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 IT’s 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

and employees • Core business processes accomplished using digital networks • Digital management of key corporate assets • Why Do People Need Information? • Individuals . 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.Entertainment and enlightenment . suppliers. services.• 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.

. 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. and information technology shaping the systems.Decision making. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment. management.• • Businesses .

• • 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 .

databases. extranet) The Interdependence Between Organizations and Information Technology The Interdependence Between Organizations and Information Technology Continued • There is a growing interdependence between a firm’s information systems and its business capabilities. and business processes increasingly require changes in hardware. • When manipulated. the surveys may provide useful information.  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. Changes in strategy. • 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. and telecommunications. rules. software. what the organization would like to do depends on what its systems will permit it to do. . Often. intranet.

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. Figure 1. and produce information as output. process it.1 Input-process-output Figure 1.• Generating Information • Computer-based ISs take data as raw material.3 Several subsystems make up this corporate acco .

6 Components of an information system • The Four Stages of Data Processing – Input: Data is collected and entered into computer. • Keeps managers focused on overall goals and operations of business. Figure 1.• • • Information and Managers – Systems thinking • Creates a framework for problem solving and decision making. .

intellectual property crime. statistical. 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. an d other intrusions. telecommunications specialist. – Output: Information is displayed or presented. – Storage: Data and information are maintained for later use. hate speech. – IT Professionalism – No mandatory or enforced code of ethics for IT professionals--unlike other professions. Computer Literacy Replacing Traditional Literacy – • • Systems analyst. prevention may abridge free speech. specialist in enterprise resource planning (ERP). – Social Inequality – Less than 20% of the world’s population have ever used a PC. database administrator. violating privacy and creating stress. Freedom of Speech – IT increases opportunities for pornography. consulting.• – Data processing: Data is manipulated into information using mathematical. . etc. and other tools. Information Systems Careers – • • Knowledge Workers – Managers and non-managers – Employers seek computer-literate professionals who know how to use information technology. less than 3% have Internet access.