Business Information Systems Chapter Notes PDF

Business Information Systems - Chapter Notes Definition of a Business Information System ​ A Business Information System (also referred to as a Management Information System): ○​ A set of interrelated components designed to: ​ Collect ​ Process...

Business Information Systems - Chapter Notes Definition of a Business Information System ​ A Business Information System (also referred to as a Management Information System): ○​ A set of interrelated components designed to: ​ Collect ​ Process ​ Store ​ Distribute information ○​ Purpose: ​ Support decision-making, coordination, and control in organizations. Key Concepts 1.​ Information Technology (IT): ○​ Refers to the hardware and software used by businesses to achieve objectives. 2.​ Information System: ○​ Components that manage information to: ​ Support decision-making and control. ​ Aid in analysis, visualization, and product creation. 3.​ Data: ○​ Streams of raw facts. 4.​ Information: ○​ Data that has been shaped into a meaningful and useful form. Functions of an Information System 1.​ Input: Captures raw data. 2.​ Processing: Converts raw data into meaningful information. 3.​ Output: Transfers processed information to users or systems. 4.​ Feedback: Refines the system to improve future operations. Roles of Information Systems in Business 1.​ Operational Excellence:  ○​ Improves efficiency to achieve higher profitability. ○​ Utilizes tools like software and data systems to enhance productivity. 2.​ New Products, Services, and Business Models: ○​ Facilitates innovation. ○​ Business Model: The way a company produces, delivers, and sells products or services. 3.​ Customer and Supplier Intimacy: ○​ Builds loyalty by improving service quality. ○​ Leads to increased revenue and profits. 4.​ Improved Decision-Making: ○​ Provides accurate and timely information. ○​ Avoids reliance on guesses or outdated data. ○​ Results in better resource allocation and responsiveness. 5.​ Competitive Advantage: ○​ Helps businesses outperform competitors by: ​ Delivering better performance. ​ Offering superior products at competitive prices. ​ Responding to customers in real time. 6.​ Survival: ○​ Essential for adapting to: ​ Industry-level changes. ​ Government regulations (e.g., record-keeping requirements). Business Perspectives on Information Systems ​ Economic Value: ○​ Increases productivity. ○​ Reduces operating costs. ○​ Enhances revenues. ​ Strategic Value: ○​ Provides long-term positioning for market success. ​ Variation in Returns: ○​ Not all IS investments yield the same return on investment (ROI). ○​ Success depends on integration with organizational, managerial, and social assets. Key Factors Driving IS Growth 1.​ IT Innovations: ○​ Continuous advancements in technology. 2.​ New Business Models:  ○​ Growth of e-commerce and digital-first strategies. 3.​ E-commerce Expansion: ○​ Transformation of global markets. 4.​ Management Changes: ○​ Shifts in leadership styles and strategies. 5.​ Firm Adaptation: ○​ Organizations reconfigure themselves for the digital age. Globalization and IS ​ Information Systems connect global markets. ​ Telecommunications infrastructure underpins globalization. ​ Enables firms to operate seamlessly across regions. Complementary Assets for IS Success To optimize IS investments, organizations must leverage: 1.​ Organizational Assets: ○​ Supportive culture valuing efficiency. ○​ Decentralized authority and decision-making. ○​ Efficient business processes. 2.​ Managerial Assets: ○​ Strong support from senior management. ○​ Flexible, knowledge-driven decision-making cultures. 3.​ Social Assets: ○​ Reliable IT infrastructure. ○​ Supportive educational and regulatory environments.