Taxonomy of Information Systems

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Questions and Answers

Which of the following is a primary benefit of having a taxonomy of information systems for an organization?

  • It simplifies the IT infrastructure by allowing for a single technology solution for all business needs.
  • It guarantees the selection of the latest technologies regardless of the organization's capabilities.
  • It helps leaders understand which technologies to invest in and align IT initiatives with strategic objectives. (correct)
  • It removes the need for executive involvement in IT project selection, automating the process entirely.

Enterprise IT primarily focuses on facilitating interactions without specifying parameters, increasing collaboration across an organization.

False (B)

What type of IT is optional to use, imposes complements throughout the organization, defines tasks and sequences, mandates data formats and is mandatory?

Enterprise IT

_______ IT delivers productivity by technologies that make execution of standalone tasks more efficient.

<p>Function</p> Signup and view all the answers

Match the following types of IT with their descriptions:

<p>Function IT = Technologies that make the execution of standalone tasks more efficient. Network IT = Provides means by which people communicate with one another, increasing collaboration. Enterprise IT = Used to restructure interactions among groups of employees or with business partners, standardizing and monitoring processes.</p> Signup and view all the answers

What is a significant advantage of buying a system, rather than building it?

<p>Faster availability and less expense. (C)</p> Signup and view all the answers

The System Development Life Cycle (SDLC) is highly flexible, allowing for major changes to be implemented easily throughout the process.

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

Which system development method focuses on user participation and iteration, making it suited for smaller projects?

<p>Rapid Application Development</p> Signup and view all the answers

In Rapid Application Development, the stage where users work together with analysts, designers, and programmers in JAD sessions is known as _______.

<p>User Design</p> Signup and view all the answers

Match the following stages of Rapid Application Development with their correct descriptions:

<p>Requirements Planning = Define overall requirements for systems. User Design = Users work together with systems analysts, designers, and programmers in JAD sessions. Construction = Build the next version by working in an iterative fashion together. Cutover = Switching from old to new software.</p> Signup and view all the answers

Which of the following is an advantage of using Agile methodologies for system development?

<p>Smaller teams that include both programmers and users, facilitating daily meetings and short time frames. (A)</p> Signup and view all the answers

Lean Methodology in system development focuses on creating a final product with all possible functionalities before seeking user review.

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

What term describes the process of creating a product with just enough functionalities to showcase an idea and give to potential users for review in Lean Methodology?

<p>Minimum Viable Product (MVP)</p> Signup and view all the answers

According to observations of user discussion, are used to determine whether an idea is worth developing in an entrepreneurial environment.

<p>feedback</p> Signup and view all the answers

Match the following job market trends with their described impact:

<p>Job Creation = The information technology sector results in the growth of e-commerce led to increased demand for developers, digital marketers, and logistics professionals. Innovation and Entrepreneurship = Technology enabled innovation and entrepreneurship allow new businesses to develop and commercialize new IT solutions, driving job growth Increased Productivity = IT tools and systems enhance workplace productivity increasing demand for skilled workers. New Specialized Roles = Advancements in IT create demand for new specialized roles such as data scientists, cybersecurity experts, and AI engineers.</p> Signup and view all the answers

Which of the following outcomes in the job market is a potential downside of increased automation driven by IT?

<p>A mismatch between the skills demanded by employers and the skills possessed by the workforce. (B)</p> Signup and view all the answers

Jobs requiring higher levels of education, specialized skills, and knowledge are more susceptible to computerization.

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

What is occurring when economic factors like production costs influence the adoption of automation technologies?

<p>Economic Incentives</p> Signup and view all the answers

A bottleneck to automation, the limitations of _______ and manipulation present challenges to robots when performing certain tasks.

<p>perception</p> Signup and view all the answers

Match the IT approach with its effect on organizational structure:

<p>Centralization = Organizations consolidate decision-making, data management, and control mechanisms. Decentralization = Tools and platforms empower employees and departments to make autonomous decisions and collaborate effectively.</p> Signup and view all the answers

How can IT influence firm size?

<p>IT enables automation allowing some firms to get large, while lowering overhead, allowing other firms to remain small. (D)</p> Signup and view all the answers

Agency theory suggests that IT systems should always be designed to maximize firm profits, regardless of employee interests.

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

What is examining the costs associated with transactions in the marketplace and within organizations?

<p>transaction costs theory</p> Signup and view all the answers

The rise of cloud computing allows firms to scale IT resources flexibly, reducing the barriers to entry for ____ firms.

<p>small</p> Signup and view all the answers

Match the wave with its corresponding stage in the IT Innovation Wave Complex.

<p>Attention Wave = The hype and industry buzz surrounding the innovation. Peaks early. Adoption Wave = Companies announce they are adopting the technology. Peaks later than attention. Implementation Wave = The actual deployment of the technology. Peaks even later. Value Wave = The measurable business impact from the innovation. Peaks last, often long after the hype has faded.</p> Signup and view all the answers

What is the recommended approach when evaluating new technologies, according to the text?

<p>Exercise caution, conduct thorough assessments of the technology's capabilities and fit with organizational needs before investing. (B)</p> Signup and view all the answers

Investing in the 'hottest IT' always guarantees a positive impact on a company's competitiveness and revenue streams.

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

What refers to information systems developed in alignment with an organization's business strategy to provide a competitive advantage?

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

According to the resource-based view, a competitive advantage must have what four distinct qualities?

<p>valuable, rare, inimitable, and non-substitutable (VRIN)</p> Signup and view all the answers

Match the impact category on sustainable competitive advantage with its effect:

<p>Improving operational efficiency = Automate routine tasks, streamline business processes, and reduce costs, allowing organizations to operate more efficiently than competitors. Enhancing decision-making = IS can provide managers with timely, accurate, and relevant information to support strategic decision-making, enabling the organization to respond quickly. Enabling innovation = IS can facilitate innovation by providing platforms for collaboration, knowledge sharing, and experimentation. Enhancing customer experience = IS can enable organizations to personalize interactions with customers, anticipate their needs, and provide superior service.</p> Signup and view all the answers

What is a central argument in Nicholas Carr's 'IT Doesn't Matter' perspective?

<p>IT should be managed as a utility, focusing on cost reduction and efficiency. (C)</p> Signup and view all the answers

Studies universally agree that IT investments always lead to sustained competitive advantages for businesses.

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

What term describes standalone systems within an organization that are not integrated with each other?

<p>islands of automation</p> Signup and view all the answers

A problem associated with islands of automation is lack of _______ integration, making it difficult to share information across different departments or functions.

<p>data</p> Signup and view all the answers

Match the ERP advantage to its description:

<p>Process Integration = ERP systems integrate data and processes across functions, enabling seamless communications and collaboration. Improved Efficiency = ERP systems automate routine tasks, leading to increased productivity and efficiency. Better Decision-Making = ERP systems provide real-time data and analytics, empowering managers to make informed decisions. Standardization = ERP systems enforce standardized processes and practices across the organization.</p> Signup and view all the answers

Flashcards

Function IT

IT assists with discrete task execution.

Network IT

IT facilitating interactions without specifying parameters, increases collaboration.

Enterprise IT

IT that specifies business processes, often standardizing and monitoring.

Enterprise Resource Planning (ERP)

Integrated software solutions centralizing core business processes across an organization.

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"Islands" of automation

Standalone or siloed systems within an organization that lack integration.

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Data Warehousing

Process of collecting, storing and managing large data volumes from various sources to support decision-making and analysis.

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Data Mart

Subset of a data warehouse focused on specific areas.

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Operational Data Stores (ODS)

Databases that store current or near-real-time transactional data.

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Data mining

Process of discovering patterns, trends, and relationships from large datasets.

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Commoditization of IT

IT infrastructure and software become standardized and widely available.

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Attention Wave

The hype and industry buzz surrounding a new technology

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Adoption Wave

Companies announce they are adopting the technology

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Implementation Wave

The actual deployment of the technology in the company

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Value Wave

Measurable business impact from the innovation

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Strategic Information Systems (SIS)

Information systems that are developed in alignment with an organization's overall business strategy

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Cloud Computing

Delivery of computing services over the internet.

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Multitenancy

A software application serves multiple customers.

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Scalability

Handle heavy workloads by adding capacity.

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Software-as-a-Service (SaaS)

Software hosted and delivered over the internet.

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Infrastructure-as-a-Service (IaaS)

Rent virtualized computing resources from a cloud provider.

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Platform-as-a-Service (PaaS)

Rent development platforms and tools from a cloud service provider.

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Vertical chunkification

Dividing outsourced processes to prevent control by single vendor.

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Horizontal chunkification

Distributing same task among vendors.

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Shift to Remote Work

The pandemic forced organizations to adopt remote work arrangements rapidly.

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Process Automation

Robotic process automation to automate tasks.

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Cognitive Insight

Algorithms to detect patterns in data.

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Cognitive Engagement

Natural language processing chatbots for interactions.

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Shadow IT

Is an insider threat to a company's cybersecurity posture

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Scope Creep

Changes in project scope, requirements, or objectives during the project

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Self-Justification Theory (SJT)

Persist in projects to justify past choices.

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Prospect Theory (PT)

Continue investing due to sunk costs and loss aversion.

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Agency Theory (AT)

Information asymmetry and misaligned incentives drive escalation.

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Approach-Avoidance Theory (AAT)

A behavior that results when when driving forces seem to outweigh restraining forces such as the cost of withdrawal.

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Study Notes

Taxonomy of Information Systems

  • A taxonomy helps leaders understand what technologies to invest in and what initiatives to focus on
  • Leaders can classify IT into distinct categories

Categories of IT

Function IT

  • Assists with the execution of discrete tasks
  • Can be adopted without complements
  • Impact increases when complements are in place
  • Doesn't impose complements, allows them to emerge
  • Simulators, spreadsheets, computer-aided design, and statistical software are examples of Function IT
  • Focuses on making standalone tasks more efficient and delivers productivity

Network IT

  • Facilitates interactions without specifying parameters
  • It doesn't specify tasks or sequences
  • Accepts data in many formats
  • Email, instant messaging, wikis, blogs, and mashups are examples of Network IT
  • Serves as a means by which people communicate with one another, which increases collaboration

Enterprise IT

  • Specifies business processes
  • Organization-wide application and use is mandatory
  • Imposes complements throughout the organization
  • Defines tasks and sequences
  • Mandates data formats
  • Optional use
  • Enterprise resource planning software, customer relationship management, and supply chain management are examples of Enterprise IT
  • Restructures interactions among groups of employees or with business partners and it helps standardize and monitor

System Acquisition: Buy vs. Build

Buying Advantages

  • Less expensive
  • Faster availability
  • Safer due to extensive testing
  • Requires less time, since the vendor fixes any problems
  • Provides more expertise than building in-house

Building Advantages

  • Allows for customization
  • Greater flexibility
  • Enables differentiation
  • Provides greater control over development

System Development Methods

System Development Life Cycle (SDLC)

  • Less risky and provides a clear structure
  • Can be too rigid, changes are expensive and hard to implement

Rapid Application Development

  • Quickly get prototype and gather feedback and upgrading model
  • Focuses on user participation and iteration for smaller projects
  • Requirements Planning: Define overall system requirements
  • User Design: Work with system analysts, designers, and programmers in JAD sessions
  • Construction: Build the next version iteratively
  • Cutover: Switch from old to new software

Agile Methodologies

  • Incremental approach with attention to detail where each block is developed via planning; then iterative development, user interaction
  • If a block is not accepted, send back with feedback in short increments
  • Utilizes small teams including programmers and users, daily meetings and short time frames

Lean Methodology

  • Creation of a Minimum Viable Product (MVP) to showcase to users for review

End-User Computing

  • Department-specific applications developed by employees with computer skills, but no direct programmers
  • Development is closer to the people who actually use it, and is faster
  • Can result in similar applications providing different results and confusion through the organization

The Future of Jobs (IT Impact)

Higher Employment Levels

  • Job Creation: IT can create new job opportunities in sectors and e-commerce
  • Increase demand for web developers, digital marketers, and logistics professionals
  • Innovation and Entrepreneurship: IT enables new businesses and industries which leads to growth
  • Tech companies develop and commercialize new IT solutions
  • Increased Productivity: IT enhances productivity, and increases demand for skilled workers to manage technologies
  • New Roles: Advances create demand for data scientists, cybersecurity experts, and AI engineers

Lower Employment Levels

  • Automation and Job Displacement: routine, repetitive tasks can be done more efficiently by machines
  • Machines reduce the reduced demand for human labor in certain industries
  • Outsourcing and Offshoring: Tasks outsource to lower-cost regions and create job outsourcing/off shoring
  • Skill Mismatch: Rapid technological advancements in IT may lead to skills employers demand and the skills workforce have
  • Structural Changes in Industries: IT can lead to structural decline in traditional sectors while newer grow, so workers lose their jobs

Computerization Factors

  • Routine vs. Non-Routine Tasks: Routine are susceptible to computerization
  • Non-routine require human judgement and creativity
  • Level of Cognitive Complexity: Complex will be automated less
  • Require complex emotional intelligence and personal skills
  • Technological Feasibility: The availability of automating a job depends on the availability and maturity of relevant technologies
  • Education and Training: Jobs that require higher levels is less susceptible

Economic Incentives

  • Economic factors like labor costs, productivity influence automation
  • Industries with high labor costs and productivity will invest more

Bottlenecks to Automation

  • Robots still struggle with perception and manipulation
  • Creative and Social intelligence challenges

Impact of IT on Organizations and Markets

Centralization and Decentralization

  • Centralization: IT enables organizations to consolidate decision-making, data management, and control via standardized processes and channels which leads to efficiency
  • Decentralization: IT promotes decentralization through tools that give employees and departments autonomy to make decision to support innovation

IT Affect on Firm Size

  • Firm Size: Can influence organization size through automation and efficiency for growth, to operate efficiently at smaller scales
  • Horizontal Firm Size: Enables growth by reaching larger consumer base and digital networks
  • Vertical Firm Size: Can streamline coordination through the production and distribution
  • Agency Theory: Aligns all interests by monitoring employee behavior
  • Transaction Costs theory: Evaluates IT investments to reduce data asymmetry

IT Dependent on ICT Type or Industry

  • ICT Type: Enables firms to enter more flexibly by reducing
  • ERP favours those who can maintain such systems
  • Industry Differences: Regulatory environment

IT Fashions

  • Stage 1 The Attention Wave: Attention wave buzz surrounding innovation, peaks early
  • Stage 2 The Adoption Wave: Companies announce its use of the technology peaks later
  • Stage 3 The Implementation Wave: Actual deployment peaks later
  • Stage 4 The Value Wave: The measurable business impact stays the longest

IT Implementations (Managers)

  • Use the tool to help plan, assess risk and change management
  • Stay informed and updated
  • Exercise caution when evaluating new tech
  • Focus on the value which tech can deliver

Corporate impact of investing in hottest IT

  • Can enhance competitiveness and improve operational efficiency
  • There are risk that can carry including high cost
  • In short term investing in IT has showen improved performance and gains higher reputation in the short term

Strategic Information Systems (SIS)

  • Align with the business objective to gain competitive advantage
  • Focus of services that can enhance or improve service
  • Arise when VRIN - valuable, rare, inimitable, and non-substitutable resources are used

Information Systems to Provide Advantage?

  • If the organization can provide proprietary that enhance efficiency
  • Improves operations and enhances customer experience

IT doesn't matter

  • Has become a commodity and no longer provide competitive advantage
  • It allowed businesses to adopt at low cost
  • Suggested that investments don't lead to significant productivity

Entreprise Resource Planning

  • 'Islands' of automation are siloed within an organization that serve separate function
  • Problems include Lack of Data Integration, Duplication of Effort, Inefficient Processes, Limited Visibility
  • Is integrated software that streamlines across an organization
  • Used for finance, human resources, and supply chain
  • Advantages: process integration, improved efficiency better decision making, standardization
  • Disadvantage: cost, complexity, organizational resistance risk, of failure

Solving standalone issues

  • Integrating Data
  • Streamlining Processes
  • Enhancing Visibility

Why ERP difficult to implement?

  • Scope and organizational impact
  • There are challenges with Customization, Data Migration
  • It all needs careful plannings and change management

IT data success

  • follow clear strategies
  • Involve key stake holders
  • Apply multiple phases
  • Training and support the system

Data Warehousing

  • Warehousing: Collecting, storing, and managing volumes of data to support decisions
  • Unified view of organizational data, subject-oriented
  • Time variance over trends, non volatile
  • Integrate data with external cloud apps

Two developments

  • Data mart is an approach with specific business starting need for data to use later
  • Enterprise data is a traditional warehouse approach
  • Has risks of completing and meeting needs

ETL in data

  • Extraction: extract data from sources
  • Transformation: Standardize the formats
  • Loading: data is loaded where the data is available

Data Mart

  • Sub set of a data set focused on business functions
  • Operational data is database system to store current or near-real-time data
  • Data mining is the process of discovering insights using machine learning
  • Used in various techniques like testing

Evaluation of system success

  • How an investments effect the economic or performances
  • Challenges with isolation
  • Measuring variables can be subjective with performance metrics
  • Can have impact on productivity

Methods to use to evaluate information systems

  • User of satisfaction of usage
  • Statistics include system usage, duration,
  • ROI analysis measure of cost effectiveness with value

5 eras of automation system use

  • Automation systems use automated the routine tasks
  • Improvements in efficiency were measured
  • Users empowered it through desktops
  • User satisfaction was measured using personal desktops
  • Clients' help provide greater connectivity
  • Ability to provide more reliability and performance
  • Led to centralization of resources and greater integration
  • Provide strategic insights through support

IS Success has evolved

  • In the ability adapt to disruption, harness data

Challenges for implementations that fail

  • Poorly Defied requirements
  • scope creeps
  • Lack of stake holder understanding
  • Organizational culture and change management

Reasons for Escalation

  • In escalation project, avoid mistakes, but can lead to conflicts

Cloud Computing

  • Providing service over, resources like internet, storage on demand
  • Scaling allows organizations to upgrade based on request

Cloud Challenges

  • Can be disruptions due to outages
  • Cloud computing performance can change based on speed of internet and service
  • Multi tendency helps to provide security
  • Scalability refers to increase of work
  • SaaS is a clouding computing model where software is shared over a provider
  • Iaas is computing rental with virtual networking.

Is it better or worse than On premise?

  • Depend on all levels
  • Is effective scalability is reduced
  • Control is customized secure with compliant

SWOT on computing

  • Strengths are ability to scale up
  • Cloud decreases barriers
  • Weakness lose physical control
  • Requires more speed

Outsourcing risks

  • Result from vendors like, sharing that they over perform
  • Risks happen due to process barriers
  • Risks of losings expertise
  • Share on vendor intentions

Mitigation of risk

  • Vertically split into to prevent poaching
  • Internal capabilities could result

WORK LIFE impact of COVID

  • Rapid of work from home leads of tool
  • Many orgs implement flexible work policies

Perspectives of WLB

  • How to balance, time managements issues

Strategies to fix

  • Companies offer a incentive
  • Harmony with time
  • Connect with and take perspective and consideration

Technology and it's implementations

  • Acknowledge all views
  • Should cause minimal life
  • Need to work together for better management

Implementations or digital workplace?

  • Replicated physics office and zoom
  • Use try and experiments of zoom
  • Work on a long project

AI for world

  • Technologies automate back offices and administratives
  • Automate patterns
  • To manage staff using Ai

Look like how?

  • select best projects
  • Try the projects
  • Scale it

System

  • Social engineering fake side
  • Secure devices

Ways that can cause people cause

  • Gain financial wealth
  • Loyalty to others
  • To the political belief

Reduce the problem

  • Monitor employees
  • Adopt insider policy and raise awareness

Shadow IT

  • Insider threat and stores data
  • Company balance on cyber and users
  • How they are measured

Encourage Shadow IT

  • Resent IT solutions
  • When active it use declines

Recommendation

  • Protect whether treats, select and adopt the policies

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