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Information Systems Essay

This session seeks to introduce the course and also explain the basic concepts of information systems, the digital firm and ebusiness. Learning objectives include: 1. Understand information systems and how they are used in organizations. 2. Describe how Internet technology has changed businesses. 3. Identify the various types of information systems in organizations. 10. 5 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Visit Nike ID – www. ikeid. com create your own shoe 10. 6 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Visit Nike ID – www. nikeid. com create your own shoe Chapters 1 and 2 (Laudon and Laudon, 2010) 10. 7 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) 10. 8 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice HallInformation Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) 10. 9 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) What is an information system? 10. 10 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) What is Information Systems • Information system: Set of interrelated components – Collect, process, store, and distribute information – Support decision making, coordination, and control • Information System – IT + People + Processes and Policy 10. 11 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Activities in an Information System INPUT PROCESS OUTPUT FEEDBACK 10. 12 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-businessChapters 1 and 2 (Laudon and Laudon, 2010) Perspectives on Information Systems • Information system: Three activities produce information organizations need – Input: Captures raw data from organization or external environment – Processing: Converts raw data into meaningful form – Output: Transfers processed information to people or activities that use it 10. 13 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Perspectives on Information Systems Feedback: – Output returned to appropriate members of organization to help evaluate or correct input stage • Computer/Computer program vs. information system – Computers and software are technical foundation and tools, similar to the material and tools used to build a house 10. 14 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Data and Information Information vs. data • • Data are streams of raw facts Information is data shaped into meaningful formRaw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. 10. 15 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Business Processes and Information Systems • Business processes: • Workflows of material, information, knowledge • Sets of activities, steps • May be tied to functional area or be crossfunctional Businesses: Can be seen as collection of business processes • Business processes may be assets or liabilities 10. 16 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Business Processes and Information Systems • Examples of functional business processes – Manufacturing and production • Assembling the product – Sales and marketing • Identifying customers – Finance and accounting • Creating financial statements – Human resources • Hiring employees 10. 17 www. vivaafrica. net | Dr.Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Types of Information Systems 1. Executive Support System (ESS) 2. Decision Support Systems (DSS) 3. Management Information Systems (MIS) Strategic-Level ManagementLevel Plan and Project, Forecast – Senior Managers Decision Analysis; Summary Reports – Staff Managers & Middle Managers Models; Graphics; Documents & Mail -Professionals & Clerical Workers Sorting; lists; Detailed Reports; Pay Slips – Operations Personnel; Supervisors © 2010 by Prentice Hall . Knowledge Work Systems (OS) 5. Office Systems (OS) 6. Transaction Process Systems (TPS) 10. 18 KnowledgeLevel Operational-Level www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Systems that Span the Business SAP ERP: Human Resource Systems – Leave Request Example Executive Support Systems – Sales Planning and Forecasting Visit Class Website and Click VIDEOS – Tech Videos 10. 19 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Types of Business Information Systems • Transaction processing systems – Perform and record daily routine transactions necessary to conduct business • Examples: sales order entry, payroll, shipping – Allow managers to monitor status of operations and relations with external environment – Serve operational levels – Serve predefined, structured goals and decision making 10. 20 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Types of Business Information Systems • Management information systems – Serve middle management – Provide reports on firm’s current performance, based on data from TPS – Provide answers to routine questions with predefined procedure for answering them – Typically have little analytic capability 10. 21 www. vivaafrica. net | Dr. Richard Boateng ([email protected]s. org) | © 2010 by Prentice Hall Information Systems, Global Business and E-businessChapters 1 and 2 (Laudon and Laudon, 2010) Types of Business Information Systems • Decision support systems – Serve middle management – Support nonroutine decision making • Example: What is impact on production schedule if December sales doubled? – Often use external information as well from TPS and MIS – Model driven DSS • Voyage-estimating systems 10. 22 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) • Executive support systems Support senior management – Address nonroutine decisions requiring judgment, evaluation, and insight – Incorporate data about external events (e. g. new tax laws or competitors) as well as summarized information from internal MIS and DSS – Example: ESS that provides minute-to-minute view of firm’s financial performance as measured by working capital, accounts receivable, accounts payable, cash flow, and inventory 10. 23 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Systems from a constituency perspective – Transaction processing systems: supporting operational level employees – Management information systems and decision-support systems: supporting managers – Executive support systems: supporting executives 10. 24 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Systems That Span the Enterprise • Enterprise applications • Span functional areas • Execute business processes across firm • Include all levels of management • Four major applications: ) b) c) d) 10. 25 Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems © 2010 by Prentice Hall www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Enterprise Systems Enterprise systems integrate the key business processes of an entire firm into a single software system that enables information to flow seamlessly throughout the organization. These systems focus primarily on internal processes but may include transactions with customers and vendors.Figure 2-8 10. 26 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Systems That Span the Enterprise • Enterprise systems • Collects data from different firm functions and stores data in single central data repository • Resolves problem of fragmented, redundant data sets and systems • Enable: • Coordination of daily activities • Efficient response to customer orders (production, inventory) • Provide valuable information for improving management decision making 10. 7 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Systems That Span the Enterprise • Supply chain management systems • Manage firm’s relationships with suppliers • Share information about • Orders, production, inventory levels, delivery of products and services • Goal: Right amount of products to destination with least amount of time and lowest cost 10. 28 www. vivaafrica. net | Dr. Richard Boateng ([email protected] rg) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Example of a Supply Chain Management System Customer orders, shipping notifications, optimized shipping plans, and other supply chain information flow among Haworth’s Warehouse Management System (WMS), Transportation Management System (TMS), and its back-end corporate systems. Figure 2-9 10. 29 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-businessChapters 1 and 2 (Laudon and Laudon, 2010) Systems That Span the Enterprise • Customer relationship management systems: • Provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention • Integrate firm’s customer-related processes and consolidate customer information from multiple communication channels 10. 30 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-businessChapters 1 and 2 (Laudon and Laudon, 2010) So what is the DIGITAL FIRM? 10. 31 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) A firm which uses information systems to become networked and decentralized and to digitalize their business processes and foster innovation and creativity. 10. 32 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-businessChapters 1 and 2 (Laudon and Laudon, 2010) • Electronic Commerce: Sharing business information, managing business relationships and facilitating transactions with Internet technology. (linking buyers and sellers). • Electronic Business: Executing all the firm’s business processes with Internet technology. (sales, finance, human resources, manufacturing) • Intranet: Business builds private, secure network based on Internet technology • Extranet: Extension of intranet to authorized external users 10. 33 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Systems That Span the Enterprise • Intranets: • Internal networks built with same tools and standards as Internet • Used for internal distribution of information to employees • Typically utilize private portal providing single point of access to several systems • May connect to company’s transaction systems 10. 34 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-businessChapters 1 and 2 (Laudon and Laudon, 2010) Systems That Span the Enterprise • Extranets: • Intranets extended to authorized users outside the company • Expedite flow of information between firm and its suppliers and customers • Can be used to allow different firms to collaborate on product design, marketing, and production 10. 35 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Systems That Span the Enterprise • E-business (Electronic business): Use of digital technology and Internet to execute major business processes in the enterprise • Includes e-commerce (electronic commerce): • Buying and selling of goods over Internet • E-government: • The application of Internet and networking technologies to digitally enable government and public sector agencies’ relationships with citizens, businesses, and other arms of government 10. 36 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010)The Role of Information Systems in Business Today • Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals Business firms invest heavily in information systems to achieve six strategic business objectives: – – – – – – Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival © 2010 by Prentice Hall • 10. 37 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) |Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) The Role of Information Systems in Business Today • Operational excellence: – Improvement of efficiency to attain higher profitability – Information systems, technology an important tool in achieving greater efficiency and productivity – Nike ID, BMW USA – linking the website with suppliers • New products, services, and business models: – Business model: describes how company produces, delivers, and sells product or service to create wealth 10. 38 www. vivaafrica. et | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) The Role of Information Systems in Business Today • Improved decision making – Without accurate information: • Managers must use forecasts, best guesses, luck • Leads to: – Overproduction, underproduction of goods and services – Misallocation of resources – Poor response times • Poor outcomes raise costs, lose customers – Example: www. ibrokerghana. com – check and manage your shares online. 0. 39 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) 10. 40 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) The Role of Information Systems in Business Today Customer and Supplier Intimacy: • Customers who are served well become repeat customers who purchase more. Close relationships with suppliers result in lower costs. • Cliq from Expresso and Fidelity Bank use facebook to extend customer service 10. 41 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) 10. 42 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) The Information Systems Function in Business Information systems department: • Formal organizational unit responsible for information technology services • Includes programmers, systems analysts, project leaders, information systems managers • Often headed by chief information officer (CIO) • End-users: • Representatives of other departments, for whom applications are developed 10. 43 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Information Technology InvestmentConsidering the context of a developing country like Ghana, is the internet a strategic choice for every firm or otherwise, should every firm do business online? 10. 44 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) Class Website • www. vivaafrica. net Use the class website WEEKLY, ask/comment on the articles on MIS and JOIN the FACEBOOK Please Add your name and the course code 10. 45 www. vivaafrica. net | Dr. Richard Boateng ([email protected] rg) | © 2010 by Prentice Hall Information Systems, Global Business and E-business Chapters 1 and 2 (Laudon and Laudon, 2010) All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10. 46 www. vivaafrica. net | Dr. Richard Boateng ([email protected] org) | © 2010 by Prentice Hall

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