Chapter 1 foundations of information systems in business (1)
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This document provides an overview of information systems concepts. It defines information systems and their key components, including hardware, software, data, networks, and people. It describes common information system activities like input, processing, output, storage, and control. It also discusses trends in information systems like cloud computing, big data, mobile, social, and how e-business applications support business processes, decision making, and competitive advantage. Finally, it covers some managerial challenges of developing, implementing, and managing information systems.
Chapter 1 foundations of information systems in business (1)
- 1. Management Information Systems MBA- 1st Trimester
- 2. Foundation Concepts Information Systems in Business
- 4. Information System • BBSM Point of Sales system • IMS Himalayan Sangrila • • online and onsite Movie Ticket booking systems • online hotel booking • FACT accounting solution • Tally accounting solution • PUMORI core banking system software • FINACLE core banking system software • FLEX CUBE core banking system software
- 5. Information System Top 5 Core Banking Software (CBS) in Nepal - Published on May 30, 2016 • Pumori IV NMB BANK, SUNRISE BANK, DCBL BANK, COMMERCZ AND TRUST BANK • Pumori III NIC ASIA BANK, NCC BANK, NEPAL BANK, RB BANK, KIST BANK, PRIME BANK, CITIZEN BANK • FINACLE BOK BANK, GLOBAL IME BANK, EVEREST BANK, NIBL BANK, NABIL BANK • FLEX CUBE SIDDHARTHA BANK, LAXMI BANK, MEGA BANK, JANTA BANK • GLOBUS/TEMENOS T24 HIMALAYAN BANK, KUMARI BANK, CIVIL BANK, SUNRISE BANK, MACHHAPUCHHRE BANK, ADBL
- 6. • What is IS? Simply, Information System is an organized system for collection, organization, storage and communication of information. • Specifically, IS is concerned with the study of complementary networks that people and organization use to collect, filter, process, create and distribute data • ‘Why we need IS?’ This question has evolved into a moot issue. As marketing, accounting, finance, human resource management, operation management, information system has become an integral part of many business organizations. • In today’s world of technology, many call it business imperative. Information System
- 7. • Since, you probably intend to become entrepreneurs, managers, investors, business professionals; it is just as important to have a basic knowledge of information system as it is to understand any other functional areas in business. • Thus, it is essential to study information system in business administration and management programs • Information systems help many businesses improve the efficiency and effectiveness of their business process, managerial decision making and workgroup collaboration to strengthen the competitive position in rapidly changing marketplace. Information System
- 8. • Improvised definition of IS: An organized system of complementary networks of hardware and software that people and organization use to collect, filter, process, store, transform and disseminate data and information to support decision making, coordination and control, analysis and visualization in an organization. • eCourier – Booking and Tracking automation Information System
- 9. Information Systems Any organized combination of people, hardware, software, communication networks, data resources, and policies and procedures that stores, retrieves, transforms and disseminates information in an organization
- 10. Fundamental Role of IS in Business • Support business processes and operations – Computer based IS help employees to record customer purchases, track inventory & warehouse, pay employees, evaluate sales trend and buy new merchandize. – Store would come to a halt without such IS • Support decision making by employees and managers – Decision about what merchandize to be added or discontinued, what kind of investments they require are typically made after analysis provided by computer based IS • Support strategies for competitive advantage – Installing Self-check out kiosks – Gaining strategic advantage over competitors requires innovative application of information technologies.
- 11. Trends in Information Systems
- 12. “Big Five” IT trends Cloud Big Data Mobile Social
- 13. The role of e-Business in Business • Internet, related technologies and business applications have changed the way businesses operate, people work and how IS support business processes, decision making and competitive advantage • Businesses create eBusiness applications – Using Internet to Web-enable business processes – Depending on Intranet, Extranet to implement and manage innovative eBusiness applications • eBusiness uses Internet technologies to empower business processes, eCommerce, and enterprise collaboration within a company and beyond the company - with its customers, suppliers, stakeholders
- 14. The role of e-Business in Business • eBusiness is online exchange of value • Any online exchange of information, money, resources, services or any combination thereof falls under the eBusiness umbrella • eBusiness application are used by companies to – Reengineer internal business processes – Implement eCommerce system with customers and suppliers – Promote enterprise collaboration among business teams and workgroups
- 15. The role of e-Business in Business • Enterprise Collaboration uses software tools, Enterprise Collaboration System, to support communication, coordination and collaboration among the members of networked teams and workgroups – Virtual team of employees and consultants uses intranet, extranet and internet for e-mail, videoconferencing, creating e-discussion groups (blogs), communicating Work-in-Progress in Web pages and for sharing documents to collaborate on different projects.
- 16. The role of e-Business in Business • eCommerce is buying, selling, marketing and servicing of products, services and information over a variety of computer networks. • eCommerce supports every step of commercial process – Advertising, sales and customer support on the web – Internet Security for safe transaction & payment – Assurance of delivery completion from dispatcher/delivery company • eCommerce systems include – Online sales through internet website – Extranet access to customer’s inventory database – Intranet for sales repsto accesscustomer records for CRM
- 17. Typical eBusiness Architecture Supply Chain Management: Procurement, Distribution & Logistics Engineering & Research Company Boundary Consumers & Business Customers Extranet Extranet Accounting & Finance Manufacturing & Production Suppliers & Other Business Partners Customer Relationship Management: Marketing, Sales, Customer Service Intranet Intranet Internet
- 18. Operation Support System Management Support System Transaction Processing System Process Control System Enterprise Collaboration System Specialized Processing System Management Information System Decision Support System Executive Information System Specialized Processing System Expert System Knowledge Management System Strategic Information System Functional Business System Information System Support Business Operations Support Management Decision Making Types of Information Systems
- 19. Foundation Concepts The components of Information Systems
- 20. System • A set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives by accepting inputs and producing outputs through a transformation process in an organized manner • 3 basic functions of a system – Input involves capturing and assembling elements that enter the system (to be processed). – Processing involves transformation method (that convert input elements to output). – Output involves transferring elements that have been produced by transformation process to ultimate destination. • Feedback is data about the performance of a system. • Control involves monitoring and evaluating feedback, and making necessary adjustment to inputs & process
- 21. Components of Information System • Information Systems use people, hardware, software, data and network resources to perform input, processing, output, storage and control activities that transform data into information products.
- 22. Information System Resources 1. People are the essential ingredient for the successful operation of all information system. It includes end users and IS specialist. END USERS are people who use an information system or the information it produces. They can be customers , sales person, clerks, engineers, accountants, managers who are found at all levels. Knowledge workers who collaborate & communicate IS SPECIALIST are people who develop and operate information system. It includes system analysts, software developers, system operators, technical & clerical IS persons
- 23. Information System Resources 2. Hardware Resources includes all physical devices and material used in information processing. It includes not only machines, such as computers but also all data media, i.e. tangible objects on which data is recorded. COMPUTER SYSTEM : consist of central processing units containing micro processors and a variety of interconnected devices such as printers , scanners etc. COMPUTER PERIPHERALS: are devices such as keyboard, electronic mouse for the input of data and commands , a video screen or printers for the output of the information, magnetic or optical drives for storage of data resources
- 24. Information System Resources 3. Software resources includes all sets of information processing instructions. It includes the sets of operating instructions called programs which direct and control computer hardware and the set of information processing instruction called procedure that people need. Example: • System software: OS which control and supports the operation of computer system • Application software: sales analysis, payroll, word processing programs • Procedures: Operating instructions for the people who use IS
- 25. Information System Resources 4. Data resources are the input elements that are stored in databases. This concept has been broadened by managers and information system professionals. They realize the data constitute valuable organizational resources. Data can take many forms: alphanumeric, text, images, video, audio Data can take many forms including traditional numeric data composed of numbers etc. The data resources of information system are typically organized, stored, accessed by a variety of data resource management technologies into: Data base that hold processed and organize data. Knowledge bases that hold knowledge in a variety of forms such as facts, rules and cases of best business practices
- 26. Information System Resources 5. Network resources includes communications technologies and networks that are fundamental to all information system. It includes: Communication Media- includes twisted pair wire, microwave, cellular wireless technologies. Network Infrastructure- emphasizes that many hardware, software and data technologies are needed to support the operations and use of communication network. – Communication processors such as modems, communication control software, network OS, internet browser packages.
- 27. Information System Activities • Input of Data Resources • Processing of Data into Information • Output of Information Products • Storage of Data Resources • Control of System Performance
- 28. Input of Data Resources • Data entry • Editing • Formal record of a transaction • optical scanning of bar coded tags on merchandise • Machine readable • Source documents
- 29. Processing of Data into Information • Calculate • Compare • Sort • Classify • Summarize – calculating employee pay, taxes, and other payroll deductions • The quality of the data must be maintained by a continual process of correcting and updating activities
- 30. Output of Information Products • Transmit information to users • Producing reports and displays about sales performance • Display; paper; audio, reports, forms
- 31. Storage of data • Maintaining records on customers, employees, products, sales • Data are retained in an organized manner • Fields; records; files; data bases, knowledge bases
- 32. Control of system performance • Generating audible signals to indicate proper entry of data • Feedback must be monitored and evaluated to determine if the information system is meeting established performance standards. • Control system checks the feedback and makes necessary changes
- 33. INFORMATION SYSTEM ACTIVITIES Input. (optical scanning of bar coded tags on merchandise) Processing. (calculating employee pay, taxes, and other payroll deductions) Output. (producing reports and displays about sales performance) Storage. (maintaining records on customers, employees, and products) Control. (generating audible signals to indicate proper entry of sales data.)
- 34. MANAGERIAL CHALLENGES • IS and technologies must be managed to support business strategies, business processes and organizational structures and culture of a business enterprise • Success and failure of IT should not be measured only by efficiency in terms of minimizing cost, time and the use of information resources. • It should also be measured by effectiveness in supporting business strategy, enabling business processes, enhancing organizational structure and culture and increasing the business and customer values • However, IS & technology could be mismanaged and misapplied resulting into not only technical problem but also a business failure. • Ex. Dell - Corporate Support call center Shop Direct
- 35. MANAGERIAL CHALLENGES • Developing IS Solutions – Agile : system is defined at high level and then developed in short iterations – Usable software after each iteration • Challenges and Ethics of IT – What might be considered improper, irresponsible and harmful to other people or society – Proper business use of IT, internet and organization’s IT resources – How to protect yourself from computer crime and other IT risks – Ex. CRM and HRM cases – Ex. Hannaford Bros – Importance of securing cust. Data
- 36. MANAGERIAL CHALLENGES • Challenges of IT career – Expensive pay to IT specialist – Raising labor costs – Off-shore outsourcing to India, Asia Pacific, Middle-East. – Decrease in the cost of IT and software resulting in more use of them by companies – To stay competitive and efficient, business must use it – More new and complex IS are being implemented and used