The role of information Howinformation
These superior returns will be
systems in business today technologyenhances
The following roles are played by businessprocess, efficiency
the information system in todays
and transformation
world
Transforming
primarily in two ways: increasing the
Business
efficiency of existing process and
We can see the results of the
enabling entirely new processes
massive spending on Information
technology and systems around us those are capable of transforming
every day by observing how people the business. Information systems
conduct business.
automate many steps in business
processes that were formally
Globalization
Opportunities performed manually.
the emergence of internet into a
full-blown international
Dimensions of Information
communication system has Systems Organizations
drastically reduced the costs of
operating on a global scale.-
Information systems are an integral
The Emerging Digital part of organizations. Organizations
Firm have a structure that is composed of
different levels and specialties. Their
a digital firm can be defined along
structures reveal a clear-cut division
several dimensions. A digital firm is
one in which nearly all of the of labour. Authority and
organizations significant business
responsibility in a business firm is
relationship with customers,
organized as hierarchy, or a pyramid
suppliers, and employees are
digitally enabled and mediated.- structure, of rising authority and
responsibility. -Management
Strategic Business
Managements job is to make sense
Objectives of
out of the many situations faced by
Information Systems
organizations, make decisions, and
There is a growing interdependence formulate action plans to solve
between a firms ability to use
organizational problems. Managers
information technology and its
perceive business challenges in the
ability to implement corporate
strategies and achieve corporate environment; they set the
goals. Business firms invest in organizational strategy for
heavily in information systems to
responding to those challenges; and
achieve six strategic business
they allocate the human and
objectives -operational excellence -
new products, services, and business financial resources to coordinate the
models -customer and supplier
work and achieve success.
intimacy -improved decision making
Throughout, they must exercise
-competitive advantage survival
responsible leadership. -Technology
Business processes Information technology is one of
many tools managers use to cope
, refer to the manner in which work with change. Computer hardware is
is organized, coordinated, and
focused to produce a valuable the physical equipment used for
product or service. Business input, processing and output
processes are workflows of material, activities in an information system.
information, and knowledgesets
Computer Software consists of the
of activities. Business processes also
refer to the unique ways in which detailed, preprogrammed
organizations coordinate work, instructions that control and
information, and knowledge, and
coordinate the computer hardware
the ways in which management
chooses to coordinate work components in an information
system.
Systems from functional buildings, machines, or other assets.
perspective
expressed as increase in
productivity, increases in revenues
-Sales and Marketing Systems The
(which will increase the firms stock
sales and marketing function is
market value), or perhaps superior
responsible for selling the
long-term strategic positioning of
organizations products or services. -
the firm in certain markets. We can
Manufacturing and Production
see that from a business
Systems the manufacturing and
perspective, an information system
production function is responsible
is an important instrument for
for actually producing the firm's
creating value for the firm.
goods and services. Manufacturing
Information systems enable the firm
and production systems deal with
to increase its revenue or decrease
the planning, development, and
its costs by providing information
maintenance of production facilities;
that helps managers make better
the establishment of production
decision or that improves the
goals; the acquisition, storage, and
execution of business processes.
availability of production materials.-
Finance and Accounting Systems
Systems from a
The finance function is responsible
for managing the firm's financial constituency perspective -
assets, such as cash, stocks, bonds, Transaction Processing
and other investments, to maximize
Systems(TPS)
the return on these financial assets.
The finance function is also in charge
Operational managers need systems
of managing the capitalization of the
that keep track of the elementary
firm. Human Resources Systems The
activities and transactions of the
human resources function is
organization, such as sales, receipts,
responsible for attracting,
cash deposits, payroll, credit
developing, and maintaining the
decisions, and the flow of materials
firm's workforce.
in a factory. -Management
Information Systems (MIS) and
Information System An information
Decision Support Systems (DSS)
system can be defined technically as
Middle management needs systems
a set of interrelated components
to help with monitoring, controlling,
that collect, process, store and
decision making, and administrative
distribute information to support
activities. In Chapter 1, we defined
decision making and control in an
management information systems
organization. In addition to
as the study of information systems
supporting decision making,
in business and management. -
coordination, and control,
Executive Support Systems (ESS)
information systems may also help
Senior managers need systems that
managers and workers analyze
address strategic issues and long-
problems, visualize complex
term trends, both in the firm and in
subjects, and create new products.
the external environment. Executive
support systems (ESS) help senior
IT Isnt Just Technology: A
management make these decisions.
Business Perspective on
Information System
Managers and business firms invest
in information technology and
systems because they provide real
economic value to the business. The
decision to build or maintain an
information system assumes that
the returns on this investment will
be superior to other investments in
InfrastructureComponents applications. IT infrastructure Five Moral Dimensions of recover the damages done to them
includes investment in hardware, by other actors, systems, or
-Computer Hardware Platforms the the Information Age
software, and services such as organizations. Due process is a
microprocessor is the heart of any
The major ethical, social, and
consulting, education, and training related feature of law-governed
computing device no matter how
political issues raised by information
that are shared across the entire societies and is a process in which
small or large. Two companies
systems include the following moral
firm or across entire business units laws are known and understood and
produce most of the micro
dimensions:
in the firm. IT infrastructure consists there is an ability to appeal to higher
processing chips: Intel and Advanced
of a set of physical devices and authorities to ensure that the laws
Micro Devices (AMD). The most Information rights and obligations:
software applications that are are applied correctly.
popular and widely known is (Intel.) What information rights do
required to operate the entire
-Operating System Platforms individuals and organizations
Operating systems tell computers enterprise.LevelsofIT Negative social
possess with respect to themselves?
what to do, when to do it, and how. Infrastructure 3 major levels What can they protect? consequences of systems
Operations such as logging on, file
The public level includes the
management, and network Property rights and obligations: 1) Balancing Power: Center Versus
Internet, public telephone networks
connectivity are controlled by the How will traditional intellectual Periphery
on which businesses are increasingly
operating system.(unix, linux) - property rights be protected in a An early fear of the computer age
reliant, industry-operated networks,
Enterprise Software Applications digital society in which tracing and was that huge, centralized
cable systems, satellite systems, and
Integrating applications into accounting for ownership are mainframe computers would
cellular telephone networks. The
seamless processes across the difficult and ignoring such property centralize power at corporate
enterprise level may include email,
organization is the goal of enterprise rights is so easy? headquarters and in the nation's
Web sites, intranets, extranets, and
software applications. Customer capital, resulting in a Big Brother
enterprise applications. Business
relationship management and Accountability and control: Who society, as was suggested in George
units concentrate on those
supply chain management systems can and will be held accountable Orwells novel 1984.
infrastructure components that
are the two most popular and liable for the harm done to 2)Rapidity of Change: Reduced
service the four functional areas of a
applications in this category. (SAP, individual and collective information Response Time to Competition
typical business: sales & marketing,
ORACLE)- Data Management and and property rights? Information systems have helped to
production & manufacturing,
Storage Businesses and System quality: What standards of create much more efficient national
finance, and human resources.
organizations are gathering more data and system quality should we and international markets. The now-
Key technological trends
and more data on customers, demand to protect individual rights more-efficient global marketplace
employees, and even the business responsible for ethical and the safety of society? has reduced the normal social
itself. Managing and storing the data stresses -Computing power Quality of life: What values should buffers that permitted businesses
so that they are easily accessible and be preserved in information-and many years to adjust to competition.
doubles every 18 months the
providing meaningful information to knowledge-based society? Which 3) Maintaining Boundaries: Family,
doubling of computing power every
the organization is becoming a institutions should we protect from Work, and Leisure
18 months has made it possible for
science in and of itself. (ORACLE) - violation, which cultural values and The danger to ubiquitous
most organizations to use
Networking/Telecommunications practices are supported by the new computing, telecommuting, nomad
information systems for their core
Platforms As we continue the march information technology? computing, and the "do anything
production processes. -Data
towards convergence of all things BASIC CONCEPTS: RESPONSIBILITY, anywhere" computing environment
storage costs rapidly declining
digital, networking and ACCOUNTABILITY, AND LIABILITY is that it is actually come true. The
Advances in data storage techniques
telecommunications platforms will traditional boundaries that separate
and rapidly declining storage costs
merge into one.(Cisco, Linux) - Responsibility is a key element of work from family and just plain
have been responsible for the
Internet Platforms the Internet and ethical action. Responsibility means leisure have been weakened.
multiplying databases on
its technology standards continue to that you accept the potential costs, 4)Dependence And Vulnerability
individuals-employees, customers,
expand the services that businesses duties, and obligations for the Today, our businesses,
and potential customers -
provide to their employees, decisions you make. Accountability governments, schools, and private
maintained by private and public
customers, suppliers, and business is a feature of systems and social associations, such as churches, are
organizations. -Data analysis
partners. .(Cisco, Java) -Consulting institutions: It means that incredibly dependent on
advances advances in data analysis
and System Integration Services mechanisms are in place to information systems and are,
techniques for large pools of data
Systems used in many medium and determine who took responsible therefore highly vulnerable if these
are another technological trend that
large-sized companies and action, and who is responsible. systems fail. 5)
heightens ethical concerns because
organizations are so complex that Systems and institutions in which it Computer Crime and Abuse
companies and government
most businesses simply can't is impossible to find out who took Computer crime is the commission
agencies are able to find out much
manage by themselves.(IBM) what action are inherently incapable of illegal acts through the use of a
detailed personal information about
IT Infrastructure Information of ethical analysis or ethical action; computer or against a computer
individuals. -Networking advances
Liability extends the concept of system. 6) Computer abuse -
technology (IT) infrastructure is the and the internet advances in
responsibility further to the area of 7)Heath Risks: RSI, CVS, And Techno
shared technology resources that networking, including the Internet,
laws. Liability is a feature of political Stress
provide the platform for the firms promise to greatly reduce the costs
systems in which a body of laws is in
specific information system of moving and accessing large
place that permits individuals to
IT Infrastructure
Information technology (IT)
infrastructure is the shared
technology resources that provide
the platform for the firms specific
information system applications. IT
infrastructure includes investment in
hardware, software, and services
such as consulting, education, and
training that are shared across the
entire firm or across entire business
units in the firm. IT infrastructure
consists of a set of physical devices
and software applications that are
required to operate the entire
enterprise. But IT infrastructure is
also a set of firmware services
budgeted by management and
comprising both human and
technical capabilities.
Levels of IT Infrastructure
A typical firm's IT infrastructure can
be divided into three major levels:
public, enterprise and business unit.
Each level has its own unique
hardware, software, and service
components.
****The public-level includes the
Internet, public telephone networks
on which businesses are increasingly
reliant, industry-operated networks,
cable systems, satellite systems, and
cellular telephone networks.
****The enterprise level may
include email, Web sites, intranets,
extranets, and enterprise
applications.
Business units concentrate on those
infrastructure components that
service the four
Technology Drivers of
Infrastructure Evolution
Moore's Law: Perhaps no other law
holds as much weight in the
evolution of computers as Moore's
Law. The microprocessor chip using
transistors has been an important
contributor to increased computing
power. However, nanotechnology is
the promise of the future.
The Law of Mass Digital Storage: As
the amount of digital information
expands, so too does our need and
desire for more storage. In the early
evolution of computing, storage
needs were based on written text
Metcalfe's Law and Network
Declining Communications Costs
and the Internet: One of the biggest
drivers in the exploding use of
computers is directly attributable to
the Internet. It's getting cheaper
every day to connect to the Internet
because of the declining
communication costs
Standards and Network Effects:.
Infrastructure Components
1.Computer Hardware Platforms
Thiscomponent includes client
machines (desktop PCs, mobile
computing devicessuch as netbooks
and laptops but not including
iPhones or BlackBerrys) andserver
machines. The client machines use
primarily Intel or AMD
microprocessors.
2Operating System Platforms
In 2010, Microsoft Windows
comprises about 75 percent of the
server operatingsystem market, with
25 percent of corporate servers
using some form of
theUnixoperating system or Linux,
an inexpensive and robust open
source relativeof Unix. Microsoft
Windows Server is capable of
providing enterprise-wideoperating
system and network services, and
appeals to organizations
seekingWindows-based IT
infrastructures (IDC, 2010).
3Enterprise Software Applications
4Data Management and Storage
Enterprise database management
software is responsible for
organizing andmanaging the firms
data so that they can be efficiently
accessed and used.The leading
database softwareproviders are IBM
(DB2), Oracle, Microsoft (SQL
Server), and Sybase (AdaptiveServer
Enterprise), which supply more than
90 percent of the U.S.
databasesoftware marketplace.
MySQL is a Linux open source
relational databaseproduct now
owned by Oracle Corporation.
5Networking /
Telecommunications Platforms
Windows Server is predominantly
used as a local area
networkoperating system, followed
by Linux and Unix. Large enterprise
wide areanetworks primarily use
some variant of Unix. Most local
area networks, as wellas wide area
enterprise networks, use the TCP/IP
protocol suite as a standard.
6;;;Internet Platforms
Internet platforms overlap with, and
must relate to, the firms general
networkinginfrastructure and
hardware and software platforms. A
Web hosting service maintains a
large Web server, or series
ofservers, and provides fee-paying
subscribers with space to maintain
their Websites.
7Consulting and System
Integration Services
Cloud Computing In
cloud computing, firms and
individuals obtain computer
processing, storage, software, and
other services as a pool of
virtualized resources over a
network, primarily the Internet.
These resources are made available
to users, based on their needs,
irrespective of their physical location
or the location of the users
themselves. Cloud computing
consists of three different types of
services:
1Cloud infrastructure as a service
Customers use processing, storage,
networking, and other computing
resources from cloud service
providers to run their information
systems. Fo r example, Amazon uses
the spare capacity of its IT
infrastructure to provide a broadly
based cloud environment selling IT
infrastructure services
2Cloud platform as a service
Customers use infrastructure and
programming tools hosted by the
service provider to develop their
own applications. For example, IBM
offers a Smart Business Application
Development & Test service for
software development and testing
on the IBM Cloud.
3Cloud software as a service
Customers use software hosted by
the vendor on the vendors h
ardware and delivered over a
network.
Contemporary Software Platform
Trends
There are five major themes in
contemporary software platform
evolution:
Linux and open-
source software
Java and Ajax
Enterprise software
Web services and
service-oriented
architecture
Software outsourcing and cloud
services
LINUX
Perhaps the most well-known open
source software is Linux, an
operating system related to Unix.
Linux was created by the Finnish
programmer Linus Torvalds and first
posted on the Internet in August
1991. Linux applications are
embedded in cell phones,
smartphones, netbooks, and
consumer electronics. Linux is
available in free versions
downloadable from the Internet or
in low-cost commercial versions that
include tools and support from
vendors such as Red Hat.
Management Opportunities,
Challenges, and Solutions
Opportunities
In spite of the many, well-publicized
failures of dot-com companies in
2000-2001, electronic commerce
and digitization of the corporate
world continue to grow. The
Internet is touted as being 24/7,
anytime, anywhere.
Management Challenges
The challenges of creating and
managing a good IT infrastructure
include:
1.Dealing with platform and
infrastructure change
2Management and governance
3..Making wise infrastructure
investments
DOMINOS SIZZLES WITH
PIZZA TRACKER
1: What kinds of systems are
described in this case? Identify and
describe the business processes
each supports. Describe the inputs,
processes, and outputs of these
systems. Systems described in this
case are:
-Transaction processing system
(TPS)
-Pizza tracker
-Pulse
-Pulse evolution
(i) Thick client model
(ii) Thin client model
-Online polling system
-Online ordering system
Inputs: customer orders that
describe the type of pizza crust,
pizza ingredients and toppings, side
orders, and delivery location data
Processes: data updates the
system's database, transaction data
from the TPS are summarized and
presented in reports and analyze
data
Outputs: the number of pizza and
side orders sold, cost numbers for
ingredients, delivery, customer
information
2: How do these systems help
Dominos improve its business
performance?
-Provides efficient management
function
-Pulse improved customer service,
reduced mistakes, shorter training
times
-Working to cut costs and increase
customer satisfaction.
3: How did the online pizza ordering
system improve the process of
ordering a Domino's pizza?
Dominos rolled out its state-of-the
art online ordering system, which
includes Pizza Tracker.
-allows customers to watch a
simulated photographic version.
-pizza as they customize its size,
sauces, and toppings.
-The image changes with each
change a customer makes Ordering
progress can be viewed by pizza
tracker Pizza Tracker displays a
horizontal bar that tracks an orders
progress graphically In 2010,
Dominos introduced an online
polling system to continuously
upload information from local
stores.
4: How effective are these systems
in giving Domino's a competitive
edge? Explain your answer.
-The company's improved business
processes are becoming a source of
competitive strength.
-Systems enable the company to
innovate and execute its operations
more quickly than its rivals.
business processes are automated
which changes the flow of
information and makes it possible
for more people to access and share
information.
-The technology is also supporting
new business models like the online
pizza ordering system. Pizza Hut and
Papa John's have online ordering
capabilities, they lack the Pizza
Tracker technology almost 20% of all
of Dominos orders, which is up
from less than 15% in 2008.