Professional Documents
Culture Documents
Ism 1
Ism 1
CONCEPTS
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FUNDAMENTALS OF
INFORMATION
SYSTEMS
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Information Systems
Framework
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IS Framework (cont’d
(cont’d))
• Foundation Concepts
– Fundamental concepts about the
components and roles of information
systems
• Information Technologies
– Major concepts, developments, and
management issues in information
technology
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IS Framework (cont’d
(cont’d))
• Business Applications
– The major uses of information systems for
operations, management, and competitive
advantage
• Development Processes
– How business professionals and information
specialists plan, develop, and implement
information systems
• Management Challenges
– The challenge of managing effectively and
ethically
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System Concepts
What is a system?
A System can be simply defined as a group of
interrelated or interacting elements forming a
unified whole.
e.g.:
- Physical system of the sun and its planets
- Biological system of the human body
- Technological system of an oil refinery
- Socioeconomic system of a business
organization
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More appropriate
framework for describing IS:
→A system is a group of interrelated
components working together
toward a common goal by accepting
inputs and producing outputs in an
organized transformation process.
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Some System Characteristics
• A system exists and functions in an
environment containing other systems.
• Subsystem – a component of a larger
system.
• Systems that share the same
environment may be connected to one
another through a shared boundary, or
interface.
• Open versus closed system
• Adaptive system
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Information Systems Defined
• IS can be defined as an organized combination of
resources and activities that collect, process,
store and disseminate information.
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Components of an Information
System
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IS Resources
People
Hardware
Software
Communications Networks
Data
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People
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Hardware
- Machines → Computers, Monitors,
Printers, Scanners
- Media → CD, Flash, Hard disc,
Paper forms
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Software
- Programs → Operating systems,
Spreadsheet, Word processing
- Procedures → Data entry procedures,
Error correction procedures
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Communications Networks
- Comm. Media → Twisted-pair wire,
Coaxial cable, Fiber optics
- Comm. Processor → Modems,
Multiplexers, Internetwork processors
- Network SW → Novell, Windows NT
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Data Resources
- Product descriptions
- Customer records
- Inventory databases
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IS Activities
Input
Process
Output
Storage
Control
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Input
→ Recording
→ Editing
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Processing
→ Data Manipulation
- Calculating
- Comparing
- Sorting
- Classifying
- Summarizing
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Output
→ Goal of IS is the production of
appropriate information products for end
users
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Storage
→ Data and information are retained in an
organized manner for later use
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Control
→ An IS should produce feedback about
its input, processing and storage
activities
Monitor and evaluate the feedback
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A Business Perspective on
Information Systems
• Information systems are more than just
technology.
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A Business Perspective on
IS (Cont’d)
• Structure
• Business processes
• Culture
• Politics
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Dimensions of Information
Systems (Cont’d)
The Management Dimension of IS
Managers are:
• Sense makers
• Decision makers
• Planners
• Innovators of new processes
• Leaders: set agendas
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Dimensions of Information
Systems (Cont’d)
The Management Dimension of IS (Cont’d)
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Dimensions of Information
Systems (Cont’d)
The Technology Dimension of IS
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Data Versus Information
•
Monthly Sales Report
for West Region
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Data versus Information
(Cont’d)
• Data: Streams of raw facts
representing events such as
business transactions
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Information
• Data that has been given meaning by way
of relational connection
• Understanding of the relationships
between pieces of data, or between
pieces of data and other information
• Reduces uncertainty, reveals additional
alternatives or helps eliminate irrelevant or
poor ones
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Attributes of Information Quality
(Information Dimensions)
• Content -- information should be
accurate, meaningful, flexible, reliable,
verifiable, complete, accessible, and
secure
• Time -- information should be timely and
current
• Form -- information should be provided
at the appropriate level of detail and in
the most appropriate form
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Information Dimensions (Content)
• Accurate information is correct information.
Inaccurate information often is worse than no
information.
• Meaningful information is relevant to the
person who receives it.
• Reliable information is dependable
information.
• Verifiable information means that the
information can be confirmed by the user.
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Information Dimensions
(Content)
• Complete information presents the overall
picture and the required details.
• Flexible information presents different
views of data to different people.
• Accessible and Secure: Information should
be easily accessible to authorized persons.
At the same time, it should be secure from
unauthorized users.
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THE ROLE OF
INFORMATION
SYSTEMS
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The Fundamental Roles of IS
Support of
Competitive
Advantage
Support of
Business
Decision Making
Support of
Business Operations
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Support of Business Operations
e.g. Retail store operations:
– Record customer purchase
– Keep track of inventory
– Pay employees
– Buy new merchandise
– Evaluate sales trends
Store operation would grid to halt
with out the support of such IS
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Support of Business Decision
Making
e.g. Retail store management:
- Decisions on what line merchandise
to be added or discontinued
Analysis provided by IS
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Support of Competitive
Advantages
e.g. Retail store competitive advantage:
- Home computer shopping network might
lure customers away from other stores
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INFORMATION
SYSTEMS IN
ORGANIZATIONS
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How Information Systems Impact
Organizations
Economic Impacts
• Information systems technology is a factor of
production, like capital and labor.
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How Information Systems Impact
Organizations (Cont’d)
• Agency theory
• Firms experience agency costs (the cost of
managing and supervising).
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How Information Systems Impact
Organizations (Cont’d)
Organizational and Behavioral Impacts
IT Flattens Organizations:
• Facilitates flattening of hierarchies
• Broadens the distribution of timely information
• Increases the speed of decision making
• Empowers lower-level employees to make decisions
without supervision and increase management
efficiency
• Management span of control (the number of employees
supervised by each manager) will also grow
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How Information Systems Impact
Organizations (Cont’d)
Flattening Organizations
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