‎ hat Is an

W
‎Information System?

‎• Set of interrelated components

•‎ Collect, process, store, and distribute

‎information
‎1- Information system:

•‎ Support decision making, coordination, and

‎control

‎• Data are streams of raw facts.

‎2- Information vs. data
•‎ Information is data shaped into meaningful
‎form

‎ aw data from a supermarket checkout

R
‎counter can be processed and organized
‎to produce meaningful information, such as
‎the total unit sales of dish detergent or the
‎3- Data and Information
‎total sales revenue from dish detergent for a
‎specific store or sales territory.

‎ aptures raw data from organization or

C
‎• Input:
‎external environment
‎ - Three activities of information
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‎systems produce information ‎• Processing: ‎Converts raw data into meaningful form
‎organizations need :
‎Transfers processed information to people
‎• Output:
‎or activities that use it

•‎ is output returned to appropriate

‎people or activities in the organization to ‎5- Feedback:
‎evaluate and refine the input.

•‎ Computers and software are technical

‎ - Computer/computer program
6
‎foundation and tools, similar to the
‎vs. information system: ‎material and tools used to build a house

‎ sing information systems effectively

U
‎requires an understanding of the
‎organization, management, and
‎information technology shaping the systems. ‎ - Information Systems Are More
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‎An information system creates value for the ‎Than Computers:
‎firm as an
‎organizational and management solution to
‎challenges posed by the environment

‎• Senior management

‎• Middle management

‎• Operational management
‎• Hierarchy of authority, responsibility:
‎• Knowledge workers

‎• Data workers

‎• Production or service workers

‎• Sales and marketing

‎• Human resources
‎the four business functions are:
‎• Finance and accounting

‎• Manufacturing and production

‎1- Separation of business functions

‎ - Organizational dimension of
8 ‎• Unique business processes

‎information systems: ‎The separation points: ‎• Unique business culture

‎• Organizational politics

•‎ Managers set organizational strategy for

‎responding to business challenges
‎2- Management dimension of information
‎systems: ‎• Creation of new products and services
‎• In addition, managers must act creatively:
‎• Occasionally re-creating the organization

‎• Computer hardware and software

‎• Data management technology

‎ - Technology dimension of information
3
‎systems •‎ Networking and telecommunications •‎ Networks, the Internet, intranets and
‎technology ‎extranets, World Wide Web

•‎ IT infrastructure: provides platform that

‎system is built on

•‎ Information system is instrument for

‎creating value

‎• Productivity increases

•‎ Investments in information technology will

‎• Revenue increases
‎result in superior returns:

‎• Superior long-term strategic positioning

•‎ Raw data acquired and transformed through

‎stages that add value to that information

•‎ Value of information system determined in

‎part by extent to which it leads to better
‎• Business information value chain
‎decisions, greater efficiency, and higher
‎profits

‎ rom a business perspective, information

F
‎systems are part of a series of value-adding ‎ - Business perspective on
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‎activities for acquiring, transforming, and ‎information systems:
‎distributing information that managers can
‎use to improve decision making, enhance
‎organizational performance, and, ultimately,
‎increase firm profitability

•‎ Calls attention to organizational and

‎• Business perspective:
‎managerial nature of information systems

•‎ Investing in information technology does

‎not guarantee good returns.

‎• Adopting the right business model

•‎ Assets required to derive value from a

‎primary investment

•‎ Firms supporting technology investments •‎ There is considerable variation in the

‎with investment in complementary assets ‎• Complementary assets: ‎• Factors: ‎returns firms receive from systems
‎receive superior returns ‎investments

•‎ Example: Invest in technology and the

‎people to make it work properly
•‎ Investing in complementary assets
‎• Appropriate business model ‎(organizational and management capital)
‎• Organizational assets, for example:
‎• Efficient business processes

‎• Incentives for management innovation

‎• Managerial assets, for example: ‎• Complementary assets include:
•‎ Teamwork and collaborative work
‎environment

•‎ The Internet and telecommunications

‎infrastructure
‎• Social assets, for example:
‎• Technology standards