ISTP TU01 - IS in Business Today PDF

INFORMATION SYSTEMS: THEORY & PRACTICE TU1: Information Systems in Business Today Prof. Dr. Paul Drews PROF. DR. PAUL DREWS § Professor of Information Systems, Institute of Information Systems § Dean of the School of Management and Technology § Speaker of the Research Center for Digital Transform...

INFORMATION SYSTEMS: THEORY & PRACTICE TU1: Information Systems in Business Today Prof. Dr. Paul Drews PROF. DR. PAUL DREWS § Professor of Information Systems, Institute of Information Systems § Dean of the School of Management and Technology § Speaker of the Research Center for Digital Transformation Short CV § Delegate of the President for Cooperation with Practice and Entrepreneurship § Program Coordinator Major Business Information Systems & Dean Bachelor Programs § Assistant Professor of Information Systems, Leuphana University of Lüneburg § PostDoc and research coordinator at the University of Hamburg, Department of Informatics § PhD (Dr. rer. nat.) in informatics (topic: „sectoral systems of IT innovation“) § > 10 years of consulting experience (focus: IT in health care) & entrepreneurial experience § Diplom (MSc equivalent) in information systems, University of Hamburg 2 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BRITTA WERKSNIS § Research Assistant at Institute of Information Systems (IIS) Digital Transformation and Information Management § Digital Transformation Lab for Teaching and Learning (DigiTaL) § Short CV § Dipl.Psych. (Business & Clinical Psychology) § Cultural Management (M.A.) § Acting § Founder of Indie-Games-Start-Up § Worked in various fields of psychology, culture, education, corporate development… 3 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS PROF. DR. PAUL DREWS Research focus: Digital Transformation & Information Management Current research topics: § Digital Transformation (inter- & transdisciplinary) § IT Strategy / IT Governance / IT Management § Changing Role of the IT Function § IT Innovation Management § Enterprise Architecture Management § Data-driven Business Models § Scaling Agile § Industry focus: Cross-industry with special attention to financial services, health care, professional services Three studies on „Digital Excellence“, „Data-driven Agility“ and „Digital Platform Management“, together with Sopra Steria Consulting published in 2015, 2016, 2018 4 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS: THEORY & PRACTICE 5th semester, IBAE // Elective: Management in the Digital Age 5 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS: THEORY & PRACTICE Course Organization § The lecture and the exercise will be held in presence. § There is only one exercise group this year. § Sign up for the Moodle course „Information Systems - Theory & Practice (WiSe 2024/25)“ (also accessible via the tab “Online Teaching” in mystudy) § Enrolment key for the Moodle course: ISTP-2425! § Teaching material (articles, slides, videos) will be made available through Moodle. § Exam: Written exam, 60 minutes, in presence § Exam dates: Feb 12 + Mar 20 (see mystudy for official date + room) § Task types in the exam: Multiple choice tasks, short answers, short case study, content from the exercise 6 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS: THEORY & PRACTICE Course Organization Theory Lecture Exercise Practice § One chapter of § Serious Gaming + Laudon & Laudon Responsible (2022) per week Digital Transformation weekly biweekly § Additional (10-12h) (12-14h) readings § Contribute to a real game § A few smaller development tasks related to project in the the lecture DigiTaL project eLearning platform: Moodle 7 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS: THEORY & PRACTICE CORE TEXTBOOK Laudon, K.C. & Laudon, J. P. (2022) Management Information Systems - Managing the Digital Firm, Global Edition 17th Edition, Pearson (16th Ed. will also work for most parts) ~79 € paperback ~60 € eBook (Adobe DE) Link: https://www.pearson.de/management-information-systems-managing-the-digital-firm-global-edition 8 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS: THEORY & PRACTICE WORKLOAD DISTRIBUTION Total Workload: 5 CP = 150 hours § Lecture: 1 ½ hours per week § (Active) Reading: up to 2 hours per week § Homework (lecture): up to 1 hour per week § Exercises + tasks (group work): up to 4 hours per week § Exam preparation: 24 hours 9 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS: THEORY & PRACTICE QUESTION REGARDING ORGANIZATIONAL ISSUES § Please post general questions regarding course organization to the Moodle forum „Forum for organizational issues“. § If you have any individual concerns, do not hesitate contacting me via mail. 10 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS CHAPTER 1: LEARNING OBJECTIVES Ø How are information systems transforming business, and why are they so essential for running and managing a business today? Ø What is an information system? How does it work? What are its management, organization, and technology components? Ø Why are complementary assets essential for ensuring that information systems provide genuine value for organizations? Ø What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems? 11 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS AGENDA 1. Introduction: Relevance of Information Systems 2. Strategic Business Objectives of Information Systems 3. What is an information system? 4. A Business Perspective on Information Systems 5. Information Systems and Academic Disciplines 12 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS OPENING CASE STUDY: SMART STORES REINVENT THE RETAIL SPACE 13 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY How information systems are transforming business § Emerging mobile digital platform § Growing business use of “big data” § Growth in cloud computing Globalization opportunities § Internet has drastically reduced costs of operating on global scale § Increases in foreign trade, outsourcing § Presents both challenges and opportunities Image Source: oneclickinfo.com 14 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS USE OF IT IN THE U.S. § In 2017, more than 140 million businesses had dot-com addresses registered § 273 million adult Americans online; 190 million purchased online § 269 million Americans have mobile phones § 200 million use social networks 15 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS INCREASING USE OF THE INTERNET (IN GERMANY) Digital divide? 65+ = ~22% or 18 Mio. people of which 1/3 = ~6 Mio. is not online https://www.destatis.de/EN/Themes/Society-Environment/Income-Consumption-Living-Conditions/_graphics/_Interactive/it-use-age.html https://service.destatis.de/bevoelkerungspyramide/index.html#!a=20,65&g 16 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS ONLINE PURCHASES BY INTERNET USERS IN % (2009/2019) 17 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS ACCESS TO DIGITAL SERVICES THROUGH OUR SMARTPHONE Apps provide convenient access to: § communication / social media § shopping § mobility § information / news § entertainment (gaming, music, video) § health / sports data § banking / insurance § … 18 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS Image sources: unsplash.com / Paul Hanaoka & sketchappsources.com HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS DIGITAL SERVICES INCREASE OUR EXPECTATIONS TOWARDS ANY UPCOMING BUSINESS INTERACTION 19 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS IT IS US WHO DECIDE TO MOVE ONLINE Source: http://frankfurt-berger-strasse.de/deutsche-bank-bornheim/ Source: https://berlinvalley.com/startup-fintech-mobile-bank-n26-pivot/ 20 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS CONSEQUENCES OF OUR DECISION TO MOVE ONLINE Number of bank branches in Germany > 38.000 Source: www.paymentscardsandmobile.com Source: https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/ "If the banks continue the current speed of cutbacks, PDF-Dokumente-Fokus-Volkswirtschaft/Fokus-2017/Fokus-Nr.-181-Oktober-2017-Bankfilialen.pdf more than half of the branch offices that existed at the turn of the millennium will be closed in 2035," said Dr Jörg Zeuner, Chief Economist of KfW Group. Source: https://www.presseportal.de/pm/41193/3754933 21 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS THE CHANGES COMPRISE DIFFERENT TECHNOLOGIES AND BUSINESS AREAS § 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 22 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS HOW INFORMATION SYSTEMS ARE TRANSFORMING BUSINESS INCREASING INVESTMENTS FOR SOFTWARE (RED) AND IT EQUIPMENT (BLUE) 23 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS WHAT’S NEW IN MANAGEMENT INFORMATION SYSTEMS (1/3) 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 24 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS WHAT’S NEW IN MANAGEMENT INFORMATION SYSTEMS 25 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS COMPANIES BY MARKET VALUE (2024) Internet/IT/Tech companies: 8 in the top 10 Source: https://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-capitalization/ 26 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS MOST VALUABLE BRANDS (SOURCE: FORBES) Top5: Internet/IT/Tech companies Source: https://www.forbes.com/powerful-brands/list/ 27 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS VICTIMS OF „DIGITAL DISRUPTION“ l by e d by i g it a e d la c d d by phy e p la c e m a n d R e p ip e d ia la c e a R o n -d w ik R e p h o to g r v id e o - p 28 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS WHAT’S NEW IN MANAGEMENT INFORMATION SYSTEMS (2/3) 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 29 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS WHAT’S NEW IN MANAGEMENT INFORMATION SYSTEMS (3/3) 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 30 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS DIGITALIZATION IS DRIVEN BY TECHNOLOGICAL, ECONOMIC AND SOCIAL FACTORS. Technical drivers Economic & social drivers „IT Megatrends“ (BigData, Cloud, Globalization Mobile, Social) Progress in basic information Digitalization Individualization technology IT-based innovations New ways of (services & products) working Changing expectations of customers 31 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL/ citizens DREWS THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY In the emerging, fully digital firm: § Significant business relationships are digitally enabled and mediated. § Core business processes are accomplished through digital networks. § Key corporate assets are managed digitally. Image Source: excella.com Digital firms offer greater flexibility in organization and management. § Time shifting, space shifting 32 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS AGENDA 1. Introduction: Relevance of Information Systems 2. Strategic Business Objectives of Information Systems 3. What is an information system? 4. A Business Perspective on Information Systems 5. Information Systems and Academic Disciplines 33 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS THE INTERDEPENDENCE BETWEEN ORGANIZATIONS AND INFORMATION TECHNOLOGY Growing interdependence between: Ability to implement Ability to use corporate strategies information technology and achieve corporate goals 34 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS THE INTERDEPENDENCE BETWEEN ORGANIZATIONS AND INFORMATION TECHNOLOGY Figure 1.2 In contemporary systems there is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do. 35 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS FIRMS INVEST HEAVILY IN INFORMATION SYSTEMS TO ACHIEVE SIX STRATEGIC BUSINESS OBJECTIVES: 1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival 36 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS OBJECTIVE 1: OPERATIONAL EXCELLENCE (1) Operational excellence § Improved efficiency results in higher profits § Information systems and technologies help improve efficiency and productivity Example: Walmart § Power of combining information systems and best business practices to achieve operational efficiency—and over $485 billion in sales in 2017 Well-known example: § Most efficient retail store in world as result of digital links between suppliers and stores § Retail Link system links suppliers to stores for superior replenishment system 37 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS OBJECTIVE 2: NEW PRODUCTS, SERVICES, AND BUSINESS MODELS (2) New products, services, and business models § Business model: describes how company produces, delivers, and sells product or service to create wealth § Information systems and technology a major enabling tool for new products, services, business models Examples: Apple’s iPad, Google’s Android OS, and Netflix Well-known example: 38 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS OBJECTIVE 3: CUSTOMER AND SUPPLIER INTIMACY (3) Customer and supplier intimacy § Serving customers well leads to customers returning, which raises revenues and profits. Example: High-end hotels that use IT to track customer preferences and used to monitor and customize environment § Intimacy with suppliers allows them to provide vital inputs, which lowers costs. Example: JCPenney’s information system which links sales records to contract manufacturer 39 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS OBJECTIVE 4: IMPROVED DECISION MAKING (4) Improved decision making Without accurate information: § Managers must use forecasts, best guesses, luck § Results in: § Overproduction, underproduction § Misallocation of resources § Poor response times § Poor outcomes raise costs, lose customers § Real-time data improves ability of managers to make decisions § Example: Verizon’s Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, and so on 40 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS OBJECTIVE 5: COMPETITIVE ADVANTAGE (5) Competitive advantage § Often results from achieving previous business objectives § Advantages over competitors § Charging less for superior products, better performance, and better response to suppliers and customers § Examples: Apple, Walmart, UPS are industry leaders because they know how to use information systems for this purpose 41 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS OBJECTIVE 6: SURVIVAL (6) Survival § Businesses may need to invest in information systems out of necessity; simply the cost of doing business § Industry-level changes — Example: Citibank’s introduction of ATMs § Governmental regulations requiring record-keeping — Examples: Toxic Substances Control Act, Sarbanes-Oxley Act 42 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS AGENDA 1. Introduction: Relevance of Information Systems 2. Strategic Business Objectives of Information Systems 3. What is an information system? 4. A Business Perspective on Information Systems 5. Information Systems and Academic Disciplines 43 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS WHAT IS AN INFORMATION SYSTEMS? Information technology: § the hardware and software a business uses to achieve objectives Information system: § Set of interrelated components § Collect, process, store, and distribute information § Support decision making, coordination, and control § Help with analysis, visualization, and product creation Information vs. data: § Data are streams of raw facts. § Information is data shaped into meaningful form. 44 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS DATA AND INFORMATION Figure 1.3 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. 45 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS WHAT IS AN INFORMATION SYSTEM? Three activities of information systems produce information organizations need § Input: Captures raw data from organization or external environment § Processing: Converts raw data into meaningful form § Output: Transfers processed information to people or activities that use it § Feedback: Output is returned to appropriate members of organization to help evaluate or correct input stage. 46 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS WHAT IS AN INFORMATION SYSTEM? 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. § Sharp distinction between computer or computer program versus information system 47 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS FUNCTIONS OF AN INFORMATION SYSTEM Figure 1.4 48 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS ARE MORE THAN COMPUTERS Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment. Figure 1.5 49 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS ORGANIZATIONAL DIMENSION OF INFORMATION SYSTEMS Levels in a firm: Hierarchy of authority, responsibility — Senior management — Middle management — Operational management — Knowledge workers — Data workers — Production or service workers 50 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS ORGANIZATIONAL DIMENSION OF INFORMATION SYSTEMS § Separation of business functions — Sales and marketing — Human resources — Finance and accounting Information Systems — Manufacturing and production § Unique business processes § Unique business culture § Organizational politics 51 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS MANAGEMENT DIMENSION OF INFORMATION SYSTEMS § 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 Image Source: Insurance Innovation Lab / IT Finanzmagazin 52 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS TECHNOLOGY DIMENSION OF INFORMATION SYSTEMS § 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 systems are built on 53 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS AGENDA 1. Introduction: Relevance of Information Systems 2. Strategic Business Objectives of Information Systems 3. What is an information system? 4. A Business Perspective on Information Systems 5. Information Systems and Academic Disciplines 54 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS PERSPECTIVE ON INFORMATION SYSTEMS § Information system is instrument for creating value § Investments in information technology will result in superior returns: § Productivity increases § Revenue increases § Superior long-term strategic positioning 55 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS THE BUSINESS INFORMATION VALUE CHAIN Figure 1-7 From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability. 56 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS PERSPECTIVE ON INFORMATION SYSTEMS Business information value chain § Raw data acquired and transformed through stages that add value to that information § Value of information system determined in part by extent to which it leads to better decisions, greater efficiency, and higher profits Business perspective: § Calls attention to organizational and managerial nature of information systems 57 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS VARIATION IN RETURNS ON INFORMATION TECHNOLOGY INVESTMENT 58 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BUSINESS PERSPECTIVE ON INFORMATION SYSTEMS § Investing in information technology does not guarantee good returns. § There is considerable variation in the returns firms receive from systems investments. § Factors: § Adopting the right business model § Investing in complementary assets (organizational and management capital) 59 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS COMPLEMENTARY ASSETS § Assets required to derive value from a primary investment § Firms supporting technology investments with investment in complementary assets receive superior returns § Example: Invest in technology and the people to make it work properly 60 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS COMPLEMENTARY ASSETS Complementary assets include: Organizational assets Managerial assets Social assets Appropriate business Incentives for The Internet and model management innovation telecommunications Efficient business Teamwork and infrastructure processes collaborative work Technology standards … environments … … 61 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS AGENDA 1. Introduction: Relevance of Information Systems 2. Strategic Business Objectives of Information Systems 3. What is an information system? 4. A Business Perspective on Information Systems 5. Information Systems and Academic Disciplines 62 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS The study of information systems deals with issues and insights contributed from technical and behavioral disciplines. 63 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS STUDYING INFORMATION SYSTEMS Technical approach § Emphasizes mathematically based models § Computer science, management science, operations research Behavioral approach § Behavioral issues (strategic business integration, implementation, etc.) § Psychology, economics, sociology 64 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS: BRIDGING CONTEXT AND TECHNOLOGY Business, Organizations & Technology & Formal Sciences People Computer Science, Business Administration, Engineering, Mathematics, etc. Sociology, Psychology, etc. „You are not an expert in „You are not an expert in business, organization, society computers, programming and or psychology!“ „Ok, but I am the one, who can build a bridge!“ engineering!“ 65 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS INFORMATION SYSTEMS RESEARCH: SELECTED GENERAL AREAS OF INTEREST Technology Acceptance: Why (and why not) do people and organizations adopt new technologies? Strategic Information Systems: Selected Topics of Interest in IS research How can I make use of IT to gain competitive advantage? Information Systems Development: How should we organize software development? Exploring and Making Use of New Technologies: How can organizations profit from AI, blockchain, etc.? IT Governance / IT Strategy: Image Source: https://pixabay.com How should we organize the IT function? Cross-industry & Industry-specific Information Systems: How can we design IS to support the business? 66 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS BEHAVIORAL VS. DESIGN SCIENCE RESEARCH Unified Theory of Acceptance and Use of Using design science and artificial intelligence to Technology (UTAUT), Venkatesh et al. (2003) improve health communication: ChronologyMD case example (Neuhauser et al. 2013) „UTAUT thus provides a useful tool for managers needing to assess the “The goal of design science research is the creation and utility of the likelihood of success for new technology introductions and helps them solution, whereas in natural science research it is universal truth and prediction, understand the drivers of acceptance in order to proactively design and in human interpretive sciences, understanding phenomena in specific interventions (including training, marketing, etc.) targeted at populations of users situations. In both the natural and human sciences, researchers focus on that may be less inclined to adopt and use new systems” (Venkatesh et al. 2003) developing and testing theories. In design sciences, researchers focus on building and evaluating artifacts.“ (Neuhauser et al. 2013) Technology is treated as something external, which Technology and the social environment are cannot be influenced or changed. both subject of analysis and design / intervention. 67 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS APPROACH OF THE TEXTBOOK / LECTURE: SOCIOTECHNICAL SYSTEMS Management Information Systems § Combines 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) 68 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS APPROACH OF THE TEXTBOOK / LECTURE: SOCIOTECHNICAL SYSTEMS Approach of this book: Sociotechnical view § Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production § Helps avoid purely technological approach 69 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS A SOCIOTECHNICAL PERSPECTIVE ON INFORMATION SYSTEMS Figure 1-10 In a sociotechnical perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to each other until a satisfactory fit is obtained. 70 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS TASKS FOR THIS CHAPTER T1-1. Please actively read chapter 1. Active reading includes activities like underlining/highlighting, taking notes, read critically, looking up unknown terms and writing down what you remember after some time. (2-3 hours) For this week, I uploaded a PDF of chapter 1 (see folder "Downloads" below). Please make sure for the upcoming weeks that you have access to a printed copy or the eBook of the textbook. T1-2. Please read learning track 2 for chapter 1 (you can find learning track 2 in the folder "Downloads" below) and answer discussion question 1-10 ("Using the Internet to Locate Jobs Requiring Information Systems Knowledge"). Write a few sentences about your findings. Share your results in the forum "Jobs & IS - Discussion question 1-10" below. (30 minutes) à You can also use other databases for finding job offers. à You do not need to write one-two pages, instead a few sentences / paragraphs are enough. 71 | ISTP | TU 1 | IS IN BUSINESS TODAY | PROF. DR. PAUL DREWS CONTACT PROF. DR. PAUL DREWS Institute of Information Systems Universitätsallee 1 | 21335 Lüneburg Fon 04131.677-1993 | [email protected] www.leuphana.de/institute/iis/personen/paul-drews