Chapter 1
IT for Business and Business Professionals
Why IS Matters
-Information Systems are very important in daily life, without these systems your life would be
significantly different
Ex: Do you know anyone without a cell phone or anyone who refuses to use the ATM?
-Organizations that ignore the impact of technology and information systems when doing business will
likely be at risk
-Consumers have adopted the internet less than a decade
-information systems can take hold of users:
Ex: social media; Facebook and Twitter did not even exist before 2004 and 2006, can you
imagine yourself without them today?
-Organizations and individuals must keep up with rapid technology changes or risk becoming obsolete
-Rate of technology change is greater today than ever before and it will be more important to keep up
with those changes
-Information technology, as a part of any IS, impacts all business disciplines (accounting, marketing, etc.)
-In today's work environment it’s impossible to do knowledge work without technology computers,
Internet, mobile phones, desktop sharing, video conferences etc
Moore’s Law:
-1965, Gordon E. Moore; co-founder of Intel observed a trend in technology
Known as Moore’s law
-law states that computing power doubles every 18 months
-Moore’s law means more performance and decreasing costs
-technology improves at an average rate of 1 percent per week
Increases of 11 15% per quarter depending on the number of days and weeks in any quarter
IT and Knowledge Work:
Key enabler to all organizations and impacts all business disciplines
-technology is essential to keep the pace with competitors
-knowledge work involves
communication of data, Information and Knowledge
-impossible to do knowledge work without technology
What is an Information System (IS)?
-An information system (IS) is an organized collection of people, information, business processes, and
information technology (IT), designed to transform inputs into outputs, in order to achieve a goal
-Information systems enhance:
decision making
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problem solving
communication and coordination
Information System Components:
1. Input: Items entered into a system to transform them into outputs
Ex: Friends contact information (email, phone number, address) into your contact list
2. Process: A series of one or more steps used by a business to transform inputs into outputs
Ex: save to contact database
3. Output: The end result of a process. Information is the result of the transformation (processing)
of data. From an organizational perspective, the output of a process is a product or a service
Ex: alphabetical list of friends and their contact information so that you can access it to
make phone calls, send emails etc, you can also group friends together and name the
4. Data: raw, unorganized facts
Ex: a list of friends who might be interested in a trip on during spring break
5. Information: processed/organized/transformed data that is useful to a person
Ex: confirmed list of friends interested in the spring break trip with potential trip
6. Knowledge: information plus human experiences and judgment
Ex: friends agree on one location, could possibly get a group discount on the trip
7. System: A recognizable whole that consists of a collection of interrelated parts that interact with
each other to transform inputs into outputs to achieve a goal
Ex: transactional systems, algorithms, function on websites to rank it
8. People: People or organizations that have both an interest in and an influence on the creation,
implementation, or operation of an IS
Ex: friends add comments to the website about what locations they like
9. Information Technology: The physical components, typically hardware, software, and
connectivity, that makes up an IS. Technology enables processes to perform the steps they were
designed to accomplish
Ex: function on the website for your friends to rank the trip locations in order or
10. Decision: A choice made from one or more alternatives to follow or avoid some course of
Ex: number of votes received,
11. Business Value: A positive return on the investment of resources that is created through the
effective and efficient integration of an organization’s people, information, information
technology, and business processes
Ex: efficiently coordinated your friends to select a location for spring break, can use this
process to keep friends updated and count down to the break!
What is Information Technology (IT)?
-Information technology (IT) is a collection of tools hardware, software, and connectivity that enable
individuals or businesses to achieve their goals
-IT helps to achieve business goals
The Productivity Zone:
-Created at the intersection of people, process and technology
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-Incorporates elements of human design to accommodate how people will use the system
-Combines all three of these elements allowing for superior productivity and a competitive advantage
-applying equal weight of all three elements (people, process, technology) you can achieve superior
productivity and enhance competitive advantage
For you; means excellent academic results
For business; increase efficiency and greater profits
For governments; better services delivered at lower rate
For non-profit; better services at lower rates
The Internet:
-most widely used component of the Internet is the World Wide Web, which allows us to transfer text,
images, audio, and video, as well as giving us new ways of buying and selling goodsthat is, carrying out
commerce in the global marketplace
-commerce using computer networks is known as e-commerce, which is the use of information systems,
technologies, and computer networks, by individuals and organizations to create business value
-internet has become an integral part of personal and business lives for the following reasons:
Communication, information, commerce
-communication generates business by sharing information between themselves with business partners
Internet does this by providing newsgroups, chat rooms, blogs, text messages through cell
phones etc
-www makes it easier to publish information in many ways
After publishing effective search engines make it possible to locate it quickly
-E-commerce use of IS, technology and computer networks to create business value (occurs in the
information economy
Ex: travel insurance, banking
What’s in IT for Me?
-IT knowledge can be a key contributor to your success both personally and professionally
-Using technology allows you to be more efficient and effective thereby becoming more productive
-IT is fundamental for your career
-Provides a major source of entertainment and enjoyment
Ex: As a person on a job; meeting online with clients e-commerce
Ex: as a person after job; relaxing, chatting, facebook, music etc
What’s in IT for an Organization?
-For our purposes, a business is an organization with one or more people who:
decide on common goals to pursue
work together to locate and organize resources
create processes to achieve the desired goal or goals
-One of the most important factors influencing a business is the business environment
-Ex: Date Mining
IT to increase sales
IT to increase customers behavior
IT to increase efficiency and reduce cost
Or More services at the same cost means more profit or value to the customers
Online stores need to attract more visitors to see their pages…as more people visit the pages
more chances are there that they will buy some thing
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