Conceptual Framework of IS Knowledge

Roles of IS in Business (p 7)

Trends in Information Systems

What is E-Business? Definition: The use of Internet technologies to work and empower business processes, electronic commerce, and enterprise collaboration within a

What is E-Business? company and with its customers, suppliers, and other business stakeholders.
An online exchange of value.

E-Business Information Technology Infrastructure

Enterprise Collaboration Systems Definition: Involve the use of software tools to support communication, coordination, collaboration among the networked teams and workgroups.

What is E-Commerce?
Definition: The buying and selling, and marketing and servicing of products, services, and information over a variety of computer networks.

Types of Information Systems

FOCUS FOCUS

Operation Support Systems Definition: Information systems that process data generated by and used in business operations

Operation Support Systems

Goal is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases

Examples of Operations Support Systems Transaction Processing Systems (TPS) process data resulting from business transactions, update operational databases, and produce business documents.

Examples of Operations Support Systems Process Control Systems (PCS) monitor and control industrial processes.

Examples of Operations Support Systems Enterprise Collaboration Systems support team, workgroup, and enterprise communications an collaboration.

Management Support Systems Definition: Information systems that focus on providing information and support for effective decision making by managers

Management Support Systems Management Information Systems (MIS) provide information in the form of pre-specified reports and displays to support business decision making.

Management Support Systems Decision Support Systems (DSS) provide interactive ad hoc support for the decision making processes of managers and other business professionals.

Management Support Systems Executive Information Systems (EIS) provide critical information from MIS, DSS, and other sources tailored to the information needs of executives.

Operational & Managerial IS Expert Systems provide expert advice for operational chores or managerial decisions

Operational & Managerial IS Knowledge Management Systems support the creation, organization, and dissemination of business knowledge to employees and managers

IS Classifications by Scope Functional Business Systems support basic business functions

IS Classifications by Scope Strategic Information Systems support processes that provide a firm with strategic products, services, and capabilities for competitive advantage

IS Classifications by Scope Cross-functional Information Systems integrated combinations of information systems

Management Challenges & Opportunities

Measures of Success

Efficiency Minimize costs Minimize time Minimize the use of information resources

Measures of Success Effectiveness Support an organizations business strategies

Enable its business processes

Measures of Success

Increase the customer business value of the enterprise

Developing IS Solutions - 15
Multi-step process

The Systems Development Lifecycle

See Fig. 12.2, P 395

Ethical Challenges of IT

IT Career Trends

Rising labor costs have resulting in large-scale movement to outsource programming functions to India, the Middle East and Asia-Pacific countries.

IT Career Trends

More new and exciting jobs emerge each day as organizations continue to expand their wide-scale use of IT.

IT Career Trends

Frequent shortages of qualified information systems personnel.

IT Career Trends

Constantly changing job requirements due to dynamic developments in business and IT ensure long-term job outlook in IT remains positive and exciting.

The IS Function represents A major functional area of business equally as important to business success as the functions of accounting, finance, operations management, marketing, and human resource management.

The IS Function represents A major source of information and support needed to promote effective decision making by managers and business professionals.

The IS Function represents

A vital ingredient in developing competitive products and services that give an organization a strategic advantage in global marketplace.

The IS Function represents

A dynamic, rewarding, and challenging career opportunity for millions of men and women.

The IS Function represents

A key component of the resources, infrastructure, and capabilities of todays networked business enterprise.

Case #2: Connecting the Mobile Workforce Goals: Keep 3,500 highly mobile airline pilots: Trained on the latest technology and procedures Plugged into the corporate infrastructure

Case #2: Connecting the Mobile Workforce Informed about schedules, weather events, and other facts that affect their jobs Control costs

Case #2: Connecting the Mobile Workforce Productivity and Efficiency Improvements: Pilots can access updated data electronically. Pilots can work in a variety of locations including airplanes, airports, hotels, and other remote locations.

Case #2: Connecting the Mobile Workforce Pilots appreciate the convenience of not having to carry heavy manuals and documentation to multiple locations. Pilots can take their required training on their laptops during downtime in any airport.

Case #2: Connecting the Mobile Workforce 1. Are many of Lufthansas challenges identified in the case similar to those being experienced by other businesses in todays global economy? Explain and provide some examples.

Case #2: Connecting the Mobile Workforce 2. What other tangible and intangible benefits, beyond those identified by Lufthansa, might a mobile workforce enjoy as a result of deploying mobile technologies? Explain.

Case #2: Connecting the Mobile Workforce 3. Lufthansa was clearly taking a big risk with their decision to deploy notebook computers to their pilots. What steps did they take to manage that risk and what

Case #2: Connecting the Mobile Workforce others might be needed in todays business environment? Provide some examples. 4. How might mobile computing improve your productivity and efficiency? Provide some examples.

Case #2: Connecting the Mobile Workforce 5. What challenges in pilot morale, performance, and management might arise with the use of mobile computing devices in the field and in the cockpit? What preventive actions

Case #2: Connecting the Mobile Workforce or solutions to these potential problem areas could you suggest?

What is a System? A group of interrelated components, with a clearly defined boundary, working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.

System Components - 22 Input capturing and assembling elements that enter the system to be processed Processing transformation steps that convert input into output

System Components Output transferring elements that have been produced by a transformation process to their ultimate destination

Cybernetic Systems Definition: a self-monitoring, selfregulating system. Feedback data about the performance of a system

Cybernetic Systems

Control monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal

Example of a Cybernetic System

Other System Characteristics - 23

System environment Subsystems System interface Open system Adaptive system

A Business System

IS Components - 24

Information System Resources (p 25) People end users and IS specialists Hardware physical devices and materials used in information processing including computer systems, peripherals, and media

Information System Resources (p 25)

Software sets of information processing instructions including system software, application software and procedures

Information Systems Resources (cont) Data facts or observations about physical phenomena or business transactions Network communications media and network infrastructure

Data vs. Information Data raw facts or observations typically about physical phenomena or business transactions

Data vs. Information Information data that have been converted into a meaningful and useful context for specific end users

Network Resources Communications Media examples include twistedpair wire, coaxial and fiberoptic cables, microwave, cellular, and satellite wireless technologies

Network Resources Network Infrastructure examples include communications processors such as modems and internetwork processors, and communications control software such as network operating systems and Internet browser packages.

IS Activities - 28 Input of Data Resources Processing of Data into Information Output of Information Products

IS Activities - 28

Storage of Data Resources

Control of System Performance

Recognizing Information Systems Fundamental Components of IS People, hardware, software, data and network resources used

Recognizing Information Systems Types of information products produced Input, processing, output, storage and control activities performed

Case #3: Failure to Success with IT p 36 Aviall on the Ropes: A failed enterprise resource planning system that had been designed to automate and integrate the companys order processing, inventory control, financial accounting, and human resources business systems

Case #3: Failure to Success with IT Couldnt properly order or ship items to customers Quarterly sales dropping Airline industry shrinking

Case #3: Failure to Success with IT Goals:

Save Aviall from financial disaster

Case #3: Failure to Success with IT Turn Aviall from a catalog business into a full-scale logistics business that hundreds of aviation parts manufacturers and airlines

Case #3: Failure to Success with IT could depend on for ordering, inventory control, and demand forecasting

Case #3: Failure to Success with IT Challenges: Integrate five Web-enabled ebusiness software systems from different software providers

Case #3: Failure to Success with IT Customized pricing for 17,000 customers who receive various types of discounts 380,000 different aerospace parts

Case #3: Failure to Success with IT Benefits of Aviall.com: Customer order obtained via web costs only 39 cents compared with $9 for an order taken via telephone

Case #3: Failure to Success with IT Sales force freed from routine order taking can devote more time to developing relationships with customers

Case #3: Failure to Success with IT Customers have the ability to transfer orders from an Excel spreadsheet directly to website

Case #3: Failure to Success with IT Benefits of Aviall.com (cont): Customers can receive pricing and availability information on parts within 5 seconds

Case #3: Failure to Success with IT Helps build relationships with suppliers by providing them with customer ordering data that enables them to better match production with demand

Case #3: Aviall Inc. 1. Why do you think that Aviall failed in their implementation of an enterprise resource planning system? What could they have done differently?

Case #3: Aviall Inc.

2. How has information technology brought new business success to Aviall? How did IT change Avialls business model?

Case #3: Aviall Inc.

3. How could other companies use Avialls approach to the use of IT to improve their business success? Give several examples.

Case #4: This Call is Being Monitored Goals: Increase customer loyalty Reduce number of calls forwarded to internal help desk Improve decision making

Case #4: This Call is Being Monitored Witness Systems Call-center Software & CallMiner: Records conversations Captures keystrokes Tracks caller choices Transcribes conversations into text

Case #4: This Call is Being Monitored Benefits: Revenues increased 60% 20% fewer calls sent to help desk saving $1 million Customer satisfaction rose 10%

Case #4: This Call is Being Monitored

E-ticket sales increased 8% Reduced staffing needs

Case #4: This Call is Being Monitored

1. What are the business benefits of the CallMiner system? Provide some additional examples beyond those discussed in the case.

Case #4: This Call is Being Monitored

2. How can new technologies like CallMiner help companies improve their customer service and gain a competitive edge in the marketplace? Explain.

Case #4: This Call is Being Monitored 3. Andre Harris refers to calls to reconfirm a flight as quite frankly, low-value calls. Why are they classified as low value? Why do you think so many customers are placing such calls?

Summary

There is no longer a distinction between an IT project and a business initiative.

Summary

Information systems are an important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction.

Summary

Information systems are a major source of information and support needed to promote effective decision making by managers and business professionals.

Summary

Information systems can be categorized based on their intended purpose.

Summary Managing and using information systems can pose several challenges including the development process and ethical responsibilities.