chapter 01 in arabic translation
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McGraw-Hill/Irwin 2008,The McGraw-Hill Companies, All Rights Reserved
Foundations ofInformation Systemsin Business
Chapter One
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Learning Objectives
Understand the concept of a system and how itrelates to information systems.
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Explain why knowledge of information systemsis important for business professionals andidentify five areas of information systemsknowledge they need.
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Learning Objectives
Give examples to illustrate how the businessapplications of information systems can supporta firms business processes, managerial
decision making, and strategies for competitiveadvantage.
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Learning Objectives
Provide examples of several major types ofinformation systems from your experiences withbusiness organizations in the real world.
. Identify several challenges that a business
manager might face in managing the successfuland ethical development and use of informationtechnology in a business.
.
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Learning Objectives
Provide examples of the components of real worldinformation systems. Illustrate that in aninformation system, people use hardware,
software, data and networks as resources toperform input, processing, output, storage, andcontrol activities that transform data resourcesinto information products.
.
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Learning Objectives
Demonstrate familiarity with the myriad ofcareer opportunities in information systems.
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Case 1: Sew What? Inc.: The Role of IT inSmall Business Success
Sew What? provides custom theatrical draperies and
fabrics for stages, concerts, fashion shows, and specialevents worldwide.
.
After launching the company web site, they acquiredclients from all over the world and their revenue has beengrowing more than 45% per year.
45 .
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Case 1: Sew What? Inc.: The Roleof IT in Small Business Success
. Sew What? runs most of its business with Intuits Quick-Books Enterprise Solutions & Dell PowerEdge servers
Recently, the National Federation of IndependentBusinesses (NFIB) and Dell Inc. presented Sew What?Small Business Excellence Award in recognition of itsinnovative use of technology to improve its customersexperience.
) NFIB) Dell
" " .
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Case Study Questions
How do information technologies contribute to thebusiness success of Sew What? Give several examplesfrom the case regarding the business value ofinformation technology that demonstrate this conclusion.
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Case Study Questions
If you were a management consultant to Sew What?Inc., what would you advise Megan Duckett to do at thispoint to be even more successful in her business? Whatrole would information technology play in yourproposals? Provide several specific recommendations.
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Case Study Questions
1. How could the use of information technology help asmall business you know be more successful? Provide
several examples to support your answer.2. .
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Real World Internet Activity
Search the Internet to help you evaluate the businessperformance of Sew What? Inc. and its competitors atthe present time.
. What conclusions can you draw from your research about
Sew What?s prospects for the future?
" s
Report your findings and recommendations for Sew
What?s continued business success to the class.
"
s .
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Real World Internet Activity
Small businesses have been slower to integrateinformation technology into their operations than largercompanies.
. Discuss the reasons for this state of affairs, identifying
several possible IT solutions and their business benefitsthat could help small businesses be more successful.
.
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Why study Information Systems andInformation Technology?
Vital component of successful businesses
Helps businesses expand and compete
Businesses use IS and IT To improve efficiency and effectiveness of business
processes
For managerial decision making
For workgroup collaboration
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What is a system?
A system Is a set of interrelated components
With a clearly defined boundary
Working together to achieve a common set ofobjectives
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What is an Information System?
An organized combination of People
Hardware
Software Communications networks
Data resources
Policies and procedures
That stores, retrieves, transforms, anddisseminates information in an organization
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Information System (IS) versus Information
Technology (IT)
IS is all the components and resources
necessary to deliver information and functions tothe organization
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Information System (IS) versus InformationTechnology (IT)
IT is hardware, software, networking and datamanagement
In theory, IS could be paper based
But we will focus on Computer-Based
Information Systems (CBIS)
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IS Knowledge Framework for Business
Professionals
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What should a Business Professional knowabout IS? " "
Foundation Concepts: fundamental behavioral,technical, business and managerial concepts
:
Information Technology: Hardware, software,networks, data management and Internet-based
technology :
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What should a Business Professionalknow about IS?
Business Applications: Major uses of the IS in the organization
Development Processes: How to plan, developand implement IS to meet business opportunities
Management Challenges: The challenges of effectively and ethically
managing IT
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Fundamental Roles of IS in Business
Support of business processes and operations
Support of decision making by employees andmanagers. .
Support of strategies for competitive advantage.
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What does IS do for a business?
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Trends in Information Systems
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What is E-business?
The use of Internet technologies
to work and empower business processes, electronic
commerce, and enterprise collaboration
within a company and with its customers, suppliers, andother business stakeholders.
.An online exchange of value. .
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How e-business is being used
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E-business use
Reengineer internal business processes
Enterprise collaboration systems:
support communications, coordination andcollaboration among teams and work groups,e.g., virtual teams
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E-business use
Electronic commerce:
buying, selling, marketing and servicing ofproducts and services over computer networks
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Types of IS
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Operations support systems
What are they? Efficiently process business transactions
Control industrial processes
Support communications and collaboration
Update corporate databases
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Types of Operations Support Systems
Transaction Processing Systems
Record and process data from business transactions Examples: sales processing, inventory systems,
accounting systems
:
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Types of Operations Support Systems
Process Control Systems Monitor and control physical processes
Example: in a petroleum refinery use sensors tomonitor chemical processes :
Enterprise Collaboration Systems Enhance team and work group communications
Examples: e-mail, videoconferencing :
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Twoways to process transactions
Batch Processing:Accumulate transactions over time and process
periodically
Example: a bank processes all checks received in a
batch at night
:
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Two ways to process transactions
Online Processing:
Process transactions immediately
Example: a bank processes an ATM withdrawal
immediately
:
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Management Support Systems
What are they?
Provide information and support for effective decision
making by managers
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Types of Management SupportSystems
Management Information Systems (MIS)
Provide reports and displays to managers
Example: daily sales analysis reports:
Decision Support Systems (DSS)
Provide interactive ad hoc support for decision making
Example: A what-if-analysis to determine where to spendadvertising dollars
:--
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Types of Management SupportSystems
Executive Information Systems (EIS)
Provide critical information for executives and
managers Example: easy access to actions of competitors :
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Operational or Management Systems
Expert Systems Provide expert advice
Example: credit application advisor
: Knowledge Management Systems
Support creation, organization and dissemination of
business knowledge throughout company
Example: Intranet access to best business practices
:
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Classifications of IS by scope
is Functional business systems Focus on operational and managerial applications of basic
business functions
Examples: support accounting, finance or marketing
:
Strategic information systems Help get a strategic advantage over its customers
Examples: shipment tracking, e-commerce web systems
:
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Classifications of IS by scope
Cross-functional information systems
Systems that are combinations of several types of informationsystems
Provide support for many functions
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Challenges and Opportunities of IT
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Measuring success of an IS
Efficiency Minimize cost, time and use of information resources
Effectiveness
Support business strategies Enable business processes
Enhance organizational structure and culture
Increase the customer and business value
Whats the difference between Efficiency andEffectiveness?
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Developing IS Solutions
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Ethical responsibilities
What uses of IT might be considered improper orharmful to other individuals or society?
What is the proper business use of the Internet or acompanys IT resources?
How can you protect yourself from computer crime?
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Challenges of IT Careers
Outsourcing of basic programming to India, the Middle-East and Asia-Pacific countries
Strong employment opportunities in other areas in IS
Shortage of qualified IS personnel
Long-term job outlook positive and exciting
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Job growth
Among the fastest growing occupations through2012 Systems Analyst,
Database administrators, Other managerial-level positions
Network specialists
Information security
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IS Function represents
Major functional area of business
Important contributor to operational efficiency,
employee productivity, morale, customer serviceand satisfaction
Major source of information and support foreffective decision making
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IS Function represents
Vital ingredient in developing competitiveproducts and services in the global marketplace
Dynamic and challenging career opportunity
Key component of todays networked business
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Case 2: Autosystems: The Business Value of aSuccessful IT System for a small Manufacturer
" "
Autosystems is an automotive lighting designer and
manufacturer located in Belleville, Ontario. .
A few years ago it installed the ActivEntry shop floorreporting system to move shop floor information into the
manufacturing planning and control system.
.
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Case 2: Autosystems: The Business Value of aSuccessful IT System for a small Manufacturer
They now have the ability to capture labor, efficiency,production, scrap, etc., on time and by work center, forevery cell, and are able to talk about that every day in theirteam meetings.
.
Production managers can review information from all three
plants. .
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Case Study Questions
Why did Autosystems decide to install theActivEntry system? Why did the company feelit was necessary to integrate it with itsTRANS4M system?
TRANS4M Which three business benefits, of the many
that resulted from the use of ActivEntry, gavethe company the most business value? Defendyour choices.
.
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Case Study Questions
What changes are already being planned toimprove the use of ActivEntry? What otherimprovements should the company consider?Why?
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Real world activities
Go to the Infor Global Solutions Web site,www.infor.com, to find other stories thatdescribe the business value of manufacturingplanning and control systems.
" " www.infor.com . Discover any common reasons for the success
of these companies with their systems?
Present your findings to the class.
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Real world activities
Search the Internet for examples of problemsthat companies have had with manufacturingsystems.
. Discuss your findings and what solutions youcan propose to help companies avoid theproblems you discovered.
.
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Real World Group Activity
Search the Internet for examples of problemsthat companies have had with manufacturingsystems.
.
Discuss your findings and what solutions you canpropose to help companies avoid the problems youdiscovered.
.
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What is a system?
A system Is a set of interrelated components
With a clearly defined boundary Working together to achieve a common set of
objectives
By accepting inputs and producing outputs in anorganized transformation process
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Systems have three basic functions:
Input involves capturing and assembling elementsthat enter the system to be processed
Processing involves transformation process thatconvert input into output
Output involves transferring elements that have been
produced by the transformation process to theirultimate destination
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Cybernetic system
All systems have input, processing and outputA cybernetic system, a self-monitoring, self-
regulating system, adds feedback and control:
Feedback is data about the performance of a system
Control involves monitoring and evaluating feedback todetermine whether a system is moving towards the
achievement of its goal
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A Cybernetic system
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Information systems model
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Components of an IS
People Resources End users: the people who use the IS or the
information from the IS IS specialists: the people who develop and operate IS
Hardware ResourcesAll physical devices used in information processing Machines, data media, peripherals
Software ResourcesAll information processing instructions including
programs and procedures System software, application software and procedures
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Components of an IS (cont.)
Data Resources Facts about the business transactions
Processed and organized information
Databases of organized data
Network Resources Communications media
Network infrastructure: hardware and software :
The Internet, intranets and extranets
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Data versus Information Data are raw facts about physical phenomena or
business transactions
Information is data that has been converted intomeaningful and useful context for end users
Example: Sales data is names, quantities and dollar amounts
Sales information is amount of sales by product type,
sales territory or salesperson
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IS Activities
Input of data resources Data entry activities
Processing of data into information
E.g., calculate, compare, sort, classify, summarize Output of information products
Messages, reports, forms and graphic images
Storage of data resources Data elements and databases
Control of system performance Monitoring and evaluating feedback
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Recognizing IS
As a business professional, you should be ableto look at an IS and identify
The people, hardware, software, data and networkresources they use
The type of information products they produce
The way they perform input, processing, output, storageand control activities
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Case 3: Heidelberg, Honeywell and Eaton: Using IT toBuild Smart Products and Services
Today it will not be enough for a companies to offervaluable services for their products but they will have toprovide smart services.
" ." To provide smart services, companies must use
information technology to build smart products, productswith awareness and connectivity into the products
themselves. "" .
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Case 3: Heidelberg, Honeywell and Eaton: Using ITto Build Smart Products and Services
Typically, smart products can detect that a part isapproaching failure and alert users, thus giving thecompany opportunity to provide maintenance services andenjoy the resulting benefits.
.
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Case Study Questions
Why should manufacturing companies build smart products andprovide smart services? What business benefits can they gain?Provide several examples beyond those discussed in this case.
. What information technologies are used by the companies in
this case to build smart products and provide smart services?What other IT components might be used? Give examples ofthe capabilities they would provide.
.
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Case Study Questions
What are some limitations of a smart products andsmart services strategy? Give several examples ofchallenges that a business might encounter, and explainhow it might overcome them.
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Real World Internet Activity
Use the Internet to investigate how Heidelberg,Honeywell, and Eaton are proceeding in their use ofsmart products and services.
. Discover if they are expanding this approach and what
benefits they are claiming for this strategy.
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Real World Internet Activity
Now expand your Internet investigation to othermanufacturing companies to find several that arebuilding smart products and offering smart services.
What business value are they claiming for themselves and
their customers?
If this search is fruitless, select several companies fromyour Internet research and explain how and why they mightemploy a smart products and services strategy.
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Real World Group Activity
What security and privacy concerns mightconsumers have about Eatons HomeHeartbeat service?
" "
Discuss the rationale for these concerns, andconsider what could be done to reduce any threats tosecurity and privacy posed by such services while
also improving the value of this new use ofinformation technology.