Chapter 1 Introduction
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Questions and Answers

What is a primary benefit of operational excellence in a business?

  • Greater market expansion
  • Higher profits due to improved efficiency (correct)
  • Lower product prices
  • Increased customer diversity

Which technology example demonstrates the importance of operational excellence?

  • Netflix's streaming service
  • Walmart's Retail Link system (correct)
  • Apple's iPad
  • Google's Android OS

How do information systems contribute to new products and services?

  • Through enhancing customer service only
  • By decreasing operational costs
  • By limiting competition
  • As enabling tools for innovation (correct)

What is the role of customer intimacy in business strategy?

<p>To improve customer loyalty and increase revenues (C)</p> Signup and view all the answers

What value do suppliers provide when there is intimacy between a business and its suppliers?

<p>Vital inputs that lower costs (C)</p> Signup and view all the answers

Which of the following is NOT one of the six strategic business objectives achieved through information systems?

<p>Global brand recognition (A)</p> Signup and view all the answers

What is a business model?

<p>A description of how a company creates and sells products or services (B)</p> Signup and view all the answers

What is an example of a company that has used information systems to develop new business models?

<p>Netflix (B)</p> Signup and view all the answers

What is a primary benefit of real-time data for managers?

<p>It improves the ability of managers to make informed decisions. (D)</p> Signup and view all the answers

Which of the following is NOT a result of inaccurate information in business management?

<p>Better resource allocation (A)</p> Signup and view all the answers

How can competitive advantage be achieved through information systems?

<p>By leveraging information to charge less for superior products. (D)</p> Signup and view all the answers

Which of the following is an example of a business objective for using information systems?

<p>Improving decision making through accurate data. (C)</p> Signup and view all the answers

What characterizes data in contrast to information?

<p>Data consists of raw facts and figures. (D)</p> Signup and view all the answers

What might compel a business to invest in information systems?

<p>Unforeseen governmental regulations. (C)</p> Signup and view all the answers

Which company is cited as having competitive advantage due to effective use of information systems?

<p>Apple. (B)</p> Signup and view all the answers

What is the main role of an information system within a business?

<p>To support decision making and coordination. (C)</p> Signup and view all the answers

Which of the following are considered business functions within the organizational dimension of information systems?

<p>Finance and accounting (A), Sales and marketing (C)</p> Signup and view all the answers

What role do managers play in the management dimension of information systems?

<p>Setting organizational strategy for technology use (C)</p> Signup and view all the answers

Which of the following technologies is NOT part of the technology dimension of information systems?

<p>Human resources software (D)</p> Signup and view all the answers

What is one key advantage of investments in information technology from a business perspective?

<p>Improved decision-making capabilities (D)</p> Signup and view all the answers

What is a significant outcome of the business information value chain?

<p>Improving firm profitability through better data management (A)</p> Signup and view all the answers

Which statement best represents the importance of unique business processes in an organization?

<p>They define how an organization operates and serves its customers. (A)</p> Signup and view all the answers

Which of the following is an aspect of organizational politics within the context of information systems?

<p>Managing interpersonal relationships to achieve goals (B)</p> Signup and view all the answers

What is a fundamental purpose of an information system in a business context?

<p>To create value through efficient information management (C)</p> Signup and view all the answers

What is the primary focus of the sociotechnical perspective in optimizing organizational performance?

<p>Balancing social systems alongside technical systems (C)</p> Signup and view all the answers

What activity is NOT suggested for active reading of chapter 1?

<p>Skimming the text for speed (B)</p> Signup and view all the answers

Which approach is emphasized to avoid in organizational performance discussions?

<p>Technical optimization (A)</p> Signup and view all the answers

What type of tasks are recommended in the context of chapter 1's learning activities?

<p>Performing critical reading and note-taking (D)</p> Signup and view all the answers

What does a satisfactory fit between technology and the organization signify?

<p>Optimized system performance (A)</p> Signup and view all the answers

What is the main emphasis of the technical approach to studying information systems?

<p>Developing mathematically based models (A)</p> Signup and view all the answers

Which field is NOT traditionally associated with the behavioral approach to information systems?

<p>Management Science (C)</p> Signup and view all the answers

What area of interest in information systems research deals with the competitive advantage gained through technology?

<p>Strategic Information Systems (C)</p> Signup and view all the answers

What is one of the focuses within the realm of IT Governance?

<p>Organizing the IT function (A)</p> Signup and view all the answers

Which of the following is a critical area when exploring the adoption of new technologies?

<p>Analyzing user resistance (C)</p> Signup and view all the answers

In the context of information systems, what does the exploration of new technologies mainly seek to achieve?

<p>Leveraging innovative solutions (D)</p> Signup and view all the answers

Which statement best describes the relationship between technology and formal sciences in the study of information systems?

<p>Formal sciences provide foundational theories that technology applies. (D)</p> Signup and view all the answers

How should organizations ideally approach software development in the context of information systems?

<p>Through collaboration between technical and behavioral teams (A)</p> Signup and view all the answers

What is the primary focus of design science research?

<p>Building and evaluating artifacts (A)</p> Signup and view all the answers

Which of the following best describes the UTAUT model's purpose?

<p>To provide a framework for technology acceptance traits (D)</p> Signup and view all the answers

In a sociotechnical system approach, which actor involves the surrounding context that influences a business?

<p>Firm's environment (D)</p> Signup and view all the answers

How do the roles of technology differ in behavioral and design sciences?

<p>Technology is treated as external and unchangeable in both sciences (B)</p> Signup and view all the answers

What role do training and marketing interventions play in the UTAUT model?

<p>They help target populations less inclined to adopt new systems (B)</p> Signup and view all the answers

Which statement reflects a key differentiation between design science and natural science?

<p>Design science aims at utility rather than universal prediction (D)</p> Signup and view all the answers

Who are considered the primary actors in a sociotechnical system according to management information systems?

<p>Suppliers, firms, managers, and the environment (D)</p> Signup and view all the answers

What is a significant characteristic of behavioral research compared to design science research?

<p>Behavioral research tests universal theories and predictions (D)</p> Signup and view all the answers

Flashcards

Operational Excellence

The ability of a business to perform its activities in a way that maximizes efficiency and minimizes costs, leading to higher profits.

Business Model

A detailed plan outlining how a company creates, delivers, and sells its products or services to generate revenue and profit.

New Products, Services, and Business Models

Information systems and technology can be used to create new products, services, and business models that meet changing customer needs and market trends.

Customer Intimacy

Building strong relationships with customers by understanding their needs and preferences, leading to increased loyalty and repeat business.

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Supplier Intimacy

Close collaboration and communication with suppliers to ensure timely and cost-effective delivery of vital inputs, leading to reduced costs.

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Improved Decision Making

Information systems can help companies gather data, analyze trends, and make better decisions to improve performance and achieve business objectives.

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Competitive Advantage

Using information systems and technology to gain a competitive advantage by offering unique products or services, lowering costs, or improving customer service.

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Survival

Information systems and technology can be essential for companies to adapt to changing market conditions, comply with regulations, and survive in a competitive environment.

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Data

Raw facts and figures.

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Information

Data that has been processed and organized into a meaningful context.

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Information Technology

The hardware and software used by a business to achieve its goals.

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Information System

A system designed to collect, store, process, and distribute information to support decision-making and control.

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Information Systems

The area of study that combines technology, business processes, and organizational strategy.

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Organizational Dimension

The way a business is structured, including its different departments, processes, and culture. This affects how an information system is designed and used in a company.

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Management Dimension

Managers are responsible for setting the overarching direction for a company. They need information systems to respond to changes and help achieve strategic goals.

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Technology Dimension

This includes the physical components like computers and servers, as well as the software that runs on them. Networks are a crucial part of IT infrastructure, allowing communication and data sharing.

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Information System as a Value Creator

An information system can be a valuable tool for creating business value by increasing efficiency, boosting sales, or improving long-term positioning.

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Business Information Value Chain

This chain demonstrates how information is processed in a business, from gathering raw data to making informed decisions. Information Systems play a vital role in each stage.

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Productivity Increases

A key way information systems can help a business is by making it more efficient and productive, leading to potentially higher profits.

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Revenue Increases

By understanding their customers and market trends, information systems can help businesses create products and services that are highly desirable, leading to increased revenue.

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Strategic Positioning

Information systems can provide insights that help businesses make smart long-term decisions, which can lead to a strong competitive position in the market.

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Design Science Research

A research approach focused on creating solutions and artifacts through a collaborative design process involving technology and social factors.

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Unified Theory of Acceptance and Use of Technology (UTAUT)

A research methodology that explains user acceptance of technology based on factors like performance expectancy, effort expectancy, social influence, and facilitating conditions.

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Sociotechnical Systems

A perspective that emphasizes the interconnectedness of technology and its social context, recognizing that technology doesn't exist in isolation and influences the social environment simultaneously.

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Suppliers of Hardware and Software

The individuals or organizations that provide the hardware and software that businesses use.

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Technical Approach to Information Systems

It focuses on the technical aspects of information systems like computer science, management science, and operations research. It uses mathematical models to analyze and understand how systems work.

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Managers and Employees

The people who make decisions and manage resources within a company.

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Firm's Environment

Organizations that are involved in the business environment, such as government agencies, customers, competitors, and the public.

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Behavioral Approach to Information Systems

It explores the human side of information systems, considering how people use, adapt to, and influence them. Disciplines like psychology, economics, and sociology are important here.

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Information Systems: Bridging Context and Technology

Information systems act as a bridge between business needs and technology. They involve people, organizations, and society on one side, and computers, programming, and engineering on the other.

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Management Information Systems (MIS)

A field of study that combines technical and social factors to optimize the use of information systems.

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Technology Acceptance

This research area explores how and why people adopt new technologies. It examines factors like ease of use, perceived usefulness, and social influence.

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Strategic Information Systems

This research area focuses on using information systems to gain a competitive edge in the market. It explores strategies like using IT to innovate, reduce costs, or improve customer service.

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Information Systems Development

This research area focuses on how to design, build, and implement information systems effectively. It addresses considerations like agile development methodologies and best practices.

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Exploring and Making Use of New Technologies

This research area investigates how organizations can leverage emerging technologies like AI, blockchain, and machine learning to create value. It explores the applications and potential benefits of these technologies.

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IT Governance / IT Strategy

This research area explores the best ways to manage and govern the use of information technology within an organization. It includes aspects like IT strategy, security, and compliance.

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Sociotechnical Perspective

A way of thinking about organizational performance that recognizes the interconnectedness of social and technical elements in achieving optimal results.

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Joint Optimization

Optimizing both the social and technical aspects of a system to achieve the best possible performance.

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Sociotechnical Systems Approach

A way of thinking about how technology impacts an organization and vice-versa, aiming to find a balance that benefits both.

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Mutual Adjustment

Focuses on optimizing the performance of a system by adjusting both the technology and the organizational elements.

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Avoiding a purely technological approach

A purely technology-focused approach can lead to suboptimal results if not considered alongside the social aspects of a system.

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Study Notes

Information Systems: Theory & Practice - TU1

  • Course title: Information Systems: Theory & Practice
  • Course code: TU1
  • Instructor: Prof. Dr. Paul Drews
  • Institution: Leuphana University of Lüneburg

Professor Dr. Paul Drews

  • Professor of Information Systems, Institute of Information Systems
  • Dean of the School of Management and Technology
  • Speaker of the Research Center for Digital Transformation
  • Delegate of the President for Cooperation with Practice and Entrepreneurship
  • Program Coordinator for Major Business Information Systems
  • Assistant Professor of Information Systems at Leuphana University of Lüneburg
  • PostDoc and research coordinator at the University of Hamburg
  • PhD in Informatics (sectoral systems of IT innovation)
  • 10 years consulting experience (focus: IT in healthcare) and entrepreneurial experience
  • Diploma (MSc equivalent) in information systems, University of Hamburg

Britta Werksnis

  • Research Assistant at the Institute of Information Systems (IIS) Digital Transformation and Information Management
  • Digital Transformation Lab for Teaching and Learning (DigiTaL)
  • Dipl.Psych. (Business & Clinical Psychology)
  • Cultural Management (M.A.)
  • Founder of an Indie-Games-Start-Up
  • Acting experience
  • Worked in various fields like psychology, culture, education, and corporate development

Current Research Topics

  • Digital Transformation (inter- & transdisciplinary)
  • IT Strategy/IT Governance/IT Management
  • Changing Role of IT Function
  • IT Innovation Management
  • Enterprise Architecture Management
  • Data-driven Business Models
  • Scaling Agile
  • Cross-industry focus (with special attention to financial services and healthcare)
  • Publications on Digital Excellence, Data-driven Agility, and Digital Platform Management (published in 2015, 2016, 2018)

Course Organization

  • Lectures and exercises are held in person
  • One exercise group for the year
  • Sign-up for the Moodle course (ISTP-2425 for WiSe 2024/25) for materials (articles, slides, videos)
  • Written exam (60 minutes), held in person
  • Exam dates: Feb 12 and Mar 20 (see mystudy for official dates and rooms)
  • Exam task types: multiple choice, short answers, short case study, exercise content.
  • Weekly lectures (10-12 hours)
  • Bi-weekly exercises (12-14 hours)
  • Readings: One chapter of Laudon & Laudon (2022) per week, and additional readings
  • Relevant real-world projects

Core Textbook

  • Laudon, K.C. & Laudon, J.P. (2022) Management Information Systems - Managing the Digital Firm, Global Edition (17th ed., or 16th will work for most parts).
  • ~79 € paperback
  • ~60 € eBook (Adobe DE)

Workload Distribution

  • Total workload: 5 credits = 150 hours
  • Lecture: 1.5 hours per week
  • Active Reading: up to 2 hours per week
  • Homework (lecture): up to 1 hour per week
  • Exercises and tasks (group work): up to 4 hours per week
  • Exam preparation: 24 hours

Question Regarding Organizational Issues

  • Post general questions on Moodle forum "Forum for organizational issues"
  • Contact via mail for individual concerns

Chapter 1: Learning Objectives

  • How information systems transform business and their importance
  • Defining an information system (components: management, organization, technology)
  • The significance of complementary assets for information system value
  • The role of academic disciplines in understanding information systems

Agenda

  • Introduction: Relevance of Information Systems
  • Strategic Business Objectives of Information Systems
  • Defining an Information System
  • Business Perspective on Information Systems
  • Information Systems and Academic Disciplines

Opening Case Study: Smart Stores

  • Reinventing the retail space using technology (e.g., AWM Smart Shelf)
  • Business challenges and solutions (e.g., competition from online retailers, new technology opportunities)
  • Role of management, organization, and technology in adapting to changes

Role of Information Systems in Business Today

  • Transformational impact of mobile digital platforms
  • Business use of big data and cloud computing.
  • Globalization opportunities (reduced costs, expanded trade, and outsourcing)—challenges and opportunities
  • Impact on business in the US (in 2017): Number of companies with dot-com addresses, online purchases, use of mobile phones and social networks
  • Impact on business in Germany (in 2019): Internet usage by different age groups, online purchases

How Information Systems Are Transforming Business

Data and Information

What is an Information System?

  • Input: capturing raw data
  • Processing: converting raw data to meaningful information
  • Output: transferring processed information
  • Feedback: return to appropriate members for evaluation

Computer/Computer Program vs. Information System

  • Computers/software provide the technical foundation
  • Information systems are more than just the computer hardware/software

Functions of an Information System

Information Systems are More Than Computers

  • Requires understanding of the organization, management, and information technology

Organizational Dimension of Information Systems

  • Separation of business functions, including Sales & Marketing, Human Resources, Finance & Accounting, Manufacturing & Production, Unique Business Processes
  • Different levels in a firm (senior, middle, operational, data workers)

Management Dimension of Information Systems

  • Organizational Strategy for Responding to Business Challenges
  • Creating new products and services
  • Re-creating the organization

Technology Dimension of Information Systems

  • Computer hardware and software
  • Data management technology
  • Networking and telecommunications technology (e.g., networks, the Internet, intranets, extranets, World Wide Web)
  • IT infrastructure as the platform for system building

Business Perspective on Information Systems

  • Role of information systems as a tool to improve the return on investment
  • Value creation & better decisions
  • Importance of productivity increases and revenue increase
  • Information system creates value in terms of superior long-term strategy positioning
  • Use of business information value chain, which are a series of stages for acquiring, transforming, and distributing information
  • Variations in returns from IT investments
  • Complementary assets (organizational, managerial, social assets) required for superior returns on technology investments

Contemporary Approaches to Information Systems

Studying Information Systems

  • Technical approach: mathematically based models, computer science, management science, operations research
  • Behavioral approach: behavioral issues (strategic business integration, implementation, etc.), psychology, economics, sociology

Information Systems: Bridging Context and Technology

  • Bridging the gap between business organizations, people, and technology

Information Systems Research: Selected General Areas of Interest

  • Technology Acceptance (reasons for technological adoption within an organization)
  • Strategic Information Systems (use of IT to gain a competitive edge)
  • Information Systems Development (ways of organizing software development)
  • Exploring and Making Use of New Technologies (leveraging new technologies like AI and blockchain)
  • IT Governance and IT Strategy (organizations, and how IT operates)
  • Cross-industry and Industry-specific IS (how IT is used across industries)

Behavioral vs. Design Science Research

  • Technology acceptance theories (e.g., UTAUT)
  • Using design science and AI to understand and improve health communication

Approach of the Textbook/Lecture: Sociotechnical Systems

  • Organization & technical systems working together for optimal performance

A Sociotechnical Perspective on Information Systems

  • Technology and organization adjusting to one another for satisfactory fit

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Test your knowledge on key concepts related to business strategies and the role of information systems. This quiz covers topics such as operational excellence, customer intimacy, and business models. Explore how information technology influences modern business practices.

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