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Information technology (IT): relates to any computer-based tool that people use to
work with information and to support the information and information-processing
needs of an organization.
Information system: (IS): collects, processes, stores, analyzes, and disseminates
information for a specific purpose. The purpose of IS to get the right information to
the right people at the right time in the right amount and in the right format to
support business process and decision making.
1.1 Why study IS?
Why study IS when you are homo Conexus: most connected generation in history,
practice continuous computing and are surrounded by a personal, movable
information network.
You study IS to become an informed user (a person knowledgeable about IS and IT).
Reasons why you should be an informed user:
You will benefit more from your organizations IT applications because you will
understand what is behind those applications.
You will be in a position to enhance the quality of your organizations IT
applications with your input.
Even as a new graduate, you will quickly be in a position to recommend the IT
applications that your organization will use.
Being an informed user will keep you abreast of both new information
technologies and rapid developments in existing technologies.
You will understand how using IT can improved your organizations performance
and teamwork as well as your own productivity.
all departments. This situation, known as end user computing, has led to a
partnership between the MIS department and the end users. The MIS
department now acts as more of a consultant to end users, viewing them as
customers. In fact, the main function of the MIS department is to use IT to solve
end users business problems.
As a result of these developments, the responsibility for managing information
resources is now divided between the MIS department and the end users. There is
no standard way to divide responsibility for developing and maintaining information
resources between the MIS department and the end users. Instead, that division
depends on several factors: the size and nature of the organization, the amount and
type of IT resources, the organizations attitudes toward computing, the attitudes of
top management toward computing, the maturity level of the technology, the
amount and nature of outsourced IT work, and even the countries in which the
company operates.
The users come in:
Traditional Functions of MIS Department
Example: manage systems development and systems project
management
Consultative Functions of MIS Department
Example: create business alliances with business partners
1.2 Overview of computer-based IS
Data Items. 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 organized so that they have meaning and value to the recipient.
Knowledge. Data and/or information organized and processed to convey
understanding, experience, accumulated learning and expertise as they apply to a
current problem or activity.
Computer-based information systems are information systems that use computer
technology to perform some or all of their intended tasks.
The basic components of computer-based information systems are:
People are those individuals who use the hardware and software, interface
with it, or uses its output.
Types of computer-based IS
Significant changes in any of these factor are likely to create business pressure on
the organization.
The three types of business pressures faced are: market, technology, and societal
pressures.
Market: pressures are generated by the global economy, intense competition,
the changing nature of the workforce, and powerful customers
Technology: pressures involving Technological Innovation and Obsolescence and
Information Overload
Societal: includes social responsibility, government regulation/deregulation,
spending for social programs, spending to protect against terrorism, and ethics
Market Pressure
Market pressures are generated by the global economy, intense competition, the changing nature
of the workforce, and powerful customers.
Globalization 2.0
1800 to 2000
medium to small-size
First
half:
global
integration powered by
falling
transportation
costs
(steam engine
and railroad)
Second
half:
global
integration powered by
falling
telecommunications costs
(telephone, PC, satellites,
fiber-optic cable, Internet
& WWW)
Key agent of change:
multinational companies
Focus on Companies
Globalization 3.0
2000 now
World is tiny (everyone is
everyone elses close
neighbor)
Competitive playing field
is being leveled
Enabling people to
collaborate and compete
globally
all types of positions. IT is easing the integration of these employees into the traditional
workforce. IT is also enabling people to work from home, which can be a major benefit for parents
with young children and for people confronted with mobility and/or transportation issues.
Powerful Customers. Consumer sophistication and expectations increase as customers become
more knowledgeable about the products and services they acquire. Customers can use the
Internet to find detailed information about products and services, to compare prices, and to
purchase items at electronic auctions.
Organizations recognize the importance of customers and they have increased their efforts to
acquire and retain them. Modern firms strive to learn as much as possible about their customers
to better anticipate and address their needs. This process, called customer intimacy, is an
important component of customer relationship management (CRM), an organization-wide effort
toward maximizing the customer experience.
Technology Pressures
Technological Innovation and Obsolescence. New and improved technologies
rapidly create or support substitutes for products, alternative service options, and
superb quality.
Information Overload. The amount of information available on the Internet
doubles approximately every year, and much of it is free.
Societal/ Political/ Legal Pressure
Social Responsibility. Social issues that affect businesses and individuals range
from the state of the physical environment, to company and individual philanthropy,
to education.
IT executives listed four areas where IT is particularly valuable for going green:
1. Facilities design and management.
2. Carbon management.
3. International and Canadian environmental laws
4. Energy management.
Digital divide refers to the wide gap between those who have access to
information and communications technology and those who do not. This gap exists
both within and among countries.
Compliance with Government Regulations. Another major source of business
pressures is government regulations regarding health, safety, environmental
protection, and equal opportunity.
Protection against Fraud or Terrorist Attacks. Computer systems can be used
to create fraudulent or fictitious transactions that are used to steal funds from
banks or other organizations, or to engage in identity theftthe use of another
persons identity for financial gain.
Organizational Responses
Strategic Systems provide organizations with advantages that enable them to
increase their market share or profits, to better negotiate with suppliers, and to
prevent competitors from entering their markets.
Customer Focus Organizational attempts to provide superb customer service can
make the difference between attracting and keeping customers and losing them to
competitors.
Make-to-Order is a strategy of producing customized products and services.
Mass Customization is producing a large quantity of items, but customizing them
to fit the desire of each customer.
Organizations:
view their internal and external customers and their customer service function
as supremely important.
provide overarching goals that are completely clear to each IT and business
employee.
ensure that IT employees understand how the company makes (or loses) money.