BUS 516

Computer Information Systems

IS in Global Business Today

 Why does IT matter to
individuals?

Think about the number of information technologies that

you use for work and for pleasure

“Information technology and

business are becoming
inextricably interwoven. I don’t
think anybody can talk
meaningfully about one
without talking about the
other.” – Bill Gates
 Why does IT matter to
managers?

Managers and technologists MUST have a partnership

It is no longer acceptable for general and functional

managers to claim ignorance of IT and delegate all IT
decisions to technologists.

New IT capabilities (e.g., e-commerce and social

networks) strongly influence competitive strategies and
the efficiency of operations
 Why does IT matter to
managers?

No doubt, failing to invest in IT could drive companies

out of business

New IT developments trigger changes in marketing,

operations, e-commerce, logistics, human resources,
finance, accounting, and relationships with
customers and business partners.

Nothing about business or corporate strategy is

untouched by IT.
 What is an Information
System?

What is technology?

What is data?

What is Information?

What is Information Technology (IT)?

What is Information Systems (IS)?

 Data Vs. Information

Technology: The application of scientific knowledge

for practical purposes

Data: Data are streams of raw facts representing

events occurring in organizations or the physical
environment

Information: Data that have been shaped into a form

that is meaningful and useful to human beings
Data Vs. Information
 Information Technology
vs. Information Systems

Information Technology (IT): IT consists of all the

hardware and software that a firm needs to use in
order to achieve its business objectives

Information systems (IS): “IS can be defined

technically as a set of interrelated components that
collect (or retrieve), process, store, and distribute
information to support decision making and control in
an organization
Functions of Information
Systems
 Components of
Information Systems

IS can be as small as a smartphone with a software

app that can snap tags to load a Web site.

Or it may include several thousand computers of

various types, scanners, printers, and other devices
connected to databases via wired and wireless
telecommunication networks
 Components of
Information Systems

Hardware is a set of devices such as processor, monitor, keyboard,

and printer

Graphical user interfaces, which are called GUI, accept data and
information that are then processed by central processing units
(CPUs), stored in databases, and displayed on screens.

Software is a set of applications (apps) or programs that instruct the

hardware to process data or other inputs such as voice commands.

Data is an essential part processed by the system and, if needed,

stored in a database or other storage system.
 Components of
Information Systems

A network is a telecommunication system connecting hardware that

is wired, wireless, or a combination. – Internet, Intranet, Extranet

Procedures are the set of instructions about how to combine the

above components in order to process information and generate the
desired output.

People are those individuals who work with the system, interface with
it, or use its output.
 Components of
Information Systems

All of these technologies, along with the people required to run and
manage them, represent resources that can be shared throughout the
organization and constitute the firm’s information technology (IT)
infrastructure.

The IT infrastructure provides the foundation, or platform, on which

the firm can build its specific information systems
Information System and
its environment
 Computer Literacy Vs
Information Systems
Literacy
Computer literacy emphasizes on the knowledge of Information
Technology (IT) - Technology dimensions

Information Systems Literacy is a broader concept which focuses on

two additional dimensions in addition to only technology or IT –

Organizational dimensions

Management Dimensions
Dimensions of Information
Systems
Dimensions of Information
Systems
 Dimensions of
Information Systems

Organization: Organizational structure / hierarchy, business

functions, organizational culture (different viewpoints, conflicts)

Management: Decision makers, leaders, decision about

development and use of IS

Information Technology: Hardware, software, data management

technology, networking and telecommunications technology – IT
infrastructure
 Complementary Assets to
IT

IT alone is not capable of bringing out success in business. Other

assets MUST complement IT investments.

Complementary assets are those assets required to derive value

from a primary investment

Organizational assets: supportive culture, decentralized

authority etc.

Managerial assets: management training for decision making,

having the right people at the right place etc.

Social assets: internet and telecommunications structure, laws

and regulations to create fair market etc.
IS: Technical or Social?
IS: Technical or Social?
 A Socio-technical System

Sociotechnical theory has a long tradition of research dating back to

work done at the Tavistock Institute in London, England.

Sociotechnical theory questioned the overly optimistic predictions

about the potential benefits of new technology and suggested that
the impact of new technologies on work systems was not a direct
one but depended on the interplay of technology with other aspects,
or components, of the work system.
A Socio-technical System
Information Systems Drive
Business Value
 Why don’t businesses just
hire good IT people?

Just as most general and functional managers are not trained in the
design and implementation of IT the way computer scientists and
engineers are, most computer scientists and engineers are not
trained in marketing, management, finance, or accounting.

This diverse training leads to a great deal of communication difficulty.

Because the skills and knowledge of general and functional

managers are complementary to those of the information systems
professionals in the organization, communication, and a good
relationship are critical to the firm’s success.