Information Systems in Business

1
Information Systems in Business

• (Chapters 1 and 2)

2
Starter Questions

• In what types of companies is IT important?
• In what types of companies is IT not important?
• What types of IT do businesses use?
• Is IT good or evil?

3
How much money are we talking about?

• Figure 1-1, Capital Investment

text section 1.1
4
Scope

• In U.S.A. in 2008
• 840B on IS hardware and software
• 60 million businesses on the web
• 138 million people shopped online
• 34 million per day researched products
• 64 million got their news online
• internet advertising grew 25 to 28B

5
IS Activities(what IS does)

• Supply Chain Management
• Customer Management
• Planning
• Controlling
• Modeling and Decision Making

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Strategic Business Objectives of Information
Systems(why use an IS?)

• operational excellence
• new products and services
• customer and supplier intimacy
• improved decision making
• competitive advantage
• survival
• text section 1.1

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Return on IT Investment
Figure 1-8 in textbook
8
ExercisesChapter 1, Management Decision
Problemspage 31

• Problem 1 - Snyders Snacks
• Assess the impact of the current situation.
• Suggest a simple solution and assess the
  potential ROI.
• Problem 2 - Dollar General
• Would an additional system produce a positive
  ROI? Why or why not?

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Types of Information Systems

• Transaction Processing Systems
• records the routine daily business transactions
• Management Information Systems
• uses TPS data to create standard reports
• Decision Support Systems
• models MIS data to allow analysis and answering
  what-if questions
• Executive Support Systems
• adds external info to DSS info

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Types of Information Systems
Type of System Information Inputs Information Outputs Users
Transaction Processing Systems (TPS) Transactions daily events Detailed reports lists summaries Operations personnel first-line supervisors
Management Information Systems (MIS) Summary transaction data high-volume data simple models Summary and exception reports Middle managers
Decision Support Systems (DSS) Optimized for data analysis, analytic models and data analysis tools. Interactive simulations analysis Professionals, staff managers
Executive Support Systems (ESS) Aggregate data external, internal Projections responses to queries Senior managers
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Enterprise Applications

• ERP - Enterprise Resource Planning
• SCM - Supply Chain Management
• CRM - Customer Relationship Management
• KMS - Knowledge Management Systems

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Misc Notes

• Interface Design
• TPS often uses text interfaces or hand-held
  scanners
• DSS are always heavy on graphics and help
• Importance of Info Systems
• 41 of jobs are "interaction" jobs
• also the fastest growing sector
• 25 are "transaction" jobs
• 15 are blue-color "production"

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The IS Department

• Chief Information Officer
• IS Managers
• Systems Analysts
• Programmers

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Exercise

• Chapter Two, Management Decision Problem 2, page
  67, Henry's Hardware
• What is the business impact of current situation?
• How could an Info System help?
• What data needs to be input?
• What info does the IS need to output?

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Assignment

• Debate Groups
• Start organizing tonight