Notes
Slide Show
Outline
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Chapter 13
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Topics
  • Into the Information Age
  • Systems and Organizations
  • Information Systems
  • Information Systems for Business Transactions
  • Social Responsibility in the Information Age
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Into the Information Age
  • Three Monumental Changes
    • The Agricultural Economy
    • The Industrial Economy
    • The Information Economy



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Where Computers Work
  • In the Information Age, information technology is being used to improve work practices.


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Where Computers Work
  • Entertainment


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Where Computers Work
  • Publishing


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Where Computers Work
  • Medicine


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Where Computers Work
  • Airlines
  • Commercial pilots use computer-controlled flight simulators to learn flight procedures and to upgrade and maintain their flying skills.
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Systems and Organizations
  • A system is a set of interrelated parts that work together to accomplish a purpose
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Anatomy of a System
  • A system performs 3 basic functions:
    • Input, Processing & Output


  • A system has two additional functions:
    • Feedback & Control


  • A system has a boundary that defines its limits; anything outside the boundary is the system’s environment.


  • A system can be a part, or a subsystem, of a larger system.
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Robots As Systems
  • A robot is a computer-controlled machine designed to perform specific manual, or mechanical, tasks.


  • The processor is functionally identical to the processor found in a microcomputer.


  • The most important hardware differences between robots and other computers are the input and output peripherals.
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Robots as Systems
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Business Organizations
as Systems
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The Value Chain Model
  • The activities performed by an organization add some thing valuable to the production of a product or service. The five primary activities in the value chain:
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The Value Chain Model
  •     Included in the model are four support activities of an organization to ensure that the primary activities can function efficiently and effectively:
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The Value Chain Model
  •     A business process, such as a sale-purchase transaction with customers, is the interaction of primary and support activities in the organization’s value chain.
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Information Systems
  •     An information system is a set of interrelated parts that work together to produce, distribute, and use information products and services.
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Information Systems in Context
  • An information system involves people using information to perform tasks that are important to the mission of an organization within a business environment.


  • Important terms:
    • People
    • Tasks
    • Information
    • Organization
    • Environment
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Information Systems
  • People


    • Three groups of people--users, designers, and managers -are all important for the successful utilization of information technology in an organization.


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Information Systems
  • Tasks


    • A task, or business process, is a related set of value -chain activities performed by a person or group to achieve an objective.


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Information Systems
  • Information


    • Information has two dimensions: physical or digital representation and human cognition.

    • As a commodity, information refers to facts, statistics, or other data that are valuable or useful to a person for accomplishing a task.
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Information Systems
  • Organization


    • The purpose of an organization is usually to provide or sell a product or service to its clients or customers.
    • An organization that produces physical products, such as automobiles or computers, is called a manufacturing organization.
    • A firm that provides a service, such as legal or medical advice, is called a service organization.
    • Not-for-profit organizations such as charitable organizations and government agencies provide goods and services without the intent of making a profit.


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Information Systems
  • Environment


    • Today many firms need to conduct trade and coordinate with their suppliers and distributors on a global scale.


    • Customers can shop in a worldwide marketplace, so firms must do business in open, unprotected worldwide markets.

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Information Technology

    • Acquisition
    • Processing
    • Storage and retrieval
    • Presentation
    • Transmission
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Information Systems
  • Benefits of Information Systems


    • High-quality information
    • Access to information
    • Utilization of information
    • Perform organizational work efficiently
    • Better communication and decision making
    • Better products and services for customers


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Information Systems
for Business Transactions
  • A transaction is a business event; it might be a sale to a customer, a purchase from a supplier or vendor, or a payroll payment to an employee.


  • A transaction processing system (TPS)  is a firm’s basic accounting and record-keeping system that keeps track of routine daily transactions necessary to conduct business.


    • Examples of transaction processing systems include sales order entry, ticket and hotel reservations, payroll, accounts receivable, and inventory.
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Information Systems
for Business Transactions
  • Features of Transaction Processing Systems:


    • typically involve large amounts of data stored in large databases
    • require high processing speeds to manipulate large volumes of data
    • capture data used to produce documents and reports for users and managers
    • must ensure a high level of accuracy and security of the data
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Information Systems
for Business Transactions
    • Data entry
    • Processing the data
    • Storing and updating the data
    • Document and report preparation
    • User inquiry


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Information Systems
for Business Transactions
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Enterprise Resource Planning
  • Many managers in organizations look for ways to create cross-functional information systems by reengineering, or combining and integrating, two or more transaction processing systems.


  • Careful reengineering can increase the efficiency and effectiveness of a business process by reducing wasted time, paperwork, and unnecessary work procedures.


  • Work practices can also be restructured to minimize costs and maximize worker effectiveness.
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Enterprise Resource Planning
  • An ERP system links, simplifies, and speeds up a company's entire transaction processing cycle.
  • The emphasis of ERP is to improve the free flow of information between different parts of the firm.
  • ERP systems are usually large and complex, and take a lot of time and money to implement. A recent survey of 63 companies—including small, medium and large companies in a range of industries—the average total cost of an ERP was $15 million (the highest was $300 million and lowest was $400,000).
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Automated Information Systems for Design and Manufacturing
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Automated Information Systems for Design and Manufacturing
  • Computer Aided Design (CAD)


    • Allows product designers and engineers to draw objects that make up the design, change the dimensions, and make other modifications to the design quickly and easily.


    • They can show the design in three dimensions and rotate it to see it from every imaginable perspective.


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Automated Information Systems for Design and Manufacturing
  • Computer Aided Manufacturing (CAM)


    • It automates the manufacturing process.


    • The software retrieves design specifications of the product from the CAD database; controls specific tools, machines and robots on the factory floor and monitors the overall physical process of manufacturing the product.


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Automated Information Systems for Design and Manufacturing
  • Computer-Integrated Manufacturing (CIM)


    • This concept emphasizes the coordination of CAD and CAM systems along with other information systems in the company.
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Social Responsibility
in the Information Age
  • Social responsibility refers to both legal and ethical behavior. As an information worker, you will be in many situations where you will have to decide what is both the ethical and legal way to behave. Here are a few situations to consider:
    • Making an extra backup of your software just in case both the copy you are using and the primary backup fail from some reason
    • Accessing and viewing files or the e-mail of people in your department or on your project team
    • Making a recommendation to sell  mailing lists of your company's customers to other businesses
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Social Responsibility
in the Information Age
  • Using a browser during working hours to find entertaining Web sites unrelated to your job
  • Copying a substantial portion of another employee's report and inserting it in a report you are writing
  • Telling your project manager's boss that you are dissatisfied with how a new software system was designed and should not be distributed to customers
    even though it has no obvious bugs
  • Helping to implement a system that will result in five people losing their jobs
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Rules of Thumb:
Considering Computer Careers
  • Learn touch-typing.
  • Use computers regularly to accomplish your goals.
  • Don’t forsake the basics.
  • Combine your passions.
  • Ask questions.
  • If you can’t find your dream job, build it yourself.
  • Prepare for change.