with information
       Traditional computer (notebook, PC, etc)
       Bar code scanner
       Biometric fingerprint reader
   MIS – planning for, developing, managing,
    and using IT tools to help people perform
    their work
Case: Online booking
                     Online booking revenues
                      are on the rise while non-
                      online booking revenues
                      remain flat

                     $91 billion will come from
                      online booking by 2009
                         Travel agent should
                          rethink their business and
                          reshape their business
                          How to take advantage
                          of Information technology
   Telecommuting – use of technologies to work outside the
   Do you like a telecommuting job on your future careers?
Introduction to MIS and IT
   Three key resources in MIS
       Information
       People
       Technology
   MIS is about these 3 key resources working together
    in an integrated fashion.
   This text is about MIS and information, people, and
    technology working together to create a competitive
    advantage to you and your organization.
Information as Key
   Data – raw facts
   Information – data that has meaning
       Weather – when deciding what to wear
Information as Key
   Business intelligence – knowledge about
    competitors, suppliers, your own internal
    operations, etc
       Combined forms of information to create real
        knowledge – for decision making
       Encompasses everything that affects your
       Helps you make strategic business decisions
Information as Key
   Perspectives
    1.   Personal dimensions of information
    2.   Organizational dimensions of information
Personal dimensions of
   Time
     When you need information
     Describing the right time period
   Location – no matter where you
     Intranet – internal organizational
   Form
     Usable, understandable,
          Language barrier: SYSTRAN
   Validity
Organizational Dimension if
   Information flows
       Strategic management -
       Tactical management - goal
       Operational management

   Information granularity
       Operational management
        has more fine level and
        detail on granularity
Information Flows Within an
   Upward – current state of organization based on
    transactions. Information gathered as part of
    everyday operations is consolidated by IT and pass
    upward to decision makers
   Downward – pass strategies, goals, directives to
    lower level. Collaborated system support it.
   Horizontal – between functional units, work teams.
    Collaborated / shared information system support it.
       Registration information shared on campus.
   Outward/inward – to/from suppliers, customers,
    distributors, etc
Information Granularity
   Information granularity – extent of detail
    within information
   Lower org levels – tremendous detail (fine)
       Each transaction detail
   Upper org levels – summarized information
       Annual sales report
What Information Describes
   Internal – operational aspects of organization
       Bank interest decision: Who is customer? % of them would
        like to apply for it?
   External – environment surrounding organization
       What other bank do?
   Objective – quantifiably describe something that is
       What is today’s interest?
   Subjective – try to describe something that is
       What will be for the future?
People as a Key
   You – your brain!!!
       Technology is a tool to help you.
       It will never replace you.
           Excel can create different format of data, you need to decide the format you need
   Use technology to work with information
   Technology-literate knowledge worker
    (each of the module will help you to became a knowledge worker )
       Know what technology to buy
       How to take advantage of the software
       When to apply the technology
   Information-literate knowledge worker…
       Can defines what information is needed
       Knows how and where to obtain information
       Understands information
       Acts appropriately based on information
           Example of diaper inventory
   Your ethical responsibilities
Example of using information
   Phenomena
       There is a big sale on diaper on every Friday
   What you will do next step?
Example of using information
   What she did as an information – literate
       Who?
       Why?
       What?
The most important key recourse of
 MIS is person, a knowledge worker.
    People ethical responsibilities
                                     You always
                                     want to be here

   Ethics – principles and
    standards that guide behavior
    toward other people

   Ethics and laws are different

   Laws – require/prohibit action

   Ethics – matter of personal
   Try:
       PP14 On your owns
IT as a key
   Information technology (IT) - computer-
    based tools that people use to work with
   Two categories of technology
       Hardware
       Software
   Ubiquitous computing
Key Technology Categories
    Hardware – physical devices of a computer
    1.   Input devices
    2.   Output devices
    3.   Storage devices
    4.   CPU & RAM
    5.   Telecommunications devices
    6.   Connecting devices
   Input device – enter information and commands
   Output device – receive the results
   Storage device – stores information
   CPU – interprets and executes software instructions
   RAM – temporarily holds information and software
   Telecommunications device – sends and receives
    information in a network
   Connecting device – connects pieces of hardware
    (e.g., cable, port)
   Extended Learning Module A covers hardware in
    detail. Please read book.
   Application software – solves specific problems,
    performs specific tasks
   System software – handles technology
    management tasks and coordinates all hardware
    Two types of system software
    1.   Operating system software – controls application
         software, manages hardware devices
    2.   Utility software – additional functionality to your operating
         system (e.g., anti-virus software)
    Extended Learning Module A covers more on
     software,please read it if you are not familiar with
     this content
Ubiquitous Computing
    Ubiquitous computing – concept;
     technology support anytime, anywhere, with
     access to any needed information
    1.   Decentralized computing
    2.   Shared information
    3.   Mobile computing
Ubiquitous Computing
Ubiquitous Computing
   Decentralized computing – Distributes
    computing power within the organization to
    knowledge workers
   Shared information – allows anyone access
    to needed information
Ubiquitous Computing
   Mobile computing – wireless technology to
    connect to needed resources and information
   M-commerce – electronic commerce
    conducted wirelessly
IT for Business Vision
   IT use must support business vision
   IT strategy must be integrated with business
   Competitive advantage – providing
    product/service that customers value more
    than the competition
IT supports Business vision
   Top line (revenues) versus bottom line (expense)
   Database support
   Decision-making support
   Business initiative support
   Run, grow, transform
Gaining Competitive
Advantage with IT
   Competition pressure
   Business strategy meeting
   Business process
   Align technology  Business process
    Five Forces Model – helps determine the
     relative attractiveness of an industry and
    1.   Buyer power
    2.   Supplier power
    3.   Threat of substitute products and services
    4.   Threat of new entrants
    5.   Rivalry among existing competitors
Buyer Power
   Buyer power – high when buyers have many
    choices; low when there are very few choices
   As a provider of products and services – want
    low buyer power
   As a consumer of products and services –
    want high buyer power
Buyer Power
   IT can help you (as a provider) reduce buyer
   Examples (all enabled by IT)
       Loyalty program – rewards customers for
        repeated business
           Airline industry – skymile program
           Netflix, Dell computer
           Grocery stores, Canadian tire – store cash back
       No competitive advantage will last forever,
        company have to constantly innovate new ones to
        gain the market
Supplier Power
   Supplier power – high when buyers have
    few choices; low when buyers have many
   The opposite of buyer power
   As a business, you want…
       High buyer power when making purchases
       High supplier power when selling products and
Supplier Power
Threat of Substitute Products or
   Threat of substitute products or services
    – high when there are many alternatives; low
    when there are few
   Switching costs can help to keep the
    customers stay
   Switching cost – costs that make customers
    reluctant to switch
       Termination fee
       Other format than money cost – opportunity cost
           Profile
           Time spent for getting the new service set up
Threat of New Entrants
   Threat of new entrants – high when it is
    easy for new competitors to start; low when it
    is not
   Entry barrier – feature that customers want
    and new competition must provide to enter
       ATMs, online banking, etc
       Automobile industry
       Previously, customer wouldn’t be able to carry the
        original phone number when they switch to
        another company
Rivalry Among Existing
   Rivalry among existing competitors – high
    in a fiercely competitive market; low in a more
    complacent market
   Example – retail grocers
       Highly competitive
       Use IT to compete on price
Five Forces Model Summary
   Helps determine the attractiveness of an
   Should enter or expand operations in an
   How can IT help?
       Increase/reduce buyer/supplier power?
       Create/eliminate an entry barrier?
Porter’s 3 generic Stritagies
   Overall Cost Leadership
       Same quality product with lower price
   Differentiation
       Unique products or customized product
   Focus as a strategy on offering products or
    service to particular group user, with
    particulate product line,in special global
Top Line Versus Bottom Line
Top Line Versus Bottom Line
   Top line – competitive advantage focus to
    increase revenue
   Bottom line – competitive advantage focus to
    decrease costs
   IT can support both top-line and bottom-line
Top Line Versus Bottom Line
   Customer self-service system – technology
    in hands of customers to enable them to
    process their own transactions. One of the
    example of TPS.
       ATMs – attract new customers with free use (top
       ATMs – reduce costs of tellers (bottom line)
   Transaction processing system (TPS) –
    system that processes transactions
Database Support
Database Support
   Database – stores tremendous detail on
    every transaction/event
   DBMS – software bridge between
    information/software system and
   Database and DBMS are tools for your
    organization and your career success.
Database Support
   You need knowledge of databases and
    DBMSs for career
   Chapter 3 – database concepts
   Extended Learning Module C – how to design
    a database
   Extended Learning Module J – how to
    implement a database with Access
Decision-Making Support
   Online transaction processing (OLTP) –
    gathering, processing, and updating
    information for a transaction
   Online analytical processing (OLAP) –
    manipulating information to support decision
    making (focus of Chapters 3 & 4)
       Executive information system
       Collaboration system
       Artificial intelligence
Decision-Making Support
   Executive information system (EIS) –
    supports “drilling down” in information to find
Decision-Making Support
   Collaboration system – improves team
    performance by supporting sharing and flow of
   Artificial intelligence (AI) – science of imitating
    human thinking and behavior
       Genetic algorithm – processing large data. Later chapter
        for detail
       Neural network for knowledge learning system to simulate
        your behavior. Example: credit card fraud checking.
       Fuzzy logic also used for the ambiguous information
        decision making.
         Example: temp : 30 is hot or 50 is cool
Business Initiative Support
    IT use in business is all about enabling
    This is the focus of Chapter 2
    Two examples
    1.   Supply chain management (SCMS)
    2.   Electronic data interchange (EDI)
Business Initiative Support
   Supply chain management (SCM) – tracks
    inventory and information
   SCM system – IT that supports SCM
    business initiative
Business Initiative Support
   SCM systems support EDI
   Electronic data interchange (EDI) –
    computer-to-computer transfer of information
    without human intervention
       Standard documents such as purchase orders
       Bottom-line initiative to reduce costs of ordering,
        shipping, paying, etc
       Reduce the time consuming from 48 hrs to 20
Run, Grow, Transform
   Framework for percentage allocation of IT
    dollars toward…
       Run – optimizing activity execution (bottom line)
       Grow – increasing market reach, product offerings,
        etc (top line)
       Transform – innovating business processes
   Application of this framework in Chapter 2
   IT is pervasive
   You need IT knowledge to succeed (your
   You need IT knowledge to protect yourself as
    well (ethics, security, & privacy)
IT in Your Career
   Learn how to use IT to…
       Share information
       Work wirelessly
       Support your decision-making efforts
       Increase personal productivity
IT positions in business
   Business analyst
   Database designer
   Network engineer
   Programmer/ Software Engineer
   User Interface analyst
   Web service expert
Ethics, Security, & Privacy
   All very important
   Security and privacy – protect yourself from…
       Spyware
       Identity theft
       Focus of Chapter 8 and Extended Learning
        Module H
   Most slide are from authors book with
    modification and reorganized by instructor
   For the recourse from book, please go to

Shared By: