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The role of information Howinformation Systems from functional buildings, machines, or other assets.
These superior returns will be
systems in business today technologyenhances perspective expressed as increase in The following roles are played by businessprocess, efficiency productivity, increases in revenues the information system in todays -Sales and Marketing Systems The and transformation (which will increase the firms stock world sales and marketing function is market value), or perhaps superior Transforming responsible for selling the primarily in two ways: increasing the long-term strategic positioning of Business organizations products or services. - efficiency of existing process and the firm in certain markets. We can We can see the results of the Manufacturing and Production enabling entirely new processes see that from a business massive spending on Information Systems the manufacturing and technology and systems around us those are capable of transforming perspective, an information system production function is responsible every day by observing how people the business. Information systems is an important instrument for conduct business. for actually producing the firm's automate many steps in business creating value for the firm. goods and services. Manufacturing processes that were formally Information systems enable the firm Globalization and production systems deal with Opportunities performed manually. to increase its revenue or decrease the planning, development, and its costs by providing information maintenance of production facilities; the emergence of internet into a that helps managers make better full-blown international Dimensions of Information the establishment of production decision or that improves the communication system has Systems Organizations goals; the acquisition, storage, and drastically reduced the costs of execution of business processes. availability of production materials.- operating on a global scale.- Information systems are an integral Finance and Accounting Systems Systems from a The Emerging Digital part of organizations. Organizations The finance function is responsible Firm have a structure that is composed of for managing the firm's financial constituency perspective - different levels and specialties. Their assets, such as cash, stocks, bonds, Transaction Processing a digital firm can be defined along structures reveal a clear-cut division and other investments, to maximize several dimensions. A digital firm is Systems(TPS) one in which nearly all of the of labour. Authority and the return on these financial assets. organizations significant business The finance function is also in charge responsibility in a business firm is relationship with customers, Operational managers need systems organized as hierarchy, or a pyramid of managing the capitalization of the suppliers, and employees are that keep track of the elementary digitally enabled and mediated.- structure, of rising authority and firm. Human Resources Systems The activities and transactions of the responsibility. -Management human resources function is organization, such as sales, receipts, Strategic Business responsible for attracting, Managements job is to make sense Objectives of cash deposits, payroll, credit out of the many situations faced by developing, and maintaining the Information Systems decisions, and the flow of materials organizations, make decisions, and firm's workforce. in a factory. -Management There is a growing interdependence formulate action plans to solve between a firms ability to use Information Systems (MIS) and organizational problems. Managers Information System An information information technology and its Decision Support Systems (DSS) perceive business challenges in the system can be defined technically as ability to implement corporate Middle management needs systems strategies and achieve corporate environment; they set the a set of interrelated components to help with monitoring, controlling, goals. Business firms invest in organizational strategy for that collect, process, store and heavily in information systems to decision making, and administrative responding to those challenges; and distribute information to support achieve six strategic business activities. In Chapter 1, we defined they allocate the human and decision making and control in an objectives -operational excellence - management information systems new products, services, and business financial resources to coordinate the organization. In addition to models -customer and supplier as the study of information systems work and achieve success. supporting decision making, intimacy -improved decision making in business and management. - Throughout, they must exercise coordination, and control, -competitive advantage survival Executive Support Systems (ESS) responsible leadership. -Technology information systems may also help Senior managers need systems that Business processes Information technology is one of managers and workers analyze address strategic issues and long- many tools managers use to cope problems, visualize complex term trends, both in the firm and in , refer to the manner in which work with change. Computer hardware is subjects, and create new products. is organized, coordinated, and the external environment. Executive focused to produce a valuable the physical equipment used for support systems (ESS) help senior product or service. Business input, processing and output IT Isnt Just Technology: A management make these decisions. processes are workflows of material, activities in an information system. Business Perspective on information, and knowledgesets Computer Software consists of the Information System of activities. Business processes also refer to the unique ways in which detailed, preprogrammed organizations coordinate work, instructions that control and Managers and business firms invest information, and knowledge, and coordinate the computer hardware in information technology and the ways in which management chooses to coordinate work components in an information systems because they provide real system. 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 own applications. For example, IBM DOMINOS SIZZLES WITH 2Operating System Platforms offers a Smart Business Application In 2010, Microsoft Windows Development & Test service for PIZZA TRACKER Information technology (IT) 1: What kinds of systems are infrastructure is the shared comprises about 75 percent of the software development and testing server operatingsystem market, with on the IBM Cloud. described in this case? Identify and technology resources that provide the platform for the firms specific 25 percent of corporate servers describe the business processes information system applications. IT using some form of each supports. Describe the inputs, theUnixoperating system or Linux, 3Cloud software as a service infrastructure includes investment in processes, and outputs of these hardware, software, and services an inexpensive and robust open Customers use software hosted by systems. Systems described in this such as consulting, education, and source relativeof Unix. Microsoft the vendor on the vendors h case are: training that are shared across the Windows Server is capable of ardware and delivered over a entire firm or across entire business providing enterprise-wideoperating network. units in the firm. IT infrastructure system and network services, and -Transaction processing system consists of a set of physical devices appeals to organizations (TPS) Contemporary Software Platform and software applications that are seekingWindows-based IT -Pizza tracker Trends required to operate the entire infrastructures (IDC, 2010). -Pulse enterprise. But IT infrastructure is 3Enterprise Software Applications -Pulse evolution 4Data Management and Storage There are five major themes in also a set of firmware services Enterprise database management contemporary software platform (i) Thick client model budgeted by management and comprising both human and software is responsible for evolution: (ii) Thin client model organizing andmanaging the firms -Online polling system technical capabilities. data so that they can be efficiently Linux and open- -Online ordering system Levels of IT Infrastructure accessed and used.The leading source software Inputs: customer orders that A typical firm's IT infrastructure can database softwareproviders are IBM Java and Ajax describe the type of pizza crust, be divided into three major levels: (DB2), Oracle, Microsoft (SQL pizza ingredients and toppings, side public, enterprise and business unit. Enterprise software Server), and Sybase (AdaptiveServer orders, and delivery location data Each level has its own unique Web services and Enterprise), which supply more than Processes: data updates the hardware, software, and service service-oriented 90 percent of the U.S. system's database, transaction data components. architecture databasesoftware marketplace. from the TPS are summarized and ****The public-level includes the Software outsourcing and cloud MySQL is a Linux open source presented in reports and analyze Internet, public telephone networks services relational databaseproduct now data on which businesses are increasingly owned by Oracle Corporation. Outputs: the number of pizza and reliant, industry-operated networks, 5Networking / LINUX side orders sold, cost numbers for cable systems, satellite systems, and Telecommunications Platforms Perhaps the most well-known open ingredients, delivery, customer cellular telephone networks. Windows Server is predominantly source software is Linux, an information ****The enterprise level may used as a local area operating system related to Unix. 2: How do these systems help include email, Web sites, intranets, networkoperating system, followed Linux was created by the Finnish Dominos improve its business extranets, and enterprise by Linux and Unix. Large enterprise programmer Linus Torvalds and first performance? applications. wide areanetworks primarily use posted on the Internet in August -Provides efficient management Business units concentrate on those some variant of Unix. Most local 1991. Linux applications are function infrastructure components that area networks, as wellas wide area embedded in cell phones, -Pulse improved customer service, service the four enterprise networks, use the TCP/IP smartphones, netbooks, and reduced mistakes, shorter training protocol suite as a standard. consumer electronics. Linux is times Technology Drivers of 6;;;Internet Platforms -Working to cut costs and increase available in free versions Infrastructure Evolution Internet platforms overlap with, and customer satisfaction. downloadable from the Internet or must relate to, the firms general in low-cost commercial versions that 3: How did the online pizza ordering Moore's Law: Perhaps no other law networkinginfrastructure and include tools and support from system improve the process of holds as much weight in the hardware and software platforms. A vendors such as Red Hat. ordering a Domino's pizza? evolution of computers as Moore's Web hosting service maintains a Dominos rolled out its state-of-the Law. The microprocessor chip using large Web server, or series art online ordering system, which transistors has been an important ofservers, and provides fee-paying Management Opportunities, includes Pizza Tracker. contributor to increased computing subscribers with space to maintain Challenges, and Solutions -allows customers to watch a power. However, nanotechnology is their Websites. simulated photographic version. the promise of the future. 7Consulting and System -pizza as they customize its size, Opportunities sauces, and toppings. Integration Services In spite of the many, well-publicized -The image changes with each The Law of Mass Digital Storage: As failures of dot-com companies in Cloud Computing In change a customer makes Ordering the amount of digital information 2000-2001, electronic commerce cloud computing, firms and progress can be viewed by pizza expands, so too does our need and and digitization of the corporate individuals obtain computer tracker Pizza Tracker displays a desire for more storage. In the early world continue to grow. The processing, storage, software, and horizontal bar that tracks an orders evolution of computing, storage Internet is touted as being 24/7, other services as a pool of progress graphically In 2010, needs were based on written text anytime, anywhere. virtualized resources over a Dominos introduced an online network, primarily the Internet. polling system to continuously Metcalfe's Law and Network These resources are made available Management Challenges upload information from local Declining Communications Costs to users, based on their needs, The challenges of creating and stores. and the Internet: One of the biggest irrespective of their physical location managing a good IT infrastructure 4: How effective are these systems drivers in the exploding use of or the location of the users include: in giving Domino's a competitive computers is directly attributable to themselves. Cloud computing edge? Explain your answer. the Internet. It's getting cheaper consists of three different types of 1.Dealing with platform and -The company's improved business every day to connect to the Internet services: infrastructure change processes are becoming a source of because of the declining 2Management and governance competitive strength. communication costs 3..Making wise infrastructure -Systems enable the company to 1Cloud infrastructure as a service investments innovate and execute its operations Standards and Network Effects:. Customers use processing, storage, more quickly than its rivals. networking, and other computing business processes are automated resources from cloud service which changes the flow of Infrastructure Components information and makes it possible providers to run their information systems. Fo r example, Amazon uses for more people to access and share 1.Computer Hardware Platforms the spare capacity of its IT information. Thiscomponent includes client infrastructure to provide a broadly -The technology is also supporting machines (desktop PCs, mobile based cloud environment selling IT new business models like the online computing devicessuch as netbooks infrastructure services pizza ordering system. Pizza Hut and and laptops but not including Papa John's have online ordering iPhones or BlackBerrys) andserver capabilities, they lack the Pizza machines. The client machines use 2Cloud platform as a service Tracker technology almost 20% of all primarily Intel or AMD Customers use infrastructure and of Dominos orders, which is up microprocessors. programming tools hosted by the from less than 15% in 2008. service provider to develop their