Session 1 - Introduction to IS and foundations of IS in business.ppt
- 1. 1.1 © 2006 by Prentice Hall FOUNDATIONS OF INFORMATION SYSTEMS IN BUSINESS Md. Iftekharul Amin Associate Professor, IBA
- 2. 1.2 © 2006 by Prentice Hall ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY IT is the largest single component of capital investment in many developed countries. For example- About $1 trillion is spent by American businesses in 2017 and $143 billion spent on different services to take advantage of new technologies. In 2017, 33% of a firm’s investment was in IT and increased from 21% since 2000. In Bangladesh (thrust sector), investment is around ????.
- 3. 1.3 © 2006 by Prentice Hall WHY INFORMATION SYSTEMS?
- 4. 1.4 © 2006 by Prentice Hall Wide use of Cell phones, iPhones, e-mail, online conferencing over the Internet (81% of Americans (269 mln.) use mobile phones, more than 230 million among them use internet). By June 2021, more than 200 million businesses worldwide had dot-com Internet sites registered. Online shopping is increasing- Ireland-91%, Turkey 86%. Newspaper readership continues to decline. Blogs (Ihatewalmart), Facebook, Twitter, MySpace and other social networks are used for customer feedback. Online advertising (popup, banner, email) is booming. Organization’s operational efficiency and productivity is increased. Lowest inventories(Build to order-dell), customized product (bluenile, nike), respond quickly to changes. HOW INFORMATION SYSTEM IS TRANSFORMING BUSINESS?
- 5. 1.5 © 2006 by Prentice Hall What about BD?? What are the changes you see around? During Covid?? Internet users? Online shopping? Online newspaper readers? Changes in business processes?? Social networking tools being used by businesses to connect employees, customers, and managers. Internet advertising continues to grow at more than 20 percent per year New laws require businesses to store more data for longer periods Changes in business result in changes in jobs and careers HOW INFORMATION SYSTEM IS TRANSFORMING BUSINESS?
- 6. 1.6 © 2006 by Prentice Hall Transforming Business model through- Robotic Process Automation AI Digital Cloud Platform IoT Blockchain Data Analytics Mobile digital platform HOW INFORMATION SYSTEM IS TRANSFORMING BUSINESS?
- 7. 1.7 © 2006 by Prentice Hall Think of –Uber, Airbnb, Amazon, eBay…… Online classes, work from home….. Social networking tools being used by businesses to connect employees, customers, and managers Internet advertising continues to grow at more than 20 percent per year New laws require businesses to store more data for longer periods Changes in business result in changes in jobs and careers
- 8. 1.8 © 2006 by Prentice Hall Impacts of IS on Business Processes
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- 14. 1.14 © 2006 by Prentice Hall Strategic Business Objectives of Information Systems • Firms invest heavily in information systems to achieve six strategic business objectives: • 1. Operational excellence • 2. New products, services, and business models • 3. Customer and supplier intimacy • 4. Improved decision making • 5. Competitive advantage • 6. Survival
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- 16. 1.16 © 2006 by Prentice Hall • Nicholas Carr has argued that whatever advantages firms build using IT can be easily copied by competitors. • Competitive advantage derives not from the technology, but on how businesses use the technology. • What’s your opinion? CRITICISM
- 17. 1.17 © 2006 by Prentice Hall What IS a system? • A group of interrelated or interacting elements forming a unified whole, OR • A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. • Three basic interacting components: – Input – Processing (transformation process) – Output • The system becomes more useful by including two additional components – Feedback – Control
- 18. 1.18 © 2006 by Prentice Hall Other System Characteristics • A system exists and functions in an environment containing other systems • Subsystem – a component of a larger system. • Systems that share the same environment may be connected to one another through a shared boundary, or interface
- 19. 1.19 © 2006 by Prentice Hall What Is an Information System? Technology perspective: A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization
- 20. 1.20 © 2006 by Prentice Hall Activities of an Information System
- 21. 1.21 © 2006 by Prentice Hall • Input: Optical scanning of bar coded tags on merchandise • Processing: Calculating employee pay, taxes, and other payroll deductions • Output: Producing reports and displays about sale performance • Feedback: Frequent duplications of sales entry • Control: Generating audible signals to indicate proper entry of sales data Business Example
- 22. 1.22 © 2006 by Prentice Hall • Data: Streams of raw facts representing events such as business transactions • Information: Clusters of facts meaningful and useful to human beings in the processes such as making decisions What Is an Information System?(Contd.)
- 23. 1.23 © 2006 by Prentice Hall Data Versus Information Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100
- 24. 1.24 © 2006 by Prentice Hall Data and Information Figure 1-5
- 25. 1.25 © 2006 by Prentice Hall • Information systems are an organizational and management solution to business challenges that arise from the business environment. • IS create value primarily by changing business processes and management decision making. Information systems are more than just technology. Businesses invest in IS in order to create value and increase profitability. A Business Perspective on Information Systems
- 26. 1.26 © 2006 by Prentice Hall Three Important Dimensions of Information Systems • Organizations • Managers • Technology You will need to understand and balance these dimensions of information systems in order to create business value. Dimensions of Information Systems
- 27. 1.27 © 2006 by Prentice Hall Information Systems Are More than Computers
- 28. 1.28 © 2006 by Prentice Hall • People • Structure • Business processes • Culture • Politics The Organizational Dimension of Information Systems
- 29. 1.29 © 2006 by Prentice Hall Managers are: • Decision makers • Planners • Innovators of new processes • Leaders: set agendas ` The Management Dimension of Information Systems
- 30. 1.30 © 2006 by Prentice Hall The Management Dimension of Information Systems (Continued) Managers who can understand the role of information systems in creating business value are the key ingredient to success with systems, and cannot easily be replicated by your competitors.
- 31. 1.31 © 2006 by Prentice Hall • Hardware: Physical equipment • a) Machines b) Media • Software: Instructions • a) System b) Application • Communications technology: Transfers data from one physical location to another • a) Communication media b) Network infrastructure Information technology is one of the tools managers use to cope up with change: The Technology Dimension of Information Systems
- 32. 1.32 © 2006 by Prentice Hall IS in the e-Business Enterprise • IS supports business operations through the use of: – Intranets – Extranets – Internet – Other information technologies • electronic commerce (EC) The process of buying, selling, or exchanging products, services, or information via computer networks
- 33. 1.33 © 2006 by Prentice Hall • e-business A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning and conducting electronic transactions within an organization ->Use of Internet and other Information technologies to support commerce and improve business performance -> Complement of EC -> EC only considers transactions between bus.-partners -> EC makes the concept fairly narrow Electronic Business
- 34. 1.34 © 2006 by Prentice Hall Electronic Business • Pure versus Partial EB – EB can take several forms depending on the degree of digitization of- 1. the product (service) sold 2. the process (e.g., ordering, payment, fulfillment) 3. the delivery method
- 35. 1.35 © 2006 by Prentice Hall Thank you! ???