Fundamentals of Information Systems

Information Systems in
Global Business Today

DR. IDAVER SHERIFI

 Learning Objectives

1. Main components of information systems and how they are linked

together.
2. Defining information.
3. Attributes of information.
4. Academic disciples used to study information systems.
Dimensions/Components of Information Systems

INFORMATION SYSTEMS ARE MORE THAN COMPUTERS

 Organizations & Information Systems
An organization coordinates work through its hierarchy and its business functions. Information systems support all business
functions and serve to all levels of hierarchy.

Major Business Functions Hierarchical Levels in an

Organization
 Management & Information Systems
Management's job is to make sense out of many situations faced by organizations, make decisions and formulate action plans to
solve organizational problems. Information systems can play a powerful role in helping managers design and deliver new products
and services and also redirecting and redesigning their organizations.
 Technology & Information Systems

Information technology (IT) infrastructure provides the foundation or platform on which

the firm can build its specific information systems. The technologies listed above
comprise IT infrastructure.

• Computer Hardware
• Computer Software
• Data Management Technology
• Networking and Telecommunications Technology
• Internet
How are main components of information systems linked
together?

Different types of information systems within an organization.

How are main components of information systems linked
together?

Different types of information systems among multiple organizations.

Data, Information and Knowledge
 Data, Information and Knowledge

Data: An elementary description of things, events, activities, and transactions

that are recorded, classified, and stored, but are not organized to convey any
specific meaning.

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

Knowledge: Data and/or information that have been organized and processed to
convey understanding, experience, accumulated learning, and expertise as they
apply to a current business problem.
What makes information valuable?
 What makes information valuable?
Timeliness matters a great deal in some settings, and near real-time information often costs more. For
example, people pay monthly fees to financial services to get up-to-the minute stock prices rather than the
delayed price reports shown on free stock tickers'.

Accuracy may seem like an obvious feature of valuable information, but there actually are degrees of
accuracy. The more accurate you want the information to be, the longer it may take to obtain, making
extreme accuracy a trade-off to timeliness. A CEO who wants to know how much competitors charge for a
rival product, for example, might wait too long for staff to scour all the distribution channels and assemble
the data. An approximate but timely answer is more valuable.

Completeness adds value, particularly as a means to avoid bias or spin. A marketing survey that polls
customers as they enter a store will completely miss those who shop online, for example. The survey
results would be incomplete without taking greater care to assess the interests of all the customers.
Striving for complete information, however, may also introduce delays that affect timeliness.
What academic disciples are used to study
information systems?
 What academic disciples are used to study
information systems?

Computer science is concerned with establishing theories of computability,

methods of computation and methods of efficient data storage and access.

Management science emphasizes the development of models for decision-making

and management practices.

Operations research focuses on mathematical techniques for optimizing selected

parameters of organizations, such as transportation, inventory control and
transaction costs.
 What academic disciples are used to study
information systems?

Sociologists study information systems with an eye toward how groups and organizations
shape the development of systems and also how systems affect individuals, groups, and
organizations.

Psychologists study information systems with an interest in how human decision makers
perceive and use formal information.

Economists study information systems with an interest in understanding the production of

digital goods, the dynamics of digital markets, and how new information systems change
the control and cost structures within the firm.
 Case Study: Smart Stores Reinvent the Retail Space

 How do Acrelec’s and AWM’s systems change retail operations?

 How do they improve the customer experience?

Case Study: Smart Stores Reinvent the Retail Space
 References

• Laudon, K. C., & Laudon, J. P. (2022). Information Systems in Global Business Today. In
Management Information Systems: Managing the Digital Firm (17th ed., pp. 46–52). Pearson.
• Rainer, R. K., Prince, B., Sanchez-Rodriguez, C., Splettstoesser-Hogeterp, I., & Ebrahimi, S.
(2020). Introduction to Information Systems. In Introduction to Information Systems: Supporting
and transforming businesses (5th ed., pp. 8 –17). Wiley.
• Laudon, K. C., & Laudon, J. P. (2022). Information Systems in Global Business Today. In
Management Information Systems: Managing the Digital Firm (17th ed., pp. 58–60). Pearson.
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