Information Systems Review 1
Software skills: Database querying and reporting
Business Skills: Sales Trend Analysis
Characteristics of a digital firm.
Significant business relationships with customers, suppliers, and employees are digitally enabled and
Core business processes are accomplished through digital networks spanning the entire organization or
linking multiple organizations.
Key corporate assets – intellectual property, core competencies, and financial and human assets – are
managed through digital means.
They sense and respond to their environments far more rapidly than traditional firms.
They offer extraordinary opportunities for more flexible global organization and management,
practicing time-shifting and space-shifting.
Six reasons why information systems are so important for business today include:
(1) Operational excellence
(2) New products, services, and business models
(3) Customer and supplier intimacy
(4) Improved decision making
(5) Competitive advantage
Organizational, management, and technology dimensions of information systems.
Organization: The organization dimension of information systems involves issues such as the
organization’s hierarchy, functional specialties, business processes, culture, and political interest
Management: The management dimension of information systems involves setting organizational
strategies, allocating human and financial resources, creating new products and services and re-
creating the organization if necessary.
Technology: The technology dimension consists of computer hardware, software, data management
technology, and networking/telecommunications technology. Distinguish between data and information and between information systems literacy and computer
Data are streams of raw facts representing events occurring in organizations or the physical
environment before they have been organized and arranged into a form that people can
understand and use.
Information is data that has been shaped into a form that is meaningful and useful to human
Information systems literacy is a broad-based understanding of information systems. It
includes a behavioural as well as a technical approach to studying information systems.
In contrast, computer literacy focuses primarily on knowledge of information technology. It
is limited to understanding how computer hardware and software works.
Complementary assets - asset required to derive value from a primary investment.
- Supportive culture that values efficiency and effectiveness
- Appropriate business model
-Efficient business processes
- Decentralized authority
- Strong senior management support for technology investment and change
- Incentives for management innovation
- Teamwork and collaborative work environments
- The Internet and telecommunications infrastructure
- IT-enriched educational programs raising labour force computer literacy
- Standards (both government and private sector)
END OF CHAPTER 1 REVIEW Chapter 2
Type of System Information Inputs Information Outputs Users
Transaction Processing Systems (TPS) Transactions; daily Detailed reports; lists; Operations personnel;
events summaries first-line supervisors
Management Information Systems (MIS) Summary transaction Summary and Middle managers
data; high-volume exception reports
data; simple models
Decision Support Systems (DSS) Optimized for data Interactive; Professionals, staff
analysis, analytic simulations; analysis managers
models and data
Executive Support Systems (ESS) Aggregate data; Projections; responses Senior managers
external, internal to queries
Enterprise systems - the need to coordinate activities, decisions, and knowledge across the firm’s
different levels, functions, and business unites.
Supply chain management systems - sourcing, producing, and delivering goods and services.
Customer relationship management systems - Improves customer service with other businesses and
Knowledge management systems - Expertise and experience available to a wide range of users.
Intranets - limited to internal users
Extranets - available to external users as well as internal users.
E-business - digital technology and the internet to execute major business processes
E-commerce - narrow centered on the busing and selling of goods and services over the internet.
Teamwork is part of the organization’s business structure for getting things done. Teams have a
specific mission. Often short lived.
Collaboration is working with others to achieve shared and explicit goals
Leads to Productivity, Quality, Innovation , Customer service, financial services
Teamwork + Collaboration =
Changes nature of work
Culture Programmers are highly trained technical specialists who write the software instructions for
Systems analysts constitute the principal liaisons between the information systems groups and the rest
of the organization. The systems analyst’s job is to translate business problems and requirements into
information requirements and systems.
Information systems managers lead teams of programmers and analysts, project managers, physical
facility managers, telecommunications mangers, or database specialists.
Chief information officer (CIO) is a senior manager who oversees the use of information technology
in the firm.
Chief security officer (CSO) is responsible for information systems security in the firm and has the
principle responsibility for enforcing the firm’s information security policy. The CSO is responsible
for educating and training users and IS specialists about security, keeping management aware of
security threats and breakdowns, and maintaining the tools and policies chosen to implement security.
Chief knowledge officer (CKO) helps design programs and systems to find new sources of knowledge
or to make better use of existing knowledge in organizational and management processes.
END OF CHAPTER 2 REVIEW
Common features for organizations include
Routines and business processes: Standard operating procedures have been developed that allow the
organization to become productive and efficient thereby reducing costs over time.
Organizational politics: Divergent viewpoints about how resources, rewards, and punishments should
be distributed bring about political resistance to organization change.
Organizational culture: Assumptions that define the organizational goals and products create a
powerful restraint on change, especially technological change.
Organizational environments: Reciprocal relationships exist between an organization and
environments; information systems provide organizations a way to identify external changes that
might require an organizational response.
Organizational structure: Information systems reflect the type of organizational structure -
entrepreneurial, machine bureaucracy, divisionalized bureaucracy, professional bureaucracy, or
adhocracy. Economic Theories
Transaction cost theory - firms incurs transaction costs when it buys goods in the marketplace rather
than making products for itself.
Agency theory - views the firm as a nexus of contracts among interested individuals
Firm’s general business environment. In this model, five competitive forces shape the fate of the firm:
1. traditional competitors
2. market entrants
3. substitute products and services
Low-cost leadership: Use information systems to improve inventory management, supply
management, and create efficient customer response systems. Example: Walmart.
Product differentiation: Use information systems to create products and services that are customized
and personalized to fit the precise specifications of individual customers. Example: Google, eBay,
Focus on market niche: Use information systems to produce and analyze data for finely tuned sales
and marketing techniques. Analyze customer buying patterns, tastes, and preferences closely in order
to efficiently pitch advertising and marketing campaigns to smaller target markets. Example: Hilton
Strengthen customer and supplier intimacies: Use information systems to facilitate direct access
from suppliers to information within the company. Increase switching costs and loyalty to the
company. Example: IBM, Amazon.com
Value Chain Model
Highlights specific activities in the business where competitive strategies can best be applied and
where information systems will most likely have a strategic impact. Identifies specific critical
leverage points where a firm can use information technology most effectively. Primary activities are most directly related to production and distribution of the firms product and
services which creates value for customer.
Support activates make the delivery of the primary activities possible and consist of organization
Value Web - collection of independent firms that use information technology to coordinate their vale
chains to collectively produce a product or service. Customer driven and operated in a less than a
traditional value chain.
Core competency - activity for which a firm is a world-class leader. Relies on knowledge that is
gained over many years of experience and key people who stay abreast of new external knowledge.
END OF CHAPTER 3 REVIEW
The Golden Rule: If you don’t want other people using cell phones to talk or text while driving, then
you shouldn’t either.
Immanuel Kant’s Categorical Imperative: If it’s not right for everyone to talk or text while driving,
then it shouldn’t be right for anyone. If everyone did it, would the roads and other innocent drivers be
safe or survive?
Utilitarian principle: Take the action that achieves the higher or greater value, prioritizing values in a
rank order, and understanding the consequences of various courses of action requires that no one take
the chance of carrying on this obvious dangerous behaviour.
Risk Aversion principle: Taking the action that produces the least harm or the least potential costs
would have everyone storing their cell phone until they can use them safely.
“No Free Lunch” Rule. Assume that someone else owns virtually all tangible and intangible objects
unless there is a specific declaration otherwise.
Technological trends responsible for heightening ethical concerns. These trends include:
1. Computing power doubles every 18 months
2. Data storage costs rapidly declining
3. Data analysis advances
4. Networking advances and the Internet Responsibility is a key element of ethical actions. Responsibility means that you accept the potential
costs, duties, and obligations for the decisions you make.
Accountability is a feature of systems and social institutions. It means that mechanisms are in place to
determine who took responsible action.
Liability - s a feature of political systems in which a body of laws is in place that permits individuals
to recover the damages done to them by other actors, systems, or organizations.
The five steps in ethical analysis include:
1. Identify and describe clearly the facts.
2. Define the conflict or dilemma and identify the higher-order values involved.
3. Identify the stakeholders.
4. Identify the options that you can reasonably take.
5. Identify the potential consequences of your options.
- Trade secrets
- Patent laws
Principle sources of poor system performance are:
- Software bugs and errors
- Hardware or facility failures caused by natural or other causes
- Poor input data quality
Repetitive stress injury (RSI)Three management actions that could reduce RSI injuries include:
- Designing workstations for a neutral wrist position, using proper monitor stands, and
footrests all contribute to proper posture and reduced RSI.
- Using ergonomically designed devices such as keyboards and mice are also options.
- Promoting and supporting frequent rest breaks and rotation of employees to different jobs.
END OF CHAPTER 4 REVIEW Chapter 9
Point of Call (range based) Address Data – a more accurate database against which to validate and
correct mailing lists before items are printed, prepared and inducted.
Cloud-based enterprise applications
Advantages: Reduced costs; access to software that may be too sophisticated or cumbersome f