The Business Context for IT Basic business barriers that IT IS can help consumers firms overcome New products methods inventions standards Information Knowledge derived from data It is data presented in a meaningful context Data processed by summing ordering averaging grouping comparing or other similar operations Business processes Generations of Boomers X Y Impact of Moore s Law on digital living Enterprise wide vs functional area information systems A network of activites resources facilities and information that interact to achieve some business function Trends in Digital Living What is digital and how does information become digital Digital Synonymous with computing chips and processing Discrete signals using 0 s and 1 s How information becomes digital Information turned into binary form 0 and 1 then is stored manipulated transmitted and regenerated perfectly at high speed Translates continuous analog information into digital form Advantages of digital Data compression Ease of Data transmission consistent forms of data regeneration The power of digital processors will continue to double every 18 to 24 months As time increases since a device was created the cost of it decreases Moore s Law pertains to hardware not software When costs are essentially zero companies utilize technology in many unforeseen ways Computers and other technologies will have evermore capability in the months ahead General systems model Input processing output feedback based on measurement Cybernetics a measurement and feedback mechanism Data vs information Data Recorded facts of figures Bridge of Five Component Model Accurate Timely Relevant Just sufficient worth the cost Generation X 1965 1976 To Maintain Independence Technology is an efficient way to maintain independence and convenient communication Generation Y 1977 2000 Millennials To Find Meaning In Work and Life Technology is a part of communication it is a part of who I am Information Systems Applications Apps Meaning and purpose of information systems Operational Role IT enables the managers and employees of the enterprise to carry out day to day activities greater output fewer inputs Productivity Coordinating Costs Transaction Costs Strategic Role It enables the company to achive its goals and objectives in the market which it has chosen to compete succeeding in a line of business gaining and advantage Strategy Strategic Impact Competitive Advantage Enterprise Wide Information systems that support cross functional processes and activities in multiple departments Functional Area Workgroup business functions that support a particular business function Principal types of enterprise level information systems apps as discussed in reading class What are the three principle types What purpose does each serve ERP Enterprise Resource Processes suite of applications called modules a database and a set of inherent processes for consolidating business operations into a single consistent commuting platform CRM Customer Relationship Management suite of applications a database and a set of inherent processes for managing all of the inherent processes with the customer from lead generation to customer service EAI Enterprise Application Integration Grow by enhancing the most valued customer s experience and their desire to visit any location Five forces model for industry analysis Components Role of information systems Operational role impact measures Operation Role IT enables the managers and employees of the enterprise to carry out dat to day activities greater output fewer inputs Importance of transaction processing systems Shared system that uses a combination of manual processes and information technology to process data and information and to manage transactions It keeps an enterprise running smoothly based upon fulfilling orders recording sales managing inventory billing collect money meet payroll needs and maintain tax records Productivity Cost of transactions Productivity the relationship between results outputs of an activity work process or enterprise and the resources used to create those results Limitation of functionally focused information systems Strategic role of information systems What is strategy What is business strategy Business of the enterprise What is something strategic Develop product to seek the highest possible revenue Strategic Thinking and Analysis Value chain role usage in strategic analysis Set of activities that are relevant to understanding a firm s cost structure and its potential source of differentiation Analyzes many activities that go on within the enterprise and the interaction across the firms factors underlying the low cost differentiation or focused competitive strategies at work Bargaining power of customers threat of substitutions bargaining power of suppliers threat of new entrants rivalry among existing firms Purpose use of model Determines the characteristics of the industry how profitable it is and how sustainable the profit is Generic strategies for gaining competitive advantage Provide low cost products or services practice product differentiation decide whether to focus on a broad or narrow market segment Role of IS in achieving competitive advantage Determines what the market wants Role of is in improving value proposition for a company s customers or suppliers Maintaining operation amongst suppliers Data Driven Business Transaction processing Relational database principles Horizontal Records Vertical Attributes fields and data items Database Collection of data describing items of interest persons places things and events File Group of similar rows or records Record Groups or columns in a database Objectives of managing data of database management Importance to business and managers of having each objective met Sharing Information Minimizing Redundancy Maintaining Integrity Providing Flexibility of Use Enabling Database Evolution Creating Data Independence Meaning and importance of data independence Data Independence Seperating decisions on how data will be used and Way companies or individuals develop and use resources Database vs file vs record by whom from where or how data is stored Application a manager or employee uses and how it interacts with the Database Management System BN Backbone Network Accepts and delivers transmissions between buildings and across the local area networks running with buildings or expanding an enterprise PAN How is data independence achieved Importance of single source of