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University of Ottawa

Chapter 1Information Systems and Business Strategy Managers must understand identify opportunities make decision plan manage work in partnership management information system is the function that plans for develops implements and maintains information systems hardware software applications that people use to support the goals for an organization an information system is any computerbased tool that peoples use to work with information and that supports the information and information processing needs of an organization inputprocessstoreoutput skills needed by IS specialistscommunicationsbusiness knowledge innovationcreativity leadershipdomain knowledge InputProcessingOutput Input captures info from within the organization or from its external environment Processing conversion manipulation and analysis of input Output distribution of processed information to peoples or to other ISData raw facts representing events such as business transactions For example details of transactions from the checkout counter of a supermarketInformation data shaped into a form that is meaningful and useful to human beings For example Total sales of soap per region per store Knowledge created by analyzing information may lead to action Business intelligence converts data into useful information through human analysis into knowledge For example how is this brand of soap doing in the northwest compared to other brands Knowledge management organizational process for acquiring organizing and dissemination knowledge IS impact on businessreduce costsimprove productivityimprove customer satisfaction loyaltycreate competitive advantagegenerate growth streamline supply chainglobal expansion3 organizational levelsoperational level IS support operational managers in keeping track of elementary activities and transactions For example what is the inventory level DAY TO DAYmanagement level IS help in monitoring controlling decisionmaking and administrative activities of middle managers For example is production running according to plan SHORT TERMstrategic level IS help senior managers address strategic issues For example what will employment levels be in 5 years LONG TERMChief Information officeroversees all uses of IT and ensures the strategic alignment of IT with business goals Chief technology offerresponsible for ensuring the speed accuracy availability and reliability of ITChief security officerresponsible for ensuring the security of IT systems Chief privacy officerresponsible for ensuring the ethical and legl use of information
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