Information Systems PDF

Information Systems Manuela Aparicio, Ph.D. [email protected] 2024/2025 Instituto Superior d...

Information Systems Manuela Aparicio, Ph.D. [email protected] 2024/2025 Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  Learning Unit 1 The features and components of information systems in today's global environment. Content of LU1: 1 FEATURES AND COMPONENTS OF AN IS 2 ROLE OF INFORMATION SYSTEMS IN TODAY'S BUSINESS 3 PRESPECTIVES OF INFORMATION SYSTEMS Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 2  Learning Unit 1 The features and components of information systems in today's global environment. Content of LU1: 1 FEATURES AND COMPONENTS OF AN IS 2 ROLE OF INFORMATION SYSTEMS IN TODAY'S BUSINESS 3 PRESPECTIVES OF INFORMATION SYSTEMS Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 3 Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 4  Charles Babbage's Difference Engine, 1832. Charles Babbage Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 5  Ada Lovelace: first computer programmer (1848) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 7  Alan Turing Alan Turing June 23, 1912 June 7, 1954 “Code-breaking war hero, now considered the father of computer science and artificial intelligence.” https://amturing.acm.org/ https://amturing.acm.org/acm_tcc_webcasts.cfm Film “The imitation game”https://www.imdb.com/title/tt2084970/ Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 9  Grace Hopper Grace Hopper (1906–1992) was a computer scientist and rear admiral in the United States Navy. Hopper translated mathematical notation into machine code. She wrote "first computer debugging” program. https://youtu.be/Fg82iV-L8ZY Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 10  Katherine Johnson Katherine Johnson (1918–2020) was an American mathematician whose orbital mechanics calculations as a NASA employee were crucial to the success of the first and future U.S. crewed spaceflights. Film: https://www.imdb.com/title/tt4846340 “4,000 IBMers worked alongside NASA to land Apollo 11 on the moon” Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 11  Margaret Hamilton Margaret Heafield Hamilton ( born in 1936) is an American computer scientist, systems engineer, and business owner. She was the director of the MIT Instrumentation Laboratory's Software Engineering Division, which developed on-board flight software for NASA's Apollo program. https://youtu.be/kYCZPXSVvOQ?t=6 Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 12  Evolution vacuum tubes integrated circuit microprocessors transistors Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 16 Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 17  Technology Drivers of Infrastructure Evolution Moore’s Law- “the number of components on a chip with the smallest manufacturing costs per component (generally transistors) had doubled each year.” (Moore, 1965) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 18  1.1 Features and components of an IS Evolution of Information Systems From the 80s to the present day: Comes to artificial intelligence, with high speed (with one or more cores per processor, high frequency and data transfer between computer components). Programs with a high degree of interactivity with the user and the world wide web (internet). All this has boosted the storage of huge amount of data and cloud. Alan Turing (1912-1954) Allen Newell (1927-1992) Herbert A. Simon (1916-2001) John McCarthy (1927-2011) Marvin Minsky (1927-2016) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 20  Data Storage Timeline https://www.frontierinternet.com/gateway/data-storage-timeline/ Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 21  How Information Systems Are Transforming Business (1 of 2) By June 2018, more than 160 million businesses worldwide had dot-com Internet sites registered Social media (Facebook, Instagram) attracted more than 2 billion monthly visitors worldwide Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 22  How Information Systems Are Transforming Business (2 of 2) Social networking tools being used by businesses to connect employees, customers, and managers Internet advertising continues to grow at more than 20 percent per year New laws require businesses to store more data for longer periods Changes in business result in changes in jobs and careers Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 23  Information Technology Capital Investment (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 24  What’s New in Management Information Systems (1 of 3) IT Innovations Cloud computing, big data, Internet of Things Mobile digital platform AI and machine learning New Business Models Online streaming music and video On-demand e-commerce services Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 25  What’s New in Management Information Systems (2 of 3) E-commerce Expansion E-commerce expands to nearly $1 trillion in 2018 Netflix now has more than 125 million US subscribers Online services now approach online retail in revenue Online mobile advertising now larger than desktop Management Changes Managers use social networks, collaboration tools Business intelligence applications accelerate Virtual meetings proliferate Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 26  What’s New in Management Information Systems (3 of 3) Firms and Organizations Change More collaborative, less emphasis on hierarchy and structure Greater emphasis on competencies and skills Higher-speed/more accurate decision making based on data and analysis More willingness to interact with consumers (social media) Better understanding of the importance of IT Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 27  Learning Unit 1 The features and components of information systems in today's global environment. Content of LU1: 1 FEATURES AND COMPONENTS OF AN IS 2 ROLE OF INFORMATION SYSTEMS IN TODAY'S BUSINESS 3 PRESPECTIVES OF INFORMATION SYSTEMS Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 29  Systems Mechanical Electric Circulatory Information Chemical Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 30  What Is an Information System? (1 of 3) Information technology: the hardware and software a business uses to achieve objectives Information system: interrelated components that manage information to: Support decision making and control Help with analysis, visualization, and product creation Data: streams of raw facts Information: data shaped into meaningful, useful form (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 31  An information system is a collection of people, procedures, and equipment designed, constructed, operated, and maintained to collect, record, process, store, retrieve, and display information. Teichroew, D. (2003) Information systems. Encyclopedia of Computer Science. John Wiley and Sons Ltd., GBR, 865–868. (ACM Encyclopedia) https://dl.acm.org/doi/abs/10.5555/1074100.1074480 Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 32  The Interdependence Between Organizations and Information Systems (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 33  Data and Information (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 34  1.1 Features and components of an IS How does an Information System works Like any other system, the SI includes: The (input) which involves capturing or collecting raw data sources. The (processing) involves converting this raw input into a more useful and appropriate manner. The (output) involves the transfer of information processed people or activities that will use (processes the inputs and produces outputs that are sent to the user or other system). It may also contain a feedback mechanism which controls or improves operation. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 35  What Is an Information System? (2 of 3) Activities in an information system that produce information: Input Processing Output Feedback Sharp distinction between computer or computer program versus information system (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 36  What is an Information System? (3 of 3) Feedback Output is returned to appropriate members of organization to help evaluate or correct input stage Computer/computer program vs. information system Computers and software are technical foundation and tools, similar to the material and tools used to build a house Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 37  Figure 1.4 Functions of an Information System (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 38  1.1 Features and components of an IS Advantages of an Information System As in any system, various parts work together aiming at a common goal. An information system is no different, but the goal is a more reliable and less bureaucratic flow of information. Its main advantages are: Reducing operating and administrative costs and gain productivity; More integrity and accuracy of the information; More stability; More secure access to information. Optimization of information flow allowing more flexibility; Good information for good decision making. Note: An IS does not essentially need to have computers involved, just have different parts working together to generate information. It can be both manual and IT-based, or a mix of the two. But the fact is that a large information system, hardly survive without being computerized, which in itself does not eliminate the human factor in the process. Will be you who have the responsibility to make an Information System has functionality and usefulness. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 39  1.1 Features and components of an IS System information in organizations Information is a key factor in managing to be an important and indispensable resource both in the domestic context and in the relationship with the outside. The more viable, timely and comprehensive information for this, closer together will be the company and the greater their potential will face competition. The competitive advantages are now achieved through the use of communications systems and networks that interrelate companies, customers and suppliers. Real time accessing and process huge amounts of data. Storing these data to be correlated to obtain information and turn knowledge. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 40  1.1.1. Organization of the function of information systems The information systems department § An organizational unit responsible for the services of information technologies. Includes programmers, systems analysts, project managers, system administrators, etc. § It is usually a department with autonomy headed by a chief information officer (CIO). Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 41  1.1.1. Organization of the function of information systems The information systems department – example: Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 42  Contemporary Approaches to Information Systems (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 43  Technical Approach Emphasizes mathematically based models Computer science, management science, operations research (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 44  Behavioral Approach Behavioral issues (strategic business integration, implementation, etc.) Psychology, economics, sociology (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 45  Approach of This Text: Sociotechnical Systems (1 of 2) Management information systems Combine computer science, management science, operations research, and practical orientation with behavioral issues Four main actors Suppliers of hardware and software Business firms Managers and employees Firm’s environment (legal, social, cultural context) (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 46  Approach of This Text: Sociotechnical Systems (2 of 2) Sociotechnical view Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production Helps avoid purely technological approach (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 47  A Sociotechnical Perspective on Information Systems (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 48  Learning Unit 1 The features and components of information systems in today's global environment. Content of LU1: 1 FEATURES AND COMPONENTS OF AN IS 2 ROLE OF INFORMATION SYSTEMS IN TODAY'S BUSINESS 3 PRESPECTIVES OF INFORMATION SYSTEMS Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business How information systems are transforming organizations: Flattening Decentralization Flexibility Location Independence / Local automony Low transaction and coordination costs Empowerment Collaboration and teamwork Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business The globalization: The Internet dramatically reduces the costs of operating at global scale. It provides opportunities and threats to the global market level: Management and control Competition Ways of working Logistics systems among others Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business The rise of digital business: Digital relationships among customers, suppliers and employees. Firms core business processes run by digital means. Digital management of corporate capital. Understand / feel quickly and respond to the external changes. Paradigm shift in time / space. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business The strategic business objectives of an information system *: Excellence operational New products, services and business models Close contact with customers and suppliers (intimacy) To improve the decision making Seek competitive advantage Survival / maintain position in the market * These are the most common, each of these is discussed in detail next. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business Excellence operational: Improve efficiency to achieve higher profitability / profit. Systems and information technologies are an important tool to achieve high efficiency and productivity. Example: Continente system connects stores and vendors in real time - replenishment systems. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business New products, services and business models: Business model: describes how the company produces, sells and delivers a product or service in order to create wealth. Technology and information systems are the best tools for creating new products, services and business models. Examples: Microsoft, Amazon, Spotify, and iPhone, Netflix, NOS, MEO, etc Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business Close contact with customers and suppliers (intimacy): Serving customers well leads to customer satisfaction and feedback, which increases revenues and profits. Example: The Hilton’s IS collects the preferences of their customers and use them to monitor and customize offers. Close relationship with suppliers provides vital inputs to reduce costs, improve supply and increase quality. Example: The ZARA’s IS connect sales to designers and manufacturers around the world. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business To improve the decision making Without viable information: Managers have to rely on forecasts, feelings, opinions, luck. Which end up with: Over or under production of goods and services Misallocation of resources Poor response times This implies increased costs and loss of customers. Example: NOS's web dashboard gives managers real-time information about customer preferences, complaints, network performance, interruptions in lines, etc. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business Seek competitive advantage: Better performance. Charge less for better products and services. Responding to customers and suppliers in real time. Offer the best product or service. Post sales higher assistance. Example: IS production of Toyota has an upper edge over the competition - uses the well-known JIT (Just-In-Time) which together with the TQM (Total Quality management) provides the all the above advantages. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business Survival / maintain position in the market Technology and Information Systems as a basic business need. Examples: Alternative ways traditional models, the introduction of the SIBS system (Multibanco - ATMs). What was a competitive advantage is now a matter of keeping in the forefront (offers beyond the notes and transfers the corner) Governamental regulations: SNC, IVA, Courts, etc Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.2 The role of information systems in today´s business In sum: Information Systems are important because of the need to increase capital management, increase productivity by virtue of its use, the strategic opportunities and advantages they offer, and because they are becoming the main function of doing business today. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.3 PRESPECTIVES OF INFORMATION SYSTEMS Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.3 Perspectives of Information Systems Data and Information Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.3 Perspectives of Information Systems The core: Information system - the activity that produce the necessary information to the organizations: Input: raw data capture of the organization or the external environment. Processing: It converts the raw data into meaning. Output: Transfer the meaning of data (information) to people or activities that use. Feedback: This is the evaluation of the output / output on the quality of data entered in the system. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  1.3 Perspectives of Information Systems Functions of an Information System An information system contains information about an organization and its surrounding environment. Three basic activities – input, processing, and output – produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  Dimensions of Information Systems Organizations Management Technology Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 65  Information Systems Are More Than Computers (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 66  Information Systems Are More Than Computers (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 67  Dimensions of Information Systems: Organizations (1 of 2) Hierarchy of authority, responsibility Senior management Middle management Operational management Knowledge workers Data workers Production or service workers (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 68  Levels in a Firm Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 69  Dimensions of Information Systems: Organizations (2 of 2) Separation of business functions Sales and marketing Human resources Finance and accounting Manufacturing and production Unique business processes Unique business culture Organizational politics (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 70  Information Systems Are More Than Computers (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 71  Dimensions of Information Systems: Management Managers set organizational strategy for responding to business challenges In addition, managers must act creatively Creation of new products and services Occasionally re-creating the organization (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 72  Information Systems Are More Than Computers (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 73  Dimensions of Information Systems: Technology Computer hardware and software Data management technology Networking and telecommunications technology Networks, the Internet, intranets and extranets, World Wide Web IT infrastructure: provides platform that system is built on (Laudon & Laudon, 2019) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 74  1.1 Features and components of an IS Accordingly with Laudon and Laudon (2019) is any system that handles data and generates information. That is; an Information System is the term used to describe a system whether People automated (computer) or manual: It includes people, machines and / or methods organized to collect, process, store, transmit and disseminate data representing information for users. Data Networks Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 75  1.1 Features and components of an IS An IS has a set of related resources as follows: Hardware: computers and peripherals such as printer, processors, monitors, keyboards, external reading devices, tablets. Together, they accept data and information, process them and allow viewing. Technology Software: is a set of programs that enables the hardware to process data. Examples: operating system; applications (set of programs that perform processing functions of the input / output). Networks: is an attachment system that allows the sharing of resources among multiple computers. People: Individuals who work with the system or use its People output. Data: is a collection of files, registrations of transactions, tables, words, names, amounts, images and other interrelated data that store data and their respective associations. Data Networks Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 76  Data vs Information vs Knowledge vs Insight vs Wisdom vs Impact Data: a collection of individual unprocessed and unorganized facts. Information: (processed and organized) data that is useful in a certain context. Knowledge: accumulated and often distributed information the capability to understand information the resulting information that represents the understanding. Wisdom: the capability to apply information about a situation to make judgements about the situation the resulting information that represents the judgement. (Smalley, 2023) Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa Manuela Aparicio, PhD 77  1.3 Perspectives of Information Systems The Business Information Value Chain: From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers case use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa  Bibliography Amaral, Luís e Varajão, João (2000). Planeamento de Sistemas de Informação. FCA, ISBN: 972-722-193-9. Bach, Santiago O. (2001). A Gestão dos Sistemas de Informação. Centro Atlântico, ISBN: 972-8426-41-0. Laudon, Kenneth C. and Laudon (2019). Management Information Systems (16th Edition), Prentice Hall, ISBN 10: 0135191793 Lopes, Filomena C.; Morais, Maria P. e Carvalho, Armando J. (2005). Desenvolvimento de Sistemas de Informação. FCA, ISBN: 972-722-461-X. O'Brien, James A. and Marakas, George (2005). Management Information Systems (7th Edition). McGraw- Hill/Irwin, ISBN:007293588. Smalley, M. (2023). (7) Data, information, knowledge and wisdom | LinkedIn [Blog]. Instituto Superior de Estatística e Gestão de Informação Universidade Nova de Lisboa