CMPS 50

Business Information Systems

Jack D. Callon

Jack Baskin School of Engineering

It is logical to devote most of this first class to provide as clear an understanding as possible regarding:

• Course objectives and content.

• Assignments and grading.

• Your opportunities.

• My expectations.

To avoid as many future problems as possible!

Course ObjectiveCourse Objective

The objective of the Business Information Systems course is to enable students to gain an appreciation for, and understanding of, how computer-based systems are used to help a business to be more successful.

1. Computer Concepts, Methodologies

and Use within a Business.

2. Business Goals, Strategies, Structures,

Functions and Management

Business Information Systems

Specific Course Objectives

Gain an understanding of:

• The role of information systems within a business.• Basic Information Technology concepts.• Business and management issues associated with

Information Technology.• Desktop software tools like MS Office.• The Internet as an information source.

Some Necessary TerminologyInformation Technology (IT) - “The pieces and things.”

Hardware

Software

Telecom Network Services

Information Systems (IS) - Built with IT

Hardware, Systems Software, Application Software, Telecommunication Networks (LANs, WANs)

Information Systems Organization - People with a responsibility for IT and IS support.

Logical Audience

1. ISM Majors (better understand the major).

2. Those thinking about ISM as a major.

3. Business Management Economics Majors

(Don’t all business jobs involve computers?)

4. CS and CE Majors wanting a business/IT perspective.

Students Enrolled - MajorsBusiness Management Economics 27

Information Systems Management 4

Undecided 4

Computer Science 3

Economics 2

Literature 2

Biology 1

Computer Engineering 1

History, Philosophy, Psychology 3

MAB1 1

Glec 1

Students Enrolled - Class Level

Seniors 24

Juniors 18

Sophomores 7

Frosh 1

Limi 1

Can Be a Very Challenging Class

• Business Background

• Computer Knowledge and Experience

• Other Commitments and Priorities

New Business Environment

• Global Economy.

• Knowledge and information-based service economies.

• Transformation of business enterprises.

• Dramatic increase in the use of IT and a significant

shortening of IT product cycles.

Business Analysis Paper

An important assignment.

You cannot pass this course if you do not complete this assignment.

A combination of business and IS analysis.

From a Former Student

Having just completed an MS in taxation immediately after earning a BS in accounting:

“Your course was the most difficult of any that I have taken in the past four years. I have never worked so hard for a “B” in my life.”

Course ChallengesStudent background and experience:

1. Some of you consider yourself computer gurus while

others are minimally computer literate.

2. Some of you have significant business experience and

business savvy and some of you have only the vaguest

idea as to what it takes to run a successful business.

3. For one of the above reasons, there are those that over-

estimate how well prepared you are to deal with the

demands of this course.

Or the amount of time that will be required to earn a passing grade.

Which knowledge should come first?

1. Understanding the specifics of IT.

2. A basic understanding of how information systems are designed, built, implemented and supported.

3. An understanding of the increasing business need for accurate, consistent, timely and accessible information.

Previous Student Suggestions

We meet 20 times and will spend time on:• Understanding the course to decide if it is what you expect.• Will cover 15 Chapters (one per class).• Midterm exam.• Database project (one class in PC lab).• ISM career panel (mini-presentations).• One class for a guest speaker on an IS project from start to finish.

“Slowing down the course would be helpful.”

11Source: America's New Deficit: The Sh ortage of Information Techn ology Workers , US Dept . of Co mm erce, 1997.

National High Tech Employment isExpected to Grow Significantly.Example: Projected Need for Com puter Technology Professionals (1994-2005)

National High Tech Employment isNational High Tech Employment isExpected to Grow Significantly.Expected to Grow Significantly.Example: Projected Need for Com puter Technology Professionals (1994-2005)Example: Projected Need for Com puter Technology Professionals (1994-2005)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Computer Engineers &Scientists

Systems Analysts ComputerProgrammers

# o

f w

ork

ers

1994

2005

Net Replacements

– Can’t do this if you don’t come to class!– Don’t intend to read the textbook to you.– Class time should be spent on clarifying, expanding

on and discussing the material in the textbook.– Need to familiarize yourself with assigned material

before you come to class. – Course syllabus and lectures on the School of

Engineering web page. (JDC or course web pages)

My job is to steer you through the course

Jack Callon

• A careerist and not an academic.

• A business person that understands IT and IS.

• Sponsor of the ISM major.

• 28 years with IBM in sales and marketing.

• International experience (fairly early in the game).

• 11 1/2 years at San Jose State (MIS program).

• Third year at UCSC.

Desktop Tools• Assume that you know word processing and all

written assignments must be prepared using it.

• Will need to use Powerpoint to support your oral

presentation and to prepare models in your business

analysis paper.

• Helps to know how to create charts and graphs using

Excel

• Will provide instruction and you will use Access as a

database tool

CBT Courseware

• End User Tools and Essentials

• Programming Essentials and Advanced Web

Authoring

• Networking Fundamentals and Protocols

• Operating Systems and Tech Support

• Database Design and Oracle

Business Evaluation Criteria

1. How would you define the business?2. What is the value to customer through the company’s products and services?3. Is there something significant about the company’s relationship with its customers?4. How significant is the role of information systems within this company? 5. What are the significant strengths of the company?6. How good is the company leadership?

Business Dynamics

1. Changing Customers and Market Demands

2. Fierce Competition

3. Changing Operational Strategies

4. Increasing Demand for Information.

Market Risk

Equity Return

OperationalRisk

OperationalResponsiveness

Labor

Material

Bank RatesCredit Risk

Financial Risk

OperationalCosts

Sustainable

Competitive

Differentiation

Facilities & Equipment

VentureCapital

Stockholders

The Many Dimensions of Business Risk

CustomerValue

Cost

People Skills

Facilities & Equipment

Very Important Business Topics

• Direct Business Model

• Supply Chain Management • Outsourcing

• Reengineering Core Business Processes • Managing Change

Business Reality• Systems are not the issue, business processes are.

• Very few important processes are contained within one

functional area.

• Cross-functional process ownership is difficult to

establish.

• Continual refinement of the portion of processes which

lie within a function has very limited payback.

• Once a new process has been designed, existing

application package solutions and tools allow very

aggressive implementation.

What is the problem?

Core processes have not been clearly identified within companies.

Clear ownership of each core process has not been logically established.

Core processes and supporting systems should be able to change quickly to cope with changes in the business.

Substantial resources need to be available to continually improve internal processes including the supporting systems.

Organizations are much flatter so jobs are broader, the complexity of the problems being addressed is much higher and individuals are able to contribute at a much higher level to a company’s success.

IT is a technical field

Technical people can learn the business. (if they are inclined to do so).

It is tougher to teach business people the technology.

Let’s see what is planned for this course.

Business Information SystemsBusiness Systems Information Technology

Functional Areas

ManagementHierarchy

Input/Process/ Output (IPO) with Control

Systems Decomposition

1a. What outputs are desired?1b. Who gets them?

1a. What inputs are required?2a. Where/how do we get them?

3. What processing is needed to transform inputs to outputs?

How to disseminate information?

How to collect data?

How the information is produced?

System Decomposition

Breaking down a system into its component subsystems, analyzing each separately, and then aggregating them back into the complete system:

• Focuses on system components, their relationships with

each other and their relationships with external entities.

• Identifies system boundaries.

• Reduces the potential for a lack of systems compatibility.

• Reduces systems complexity.

Why the O'Brien Textbook?

All books that are used for this type of class (there are many) include:

1. Real world cases.

2. A professed simple and logical framework.

3. Integrates IT throughout the book.

4. Places an emphasis on the strategic role of IT,

how it solves business problems, how it

supports business operations and decision

making.

Such a book would have chapters that:

• Introduce the content, concepts and intent of the book.

• Addresses solving business problems with IT.

• Addresses the support of business operations with IT.

• Addresses supporting decision making with IT.

• Explains computer hardware.

• Explains computer software.

• Explains the importance of data and data management with database systems.

• Explains telecommunication networks as necessary links for communication and access to data.

• Explains how systems are planned.

• Explains how systems are built (developed or bought)

and implemented.

• Talks about social implications of IT.

An Up-to-date book would also have chapters on:

• The global implications of IT.

• The Internet, intranets and extranets as vehicles for

electronic commerce.

• The strategic (competitive) significance of IT.

O’Brien Textbook

Management Information Systems: Managing Information Technology in the Internetworked Enterprise.

Textbook

Module I Foundations of Information Systems

Chapter 1 - Introduction to Information Systems in Business

Chapter 2 - Fundamentals of Information Systems

Chapter 3 - Solving Problems with Information Systems

Textbook

Module II Information Technology: A Managerial Overview

Chapter 4 - Managerial Overview: Computer Hardware

Chapter 5 - Managerial Overview: Computer Software

Chapter 6 - Managerial Overview: Telecommunications

Chapter 7 - Managerial Overview: Database Management

TextbookModule III Business Applications of Information Technology

Chapter 8 - The Internet and Electronic Commerce

Chapter 9 - Intranets, Extranets and Enterprise Collaboration

Chapter 10 - Information Systems for Business Operations

Chapter 11 - Information Systems for Managerial Decision Making

Chapter 12 - Information Systems for Strategic Advantage

Chapters 10 and 12 are covered early in the quarter as necessary background to do the Business Analysis Paper.

Textbook

Module IV Managing Information Technology

Chapter 13 - Managing IT: Enterprise and Global Management

Chapter 14 - Planning and Implementing Change

Chapter 15 - Managing IT: Security and Ethical Challenges

A Necessary Perspective

The Internet is a network of networks.

All networks are not the Internet.

Internet Transactions ($Billions)

Projected growth of

goods and services

traded between

companies from $8

billion in 1998 to

$327 billion in 2002

0

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100

150

200

250

300

350

$Bil

lio

ns

97

98

99

00

01

02

Source: Forrester ResearchSource: Forrester Research

Course Grading

Introduction Letter & Resume 3% (admission price)

Oral Presentation 5%

Two Analysis Papers 25% (5, 9, 8, 3)

Database Project 15%

Quizzes (3) 12%

Midterm Exam 15%

Final Exam 25%

Student Weaknesses

1. Lack ability to put “pieces and things”

into a logical bigger perspective.

2. Communication skills particularly oral

presentations.

Systems Performance

The performance of a system is not the sum of the performance of its parts taken separately, but the product of their interactions.

The world, the universe that we will focus on is how business systems drive the need for information systems.

Information systems enable new business systems (processes).

Presentation Guidelines

• Everyone will make a class presentation.

• PowerPoint Presentation.

• Five minutes in duration.

• E-mailed to me two days before the presentation.

• Reviewed and returned to the student the day

before the presentation.

• Integrated with my lecture.

Presentation Topics

• Chapter Introductions

• Company Introductions

• Key IT/IS and Business Topics

Generally four student presentations a class.

The source of questions for the quizzes along with key terms identified on the course web page.

Introduction LetterIntroduction Letter

A page, not a paragraph!Personal introduction

Work experience

Computer related experience

Career objectives

Personal interests

In a business professional format! Which does not start with “Hi, my name is.”

Personal Resume

Looks good. (fonts, format, margins)

Brutally clear what you have done and what you

want to do ( job objective).

Perfect! (no spelling or grammar mistakes)

Will deal with more of the specifics of this

assignment on Thursday.

Building Your Resume

1. Well Rounded (includes extra curricular activities)

2. Worked at Least Part-time During School.

3. Academically Qualified.

4. Professional Presence.

5. Interested and Understanding of Our Work.

Business Analysis Paper (25% of course grade)

1. A clear definition of the business. 2. The value that the business provides to its customers. 3. A profile of the company including the business leaders, major products and/or services and financial performance over multiple years. 4. A description of the competitive environment within the industry using a tailored Porter Competitive model prepared using desktop software.

A Successful Business!?• Understands the value of information.

• Reinvents itself when appropriate to do so.

• Develops a simple system that targets what it

wants to accomplish.

• Takes direct aim. (focus)

• Develops a system with incentives.

• Makes a customer and not a sale.

• Goes beyond empowerment.

• Runs a loose ship with a tight rein.

• Realizes the power of a strong culture.

• Changes. Always! Doesn’t sit still.

Survival in the Connected Electronic World

• Make sure that your company continually produces new

products that make existing products obsolete.

• Hire a wide range of employees from all backgrounds,

ethnicities, lifestyles and cultures.

• Listen to your young and low-level employees, who often

have new and interesting perspectives.

• Move quickly and at Internet time.

• Simplify the complexity of your IT infrastructure and

make the network simple to use for everyone.

Lew Platt, Hewlett-Packard

Database Project

• Surveying prospects to buy a new personal

computer.

• Two person project teams. One submission, one

grade.

Surveying Prospects

The most important step in the sales process!

Determining the motivation for buying:

A New Personal Computer!

A Satisfied CustomerA Satisfied Customer

Hi Mr. Callon,

I was in your Spring Quarter CS50 class. I applied for a job with a temporary employment agency for a summer job and did very well on the test on Access thanks to your class. I have been sent on three assignments with clients because of my Access capabilities. Who would have thought that I would be paid more because I knew a PC application like Access? Thanks for the nice assist with my summer job!

Quiz # 1 (Spring 1999)

In a two part question for each term, explain a) what it is and b) why it is important and/or significant.

Each a) and b) part is worth 10 points.

1. Work system

2. Value chain

3. Structured task

4. Relational database

5. Efficiency, effectiveness and competitive advantage.

Get Started Now!

• Up-front analysis of the companies that you will

request for the business analysis paper.

• Select a company from my web page “analysis

companies” list.

• Research on the business leader.

• A commitment to stay out in front of the material to

be covered in class.

Academic Honesty

If I can’t trust you, there is no other question!

CS50 Emphasis

You need to understand the business challenges, issues and approaches to logically and effectively position (evaluate, define, design, implement) the IT-based solutions.

You need to understand as much as possible the elements of the IT solutions to appreciate how and why they make sense as solutions to the needs of the business.

That is the plan for the quarter

It will require a definite time commitment on your part to complete the multiple assignments.

As noted in the syllabus, unless this course has definite career implications it is unlikely that you will conclude that the required effort is justified.

At no extra cost!

Will throw in some career counseling.

Information Relevance

Not all companies or industries have the same degree of dependency on information as a business success factor.

Industries with high information dependency.

Industries with a relatively low information dependency.

Efficiency

One of the three major potential roles of information systems.

Measured by productivity.

Things per . . . .

Producing more with less.

Managing for Productivity

People at all levels in the organization

Use managementexperience

To Develop Skills

Technical Conceptual

Interpersonal

Improve Core Business Processes

Enact RolesDecisional

InterpersonalInformational

To achieve productivity

gains

IT Profile

Please complete the IT profile as an assist in focusing this class to the best possible level.