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Bidgoli Ch01 essentials
1.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Module 1 Information Systems in Business Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (1 of 2) • Discuss common applications of computers and information systems • Explain the differences between computer literacy and information literacy • Define transaction-processing systems • Define management information systems • Describe the four major components of an information system • Discuss the differences between data and information
3.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (2 of 2) • Explain the importance and applications of information systems in functional areas of a business • Analyze how information technologies are used to gain a competitive advantage • Apply the Five Forces Model and strategies for gaining a competitive advantage • Review the IT job market • Summarize the future outlook of information systems
4.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Beginning: Transaction- Processing Systems • Transaction-processing systems (TPSs) • Focus on data collection and processing • Used for cost reduction • Applied to structured tasks (e.g., record keeping, simple clerical operations, and inventory control) • Require minimal human involvement when automated
5.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Information Systems (1 of 2) • Management information system (MIS) • Organized integration of hardware and software technologies, data, processes, and human elements • Designed to produce timely, integrated, relevant, accurate, and useful information for decision- making
6.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management Information Systems (2 of 2) • Tasks in designing an MIS • Define the system’s objectives • Collect and analyze data • Provide information in a useful format for decision-making purposes • MIS applications • Used in both private and public sectors
7.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 1.3 Major Components of an Information System
8.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Data (1 of 2) • Data component of an information system • Considered the input to the system • Sources of data • Internal: sales and personnel records • External: customers, competitors, suppliers, government agencies, financial institutions, labor and population statistics, as well as economic conditions
9.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Data (2 of 2) • Has a time orientation • Past data: performance reports • Current data: operational reports • Future data: predicted for budgets or cash flow reports • Can be collected in different forms • Disaggregated data: helps analyze sales by product, territory, or salesperson • Aggregated data: useful for reporting overall performance during a sales quarter
10.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Database • Collection of relevant data organized in a series of integrated files • Essential for the success of any information system • Database management system (DBMS) • Used to create, organize, and manage databases • Reduces personnel time needed to gather, process, and interpret data manually
11.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Process • Generates the most useful type of information for making decisions • Transaction-processing reports • Models for decision analysis that can be built into the system or accessed from external sources
12.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information (1 of 3) • Consists of facts analyzed by the process component and is an output of an information system • Usefulness qualities • Timeliness • Integration with other data and information • Consistency and accuracy • Relevance
13.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information (2 of 3) • Needs to provide either a base for users to explore different options or insight into tasks • Usefulness is affected by the information system’s user interface • Graphical user interfaces (GUIs) are used because they are flexible and easy
14.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information (3 of 3) • Systems should produce information in different formats, including graphics, tables, and exception reports • Increases likelihood of users understanding and being able to use the information • Users also need to be able to make use of informal information when solving problems • Rumors • Unconfirmed reports • Stories
15.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Using Information Technologies for a Competitive Advantage (1 of 3) • Michael Porter: three strategies for successfully competing in the marketplace • Overall cost leadership • Differentiation • Focus
16.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Using Information Technologies for a Competitive Advantage (2 of 3) • Information systems • Help organizations reduce the cost of products and services • Help bottom-line and top-line strategies • Use enterprise systems to create an efficient and effective link between suppliers and consumers
17.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Using Information Technologies for a Competitive Advantage (3 of 3) • Differentiation strategies • Making products and services different from competitors • Focus strategies • Focusing on specific market segments to achieve a cost or differentiation advantage
18.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Porter’s Five Forces Model: Understanding the Business Environment (1 of 3) • Analyzes a firm’s position in the marketplace and how information systems can make it more competitive • Five forces • Buyer power • Supplier power • Threat of substitute products or services • Threat of new entrants • Rivalry among existing competitors
19.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 1.4: The Five Forces Model
20.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Porter’s Five Forces Model (2 of 3) • High when customers have many choices and low when customers have few choices Buyer power • High when customers have fewer options and low when customers have more options Supplier power • High when many alternatives to an organization’s products and services are available Threat of substitute products or services
21.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Porter’s Five Forces Model (3 of 3) • Low when duplicating a company’s product or service is difficult • Focus strategies are used to ensure that the threat remains low Threat of new entrants • High when competitors occupy the same marketplace position • Low when there are few competitors Rivalry among existing competitors
22.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary (1 of 3) • Computers and information systems are used to reduce costs and gain a competitive advantage in the marketplace • Information systems are designed to collect data, process it, and deliver timely, relevant, and useful information for making decisions • Four major components of an information system: • Data, database, process, information
23.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary (2 of 3) • Porter’s Five Forces Model • Buyer power high when customers have many options • Supplier power high when customers have fewer options • Threat of substitute products or services high when alternatives are available • Threat of new entrants low when duplicating a product or service is difficult • Rivalry among competitors high when they occupy the same marketplace position
24.
Bidgoli, MIS, 10th
Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary (3 of 3) • IT jobs fall into these broad categories: • Operations and help desk • Programming • Systems design • Web design and Web hosting • Network design and maintenance • Database design and maintenance • Robotics and artificial intelligence
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