Information Systems Chapter 1

• Study notes on Chapter 1

Chapter Introduction

• Information systems are pervasive, from Wi-Fi networks to transportation systems
• The study of information systems includes devices, software, and data systems
• Defining information systems gives a solid base for grasping different systems in business

Information Systems

• A system consists of components working toward a shared goal
• A systems thinking approach considers all parts and their interactions
• It analyzes inputs, transformation, outputs, and feedback for process improvement
• Information systems transform data into meaningful information for decision-making
• The digital revolution has accelerated data processing
• Information systems give meaning to otherwise valueless data

IT vs IS

• Information Technology (IT) and Information Systems (IS) are often used interchangeably, but they are not equivalent
• Technology is a component of information systems
• Information systems are composed of hardware, software, data, procedures, and people
• Technology includes hardware, software, and networks
• Data serves as the input, and information is the output

Information Systems Components

• Information systems have three core components: technology, people, and process
• Technology includes hardware, software and networks
• Information systems development is key element
• Business processes and information system types are important too

Technology

• Technology applies scientific knowledge for practical purposes
• Hardware is tangible, including computers, keyboards, disk drives, and flash drives
• Software is intangible and tells hardware what to do, including Operating Systems and Application software
• Networking Communication involves hardware and software that enable the communication

People

• In focusing on technology, integrate their use with organization
• People's roles are interwoven and cannot be separated from information systems

Process

• A process is a series of steps to achieve a goal
• Integrate it with organizational processes to improve productivity and control
• The goal is to enhance interfaces with suppliers and customers
• Business process re-engineering, management, and enterprise resource planning are all important buzzwords
• Businesses focus on this component for competitive advantage

Data

• Data, the "power", enables the system to produce the information needed for decision-making
• Think of data as a collection of facts like an address, phone number, or networking account
• Aggregated, indexed, and organized data are a powerful tool

Role of Information systems

• Goal is to transform data into information for generating knowledge used in decision making
• Information must have these characteristics to ensure quality and add value
• Accessibility: Easily accessible by users in the right format and time, remaining secure against unauthorized access
• Consistent: Contains no discrepancies, and the same measurements or structure are used regardless of data source
• Complete: Contains all information
• Timely: Delivered when needed
• Accurate: Free of errors and bias, and can be verified or validated
• Cost: Balanced with the value of information
• Relevant: Important to decision makers
• Clear: Easy to understand

Data, Information, Knowledge and Wisdom

• Data are raw facts, lacking context or intent
• Information is processed data with context, relevance, and purpose
• Knowledge is human beliefs about relationships among facts or concepts
• Knowledge facilitates action
• Explicit knowledge is expressible in words or numbers
• Tacit knowledge includes insights and intuitions, difficult to transfer
• Wisdom combines knowledge and experience for deeper understanding

Technology in Professions

• Technology skills are increasingly essential across job functions due to faster, cheaper technology
• Every managerial discipline is impacted by technology
• Accounting is built on technology, with systems used for recording, storing, and reporting numbers
• Executive penalties tied to the Sarbanes-Oxley Act have increased the importance of accurate numbers
• Tech-focused consulting practices have grown larger than traditional accounting services
• Investment banking needs tech firms for IPOs, evaluates M&A deals, and assesses technology's role in portfolios
• Transactions occur digitally, displayed in real time
• Finance careers and mobile apps are available on mobile devices
• Marketers use online channels to track consumer activities and understand customer needs
• Campaigns are assessed based on online activity, and online channels make it simpler to connect with customers
• Social media lets customers use their voices digitally to convey their opinions
• Savvy firms generating revenue, improving reputations, bettering assistance to customers, and innovating using social media
• Search engine marketing (SEM), search engine optimization (SEO), customer relationship management (CRM) and personalization

Management & Human Resources

• KMS becoming morphed, technology helps find untapped employee power
• Technology is helpful with employee training, screening, and evaluation
• Firms are setting policy on issues such as firm representation, and making sure to monitor and enforce policies
• The hiring and retention practices are changing
• People are writing resumes focused keywords that a computer can understand
• Professional social networks are helpful with employee satisfaction and retention
• Competitors can be targeted by looking at LinkedIn

Supply Chain and Operations

• This is focused on producing goods and services, which improves this area with technology
• Robotics and factory operations do all things to create value with a competitive advantage

Law

• Hottest areas for technology includes corporate law
• Including intellectual property, patents, piracy and privacy
• New inventions and business practices need teams for the skills to sleuth
• Proprietary methods and are helpful enforcing to claims

People and Information Systems

• People who imagine systems, people who develop systems, and people who use and support systems
• Jobs listed do not represent all possible jobs and some roles combine

Creators

• Group play role in designing, developing, and building information systems
• Must be technical and have a background in programming, analysis, or information security

Operations & Administration

• Required to be in day-to-day operations and administration of IT
• These are necessary to have to keep their organization effective with their resources

Managing Information Systems

• Successful in organization with management of info-systems
• Keeping time is important
• Emerging roles is seeing the need for data analysts and business intelligence specialist
• Increased cloud computing and virtual machine technologies also increasing expertise in those things

Users

• Extremely important for users of information systems
• Very high % of employee
• Needs to be use to correctly learn and see if the user failed

Diffusion of Innovation

• Five types of adopters
• Early Adopters
• Early Majority
• Late Majority
• Laggards

IS in organizations

• The IT department combined IS and telecommunications
• Before personal computers, information systems were centralized to maintain control
• ERP system can consolidate data into a single database
• Organizations can outsource jobs for a limited period and for cost cutting moves
• Integration influenced organization structure
• Increased ability to communicate and share information
• Network based structure is another chance of enablement using IS