Information Systems and Digital World

Learning Objectives

• Identify characteristics and societal issues of the digital world
• Understand how increasing digital density is shaping the future
• Explain Information Systems(IS), contrasting its data, technology, people, & organizational components
• Describe the dual nature of IS in the success/failure of organizations
• Discuss computer ethics, information privacy & intellectual property

Information Systems Today

• Information Systems(IS) are widespread, from smartphones to logistics systems
• Models like Airbnb & Uber rely heavily on IS for operations and decision-making
• IS is used for academic tasks(online classes, email) and work activities(payroll)
• IS integrates further into daily life, including social networking, entertainment, and navigation

Open Innovation

• Companies involve customers, suppliers, and universities in the R&D process
• Open innovation platforms allow customer contributions such as My Starbucks Idea
• Collaboration across industries helps tackle global challenges by pooling expertise and resources

Emergence of the Digital World

• Global competition & affordable computers drive businesses to improve efficiency & cut costs
• IS supports innovative business models, enabling access to global markets via networks
• Connected mobile devices provide ubiquitous experiences (anytime, anywhere)
• Primary importance given to services and the utility of data, rather than the device itself
• Warehousing, showrooms, airplane cockpits, and hospitals utilize mobile devices
• Technology and social changes are interconnected becoming essential for activities like communication, social networking, and online investing
• Boundaries between work and leisure are blurring
• Employees bring their own devices, driving "BYOD (Bring Your Own Device)" trend

Knowledge and the Digital World

• Knowledge workers are educated professionals who create, modify, and synthesize knowledge as a core element of their jobs
• Being education and continual learning, knowledge workers have good career opportunities
• Knowledge societies prioritize education and knowledge creation rely on technological advancement, driven by knowledge workers
• The value of knowledge in society is comparable to traditional resources

Globalization and Societal Issues

• Globalization creates opportunities for organizations due to lower costs
• Companies now reach global markets and hire skilled professionals across the world
• Media platforms promote shared norms and behaviors
• A growing middle class in developing countries opens new customer bases
• Globalization raises freedom of communication concerns example authoritarianism and internet restriction in some countries

Technological Advancements and Societal Issues

• Technological advances in transportation, telecommunications, infrastructure, and IS create societal issues:
• Demographic shifts include aging populations, changes in labor markets, and migration patterns
• Urbanization challenges sustaining urban growth and livable environments
• Shifts in economic power towards established economies contribute to resource scarcity/climate change
• Sustainable development meets current needs without compromising future generations

Outsourcing

• Outsourcing involves moving tasks like accounting/manufacturing to oversees companies
• The most important outsourcing reasons include:
• Reduce costs
• Free up internal resources
• Focus on core activities
• Gain access to world-class capabilities
• Increase the revenue potential of the organization
• Reduce time to market
• Increase process efficiencies
• Compensate for a lack of specific capabilities or skills

Digital Density and Drivers

• Digital density increases exponentially through connected data, interactions, and business models
• The essential drivers of digital density are connections, data, and interactions

Connections and the Digital Future

• Connections enable connecting physical world elements (people, organizations, things) to digital realm
• Mobile devices enable real-time business management and collaboration
• IT consumerization means innovations appear in the consumer market before entering organizations
• Internet of Things (IoT) is a network sharing data via the internet through sensors
• Industrial IoT (IIoT) enhances efficiency, product quality, and supply chain monitoring
• Internet of Everything (IoE) evolves networked devices with connectivity and intelligence

Data and the Digital Future

• Seeking best data informs the best business decisions, organizations collect more data
• Big Data contains large structured/unstructured datasets with increasing rate of analysis
• Social Media amplifies unstructured data, opinions of products/companies
• Cloud Computing stores data, maintains infrastructure, and enables advanced data analytics
• By 2025, the world will produce 175 zettabytes of data(175 trillion gigabytes)

Interactions and the Digital Future

• Data and connectivity produce value-added interactions and business models
• Big data allows for insight that can solve challenges
• AI & sensor data advances robotics and automation
• Connections and data are disrupting industries shifting to service models
• Efficiency and forecasting approaches enable radical changes in industries like finance and healthcare

Information Systems Defined

• An Information System(IS) combines people and tech to create, collect, process, store, and distribute data
• Information Technology(IT) includes hardware, software, and telecommunications networks
• People in organizations use IS to process sales transactions, decide investments, and communicate

Data: Root and Purpose of IS

• Data is the most basic element of any information system
• Unformatted(raw) data are symbols such as characters and numbers
• Data are meaningless until processed and contextualized
• Data quality assesses reliability for decision-making that include Completeness, accuracy, timeliness, validity, and consistency.

Information & Knowledge

• Information is a representation of reality that helps answer questions by organizing data and creating new utility
• Example: Bank uses ATM transaction data to tailor marketing
• Knowledge is the ability to understand information, make decisions, and make predictions
• Example: Awareness of one SSN identifies individuals

IS Components

• Hardware: physical computer equipment that inputs, processes, and outputs useful information
• Software: programs that tell the computer to perform tasks
• Telecommunications Networks: systems using equipment to enable the sharing of data and services

People: Builders, Managers, and Users of IS

• The IS field includes people who develop, maintain, manage, and study information systems
• IS roles are vital across all industries
• Every company needs people with the skill to optimize business processes and discover new ways of using IS for gaining competitive advantage
• IS professionals, particularly in management, often receive high job satisfaction and better employment benefit
• Long-term growth is expected for the IS field
• The IS field offers a diverse range of areas to pursue across different industries, ensuring a promising future and can enhance career prospects

Organizations and Information Systems

• Organizations use IS to become productive, profitable, gain an edge, reach customers, and improve customer services
• These IS are commonly used in organizations, overlap, and integrating various features

Types of Information Systems

• Transaction Processing Systems (TPS) used for routine, day-to-day transactions, generate data for insights
• Management Information Systems (MIS) use data from TPS to produce reports for decision-making
• Decision Support Systems (DSS) help with decision-making by analyzing data with judgement
• Intelligent Systems use algorithms and AI to make decisions

Information Systems for Business

• Business Intelligence (BI) Systems analyze data to provide actionable insight
• Knowledge Management Systems (KMS) store, share, and manage knowledge
• Social Software help individuals collaborate & share social information
• Geographic Information Systems (GIS) analyze, map, and visualize geographical data
• Functional Area Information Systems support specific business function such as HR

Organizations & IS cont.

• Enterprise Systems integrate systems that span multiple departments within an organization such as CRM, SCM and ERP
• Office Automation Systems support individual productivity like word processing
• Collaboration Systems enable communication and collaboration among individuals and teams often through email, shared calendars, and online discussions
• Electronic Commerce Systems (E-commerce) enable buying and selling of goods and services over the internet

Information Systems for Competitive Advantage

• IS drives business success when used effectively as a competitive weapon
• IS can enable efficiency and support strategic goals
• Data generation and cloud services generate innovation
• Innovation and constant adaption drives success

Information Systems Ethics

• Key ethical issues for the use and expansion of computers include:
• Privacy: the growth of personal information online raises vulnerability
  • What personal data is appropriate to share?
• Accuracy: checking the authenticity of information is crucial
• Property: companies own the data they collect and may sell it to third parties
  • This data aggregation leads to ethical concerns
• Accessibility: the right of users to access and utilize information
• Intellectual Property: digital copying and piracy has ethical impacts
• Ethical Computer Use: requires responsibilty and adherence to standards