Slide1 : 1 Chapter Information System
Slide2 : OBJECTIVES Information Systems Explain why information systems are so essential in business today.
Define an information system from both a technical and a business perspective, and distinguish between computer literacy and information systems literacy.
Apply a four-step method for business problem solving to solve information system-related problems.
Slide3 : Assess how information systems will affect business careers in accounting, finance, management, marketing, operations management, and information systems and identify the information systems skills and knowledge essential for all business careers. OBJECTIVES (Continued) Information Systems
Slide4 : Information Systems
Problems with the traditional business systems Problem: Declining revenue from traditional sales channels, declining customer base, increasing costs.
Solutions: MLB (Major League Baseball) Web sites and cell phone ticketing enable electronic ticketing and delivery of online information and games, which increase sales.
SAS customer analysis software and Web site tracking tools help identify good sales prospects.
Demonstrates IT’s role in reducing cost, opening new sales channels, and building community with customers.
Illustrates the emerging digital firm landscape where businesses can use tools to analyze critical data.
Slide5 : Information Systems
Problems with the traditional business systems
Visit the Major League Baseball Web site at www.mlb.com
Watch a video on the home page
Subscribe to a free newsletter from the Fan Forum
Find a jersey from your favorite team in the Shop
Visit the Web site of your favorite MLB team
How does having a central Web site run all team sites help MLB?
What business objectives does this Web site serve? Interactive Session: Major League Baseball
Slide7 : The Role of Information Systems in Business Today
In 2005, more wireless phone accounts were opened than telephone land lines installed
More than 35 million people receive their news online; 32 million Americans read blogs
Internet advertising continues to grow at more than 30 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 Systems Are Transforming Business Information Systems
Slide8 : Information Systems
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival Business Objectives of Information Systems The Role of Information Systems in Business Today
Slide9 : Information Systems
Operational Excellence: Improved efficiency results in higher profitability
Information systems and technologies help to improve higher levels of efficiency and productivity
Wal-Mart is the champion of combining information systems and best business practices to achieve operational efficiency—and $285 billion in sales in 2005
Wal-Mart is the most efficient store in the world as a result of digital links between its suppliers and stores The Role of Information Systems in Business Today
Slide10 : Information Systems
Information systems and technologies enable firms to create new products, services, and business models
A business model includes how a company produces, delivers, and sells its products and services
The music industry has seen drastic changes in business models in recent years
Apple has been very successful at introducing new products and adopting a new business model New products, services, and business models: The Role of Information Systems in Business Today
Slide11 : Information Systems
Customers who are served well become repeat customers who purchase more
Close relationships with suppliers result in lower costs
The Mandarin Oriental in Manhattan uses information systems and technologies to foster an intimate relationship with its customers including keeping track of their preferences
JCPenney uses information systems to enhance its relationship with its supplier in Hong Kong Customer and supplier intimacy: The Role of Information Systems in Business Today
Slide12 : Information Systems
A company’s bottom line can be hurt by managers being swamped with data that are neither timely nor helpful, forcing them to use guesswork
Real-time data have improved the ability of managers to make decisions
Verizon uses a Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages Improved decision making: The Role of Information Systems in Business Today
Slide13 : Information Systems
Achieving the previously mentioned business objectives often leads to competitive advantage
Advantages over competitors include charging less for superior products, better performance, and better response to suppliers and customers
Dell Computer is one of the best examples of establishing competitive advantage as the company has continued to be profitable during a time when PC prices have been falling steadily Competitive advantage: The Role of Information Systems in Business Today
Slide14 : Information Systems
Businesses may need to invest in information systems out of necessity
Necessity arises from keeping up with competitors, such as when Citibank introduced ATMs
Necessity also arises from federal and state regulations, such as the Toxic Substances Control Act and the Sarbanes-Oxley Act Survival: The Role of Information Systems in Business Today
Slide15 : Interactive Session: Business Objectives
In your experience, what firms have achieved:
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival Did information systems and technologies play a role
in these achievements? Information Systems
The Role of Information Systems in Business Today
Slide16 : Perspectives on Information Systems and Information Technology
Information technology is the hardware and software a business uses to achieve its objectives
An information system consists of components that support decision making and control, and help with analysis, visualization, and product creation
Information refers to data shaped into a meaningful and useful form
Data are streams of raw facts representing events and occurrences What Is an Information System? Information Systems
Slide17 : Perspectives on Information Systems and Information Technology What Is an Information System? Information Systems
Activities in an information system that produce information:
Input
Processing
Output
Feedback Think of an information system you have experienced recently. Describe the inputs, processing, outputs, and feedback in the system.
Slide18 : It Isn’t Simply Technology: The Role of People and Organizations
Information systems literacy vs. computer literacy
Organizations
People
Technology Dimensions of Information Systems Information Systems
Slide19 : Information Systems Are More Than Computers It Isn’t Simply Technology: The Role of People and Organizations Information Systems
Slide20 : It Isn’t Simply Technology: The Role of People and Organizations Information Systems Are More Than Computers Information Systems
Figure 1-3 Using information systems 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.
Slide21 : It Isn’t Simply Technology: The Role of People and Organizations UPS Competes Globally with Information Technology Information Systems
Discuss the following questions:
What are the inputs, processing, and outputs of UPS’s package tracking system?
What technologies are used?
How are these technologies related to UPS’s business strategy?
What problems do these technologies solve?
What would happen if these technologies were not available?
Slide22 : Understanding Information Systems: A Business Problem-Solving Approach
Few business problems are simple or straightforward
Most business problems involve a number of major factors that can be categorized as organization, technology, and people The Problem-Solving Approach Information Systems
Slide23 : Understanding Information Systems: A Business Problem-Solving Approach
Problem identification
Solution design
Choice
Implementation
Problem solving is a process, not an event A Model of the Problem-Solving Process Information Systems
Slide24 : Problem Solving Is a Continuous Four-Step Process Information Systems
Figure 1-4 During implementation and thereafter, the outcome must be continually measured 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 Approach
Slide25 : Understanding Information Systems: A Business Problem-Solving Approach
Four elements of critical thinking:
Maintaining doubt and suspending judgment
Being aware of different perspectives
Testing alternatives and letting experience guide
Being aware of organizational and personal limitations The Role of Critical Thinking in Problem Solving Information Systems
Slide26 : Understanding Information Systems: A Business Problem-Solving Approach
When firms cannot achieve their business objectives, these objectives become challenges
Information systems often present solutions to these challenges The Connection Between Business Objectives, Problems, and Solutions Information Systems
Slide27 : Information Systems
Success in today’s job market requires a broad set of skills
Job candidates must have problem-solving skills as well as technical skills so that they can carry specific tasks
The service sector will account for 95 percent of the new jobs that are created or open up by 2012 Information Systems and Your Career
Slide28 : Information Systems
Accounting
Finance
Marketing
Operations Management in Services and Manufacturing
Information Systems
Outsourcing How Information Systems Will Affect Business Careers Information Systems and Your Career
Slide29 : Interactive Session: Sonic Corporation Information Systems
Visit Sonic’s Web site at www.sonicdrivein.com
How does Sonic’s Web site enhance its business?
Who is the target audience of the Web site? Is there more than one target audience?
What would make the Web site better?
How does Sonic’s Web site compare to the sites of its competitors, such as McDonald’s, Burger King, Wendy’s, Checkers, and Jack in the Box? Information Systems and Your Career
What is Knowledge Work? : What is Knowledge Work? “The creation, distribution or application of knowledge.” Thomas Davenport
“How an organization creates, acquires, shares & uses knowledge” Peter Senge, “Fifth Discipline”
“Knowledge is the capacity for effective action.”
Peter Senge, “Fifth Discipline” Information Systems
Who are Knowledge Workers? : Who are Knowledge Workers? Information Systems
“Knowledge workers have high degrees of expertise, education or experience, and the primary purpose of their jobs involves the creation, distribution, or application of knowledge. Knowledge workers think for a living. They live by their wits-any heavy lifting on the job is intellectual, not physical. They solve problems they understand and meet the needs of customers, they make decisions, and they collaborate and communicate with other people in the course of doing their own work.” Thomas Davenport
“Everyone is a knowledge worker to some degree, and knowledge work is everyone’s responsibility, not just that of a few people.” Peter Drucker
Making knowledge available to others is the central activity of the knowledge-creating company. It takes place continuously and at all levels of the organization.
Common Attributes of High Performing Knowledge Workers : Common Attributes of High Performing Knowledge Workers Information Systems
Like autonomy
Usually have good reasons for doing what they do
Value their own knowledge, and don’t share it easily
Work best when working with other people in social networks
Are better led by example than by explicit management
Can process information flow well
Knowledge Worker Skills? : Knowledge Worker Skills? Information Systems
Speed reading
Business writing
Running meetings effectively
Processing information and knowledge – on paper, in telephone conversations and voice messages, and electronically
Using of databases, web sites, publications and formal training/education
Problem solving
Calculated risk taking
Strong networking
Thomas Davenport, 2005
The knowledge chain : The knowledge chain Information Systems
Knowledge Worker : Knowledge Worker Information Systems
Segmentation on Interdependence and Complexity Thomas H. Davenport, 2005
Knowledge Worker Skills—Categories and Expectations : Knowledge Worker Skills—Categories and Expectations Information Systems
Advanced Basic Intermediate Listening
Focuses on speaker/sender
Gives and receives feedback
Uses proper grammar (written/oral)
Suspends judgment until fully understands the issue
Communicates to a diverse audience
Communicates facts, not just opinions
Can write basic procedures Represents SFS/UW professionally to external audience
Facilitates resolution of communication issues
Edits reports for clarity and understanding
Drafts written materials for external audiences Shares relevant information to help build understanding and connection
Writes and presents complete, precise and easy to follow reports
Holds difficult, highly sensitive and complicated conversations Communication
Knowledge Worker Skills—Categories and Expectations : Knowledge Worker Skills—Categories and Expectations Information Systems
Advanced Basic Intermediate Presentation and Training Skills Can give team updates within SFS as needed
Can talk about what you do in a staff meeting
Line monitoring
Can train another on what you do
Knows subject matter enough to answer Present to groups outside SFS in professional manner
Relies on others for help with presentations (curriculum/equipment)
Answers related questions
Can teach/train from prepared curriculum
Develops curriculum ideas and delivery by working with others
May rely on others for help with presentation set-up/ equipment/ curriculum
Uses presentation tools as necessary (flip charts, PPT, etc) Plan and deliver presentation in a professional manner to any size/type of group
Develops course curriculum independently
Ability to flex training/presentation in the moment, based on audience needs
Plan and deliver presentation in an expert manner to any size
Leads group to develop ideas and delivery approach for presentation
Develops and uses sophisticated presentation tools
Knowledge Worker Skills—Categories and Expectations : Knowledge Worker Skills—Categories and Expectations Information Systems
Advanced Basic Intermediate Computing Word
Open, Close, & Save Files
Create Documents
Basic Formatting (font, margins)
Excel
Open, Close, & Save Files
Create Documents
Basic Formatting (font, margins)
Power Point
Open, Close, & View Presentations
Visio Word
Advanced Printing
Add Graphics
Intermediate Formatting (Headers, footers, bullets, numbering)
Excel
Basic Arithmetic Formulas
Format Cells
Insert Columns/Rows
Power Point
Create Simple Presentations (Text, graphics)
Visio
Open, Close, & Save Files
Create Simple Flow Charts Word
Create Tables, Mail Merge, Forms and Templates
Excel
Advanced Formulas
Create Pages, Forms, Graphs/Charts
Power Point
Create Complex Presentations (Interactive graphics, links)
Use Effective Design Principles
Visio
Create Complex Flow Charts
Knowledge Worker Skills—Categories and Expectations : Knowledge Worker Skills—Categories and Expectations Information Systems
Advanced Basic Intermediate Computing (continued) Hardware
Change Toner
Clear Printer Jams
General
Use email, including attachments
Use Calendar/set up meetings
Web navigation
Lookup information in UW and external systems (Campus Partners, FIN, etc)
Enter info into a database, run queries and reports Hardware
General
Set up groups lists in Oracle
Use the Web as a research tool
Analyze information on UW and external systems
Set up queries and tables in simple databases Hardware
Troubleshoot Issues
Setup Equipment
General
Web page and form development (computing only)
Teach/train use of, and extract data from, UW and external systems
Design and Program complex databases
Knowledge Worker Skills—Categories and Expectations : Knowledge Worker Skills—Categories and Expectations Information Systems
Knowledge Worker Skills? : Knowledge Worker Skills? Information Systems
Advanced Basic Intermediate Leadership* Take initiative/be proactive
Be accountable
Know and understand goals and mission of SFS/FM/UW
Is a role model
Present ideas to get needs met
Adaptable to change
Willing to learn/ develop/ grow
Manages time/workload well
Organized
Supportive of others
Shares knowledge
Follows SFS code of ethics
Manages change well Identify and respond to problems and make recommendations for solutions and opportunities
Knows how the SFS works across units
Knows how SFS works with process partners
Knows how SFS fits in across institution
Implements strategic plan
Provides guidance to others
Understands how your job affects others
Practice QI qualities and behaviors
Motivate, recognize, support and encourage co-workers and/or staff to reach their full potential.
Seeks involvement beyond SFS/FM for greater impact
Creates vision and long term goals for unit/with SFSL
Plans, Leads, Implements and responds to impact of change
Strategic mapping/planning leadership
Identifies initiatives
Leads work groups
Delegates work
Knowledge Worker Skills? : Knowledge Worker Skills? Information Systems
Knowledge Worker Skills? : Knowledge Worker Skills? Information Systems
Process Improvement and Problem Solving Advanced Basic Intermediate Know how to improve a process
Identify problem
Clearly define problem
Answer questions
Know your limits of authority in improving/changing an existing process
Know basic process w/in assigned duties
Showing initiative in an effort to resolve a problem
Understand measures
Understand process partner relationships
Gather data Know and use QI tools at the right time
Use a dashboard to improve processes
Know resources
Document processes
Use measures to identify opportunities for improvement
Generate alternative solutions
Benchmark
Look for patterns
Root cause analysis
Understand big picture/questions
Involve right people
Develop strong process partner relationships
Participate in FM process improvements Lead FM process improvements
Develop and monitor measures
Improve process partner relationships
Solve the problem the right way/coordinate solutions
Communicate to all who need to know (up, down, across)
See long term/future impact