What is IS?
• IS – a set of interrelated components working together to
collect, retrieve, process, store, and distribute
information for the purpose of facilitating planning,
control, coordination, analysis, and decision making in
business organizations
• Input-process-output perspective
• People-organization-technology perspective
Choice Hotels Reservation System
example:
y Technology – the means by which data is transformed and
organized for business use:
• Hardware
• Software
• Database
• Telecommunication
y People – the users of IS
y Organization -- a collection of functional units working
together to achieve a common goal
Functional units of business
organizations:
• production
• sales/marketing
• finance/accounting
• human resources
→ maximize profit by producing goods
and/or services
Functional Areas of Business
• The manufacturing and production function is
responsible for producing the firm's goods and services.
There are three stages of the manufacturing/ production
process:
• inbound logistics
• production
• outbound logistics
Functional Areas of Business
• The sales and marketing function is responsible for
finding customers for the firm's product or service and
selling the firm's product or service to those customers.
The sales and marketing process consists of
• identifying and creating markets
• developing markets
• maintaining markets
Functional Areas of Business
• The finance and accounting function is responsible for
managing the firm's financial assets and maintaining the
firm's financial records. The finance process involves
managing the firm's financial assets, whereas the
accounting process is involved primarily in financial
record keeping.
Functional Areas of Business
• The human resource function is responsible for
attracting and maintaining an appropriate work force for
the firm. The human resources process entails
• attracting the work force
• developing the firm's work force to meet the firm's personnel
needs
• maintaining the work force
Computer vs IS literacy
IS in Business
• Business functions
• Business processes
• A series of interrelated activities through which work is
organized and focused to produce a product or service
• Business levels
• Strategic (long range planning)
• Tactical (co-ordinate & supervise)
• Operational (produce product & service)
The order generation and fulfillment process (Fig. 2.2)
Role of IS in Business
Competitive advantage
• Low-cost (value chain)
• Market niche
• Product differentiation
• Customer loyalty
Globalization
• People (language)
• Organization (culture)
• Technology (telecommunication)
The value chain views the firm as a series of basic activities
that add value to a firm's products or services (Fig. 3-2)
Primary activities
•inbound logistics,
•operations,
•outbound logistics,
•sales and marketing
•service
Support activities
•administration and management
•human resources
•technology and procurement.
Quality
• Process simplification
• Benchmarking
• Customer focus
• Cycle time reduction
• Improve design & production
• Error reduction
Reengineering
• Business processes redesign
Ethical & social responsibility
• Information rights & privacy
• Intellectual property
• Accountability & liability
• Quality of life
IS Approach to Problem Solving
Systems Analysis
Systems Design
Systems Analysis & Design
• Systems Analysis
• Problem analysis (what)
• Information gathering (where & why)
• Decision making (how)
• Establish objectives
• Determine feasibility
• Choose best solution
• Systems Design (Input, Process, Output, Procedures, Control)
• Logical design
Systems Analysis & Design
• Systems Design
• Logical design (what will the system do?)
• Input: content, format, source, volume, frequency, timing
• Process: rule, model, formula, timing
• Output: content, format, organization, volume, freq., timing
• Storage: data, format, organization, relationship, volume
• Procedure: manual activities, rule, sequence, timing, location
• Control: security, accuracy, validity, supervision
• Physical design (how the system will work?)
• Input: keyboard, voice, scanner
• Process: PC, operating system, software
• Output: print-outs, files, audio
• Storage: tape, CD
• Procedure: batching, backup, auditing, data entry
• Control: batch control, password, audit logs
• Implementation (coding, testing, training)
Technology perspective
to problem solving
Organizational perspective to
problem solving
People
perspective to
problem solving