Information Systems in Business

Knowledge Workers

• People whose jobs involve creating, using, and distributing information.

Roles of IS in Business

• They support e-business operations, data resources, business decision-making, and enterprise collaboration systems.

E-Business Applications

• Require IT to re-engineer business processes to support e-business operations.

Management Support Systems

• Support sales managers with Web-based decision support systems.

E-Commerce

• Uses information technology for online business transactions to gain a strategic advantage over competitors.

Information System

• It uses people, hardware, software, and network resources to collect, transform, and disseminate information within an organization.

Computer-Based Information System

• It is an information system using computers and their hardware and software.

End Users

• Anyone who uses an information system or the information it produces.

E-Business Applications

• Use the Internet, corporate intranets, and interorganizational extranets for e-business operations.

E-Commerce

• Involves buying, selling, marketing, and servicing products over the Internet and other networks.

Enterprise Collaboration Systems

• Use groupware tools to support collaboration among networked teams.

System

• A group of interrelated components with a clearly defined boundary working together toward the attainment of a common goal.

Feedback

• Data about a system's performance.

Control

• Making adjustments to a system's components so that it operates properly.

Data

• Facts or observations.

Processing

• It involves converting data into information.

Information System Activities

• It encompasses converting data into information.

Hardware Resources

• Encompass machines.

Media

• They include magnetic disks, optical disks, and paper forms.

Software Resources

• Encompass programs and procedures.

Programs

• A set of instructions for a computer.

Procedures

• A set of instructions for people.

Data Resources

• Should be viewed the same way as a major challenge for business managers and professionals today.

End Users and IS Professionals

• Categorized as Roles of IS in business.

Input

• Using the keyboard of a computer to enter data.

Processing

• It involves activities such as computing loan payments.

Output

• Ex: printing a letter you wrote using a computer.

Storage

• Ex: saving a copy of the letter on a magnetic disk.

Control

• It’s importance lies in making adjustments to a system's components so that it operates properly.

Information

• Can be viewed as data that have been placed into a meaningful context for an end user.

Data or Information Processing

• It is a type of information system activity.

Information System Activities

• Involves converting data into information.

Cross-Functional Informational Systems

• Information systems that perform transaction processing and provide information to managers across the boundaries of functional business areas.

Intranet

• Internet-like networks and Web sites inside a company.

Extranet

• Interorganizational Internet-like networks among trading partners.

Functional Business Systems

• Focus on operational and managerial applications in support of basic business functions like accounting or marketing.

Data Resources

• This includes communications media and network infrastructure.

IS Specialists

• People who develop and operate information systems.

Data or Information Processing

• The execution of a set of activities in order to convert data into information.

Process Control Systems

• Systems that are implemented to direct physical conversion processes, such as oil refinement.

Management Support Systems

• Second stage of Information Systems evolution, focused on providing managerial users with information relevant to decision making in the form of predefined reports.

Roles of IS in Business

• It includes the support of business decision making.

E-Business Applications

• It involves use of IT to reengineer business processes to support e-business operations.

Management Support Systems

• They support sales managers with Web-based decision support systems.

E-Commerce

• It uses information technology for online business transactions to gain a strategic advantage over competitors.

Computer-Based Information System

• An information system using computers and their hardware and software.

End Users

• Anyone who uses an information system or the information it produces.

E-Business Applications

• Use the Internet, corporate intranets, and interorganizational extranets for e-business operations.

E-Commerce

• It involves buying, selling, marketing, and servicing of products over the Internet and other networks.

Enterprise Collaboration Systems

• It uses groupware tools to support collaboration among networked teams.

System

• A group of interrelated components with a clearly defined boundary working together toward the attainment of a common goal.

Feedback

• Data about a system's performance.

Control

• Involves making adjustments to a system's components so that it operates properly.

Processing

• It involves converting data into information.

Hardware Resources

• They encompass machines.

Software resources

• Encompass programs and procedures.

Output

• Printing a letter you wrote using a computer.

Storage

• Saving a copy of the letter on a magnetic disk.

Information

• Data placed into a meaningful context for an end user.

Competitive Forces

• A business must deal with customers, suppliers, competitors, new entrants, and substitutes.

Competitive Strategies

• Ex: Cost leadership, differentiation of products, and new product innovation.

An Innovation Strategy

• May allow a firm to focus its products/services and gain an advantage in a particular segment/niche of a market.

Cost Leadership Strategy

• Pursued when a firm develops ways to differentiate its products from a competitor’s.

Innovation Strategy

• Pursued when a firm makes radical changes to its business processes for producing products/services that alter the fundamental structure of an industry.

Leverage Investment in IT

• It uses investments in technology to keep firms out of an industry.

The Value Chain Framework

• Can be used to view a firm as a series, a chain, or a network of basic activities that adds value to its products and services, and thus add a margin of value to the firm.

Switching Costs

• Making it unattractive for a firm's customers/suppliers to switch to its competitors.

Switching Costs

• When a business effectively builds in switching costs, its customers and/or suppliers become reluctant to switch to another competitor.

Strategic Use of Information Technology

• Would be to leverage investment in information system specialists, hardware, software, databases, and networks from operational uses into strategic applications.

Customer-Focused Business

• Can build customer value & loyalty by making customers feel special with website personalization, letting customers place orders directly/through distribution partners, and letting customers check order history & delivery status.

Value Chain Concept

• Primary processes include such things as procurement of resources and human resource management that are directly related to the manufacturing of products or delivery of services to the customer.

Strategic Information System

• Any information system that uses IT to help an organization gain a competitive advantage, reduce a competitive disadvantage, and meet strategic enterprise objectives.

Competitive Forces

• A firm can succeed in the long run by developing strategies to confront forces that shape the structure of competition in its industry.

Switching Costs

• Strategies designed to increase the time, money, and effort needed for customers/suppliers to change to a firm's competitors.

Targeted Marketing

• A primary business process.

Business Process Reengineering

• Information systems reengineer business processes or promote business innovation.

All of the Choices are Correct

• Performance support, building expert networks, and leveraging organizational know-how are a function of this.

Alliance

• It’s a competitive strategy by which a firm establishes new business linkages with customers, suppliers, competitors, and other companies.

Cost Leadership

• A competitive strategy by which a firm seeks to become a low-cost producer of products and services in the industry.

Customer Value

• Focuses on the idea that "quality, rather than price, has become the primary determinant in customers choosing a product or service".

Innovation

• Strategy by which a firm develops unique products or services from those of its competitors, or makes radical business changes that may alter the fundamental nature of the industry.

Strategic Information Systems

• Highlights how strategic information systems can be applied to a firm’s business and can support activities for competitive advantage.

Virtual Company

• Business finding strategic uses for computing and telecommunications capabilities it has developed to run its operations.

Differentiation

• Competitive strategy by which a firm develops ways to differentiate its products and services from those of its competitors.

Business Process Reengineering

• Information technology helps improve a business and make radical improvements in business processes.

All the Choices are Correct

• Organizations are changing to which companies compete globally with niche-market products/services that are individualized, short-lived, and exchanged on customer basis.

Radical Redesign

• Improving business processes to achieve improvements in certain areas.

Agile Company

• Business that is prospering in rapidly changing markets while offering customers individualized solutions to their needs.

Customer Value

• A company places a strategic focus on this and recognizes it as the most important.

Virtual Company

• Represents a network of business partners formed to take advantage of rapidly changing market opportunities.

KMS (Knowledge Management Systems)

• Its goal is to help knowledge workers create, organize, and distribute important business knowledge.

Collaborative Workflow Intranet

• A support process.

Internet

• Created many ways to quickly enter the market, with a relatively low cost.

Knowledge Creating Company

• Learning organizations focus on creating, disseminating, and managing business knowledge.

Standardized Products and Services

• NOT supported by an agile company.

Knowledge Management System

• Information systems manage creation and dissemination of organizational knowledge.

Competitive Strategies

• Not part of the strategy of a virtual company.

Locking in the Customer

• Developing a relationship with a customer such that the customer cannot afford to switch suppliers.

Interenterprise Information Systems

• Using the Internet and extranets to link a company’s information systems to those of customers and suppliers.

Data, Documents, and things written down or stored on computers

• Explicit knowledge deals with this.

How-To Knowledge

• Tacit knowledge deals with this, which resides in workers.

Building Switching Costs

• Using an information system to make customers/or suppliers reluctant to change to another competitor.

E-Business

• Using the Internet and other networks for e-commerce, enterprise collaboration, and Web-enabled business processes.

Cross-Functional Enterprise Systems

• Information systems cross the boundaries of the functional areas of a business in order to integrate and automate business processes.

Functional Business Systems

• Systems support marketing, production, accounting, finance, and human resource management separately.

Enterprise Application Integration

• E-business applications fit into a framework of interrelated cross-functional enterprise applications.

Enterprise Application Integration

• It is software that interconnects enterprise application systems are.

Marketing Information Systems

• Information systems for customer relationship management, sales management, and promotion management.

E-Business

• Collaborating interactively with customers.

Sales Force Automation

• This means using the networks to support the sales force.

Manufacturing Execution Systems

• The systems support manufacturing operations and management.

Computer-Integrated Manufacturing

• A conceptual framework for simplifying and all aspects of manufacturing automation.

Machine Control

• Using computers in a variety of ways to help manufacture products.

Enterprise Collaboration Systems

• Utilizes electronic tools to enhance collaboration among teams and workgroups.

Process Control

• Using computers to operate a petroleum refinery.

Machine Control

• This helps use computers to operate machine tools.

Online HRM Systems

• This helps support staffing, training, and development, and compensation administration.

E-Business

• Using the internet for recruitment and job hunting is an example.

Accounting Information Systems

• Accomplishes legal and historical record-keeping and gathers information for planning and controlling business operations.

Online Accounting Systems

• This has to deal with accounts both payable, and receivable.

Order Processing

• This handles customer accounts.

Inventory Control

• You keep stock of what your assets entail; it helps handle what sells.

Accounts Receivable

• Keeps track of amounts owed by customers.

Accounts Payable

• Keeps track of purchases from suppliers.

Payroll

• Produces employee paychecks.

Financial Management Systems

• Produces the firm's financial statement.

Financial Management Systems

• Provides cash management, investment management, capital budgeting, and financial forecasting.

Manufacturing Execution Systems

• Performance monitoring and control systems for factory floor operations.

Targeted Marketing

• It customizes advertising and promotion methods to fit intended audience.

Transaction Processing Cycle

• Data entry, transaction processing, database maintenance, document and report generation, and inquiry processing are steps of this.

Batch Processing

• Collecting and periodically processing transaction data.

Real-Time Processing

• Processing transaction data immediately after they are captured.

Online Transaction Processing Systems

• Immediately capture and process transaction data, and update corporate databases.

To connect and integrate various E-business applications

• That is the main purpose of Enterprise Application Integration (EAI) in E-business systems.

To handle and record daily business activities

• This is a key function of Transaction Processing Systems (TPS) in E-business systems.

Real-time financial reporting

• Is achieved by project management, and amongst many various users.

To create flexible and agile manufacturing processes

• In E-business systems, Electronic Meeting Systems within Enterprise Collaboration Systems (ECS) primarily facilitate the integration of computer manufacturing (CIM) processes.

Consolidating data from other accounting systems

• One needs to look into the context of the accounting systems for the purpose of the General Ledger system?

Allocation and control of financial resources

• For a well running and sound organization, for the proper organization of the correct types of decisions that Financial Management Systems primarily support within an organization.

Supporting specific business functions within an organization

• The main focus should be on the most important goal, Functional Business Information Systems.

Financing

• Which area typically deals with the proper methods in which it helps control the business.

Enhancing customer communications

• The end goal being increasing sales from E-business.

Online HRM Systems

• You can use the internet to apply for a job/ recruitment.

Business Model

• Expresses how a business can show value to customers and make money.

E-Business Architecture Planning

• They identify the strategic importance of the online sector.

Business and IT Planning

• These combine business modeling.

To develop procedures, schedules and budgets

• Operational planning is used in everyday planning.

To develop a firms goals or missions

• Key to the goals or missions of any orginizational planning.

All known facts of the future

• Pertain with any scenario.

Developed in 2023

• Balanced Scorecard is a plan for most businesses.

Learning and Growth Perspective

• This is a key step in the balanced score.

Performance Improvement

• To ensure every resource runs smooth you need effective IT/ BUSINESS.

To develop plans to introduce the IT

• This is used for the main purposes and is important.

Identifying trends in the industry

• Most concerns happen because of not doing so.

They can impede the adoption of IT solutions

• In E-Business Planning it can be a roadblock.

All have the potential to lead to a high performance

• Strategic vision, tactical, SWOT, and Opportunities.

SWOT (Analysis)

• This consists of Strengths, Weaknesses, Opportunities, Threats to perform successfully in a company.

The Systems Approach

Definition

• An organized sequence of activities to study a problem or opportunity using systems thinking.

Systems Thinking

• Trying to recognize systems and the new interrelationships and components of systems in any situation.

Primary Goal

• To solve problems systematically.

Post-Implementation Review

• Evaluating the success of a solution after it's been implemented.

Economic Feasibility

• Benefits outweigh costs in a proposed system.

The Stages of Systems Approach

1 .Recognize/Define a Problem or Opportunity 2. Develop and Evaluate Alternative System Solutions 3. Implement and Evaluate the Success of the Designed System

Tangible Costs

• Costs of acquiring hardware, software, and specialists.

Intangible Costs

• Ex: Loss of customer goodwill due to errors in a new system.

Interrelationships among systems

• Key concept of Systems Thinking in IS development.

Increase tangible benefits

• This refers to the benefit type.

Analytical phase

• A systematic way with a proper investigation of various factors.

Intangible Benefits

• Benefits such as increased efficiency.

Systems Analysis and Design

• The multistep process to conceive, design, and implement an information system.

Logical Model

• Blueprint of what a system does.

Human Factor

• Key test to look for.

Testing for various things

• This phase involves many technical areas to test the phases (organizational, economic, technical, and operational feasibility of a proposed information system).

Technical Feasibility

• Indicates that reliable hardware and software are available to implement a proposed system.

Feasibility

• In certain areas of the field for infringement issues.

With Professionals

• They use their own application in the field.

New Systems

• The operator does require people.

Information and Design

• A key part of these systems.

Parallel Systems

• They go side by side.

End User

• End processes all need integration for things that go wrong

Management Project

• All projects and plans need proper management because everything runs based on budget

"A Select Few Users Testing System

• Usually part of a testing transition (or it simply is just the IT dept testing first alone)

Aims to give all plans structure, including the new design.

Economic Feasibility

• Does it mean that "We can afford right to operate the new system?"

Human Factors

• Is a major operator to run new projects.

A multistage process

• System-Analytical for success of the project.

Key Things

• Project must fit objectives in the correct form
• In a new system they are usually new benefits.

The Main Focus

• Integration for high quality and testing for phases.

Multiple Choice Questions / T & F

Internet of Things

• It is a well-running brand in the world.

The importance of the devices

• You can collect data from these systems.

The devices will take 2 years.

Components that are important

• Integration, smart devices etc. are key.

Monitoring patients

• To help make sure their health is in good hands.

Speed that you have.

It handles information.

You won’t need to slow down or make the network a key focus all the time.

Devices are to small to detect.

• Affecting user privacy.

Collection and data combination.

Interdependence occurs quickly on the market.

For device purposes

• With the cost to repair and maintain.

Is there a use for technology?

• If there is no intent there is little use.

4G

• Can help make things run smooth.

Drones that cannot disrupt is a bad thing.

Here are study notes in a bullet point format.

It occurs if the system is Autonomous.

Better traffic control

• It is always good that people are in charge.

Level 3 Automation

Level 5 Automation

• No need for people.

Improved Safety with the right Sensors

What is is in the right area of control?

• For the vehicles.

Human accidents and Legal Framework

• Overuse and not checking key info in the system can be illegal.

The increase is good

• People and the need for a long life career.

It also helps with being smart for vehicles.

Level 4

• All conditions and sensors to improve the traffic.

Air Planes

• Key components for them.

It causes issues

• Impacts jobs.

Automation is strong for today.

What can it do if it cannot do what it is told.

• All aspects lead to problems and all in all, can’t be.

Key Parts

• There are different components for components.

Most importantly with the public.

A type

• That has well-known automation.