1、1Chapter STUDENT LEARNING OBJECTIVES How are information systems transforming business and what is their relationship to globalization?Why are information systems so essential for running and managing a business today?What exactly is an information system?How does it work?What are its people,organiz
2、ation,and technology components?How will a four-step method for business problem solving help you solve information systemrelated problems?How will information systems affect business careers and what information systems skills and knowledge are essential?STUDENT LEARNING OBJECTIVESVIDEO CASES AND L
3、EARNING TRACKS1.How Much Does IT Matter?2.The Changing Business Environment for Information Technology3.The Business Information Value Chain4.The Mobile Digital Platform5.Occupational and Career Outlook for Information Systems Majors 20122020Case 1:UPS Global Operations with the DIADCase 2:Google Da
4、ta Center Efficiency Best PracticesInstructional Video 1:Green Energy Efficiency in a Data Center Using Tivoli Architecture(IBM)Instructional Video 2:Tour IBMs Raleigh Data CenterTHE SF GIANTS WIN BIG WITH INFORMATION TECHNOLOGY Problem:Improving fan attendance and minimizing lost revenue when seaso
5、n ticket-holders don t attend.Solutions:Enhance customer satisfaction by offering Wi-Fi access and game-related information services;provide marketplace for ticketholders to resell tickets;enable dynamic pricing to sell more tickets.THE SF GIANTS WIN BIG WITH INFORMATION TECHNOLOGY San Franciso Gian
6、sts/AT&T Stadium uses Fieldf/x to improve team decision making,Qcue to provide dynamic ticket pricing,and wireless technology to provide services for fans.Demonstrates ITs role in increasing value and revenue in any business.Illustrates the potential for technology to improve customer experience.THE
7、 SF GIANTS WIN BIG WITH INFORMATION TECHNOLOGYThe Role of Information Systems in Business Today In 2013,more than 102 million businesses had dot-com addresses registered.150 million people read news online;170 million use a social networking site.Internet advertising continues to grow at around 7 pe
8、rcent per year.New laws require businesses to store more data for longer periods.Changes in business result in changes in jobs and careers.The Role of Information Systems in Business TodayWhats New in MIS?New technologiesCloud computing/software as a service(SaaS)Big DataMobile digital platformManag
9、ementManagers use social networks,collaboration.Business intelligence applications accelerate.Virtual meetings proliferate.OrganizationsSocial businessTelework gains momentumCo-creation of value,collaboration across firms Read the Interactive Session and then discuss the following questions:1.What k
10、inds of applications are described here?What business functions do they support?How do they improve operational efficiency and decision making?2.Identify the problems that businesses in this case study solved by using mobile digital devices.3.What kinds of businesses are most likely to benefit from
11、equipping their employees with mobile digital devices such as iPhones and iPads?4.One company deploying iPhones has said,“The iPhone is not a game changer,its an industry changer.It changes the way that you can interact with your customers”and“with your suppliers.”Discuss the implications of this st
12、atement.The Role of Information Systems in Business TodayThe Role of Information Systems in Business Today Internet and global communications have greatly reduced economic and cultural advantages of developed countries.Drastic reduction of costs of operating and transacting on global scaleCompetitio
13、n for jobs,markets,resources,ideasDependence on imports and exportsRequires new understandings of skills,markets,opportunities Businesses invest in IT to achieve six important business objectives.1.Operational excellence 2.New products,services,and business models3.Customer and supplier intimacy4.Im
14、proved decision making5.Competitive advantage6.Survival The Role of Information Systems in Business Today Improved efficiency results in higher profits.Information systems and technologies help improve efficiency and productivity.Example:Walmart Power of combining information systems and best busine
15、ss practices to achieve operational efficiencyand more than$469 billion in sales in 2013 Most efficient retail store in world as result of digital links between suppliers and storesThe Role of Information Systems in Business Today Information systems and technologies enable firms to create new produ
16、cts,services,and business models.Business model:how a company produces,delivers,and sells its products and services Example:Apple Transformed old model of music distribution with iTunes Constant innovationsiPod,iPhone,iPad,and so onThe Role of Information Systems in Business Today Customers who are
17、served well become repeat customers who purchase more.Mandarin Oriental hotelUses IT to foster an intimate relationship with its customers,keeping track of preferences,and so on Close relationships with suppliers result in lower costs.JCPenneyIT to enhance relationship with supplier in Hong KongThe
18、Role of Information Systems in Business Today If managers rely on forecasts,best guesses,and luck,they will misallocate employees,services,and inventory.Real-time data improves ability of managers to make decisions.Verizon:Web-based digital dashboard to update managers with real-time data on custome
19、r complaints,network performance,and line outagesThe Role of Information Systems in Business Today Often results from achieving previous business objectives Advantages over competitors:Charging less for superior products,better performance,and better response to suppliers and customers Examples:Appl
20、e,Walmart,UPS are industry leaders because they know how to use information systems for this purposeThe Role of Information Systems in Business TodayBusinesses may need to invest in information systems out of necessity;simply the cost of doing business.Keeping up with competitorsCitibanks introducti
21、on of ATMsFederal and state regulations and reporting requirementsToxic Substances Control Act and the Sarbanes-Oxley ActThe Role of Information Systems in Business TodayPerspectives on Information Systems and Information Technology Information technology:the hardware and software a business uses to
22、 achieve objectives.Information system:interrelated components that manage information to:Support decision making and control.Help with analysis,visualization,and product creation.Data:streams of raw facts.Information:data shaped into meaningful,useful form.Perspectives on Information Systems and In
23、formation TechnologyFigure 1-1Raw 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.Perspectives on Informatio
24、n Systems and Information Technology Activities in an information system that produce information:InputProcessingOutputFeedback Sharp distinction between computer or computer program versus information systemPerspectives on Information Systems and Information TechnologyFigure 1-2An information syste
25、m contains information about an organization and its surrounding environment.Three basic activitiesinput,processing,and outputproduce the information organizations need.Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input.Environmental
26、actors,such as customers,suppliers,competitors,stockholders,and regulatory agencies,interact with the organization and its information systems.Perspectives on Information Systems and Information Technology Information systems literacy Includes behavioral and technical approach Computer literacy Focu
27、ses mostly on knowledge of IT Management information systems(MIS)Focuses on broader information systems literacy Issues surrounding development,use,impact of information systems used by managers and employeesPerspectives on Information Systems and Information TechnologyFigure 1-3Using information sy
28、stems effectively requires an understanding of the organization,people,and information technology shaping the systems.An information system provides a solution to important business problems or challenges facing the firm.Perspectives on Information Systems and Information Technology Organizations Co
29、ordinate work through structured hierarchy and business processes.Business processes:related tasks and behaviors for accomplishing workExamples:fulfilling an order,hiring an employeeMay be informal or include formal rules Culture embedded in information systemsExample:UPSs concern with placing servi
30、ce to customer firstPerspectives on Information Systems and Information Technology People Information systems require skilled people to build,maintain,and use them.Employee attitudes affect ability to use systems productively.Role of managers Perceive business challenges.Set organizational strategy.
31、Allocate human and financial resources.Creative work:new products,services.Perspectives on Information Systems and Information Technology Technology IT Infrastructure:Foundation or platform that information systems built on Computer hardware Computer software Data management technology Networking an
32、d telecommunications technology Internet and Web,extranets,intranets Voice,video communicationsPerspectives on Information Systems and Information Technology Read the Interactive Session and then discuss the following questions:What are the inputs,processing,and outputs of UPSs package tracking syst
33、em?What technologies are used?How are these technologies related to UPSs business strategy?What strategic business objectives do these systems address?What would happen if these technologies were not available?Understanding Information Systems:A Business Problem-Solving Approach Few business problem
34、s are simple or straightforward.Most business problems involve a number of major factors that can fall into three main categories:Organization Technology People Understanding Information Systems:A Business Problem-Solving Approach Problem solving:four-step process1.Problem identification2.Solution d
35、esign3.Choice4.ImplementationUnderstanding Information Systems:A Business Problem-Solving Approach1.Problem identification includes:Agreement that problem existsDefinition of problemCauses of problemWhat can be done given resources of firmUnderstanding Information Systems:A Business Problem-Solving
36、ApproachTypical organizational problemsOutdated business processesUnsupportive culture and attitudesPolitical in-fightingTurbulent business environment,changeComplexity of taskInadequate resourcesUnderstanding Information Systems:A Business Problem-Solving ApproachTypical technology problemsInsuffic
37、ient or aging hardwareOutdated softwareInadequate database capacityInsufficient telecommunications capacityIncompatibility of old systems with new technologyRapid technological changeUnderstanding Information Systems:A Business Problem-Solving ApproachTypical people problemsLack of employee training
38、Difficulties of evaluating performanceLegal and regulatory complianceWork environment,ergonomicsPoor or indecisive managementLack of employee support and participationUnderstanding Information Systems:A Business Problem-Solving Approach2.Solution designOften many possible solutionsConsider as many a
39、s possible to understand range of solutions3.Solution Evaluation and Choice:Factors includeCostFeasibility given resources and skillsLength of time needed to implement solution Understanding Information Systems:A Business Problem-Solving Approach4.ImplementationBuilding or purchasing solutionTesting
40、 solution,employee trainingChange managementMeasurement of outcomesFeedback,evaluation of solutionProblem solving is a continuous process,not a single eventSometimes chosen solution doesnt work or needs adjustment Figure 1-4During implementation and thereafter,the outcome must be continually measure
41、d and the information about how well the solution is working is fed back to the problem solvers.In this way,the identification of the problem can change over time,solutions can be changed,and new choices made,all based on experience.Understanding Information Systems:A Business Problem-Solving Approa
42、chUnderstanding Information Systems:A Business Problem-Solving Approach Without critical thinking,easy to jump to conclusions,misjudge a problem,and waste resources Critical thinking:Sustained suspension of judgment with an awareness of multiple perspectives and alternativesUnderstanding Information
43、 Systems:A Business Problem-Solving Approach Four elements of critical thinking:1.Maintaining doubt and suspending judgment2.Being aware of different perspectives Including technology,organization,and people perspectives3.Testing alternatives and letting experience guide4.Being aware of organization
44、al and personal limitationsUnderstanding Information Systems:A Business Problem-Solving Approach When firms cannot achieve business objectives these objectives become challenges.Information systems often present solutions,partially or fully,to these challenges.Success in today s job market requires
45、a broad set of skills.Job candidates must have problem-solving skills as well as technical skills so that they can complete specific tasks.The service sector will account for 95 percent of the new jobs that are created or open up by 2020Information Systems and Your Career Accounting:Accountants incr
46、easingly rely on information systems to summarize transactions,create financial records,organize data,and perform financial analysis.Skills:Knowledge of databases and networksOnline financial transactions and reporting systemsHow systems are used to achieve accounting functionsInformation Systems an
47、d Your Career Finance:Relationship between information systems and financial management and services is so strong that many advise finance majors to co-major in information systems.Skills:Use systems for financial reporting,direct investment activities,implement cash management strategiesPlan,organi
48、ze,implement information systems strategies for the firmInformation Systems and Your Career Marketing:No field has undergone more technology-driven change in the past five years than marketing and advertising.Skills:Work with databases for tracking and reporting on customer behavior,product performa
49、nce,customer feedback,product developmentEnterprise systems for product management,sales force management,customer relationship managementInformation Systems and Your Career Operations management in services and manufacturing:Production managers,administrative service managers,and operations analyst
50、sSkills:Hardware and software platforms for operations managementUse database and analytical software for coordinating and optimizing resources required for producing goods and servicesInformation Systems and Your Career Management:The job of management has been transformed by information systems.Im
