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Lecture 1 - Introduction Business Information Systems

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23 views

Lecture 1 - Introduction Business Information Systems

Uploaded by

halokol717
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction Business

Information Systems
Pat Brans
([email protected])

Pat Brans ([email protected])


System implementation

Agenda

History of IS in businesses
What businesses use IS for now
Forces driving the evolution of IS
IS and business strategies
Cross-organizational business processes

Pat Brans ([email protected])


History of IS in business

 1940s: ENIAC (one of the world’s first


electronic computers) Businesses used computers to:
 1950s: IBM sells first business
computers
 1960s: Time-sharing computers  Automate repetitive tasks:
payroll, inventory, billing
 1970s: Minicomputers bought by
businesses, networking takes hold
 Improve personal productivity:
 1980s: PCs and LANs become popular
word processing, spreadsheets
 1990s: Explosion in computer and
 Gain competitive advantage:
Internet use
ERP, CRM
 2000s: Smartphones, video
conferencing
 2010s: Social networking, Big Data,
AI
Pat Brans ([email protected])
What businesses use IS for now

Now companies use computers in almost all aspects of the


business:

 Operations: manufacturing, finance, accounting


 Workforce productivity: e-mail, productivity apps
 Marketing and advertisement: collecting information
about customers and about the market, advertising to the
market
 E-commerce: selling products directly to customers
 Supply chain management: ordering for suppliers,
sharing information with suppliers
Pat Brans ([email protected])
Forces driving the evolution of IS

Processing power: “Moore’s law” states that every


eighteen months, the processing power of computer
chips will double. This has been true since the 1960s.
Storage: Smaller, faster, cheaper, and bigger
storage
Networking: Faster, more reliable networking
The network effect: The more individuals and
businesses use Internet, the more valuable the
Internet is to individuals and businesses.

Pat Brans ([email protected])


IS and business strategies

Broadly speaking there are two kinds of business


strategies:

Low cost: a company can try to minimize costs and


then market its products and services at a lower price.
For example, Asus, Nissan, or Yamaha

Differentiation: a company can try to make its


products and services unique. For example, Apple,
Porsche, or Stradivarius
Pat Brans ([email protected])
IS and business strategies

IS plays a different role depending on the strategy

Low cost: use IS for workforce productivity and


to make manufacturing more efficient

Differentiation: use IS for product design and to


allow customers to place special orders

Pat Brans ([email protected])


Cross-organizational business processes

Examples of cross-organizational business processes


Procurement
Order fulfillment

Pat Brans ([email protected])


Cross-organizational business processes

What’s required from IS:


 Common database: All applications use the same database.
 Compatible software systems: Applications that need to
interface, can and do interface.
 Transactional integrity: When an update is made to the
database, if something goes wrong during an update to the
database, the transaction is “rolled back” – i.e. the database is
put back into the state it was before the update begin.
Transactional integrity means either all of the update is made, or
the transaction is rolled back.
 Access control: Administrators can control which people in
which departments can read or update which data.
Pat Brans ([email protected])
Pat Brans ([email protected])

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