CH 02

Introduction to Information
Technology
2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
Chapter 2:
Information Technologies in
Modern Organizations
Prepared by:
Roberta M. Roth, Ph.D.
University of Northern Iowa
Introduction to Information Technology, 2nd Edition

Turban, Rainer & Potter 2-1
© 2003 John Wiley & Sons, Inc
Chapter Preview
In this chapter, we will study:
Foundation concepts of information
systems in organizations.
How information systems help
organizations solve problems and
seize opportunities.
How information systems are
managed in organizations.
Career opportunities in Information
Technology.

Foundation Concepts
Information Infrastructure:
The physical facilities, services, and
management that support all
organizational computing resources.
• Computer hardware
• General-purpose software
• Networks and communications facilities
• Databases
• Information management personnel

Foundation Concepts (continued)
Information Infrastructure
(continued)
Defines integration, operation,
documentation, maintenance, and
management of computing resources.
Defines how specific computing
resources are arranged, operated,
and managed.

Foundation Concepts (continued)
Information Architecture
High-level plan that details
• The organization’s information
requirements
• The way these requirements are being
satisfied.
Incorporates information
requirements, existing and planned
information infrastructure and
software applications.
Helps ensure that the organization’s
IT meets the organization’s strategic
business needs.
Types of Information Systems
Transaction Processing Systems
Support/perform routine business
events.
Collect, store, process, and
disseminate basic business
transaction data.
Provide foundation data for many
other systems.
May be complex and sophisticated.
Essential to business success today.
Types of Information Systems,
(continued)
Management Information Systems
Support routine decision making
Access, organize, summarize, and
display information.
Emphasize routine reporting on
known and anticipated issues.
Also, answer queries and forecast
trends.

(continued)
Support Systems
Office Automation – support for office
workers
Decision System – support complex,
non-routine managerial decision
makers
• Executive Information Systems – support
higher-level managers
• Group Support Systems – employ
Groupware to support people working in
groups
Introduction to Information Technology, 2 Edition
nd

(continued)
Intelligent Systems
Business applications of Artificial
Intelligence
• Expert systems – capable of solving
certain problems as well as human
experts.
• Learning systems – can incorporate new
information and update their knowledge.

How Information Systems
Support Organizations
First, consider how organizations
are structured:
Typically by functional departments
Frequently in a hierarchy
May be by project or in a matrix
structure
Information Systems in an
organization are developed to
support the way the organization is
structured.
2-10
Support Organizations,
(continued)
Information systems consist of
numerous applications
An application is system developed
for a specific purpose
Applications and systems can
support
Individuals / teams
Departments
Plants / divisions
Entire enterprise
Support Organizations,
(continued)
Information systems can also be
interorganizational
Connect two or more organizations
having a common interest or business
need.
Important in facilititating e-
commerce.

Support People in Organizations
IS support needed by people
depends on their role in the
organization.
Top managers make strategic
decisions
Middle managers make tactical
decisions
Line managers make operations
decisions
Knowledge workers create and
integrate knowledge

Support People in Organizations,
(continued)

How Information Resources are
Managed in Organizations
 Information resources encompass many
things, including
 Hardware (computers, servers, other devices)
 Software (development tools, languages,
applications)
 Databases
 Networks (local area, wide area, Internet, intranet)
 Procedures
 Physical buildings.
 Resources are very costly; proper
management is essential.
How Information Resources are
Managed in Organizations
Responsibility for information
resources shared by IS Department
and end users.
Organizations must determine who
is responsible for planning,
purchasing, developing, and
maintaining information resources.
Cooperation is essential.

Role of the IS Department
Shifting from technical to
managerial orientation.
Increasing focus on adding
strategic value to the organization.
As IS is challenged to add strategic
value, management of IS becomes
more complex.
Chief Information Officer (CIO)
heads IS in many organizations.
Career Opportunities in IT
Systems Analyst / Developer
Webmaster / E-Commerce
Specialist
Business Analyst
Programmer
Telecomm / Network Specialist
Database Administrator / Specialist
System Operations Specialist
Chapter Summary
Information Infrastructure
comprised of all facilities, services,
and management that supports all
computing resources.
Information Architecture details
information requirements and how
those requirements are being and
will be satisfied.

Chapter Summary (continued)
Information Systems are classified
by type (TPS, MIS, Support,
Intelligent).
Information Systems are designed
to support the organization’s
structure.
Information Systems provide
support to all levels and types of
personnel.
Management of IS resources is
joint responsibility of IS Dept. and

2-20
Copyright © 2003 John Wiley & Sons, Inc. All rights reserved. Reproduction
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use of the information herein.


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Introduction to Information

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

Turban, Rainer & Potter 2-8

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

Introduction to Information Technology, 2nd Edition

joint responsibility of IS Dept. and

Introduction to Information Technology, 2nd Edition

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