Introduction to Information Technology for Business Chapter 1

Source: Information Technology For Management 5th Edition By: Turban, Leidner, McLean, Wetherbe
CE52801-2 Information Systems Organizations and Management The Strategic use of IT

Learning Outcomes
1.Develop the ability to communicate ideas and solutions with rational, reasoned arguments. 2.Demonstrate the skills required to evaluate and interpret those facts, concepts, principles and theories and to evaluate the different pieces of Information relating to case studies and for a specific problem, determine the most appropriate solution. 3.Demonstrate the ability to reflect on the professional, moral, ethical and legal issues involved in the exploration of IT in business.
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Learning Outcomes
At the end of this module, YOU should be able to:

Understand that Information systems are viewed as systems that support the critical response activities of organizations, such as increasing productivity, increasing speed, and improving customer service. A foundation for understanding what is meant by information technology is established, and new innovations are discussed.
CE52801-2 Information Systems Organizations and Management The Strategic use of IT

IT and IS
What is Information Technology?
Any form of technology used by people to handle information.

What are Information Systems?

Integrated components processing, storing and disseminating information in an organisation. Interdisciplinary study of systems that provide information to users in organisations.
Pyle, I.C. & Illingworth, V. (Eds) (1996). Oxford Dictionary of Computing, 4th Edition. Oxford / New York: Oxford University Press 4
CE52801-2 Information Systems Organizations and Management The Strategic use of IT

IT - IS - Organisations
IS mediates between Technology and Organisations

IS IT Orgs

CE52801-2 Information Systems Organizations and Management

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IT and IS
IT experts ought to be conscious of the nature of information systems and their context many IT professionals not really interested in IS and its influence on organisations - some even assume IS and IT and much the same thing an example of business analysts and IT professionals and whether they should work together: the business analysts were keen on joint working the IT experts were not, with a view expressed of their role as being taking a precise specification of what was required, and they would provide an efficient and elegant system Checkland argued that the IT experts were wrong just as IS cannot ignore IT, so work on IT needs to be done in relation to the human and social context This essentially means that IT work needs to be interactive with business analysts and users this is a strong rationale for modern user centred design approaches.

CE52801-2 Information Systems Organizations and Management

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IT and IS

information systems are distinct from IT systems, with IT systems being a component elements of most modern IS the systems concept has been applied both to technology and to human activity an information technology system has data as input, manipulates such data as a process and outputs manipulated data IT provides the means to construct aspects of information systems IT includes computer software, hardware, data storage and communication technology information systems have existed in organisations prior to the invention of IT hence information systems do not need modern IT to exist but modern information systems rely on IT to some degree. in principle you could think out the fundamentals of information systems without reference to the technology used in actual systems, but it is now necessary to think of IS in relation to IT the rapidly changing technology offers the possibility for new kinds of information systems well beyond the capability of earlier technology. This then makes possible new activities, new ways of doing things and new thinking, none of which would have been possible without new technologies.

CE52801-2 Information Systems Organizations and Management

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What are information systems for?

one view of what information systems are for is that they fulfil the following basic functions:
remembering the past keeping historical data, as a record of what has happened and for facilitating various analysis handling the present recording various transaction and automating various processes preparing for the future providing information to facilitate various decision-making and planning processes

we will look at examples of each of these when we come back to look at typical information systems.

CE52801-2 Information Systems Organizations and Management

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Why Study Information Systems?

You will be more effective in your chosen career if you understand how successful information systems are built, used, and managed. You also will be more effective if you know how to recognize and avoid unsuccessful systems and failures. According to the US Bureau of Labor Statistics, Top seven fastest growing occupations fall within IT or computer related field Developing Computer Literacy will only enhance your Information Literacy

CE52801-2 Information Systems Organizations and Management

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Introduction Continued
Once you finish you program, you will enter the marketplace as a knowledge worker. Knowledge worker works with and produces information as a product. A knowledge worker outnumbers all other types of workers by a 4-to-1 margin.

CE52801-2 Information Systems Organizations and Management

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Copyright 2004 The McGraw-Hill

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Topics that will be Covered

Types of Information System Information System Management Communication & Collaboration E-Commerce & EBusiness Managing System Security
CE52801-2 Information Systems Organizations and Management

Strategic Information Systems Information strategy and IT Planning System Security CRM ERP Risk and Recovery

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Information System
An information system (IS) collects, processes, stores, analyzes, and disseminates information for a specific purpose. Like any other system, an information system includes inputs (data, instructions) and outputs (reports, calculations). It processes the inputs by using technology such as PCs and produces outputs that are sent to users or to other systems via electronic networks and a feedback mechanism that controls the operation.

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Information System Is A System

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Data, Information, and knowledge

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Information System Primary Purpose

Collects data, processes it into information then converts information into knowledge for a specific purpose.

Data
Elementary description of things, events, activities, and transactions that are recorded, classified, and stored, but not organized to convey any specific meeting

Information
Data that has been organized so that they have meaning and value to the recipient

Knowledge
Information that has been organized and processed to convey understanding, experience and expertise as they apply to a current problem or activity
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Data
data (or datum) one of more symbols that are used to represent something. data facts about the world
myriad of facts about the world, only some are significant or of interest to people. distinction between the great mass of facts and the sub-set of them we select for attention sometimes called capta
it would generally be the capta that we might store in our computer systems.

data (or capta) are the raw inputs of information systems, facts of some interest to the information systems users.

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Information
information is processed, or value-added data can also see information as data interpreted in some meaningful context. implies one or more people having an interest in the data and doing some form of interpretation this is essentially meaning attribution the attribution of meaning in a context converts data into something different, ie. information information has a temporal dimension what might be meaningful at some time may be completely irrelevant at another time. What might be information to one person may not be to another these people may have different interests at different times.
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Knowledge
The process by which data is converted into meaningful information can lead to larger structures of related information. These larger, longer living structures are referred to as knowledge.
these larger structures are often integrated with existing knowledge to create an improved knowledge within that context.

Knowledge can also be thought of as being an understanding of what the information means, or implies Knowledge is then information that has been incorporated into our way of understanding the world around us
it is the sense we have made of the world, and it helps us decide to act in a certain way when we want to have an effect on the world.

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Quiz
Think about whether each of the following is information, data or knowledge?
A list of tax file numbers

A exception report of all accounts that are more than 90 days pastdue, which is sent to the accounts receivable manager
A monthly production report that is sent to shop floor supervisors who dont use the report because they believe the figures reported are outdated and inaccurate

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Major Capabilities of an IS
Perform high-speed, high-volume, numerical computations. Provide fast, accurate and inexpensive communication within and between organizations. Store huge amounts of information in an easy-to-access, yet small space. Allow quick and inexpensive access to vast amount of information, worldwide. Enable communication and collaboration anywhere, any time. Increase the effectiveness and efficiency of people working in groups in one place or in several locations
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Cont
Vividly present information that challenges the human mind. Facilitate work in hazardous environments. Automate both semiautomatic business processes and manually done tasks. Facilitate interpretation of vast amounts of data. Facilitate global trade. Can be wireless, thus supporting unique applications anywhere. Accomplish all of the above much less expensively than when done manually.
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Why IS can Fail?

companies do not know how to properly make use of and distribute the information that is collected Knowledge workers failed insure against information overload while securing proper distribution of reports and documents in order to aid in executive and management decisions. too difficult to use, . rapidly changing field of available technologies

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Competitive Advantage Examples

Dell Computer

Before
Dell would sell its computers via retailers Buy-hold-sell approach
Build computers Stock computers on shelves in warehouse Sell computers

Customer service all by telephone

CE52801-2 Information Systems Organizations and Management

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Copyright 2004
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Competitive Advantage Examples

Dell Computer

Strategy
Eliminate the retail middle man and sell directly to customer Build and deploy an information system for purchasing Use internet as the technology vehicle to reach its customer for sales and service

CE52801-2 Information Systems Organizations and Management

Management Information Systems for the Information Age The Strategic use of IT Canadian Edition Second

Copyright 2004
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Competitive Advantage Examples

Dell Computer
Now
www.dell.ca Sell-source-ship
Dell receives an order by internet Dell outsources to initiate the construction of the computer sold Dell then ships the product

Top of the line automated customer care component

CE52801-2 Information Systems Organizations and Management

Management Information Systems for the Information Age The Strategic use of IT Canadian Edition Second

Copyright 2004
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Competitive Advantage Examples

Dell Computer

Information partnership - lets two or more companies cooperate by integrating their IT systems.

On Your Own

Looking for Opportunities Close to Home (p. 47)

CE52801-2 Information Systems Organizations and Management

Management Information Systems for the Information Age The Strategic use of IT Canadian Edition Second

Copyright 2004
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Competitive Advantage Examples

Dell Computer

Figure 2.3
Buy-hold-sell versus sell-source-ship page 48

CE52801-2 Information Systems Organizations and Management

Management Information Systems for the Information Age The Strategic use of IT Canadian Edition Second

Copyright 2004
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