1.

Input - Captures raw data from organiza on or

INFORMATION external environment.

MANGEMENT 2. Processing - Converts raw data into meaningful

form.
MIDTERM | POINTERS REVIEWER
3. Output - Transfers processed informa on to
CHAPTER 1 people or ac vi es that use it.

INFORMATION SYSTEM Feedback - Output returned to appropriate

– Set of interrelated components
– Collect, process, store, and distribute
informa on
– Support decision making, coordina on, and
control
LEVELS IN A BUSINESS FIRM
Hierarchy of Authority
 Senior management
 Middle management
 Opera onal management
 Knowledge workers
 Data workers
 Produc on or service workers
INPUT PROCESS OUTPUT FEEDBACK
Data - Data are streams of raw facts
Informa on - Informa on is data shaped into
meaningful form.
Three ac vi es of informa on systems produce
informa on organiza ons need
members of organiza on to help evaluate or
correct input stage.
Business Processes:
- Manufacturing and produc on
- Sales and marke ng
- Finance and accoun ng
- Human Resources
SIX STRATEGIC BUSINESS OBJECTIVES:
1. Opera onal excellence - Informa on systems,
technology an important tool in achieving greater
efficiency and produc vity
2. New products, services, and business models -
Informa on systems and technology a major
enabling tool for new products, services, business
models
3. Customer and supplier in macy - Serving
customers well leads to customers returning, which
raises revenues and profits. In macy with suppliers
allows them to provide vital inputs, which lowers
costs
4. Improved decision making - Without accurate
informa on Managers must use forecasts, best
guesses, and luck. This leads to Overproduc on,
underproduc on of goods and services,
Misalloca on of resources and Poor response mes
5. Compe ve advantage - Delivering be er
performance, charging less for superior products
and responding to customers and suppliers in real
me
6. Survival - May be Industry-level changes or
Governmental regula ons requiring record-keeping
CHAPTER 2
TYPE OF COLLABORATION BENEFITS
Collabora on
- Short-lived or long-term
- Informal or formal(teams)
BUSINESS PROCESSES
- refer to the manner in which work is organized,
coordinated, and focused to produce a valuable
product or service. Business processes are the
collec on of ac vi es required to produce a
product or service

Growing impatience with collaboration TIME/SPACE COLLABORATION MATRIX

- Changing nature of work
- Growth of professional work - “Interaction
Jobs”
- Changing the organization of the firm
- Changing the scope of the firm
- Emphasis on innovation
- Changing the nature of work
Benefits
- Productivity
- Quality
- Customer Service
- Innovation
- Financial Performance
E BUSINESS/E COMMERCE/E GOVERNMENT
TYPE OF INFORMATION SYSTEM/MAJOR E-Business
ENTERPRISE APPLICATION
 Use of digital technology and the Internet to
drive major business processes
E-commerce
 Subset of e-business
 Buying and selling goods and services
through the internet
E-Government
 Using Internet technology to deliver
informa on and services to ci zens,
employees, and businesses

ENTERPRISE RESOURCE PLANNING

Four major applications
- Enterprise Resource Systems
- Supply Chain Management Systems
- Customer Relationships Management
Systems
- Knowledge Management Systems
Enterprise Resource Planning (ERP) systems, used
to integrate business processes in manufacturing
and produc on, fi nance and accoun ng, sales and
marke ng, and human resources into a single
so ware system
CHAPTER 3
ROUTINES AND BUSINESS PROCESSES
Rou nes (Standard opera ng procedures) - Precise
rules, procedures, and prac ces developed to cope
with virtually all expected situa ons
Business Processes - Collec ons of rou nes
Organizational environments:
Business Firm - Collec on of business processes.
GENERIC STRATEGIES FOR DEALING WITH
COMPETITIVE FORCES
Four generic strategies for dealing with
competitive forces, enabled by using IT
FEATURES OF ORGANIZATION
- Use of hierarchical structure
- Accountability, authority in the system of
impartial decision-making
- Adherence to the principle of efficiency
- Routines and business processes
- Organizational politics, culture, environments,
and structures
ORGANIZATIONAL CULTURE, POLITICS &
ENVIRONMENT
Organizational Politics:
 Divergent viewpoints lead to political
struggle, competition, and conflict
 Political resistance greatly hampers
organizational change
Organizational Culture:
 Encompasses a set of assumptions that
define goal and product
o What products the organization
should produce
o How and where it should be
produced
o For whom the products should be
produced
 Maybe a powerful unifying force as well as
a restraint on change
 Organizations and environments have a
reciprocal relationship
 Organizations are open to and dependent
on, the social and physical environment
 Environments generally change faster than
organization
 Information systems can be an instrument
of environmental scanning, act as a lens
 Low-cost leadership
 Product products and services at a
lower price than competitors while
enhancing quality and level of
service
 Examples: Wal-Mart
 Product differentiation
 Enable new products or services,
greatly change customer
convenience and experience
 Examples: Google, Nike, Apple
 Focus on market niche
 Use information systems to enable a
focused strategy on a single market
niche; specialize
 Example: Hilton Hotels
 Strengthen customer and supplier intimacy
 Use information systems to develop
strong ties and loyalty with
customers and suppliers; increase
switching costs
 Netflix, Amazon
  The Internet’s impact on competitive
advantage.
 Transformation, destruction, threat
to some industries
• E.g. travel agency, printed
encyclopedia, newspaper
 Competitive forces still at work, but
rivalry more intense
 Universal standards allow new rivals,
entrants to market
 New opportunities for building
brands and loyal customer bases
 Business value chain model.
 Views firm as series of activities that
add value to products or services
 Highlights activities where
competitive strategies can best be
applied
• Primary activities vs. support
activities
 At each stage, determine how
information systems can improve
operational efficiency and improve
customer and supplier intimacy
 Utilize benchmarking, industry best
practices
PORTERS COMPETETIVE FORCES (TRAD COMP)
Michael Porter’s Competitive Forces Model
- Provides a general view of the firm, its
competitors, and the environment
- Five competitive forces shape the fate of
the firm
1. Traditional competitors
2. New market entrants
3. Substitute products and services
4. Customers
5. Suppliers
TRANSACTION COST THEORY AND AGENCY
THEORY
Transaction costs - the costs incurred when a firm
buys on the marketplace what it cannot make itself
Transaction Cost Theory
- Firms and individuals seek to economize on
transaction costs, as much as they do on
production costs. Using markets is expensive
because of costs such as locating and
communicating with distant suppliers,
monitoring contract compliance, buying
insurance, obtaining information on products,
and so forth (Coase, 1937; Williamson, 1985)
- Information technology, especially the use of
networks, can help firms lower the cost of
market participation (Transaction costs)
making it worthwhile for firms to contract with
external suppliers instead of using internal
sources.
Agency Theory
- According to it, the firm is viewed as a “nexus
of contracts” among self-interested individuals
rather than as a unified, profit-maximizing
entity (Jensen and Meckling, 1976).
- A Principal (Owner) employs “agents”
(employees) to perform work on his or her
behalf. However, agents need constant
supervision and management; otherwise, they
will tend to pursue their interests rather than
those of the owners. As firms grow in size and
scope, agency costs or coordination costs rise
because owners must expend more and more
effort supervising and managing employees.
DISRUPTIVE TECHNOLOGIES
 Technology that brings about sweeping
change to businesses, industries, markets
  Examples: personal computers, word
processing software, the Internet, the
PageRank algorithm
FIRST MOVERS AND FAST FOLLOWERS
First Movers - inventors of disrup ve technologies
Fast Followers - firms with the size of resources to
capitalize on that technology
BUSINESS INFORMATION VALUE WEB
The Value Web is a networked system that can
synchronize the value chains of business partners
within an industry to respond rapidly to changes in
supply and demand.
Synergies - when output of some units used as
inputs to others, or organiza ons pool markets and
exper se
Core Competencies - ac vity for which firm is
world-class leader. Relies on knowledge,
experience, and sharing this across business units
CHAPTER 4
IT INFRASTRUCTURE
Defining IT Infrastructure:
 Set of physical devices and software
required to operate an enterprise
 Set of firm-wide services including:
o Computing platforms providing
computing services
o Physical facilities management
services
o IT Management, education, and
other services
 “Service platform” perspective
o A more accurate view of the value of
investments
Evolution of IT Infrastructure:
 General-purpose mainframe and
minicomputer era: 1959 to present
 Personal Computer era: 1981 to present
 Client/server era: 1983 to present
 Enterprise computing era: 1992 to present
 Cloud and mobile computing: 2000 to
present
Components of IT Infrastructure
1. Computer hardware pla orms
2. Opera ng system pla orms
3. Enterprise so ware applica ons
4. Data management and storage
5. Networking/telecommunica ons pla orms
6. Internet pla orms
7. Consul ng system integra on services
MOORES LAW AND METCALFES LAW
Moore’s Law and Micro processing Power:
 Computing power doubles every 2 years
 Nanotechnology
Law of Mass Digital Storage
 The amount of data being stored each year
doubles
Metcalfe’s Law and Network Economics
 The value or power of a network grows
exponentially as a function of the number
of network members
CLOUD COMPUTING
- Security requirements
- Impact on business processes and workflow
 Cloud can be public or private
 Allows companies to minimize IT
investments
 Drawbacks: Concerns of security, reliability
 Hybrid cloud compu ng model
CLOUD COMPUTING 3 AAS
 Infrastructure as a service (IaaS)
 Software as a service (SaaS)
 Platform as a service (PaaS)
CHAPTER 5
3 KEY DIGITAL NETWORKING TECHNOLOGIES
 Client/Server Computing
o Distributed computing model
o Clients linked through a network
controlled by the network server
computer
o The server sets rules of communication
for the network and provides every
client with an address so others can find
it on the network
o Has largely replaced centralized
mainframe computing
o The Internet: largest implementation of
client/server computing
 Packet Switching
o Method of slicing digital messages into
parcels (packets), sending packets along
different communication paths as they
become available, and then
reassembling packets at the destination
o Previous circuit-switched networks
required the assembly of a complete
point-to-point circuit
o Packet switching more efficient use of
the network’s communications capacity
 TCP/IP and Connectivity
o Protocols: rules that govern the
transmission of information between
two points
o Transmission Control Protocol/Internet
Protocol (TCP/IP)
 The common worldwide
standard that is the basis for the
Internet
o Department of Defense reference
model for TCP/IP
Four Layers
 Application Layer
 Transport Layer
 Internet Layer
 Network Interface Layer

RFID

Radio Frequency Identification

 Use tiny tags with microchips containing

data about an item and location
 Tag antennas to transmit radio signals over
short distances to special RFID readers
 Common uses:
o Automated toll-collection
o Tracking goods in a supply chain
 Reduction in cost of tags making RFID
viable for many firms

WIFI

- Set of standards: 802.11

- Used for wireless LAN and wireless Internet
access
- Use access points: device with radio
receiver/transmitter for connecting wireless
devices to a wired LAN

BLUETOOTH

- Set of standards: 802.15

- Links up to 8 devices in a 10-m area using
low-power, radio-based communication
- Useful for personal networking (PANs)

MAJOR COMPONENTS IN SIMPLE NETWORK

 Client and server computers

 Network Interfaces (NICs)
 Connection medium
 Network operating system (NOS)
 Hubs, Switches, Routers