Information Systems

Information Systems in Organizations

Explain why information systems are so essential in business today.

Define an information system from both a technical and a business

perspective.

Identify and describe the three dimensions of information systems

Assess the complementary assets required for information technology to

provide value to a business.

Identify and describe contemporary approaches to the study of information

systems and distinguish between computer literacy and information systems
literacy.

Smart Systems and Smart Ways of Working Help Toyota Become

Number One

Problem: Tough competition and demanding customers.

Solutions: Redesigned order and production processes reduce costs, increase

revenue, and improve customer service.

Oracle E-Business Suite makes it possible to build cars to order and forecast
demand and production requirements more accurately.

Demonstrates ITs role in analyzing market trends and monitoring quality,

efficiency, and costs.

Illustrates the emerging digital firm landscape where businesses can use
tools to analyze critical data.

DEFINITION TERMS
1.) Data 2.) Information 3.) Information System

Data vs. Information

Data

A given, or fact; a number, a statement, or a picture

Represents something in the real world

The raw materials in the production of information

Information

Data that have meaning within a context

Data in relationships

Data after manipulation

What Is a System?

System: A set of components that work together to achieve a common

goal

Subsystem: One part of a system where the products of more than one
system are combined to reach an ultimate goal

Closed system: Stand-alone system that has no contact with other

systems

Open system: System that interfaces with other systems

The Role of Information Systems in Organizations Today

How information systems are transforming business

Globalization opportunities

The emerging digital firm

Strategic business objectives of information systems

Operational excellence

New products, services, and business models

Customer and supplier intimacy

Improved decision making

Competitive advantage

Survival

WHY INFORMATION SYSTEMS?

globalization

Management and control in a global marketplace

Competition in world markets

Global workgroups

Global delivery systems

Emergence of the Digital Firm

Digitally enabled relationships with customers, suppliers, and employees

Core business processes accomplished using digital networks

Digital management of key corporate assets

Why Do People Need Information?

Individuals - Entertainment and enlightenment

Businesses - Decision making, problem solving and control

The Benefits of Human-Computer Synergy

Synergy

When combined resources produce output that exceeds the sum

of the outputs of the same resources employed separately

Allows human thought to be translated into efficient processing of

large amounts of data

Perspectives on Information Systems

Information Systems Are More Than Computers

Using information systems effectively requires an understanding

of the organization, management, and information technology
shaping the systems. An information system creates value for
the firm as an organizational and management solution to
challenges posed by the environment.

PERSPECTIVES ON INFORMATION SYSTEMS

Dimensions of Information Systems

Three Important Dimensions of Information Systems

Organizations

Managers

Technology

The Organizational Dimension of Information Systems

People

Structure

Business processes

Culture

Politics

The Management Dimension of Information Systems

Managers are:

Senior managers

Middle managers

Operational managers

Innovators of new processes

Leaders: set agendas

The Technology Dimension of Information Systems

Information technology is one of the tools managers use to cope

with change:

Hardware: Physical equipment

Software: Detailed preprogrammed instructions

Storage: Physical media for storing data and the software

Communications technology: Transfers data from one physical

location to another

Networks: Links computers to share data or resources

(Internet, intranet, extranet)

The Interdependence Between Organizations and Information

Technology

The Interdependence Between Organizations and Information Technology

Continued

There is a growing interdependence between a firms information

systems and its business capabilities. Changes in strategy, rules,
and business processes increasingly require changes in hardware,
software, databases, and telecommunications. Often, what the
organization would like to do depends on what its systems will
permit it to do.

Data Manipulation

Example: customer survey

Reading through data collected from a customer survey with

questions in various categories would be time-consuming and
not very helpful.

When manipulated, the surveys may provide useful information.

Generating Information

Computer-based ISs take data as raw material, process it, and produce
information as output.

Figure 1.1 Input-process-output

Figure 1.2 Characteristics of useful information

What is an information systems?

What is a sub system?

Difference between closed and open systems?

What is the difference between data and information

The perspective of organizations and information systems?

Characteristics of information?

Figure 1.3 Several subsystems make up this corporate acco

Information and Managers

Systems thinking

Creates a framework for problem solving and decision making.

Keeps managers focused on overall goals and operations of

business.

Figure 1.6 Components of an information system

The Four Stages of Data Processing

Input: Data is collected and entered into computer.

Data processing: Data is manipulated into information using

mathematical, statistical, and other tools.

Output: Information is displayed or presented.

Storage: Data and information are maintained for later use.

Information Systems Careers

Knowledge Workers

Managers and non-managers

Employers seek computer-literate professionals who know how to use

information technology.

Computer Literacy Replacing Traditional Literacy

Systems analyst, specialist in enterprise resource planning (ERP),

database administrator, telecommunications specialist, consulting, etc.

Key to full participation in western society

Consumer Privacy

Organizations collect (and sometimes sell) huge amounts of data on

individuals.

Employee Privacy

IT supports remote monitoring of employees, violating privacy and

creating stress.

Freedom of Speech

IT increases opportunities for pornography, hate speech, intellectual

property crime, an d other intrusions; prevention may abridge free
speech.

IT Professionalism

No mandatory or enforced code of ethics for IT professionals--unlike

other professions.

Social Inequality

Less than 20% of the worlds population have ever used a PC; less than
3% have Internet access.