1IS Information Systems

Week 1 Lecturers: Lissa Monk/Rosa Michaelson Welcome to the course!

Office Hours
Lissa
email e.a.monk@dundee.ac.uk Rm B.13

Rosa
email r.michaelson@dundee.ac.uk Rm B.7b

Lecture/tutorial/lab info
Lectures weekly Tutorials start in week 2 and run weekly Computer Workshops start in week 2 and run weekly
By now you should already have a ITS username and password to access the University computing network please check this.

Responsibility for Learning

20 scotcat credits
one credit point = 10 hours of student effort.

5 contact (tutor-led) hours per week per course 40-45 hours per week of overall study time (i.e. 9.00-5.00 Monday-Friday) 45 15 = 30 hours of self study per week! 10 extra hours of study per course.

What is a lecture?
A point of view.
Read the text book. Make your own mind up.

Edited highlights.
Lecturers tend to focus on key aspects a hint for exams perhaps?

A starting point.
Read others sources books, journals, newspapers.

Learning Aids
Preview: Read table of contents,
headings, etc. Simplify: Break up material into smaller parts. Recite: Re-tell the material to yourself as if explaining it to someone else. Review: Go over the new material until it is learned. Spaced review: Spread out studying and review over a period of days.

Assessment
Labwork (20%) Week 6
Basic IT skills

Groupwork (20%) Week 10

Web-based project

Class exam (60%) Week 12-13

Case study covering the lectures
Open Book

Regulations
Attendance is compulsory!
Non-attendance in class = denied permission to sit final exam. Get in touch with Advisor if absent for illness etc!

At least 35% must be achieved in both coursework AND final exam to pass module.

Text book
Business Information Systems: Technology, Development & Management for the e-business By Paul Bocij, Andrew Greasley, Simon Hickie; edited by Andrew Greasley Pearson Education Ltd, 2008 (4th edition)

Overview
1IS - Week 1

WHY?
What is the point of Information Systems?
How does it fit into an Accounting degree?

Purpose of Information
every business is an information business information is the glue that holds together the structure of all businesses Evans & Wurster, Harvard Business Review, Sept 1997

Definition: Information System

Information systems are the means

by which organisations and people, using information technologies, gather, process, store, use and disseminate information
UK Academy for Information Systems

Why study IS?

Integral part of modern business Computers support all aspects of a businesses normal functions and activities New technology creates new opportunity Better communication and improved access to information benefits business.

Information systems
Hardware, software and telecommunications networks Built and used by people To collect, create and distribute useful data In an organisational setting

What is an Information System?

Three IT challenges
Information technologies are: affecting the way in which organizations operate. changing the nature and economies of accounting activity. changing the competitive environment in which accountants participate.

What is IS?
Information Systems (IS) is concerned with the strategic, managerial and operational activities involved in the gathering, processing, storing, distributing and use of information, and its associated technologies, in society and organisations

So what is IS?
An understanding of
System concepts Information Business organisations Information technology

IS in Accounting?
Accounting is the art of communicating (financial) information about a business entity to users such as shareholders and managers. The art lies in selecting the information that is relevant to the user and is reliable.

International Federation of Accountants (IFAC)

IFAC is the global organization for the accountancy profession. IFAC members and associates, which are primarily national professional accountancy bodies, represent 2.5 million accountants employed in public practice, industry and commerce, government, and academia. IFAC website

IFAC 5 levels of IT/IS

General IT education requirements The accountant as user of information technology The accountant as manager of information systems (e.g., financial manager, controller) The accountant as the designer of business systems (e.g., business system design team, producer of financial information, analyst) The accountant as evaluator of information systems (e.g., auditor, tax advisor, consultant)

On being a CA
Equipped with the right skills to succeed in business, you can expect to be involved in high-level, strategic decision making, helping to improve profitability and increase market share for your clients or employer.
ICAS website

So what is IS?
An understanding of
System concepts ) Information ) Business organisations Information technology Week 1/2

Week 2/3 Week 4/5 (Rosa)

Information
1IS Week 1

Information
What is information? What does information mean to you? How do you know when you need information? Where can you find information? How can you assess the information you gather?

Information is
Data interpreted to be useful Often taken for granted, or of poor quality facts & figures the lifeblood of the 21st century power

For example ..
Stock Market information Rules Knowledge Facts Statistics Wisdom Birth Date Transactions Customer information

Decisions

Events
Financial information

A structured collection of related facts

What is Information?
Course text definition
Data that have been processed so they are meaningful Data that have been processed for a purpose Data that have been interpreted and understood by the recipient

What is Information?
Information acts to reduce uncertainty about a situation or event Course text
Information can reduce some possibilities or make possibilities more likely Information can influence the decision making process

What is data?
A series of non-random symbols, numbers, values or words A series of facts obtained by observation or research and recorded A collection of non-random facts The record of an event or fact

Does data = information?

NO!
data is raw material for producing information information is useable in context information is processed data

Activity 1.1 data versus information

From the point of view of a student at university, which of the following might be examples of information? Which might be examples of data?
(a) (b) (c) (d) (e) (f) (g) the date a bank statement the number 1355.76 a National Insurance number a balance sheet a bus timetable a car registration plate

Which?
Data
the date the number 1355.76 a National Insurance number a car registration plate

Information
a bank statement a balance sheet a bus timetable

Creating Information
Data processes transform data into information
Classifying Sorting or rearranging Summarising or aggregating Performing calculations Selection

A model of a system?

Data

Transformation Process

Information

Information value
Tangible value. Usually hard data quantitative data and information = value of info cost of gathering info
Intangible value. Usually soft data feelings, experience and judgement = improvements in decisions cost of info

Activity 1.2 Tangible and intangible information

When information is used effectively, it can bring about many of the improvements listed below. State and explain why each of the items listed illustrates a tangible or intangible value of information. (a) improved inventory control; (b) enhanced customer service; (c) increased production; (d) reduced administration costs; (e) greater customer loyalty; (f) enhanced public image.

Information value
Tangible
Improved inventory control Increased production Reduced administration costs

Intangible
Enhanced customer service Greater customer loyalty Enhanced public image

Using information
We use information to make sense of things, to reduce uncertainty and to make decisions To do these things, we need good quality information What are the elements of good quality information?

Sources of information
Formal communication
e.g. Reports; accounting statements Consistent, structured format Created for specific purpose

Informal communication
e.g. conversations; notes Valuable resource Narrow scope; may be inaccurate or irrelevant

Aspects of Information Quality (Course text)

What to look for in good information

The OU says: PROMPT Presentation: Relevance: Objectivity: Method: Provenance: Timeliness:

Information summary
Information: involves transforming data using a defined process; involves placing data in some form of meaningful context; is produced in response to an information need and therefore serves a specific purpose; helps reduce uncertainty, thereby improving decision behaviour.

Homework
Activity 1.3
Using the Internet as a resource, find three case studies of the value of information in the context of a business organisation. (e.g. a news story in ComputerWeekly describing the savings made as a result of implementing a new stock control system.

Activity 1.5
Visit the web sites of two different online booksellers. For each example, assess whether the information provided about a particular book is of good or poor quality. Explain your reasoning with reference to the characteristics of information described in this chapter, in particular, in Table 1.1. Does the information provided differentiate between the offerings of the companies?

Decision Behaviour
1IS Week 1

Decision Behaviour
How do managers use information? What kind/level of decisions are made in a business? What is the decision making process? How does a BIS help?

Business environment
Environment influences behaviour What is the impact of this on IS? Business resource base Business has tangible and intangible resources
Hardware = tangible (physical) Information = intangible (conceptual)

Information Requirements
To manage is to forecast and plan, to organise, to command, to co-ordinate and to control. Henri Fayol

Information Requirements
Managers are making decisions to achieve organisational objectives. All activities depend on access to quality information Organisational size/complexity increases importance of good management Good management needs effective information systems

Decision Behaviour
Behaviour influences assessment of information and reaching a decision Dependent on cognitive style
Analytical
Quantitative not qualitative; Fine detail rather than wider issues

Intuitive
Relies on prior experience, judgement and intuition more holistic approach

Decision types
Structured decisions
Rules and constraints are known Routine or repetitive situations Easily automated or programmable Analytical

Unstructured decisions
Complex situation Infrequent and reliant on experience, knowledge Intuitive

Levels of managerial decision making

Frequent
Long term Infrequent
High Impact Unstructured

Strategic

Tactical

Short term

Frequent

Operational

Low impact

Structured

Decision levels
Decisions characteristics vary depending on level of decision Distribution of managerial responsibility Strategic
Long term, high impact, unstructured, infrequent

Tactical
Medium term,

Operational
Short term, low impact, structured, frequent

Activity 1.6 Organisational-level decisions

Classify the following decisions by organisational level (strategic, tactical, operational) and by type (structured, semistructured, unstructured). (a) At what level should we set the budget for the next year? (b) Does this customer qualify for a discount on a large order? (c) How should we deal with a takeover bid? (d) Should we employ more staff to cope with an urgent order? (e) Should we expand abroad? (f) Should we launch an advertising campaign? (g) Should we take a short-term loan to help our current cash flow position? (h) What new markets should we move into? (i) What should we do about a faulty machine?

 Strategic
Budget (plus tactical elements)
Can be partially automated by the use of spreadsheets and accounting figures from previous years.

Operational
Discount (plus tactical elements)
Decisions can be taken automatically, Or be tactical based on financial constraints

Takeover Expand Advertise - Tactical:

Urgent order

Advertise - Tactical: Loan (tactical) Faulty machine

New markets

Decision characteristics vs. Information characteristics

Decision-making Process
Simons framework of managerial decisions (1977) 5 stages in making decisions
Intelligence; Design; Choice; Implementation; Evaluation

Complete each stage before moving on BIS can support each stage

A model of decision making

Decision-making models
Highlights the importance of: Good quality information
Decision-maker may accept or reject solutions for the wrong reasons

Information requirements are determined by decision needs

Decision needs determine information needs Information need is a specific requirement for information

Decision Theory
Decisions can be structured based on a set of rules Business rule action(s) taken in a particular situation
Event Condition (or test) Action/decision

Decision tree notation for checking loan application

Homework
Activity 1.7 Using the Internet, locate at least five definitions or descriptions of knowledge. What do these definitions have in common and how do they differ from each other?