CHAPTER 1 INFORMATION SYSTEMS AND YOU
Information system (IS): A group of components that interact to produce information.
MIS: The development and use of information systems that help businesses achieve their goals and
1. Development and use
2. Information systems
3. Business goals and objectives
Information Technology (IT): Refers to methods, inventions, standards, and products. Refers to raw
technology and it concerns only the hardware, software, and data components of an IS.
Information and Communications Technologies (ICT) sector: The industry sector most closely related to the
use of information systems in Canada.
More people work in this sector than in agriculture, forestry, fishing and mining combined.
Three occupations that the ICTC believes will have above-average growth rates:
1. Manager, computer and information systems
2. Information systems analysts and consultants
3. User-support technicians
Moores Law: 1965. Predicts that the number of transistors on a computer chip would double roughly every
two years (20 months). Has been amazingly accurate.
David Ticoll suggested that within the next decade:
Unlimited storage will be almost free
Analytical software will reveal hidden treasures
Collision of the real and virtual world, as wide-area networks become cheap, reliable, and widely
These technology trends will enable deep, powerful, performance-enhancing innovations that
will be felt in almost every industry
Small number of people
Committed to a common purpose, goals, and approach
Hold themselves mutually accountable
R. Hackmans (Harvard professor) three characteristics of team effectiveness:
1. Accomplish goals and objectives that satisfy sponsors and clients
2. Over time, working together is easier and more effective
3. Members learn and feel fulfilled
CHAPTER 2 BUSINESS PROCESSES, INFORMATION, AND DECISION MAKING Business process: A network of activities, resources, facilities, and information that interact to achieve some
business objective. Also known as business system.
1. Activities: Transform resources and information of one type into resources and
information of another type.
2. Resources: Items of value.
3. Facilities: Structures used within the business process, ex: inventories and databases.
4. Information: Activities use information to determine hw to transform inputs into outputs.
Business Process Modeling Notation (BPMN): A standard set of terms and graphical notations for documenting
business processes created by Object Management Group (OMG).
Information: 1) Knowledge derived from data. 2) Data presented in a meaningful context. 3) Information is
processed data. 4) A difference that makes a difference.
Characteristics of good information:
Just barely sufficient
Worth its cost
Business Process Management (BPM): A field of management that promotes the development of effective and
efficient processes through continuous improvement and innovation. Information ABOUT the process provides
the ability to better manage the process itself.
Other methods of organizations to support their improvements in business processes: TQM, Six Sigma, and
Automation: moving work from people to computers.
Decisions occur at three levels:
1. Operational transaction processing systems (TPS)
2. Managerial management information systems (MIS)
3. Strategic executive information systems (EIS)
Structured decision: There is an understood and accepted method for making the decision.
Unstructured decision: There is no agreed-upon decision-making method.
Steps in the decision-making process:
1. Intelligence gathering
2. Formulation of alternatives
3. Choice implementation
EXTENSION 2a INTRODUCTION TO MICROSOFT EXCEL
Spreadsheet = workbook = worksheets
Ribbon: Wide bar of tools.
Relative cell addressing: Keeps the relative position of the formula and the cells it references intact. Never use a number in a formula unless that number will never change. Always use cell referencing.
Absolute cell addressing: If you want to tie a particular cell to many formulas. Add $ sign in front of letter and
number, ex: $E$4. Or press F4 key.
Range name: Alternate to above definition. Range name is a cell that you can attach a text0based name to.
Dont include spaces.
CHAPTER 3 STRATEGY, INFORMATION, AND COMPETITIVE ADVANTAGE
Stephen Roach (Late 1980s):
Found no evidence of an increase in worker productivity associated with the massive increase in
investment in information technology.
We see computers everywhere except in the productivity statistics. Robert Solow, Nobel prize-winning
Productivity paradox: How IT adds to productivity, how IT can be used to create business value.
Business value: Tangible benefits for organizations though either more efficient use of resources or more
effective delivery of their services to customers.
Measurement error may be a critical reason for the observed lack of productivity from IT investments.
Different ways through which the value of IT can be realized:
2. The structure of competition
3. Benefits to the end customer
Efficiency: Business processes can be accomplished either more quickly or with fewer resources and facilities
Effectiveness: Doing the right things. The company considers offering either new or improved foods or
services that the customer values.
Sometimes, doing the right things and doing things right can conflict.
Value chain: A network of activities that improve the effectiveness or value of a good or service.
Margin: The difference between the price the customer is willing to pay and the cost the company incurs.
Activities that support the value chain, as defined by Michael Porter:
Primary activities: Value is added directly to the product.
1. Inbound logistics
3. Outbound logistics
4. Marketing and sales
Support activities: Support primary activities, ex: coordinating shipping, buying machines. Add
value only indirectly.
1. Firm infrastructure