What Do Managers Do???: Foundations of Information Systems in Business

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Foundations of Information Systems in Business
What do Managers do???

I know what Physicians, Firemen, Bus Drivers, Architects, Plumbers, Police Men, Veterinarians, Accountants, Jockeys, Football Players, Burglars, Painters, Sculptors, Actors, Chefs, Waitresses, Sports Announcers, Ballet Dancers, Sumo Wrestlers, Fishermen, Typists, Sewer workers, Tennis Players, Golfers, Computer Programmers, Smugglers, Garbage Men, Models, Airline Pilots, Flight Attendants, Physicists, Dog Trainers, Psychiatrists, Psychologists, Arsonists, Terrorists, News Casters, Weather People, Surgeons, Supreme Court Justices, Serial Killers, Ophthalmologists, Ornithologists, Astronomers, Pianists, Piano Tuners, Violinists, Cellists, Cyclists, Gymnasts, Mailmen, Racists, Sexists, Yodelers, Beach Bums, Interpreters, Translators, Bee Keepers, House Keepers, Tour Guides, Tourists, Actors, Actuaries, Chemists, Cable Guys, Paranoids, Drug Dealers, Book Sellers, Bookies, Lawyers, Stenographers, Soldiers, Welders, Tree Trimmers, Pharmacists, Farmers, Politicians DO (OK I dont know what Politicians do, if anything)
All of these titles can be described can be described in 5 words or less (Except Politicians)
Tell me what A Manager does in 5 words or less !!!
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Make decisions
You can make good decisions
In 1980, after adapting an operating system for the PC, which was to be delivered to IBM for a one-time fee of $50,000, Bill Gates decided offer to transfer the copyright on the operating system, because he believed that other hardware vendors would clone IBM's system. As of November, 2013 his net worth was estimated at US$ 76.8 billion
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Make decisions
Or you can make bad decisions
The Trojan Horse being taken into Troy as depicted by Venetian painter Giovanni Domenico Tiepolo circa 1760.
The Greeks constructed a huge wooden horse, and hid a select force of men inside. The Greeks pretended to sail away, and the Trojans pulled the horse into their city as a victory trophy. That night the Greek force crept out of the horse and opened the gates for the rest of the Greek army, which had sailed back under cover of night. The Greeks entered and destroyed the city of Troy, decisively ending the war. (Wikipedia)
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Why Study Information Systems?

Information technologies are playing an expanding role in business. Improving efficiency and effectiveness managerial decision making workgroup collaboration
The end result is that businesses can strengthen their competitive position in the rapidly changing marketplace
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Efficiency Minimize Costs Minimize Time Minimize Use of Information Resources
Effectiveness Support an organizations business strategies Enable its business processes Enhance organizational structure and culture Increase customer business value
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Internet-based systems have become a necessary ingredient for business success How many of you: Purchased products on line that you would have not considered buying 5 years ago?
Make airline reservations on line?
Gotten product/service information on line?

Information technologies are playing an expanding role in business.
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But why a required principles course?

Why do you have required accounting, marketing, management, economics and finance courses? Because these are all basic business functions (As are Information Systems) It wasnt always that way, however. Lets consider a typical Organization Table from the late 1970s/early 1980s
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A (Simplified) Organizational Table (c. 1960)

CEO
VP Finance
Accounting
VP Production
VP Marketing
EDP Depart.
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A (Simplified) Organizational Table (c. 1990)

CEO
VP Marketing
VP Finance
VP Production
CIO
Why the difference?

Information Systems are no longer viewed merely as tools They have moved from a STAFF position to a LINE position
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What will we be studying in this course?

The Conceptual Framework of IS Knowledge
Fundamental behavioral, technical, business and managerial concepts about IS components and IS roles
Chapters 1 & 2
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What constitutes an information system?

Major concepts, developments and management issues in issues in IS Technology Hardware Data Management Internet Software Technologies Networks
Chapters 3-6
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The challenges of effectively and ethically managing information systems at the end-user, enterprise, and global levels of the business
Chapters 13 & 14
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The major uses of Information Technologies for operations, management and competitive advantages
Chapters 8 - 10
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How information professionals and specialists plan, develop and implement information systems to meet business opportunities
Chapters 11 & 12
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So what is an information system?

ALL the components must work together toward a single goal In fact it is many different and related systems that appear to be only one system
It is a term that we use everyday, without thought to what it really means: I dont understand why they chose the new inventory system instead of an SAP system
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Information systems should be viewed the same as any other system
The solar system A railway system An ecological system An economic System (The European Community)
They are:
a group of independent but interrelated elements comprising a unified whole ALL the components work together toward a single goal
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A basic system can be represented as
capturing and assembling elements that enter the system Feedback Feedback to be processed
Signals Signals
Control
Control Signals Control Signals
Input
Processing
Output
ENVIRONMENT
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transformation steps that convert input into output
Feedback Signals Feedback Signals
Control
Input
Processing
Output
ENVIRONMENT
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transferring elements that have been produced by a transformation process to their ultimate destination
Control
Input
Processing
Output
ENVIRONMENT
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monitoring and evaluating feedback to determine whether a system is moving toward its goal
Control
Input
Processing
Output
ENVIRONMENT
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data about the performance of a system
Control
Input
Processing
Output
ENVIRONMENT
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Adjustment to improve system performance
Control
Input
Processing
Output
ENVIRONMENT
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What does this have to do with real life?
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What types of systems are there?

Closed Systems: Mechanical systems are generally closed systems
To use a refrigerator you turn it on and set the temperature. After that you can forget about monitoring the temperature because it is done automatically.
You might consider a prison system as a closed system (especially if a prisoner is locked-up in isolation) A simple computer program which always returns the same result may be considered a closed system
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What types of systems are there?

Open Systems: Living Organisms
People are open systems since they must interact with their environment in order to take in food, water, and obtain shelter Some mechanical systems, such as thermostats, which rely on inputs from the environment and produce affects affecting the environment
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The Systems Trinity:
As well as:
Customers and others Managers Users Systems Designers
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microcomputers, midsize servers, and large mainframe systems
the input, output, and storage devices that support them
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operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management
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operating system software, Web browsers, software productivity suites, and software for business applications like customer relationship management and supply chain management
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Data Versus Information
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Data versus Information?

While information systems rely on data, they must provide information
Whats the difference???

Data (pl) is a non-random sequence of symbols
Fernandez, Juan A19 1211 83 77 81
Information, while generally based on data, is something that increases our knowledge
Juan Fernandez is an Accounting Major and has a 80.3 average in Principles of Accounting (Based on analysis of the above data)
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Data versus Information?

While information systems rely on data, they must provide information
Whats the difference???

Data (pl) is a non-random sequence of symbols
Fernandez, Juan A19 1211 83 77 81
Information, while generally based on data, is something that increases our knowledge
Juan Fernandez is an Accounting Major and has a 80.3 average in Principles of Accounting (Based on analysis of the above data)
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Arent Information Systems and Information Technology the same thing?

Information Systems (IS): all components and resources necessary to deliver information and information processing functions to the organization various hardware components necessary for the system to operate
Information Technology (IT):
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What are the Fundamental Roles of IS in Business?

Lets first talk about the fundamental roles of management
Anthonys Hierarchy of Management
Top Mgt.
(CEO)
Focus is on the Long term future (e.g., New Products)
Middle or Tactical Mgt.

(Plant Manager)
Focus is on the short term future (e.g., Budgeting)
Operational Management
(Production Manager)
Focus is on the present (e.g., Meeting Production Schedule)
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What are the Fundamental Roles of IS in Business?

Top Mgt.
(CEO)

(Plant Manager)
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What types of information do we need?

That depends on what you need Lets look at some of the dimensions of information
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Information needs and Management Levels

Anthonys Hierarchy of Management Unscheduled Dated Infrequent Future Orientation Predictive Semi-accurate Semi-relevant Incomplete Concise Broad Scope
Top Mgt.
(CEO)

(Plant Manager)
Form of presentation is a function of the managers preference
Very Timely Very current Often needed Present Data Historical Data
Narrow Scope Detailed Complete Very Relevant Very Accurate
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Top Mgt.
(CEO)
Strategic Information Systems Competitive Advantage Systems Long term Planning Management Support Systems Management decision support Management reporting systems Operations Support Systems Transaction Processing Process Control Collaboration Systems

(Plant Manager)
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Operations Support Systems
Transaction Processing Systems
process data resulting from business transactions, update operational databases, and produce business documents.
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Process Control Systems
monitor and control industrial processes. Process control systems use electronic sensors linked to computers to continually monitor processes and make instant (real-time) adjustments that control the process.
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Process Control Systems
Enterprise Collaboration Systems
support team, workgroup, and enterprise communications and collaboration. Enterprise collaboration systems enhance team and workgroup communications and productivity, and include applications that are sometimes called office automation.
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Management Support Systems
Management Information Systems
provide information in the form of pre-specified reports and displays to support business decision making.
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Decision Support Systems
provide interactive ad hoc support for the decision making processes of managers and other business professionals.
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Decision Support Systems
Executive Information Systems
provide critical information from MIS, DSS, and other sources tailored to the information needs of executives.
EIS systems are management information systems which are tailored to meet the strategic information needs of top management.
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Other Information Systems
Expert Systems
Attempts to apply the logic used by Experts in a specific field
Knowledge Management Systems

Systems that support the creation, organization, and dissemination of business knowledge to employees and managers
Functional Business Systems

Information Systems that focus on operational and managerial applications of business functions
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Other Information Systems
Strategic Information Systems
Systems that support the creation, organization, and dissemination of business knowledge to employees and managers
Cross-functional Information Systems

Computer systems developed in order to help knowledge workers create, organize, and share important business knowledge wherever and whenever needed.
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How have information systems evolved?
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How have information systems evolved?

Network Configurations
Local Area Networks (LANS)
Short Range within the same building
Wide Area Networks (WANS)

Long Range May be world-wide
Intranets
Within a business may be world-wide
Extranets
A network between an enterprise and its trading partners
Internets
Available to anyone world-wide
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How do we develop an information system?

Whats the problem?
(This is also known as the planning phase)
What are you doing?
I think this is what you should be doing!
How are we doing? Lets keep up the good stuff, and improve where we can!
Lets do it!
Who should be Involved? Everyone!
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What is E-Business?
Using Internet technologies to empower: Business processes Electronic commerce Collaboration within a company Collaboration with customers, suppliers, and other business stakeholders
In essence, an online exchange of value
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How is E-Business Being Used?
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E-Business Use
Business Process Reengineering Internal business processes Enterprise collaboration systems Support communications, coordination and coordination among teams and work groups Electronic commerce Buying, selling, marketing, and servicing of products and services over networks
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What are the Managerial Challenges of Some Examples: information system?
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Success and Failure with IT

Success should not be measured only by its efficiency Success should include: The effectiveness of information technology in supporting and organizations business strategies
The enabling of its business processes

The enhancement of organizational structures and culture The increase of customer and business value
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Introduction Summary
The IS Function is
a major source of information and support needed to promote effective decision making by managers and business professionals. An important contributor to operational efficiency, employee productivity, and customer service and satisfaction.
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Introduction Summary
The IS Function is An important factor in developing competitive products and services that give an organization a strategic advantage in global marketplace.
A functional area of business as important to business success as accounting, finance, operations management, marketing, and human resource management.
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Anything else I should know Information Systems ???

Of Course!!! Thats why youre taking this course !!
??? Any Questions ???

Ive got lots of questions, but I know that no one else does, and I hate to look stupid --BETTER TO JUST NOT KNOW!!! Ignorance, after all, IS bliss!!

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Foundations of Information Systems in Business