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:

Technology the means by which data is

transformed and organized for business use:
Hardware
Software
Database
Telecommunication

People the users of IS

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