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Chapter 1

Commerce 2KA3 - Chapter 1 Summary

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Chapter 1: Information Systems in Business
Information Technology’s role in Business
Information Technology’s Impact on Business Operations
Businesses must undertake enterprisewide initiatives to achieve broad
general business goals such as reducing costs
Info. Tech plays a critical role in deploying such initiatives by facilitating
communication and increasing business intelligence.
Understanding info tech begins with gaining an understanding of how
businesses function and IT’s role in creating efficiencies and effectiveness
across the organization.
Typical businesses operate by functional areas. Functional areas are
For an organization to succeed, every department or functional area must
work together sharing common information. Info Tech can enable
departments to more efficiently and effectively perform their business
Information Technology Basics
Information Technology (IT): is any computer- based tool that people use to
work with information and support the information and information-
processing needs of an organization.
Info tech can be an important enabler of business success and innovation
Management Information Systems: is the function that plans for, develops,
implements, and maintains It hardware, software, and applications that
people use to support the goals of an organization. To perform the MIS
function most organizations have an IT department
Data: are raw facts that describe the characteristics of an event.
Information: is data converted into a meaningful and useful context.
Knowledge: when information can be enacted upon
IT Resources

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The plans and goals of the IT department must align with the pans and goals
of the organization.
In essence, People use information technology to work with information.
Those three key resources – people, information, and information technology
(in that order of priority) are inextricably linked. If one fails, they all fail. Most
important, if one fails, then chances are the business will fail
IT Cultures
An organization’s culture plays a large role in determining how successfully it
will share information. Culture will influence the way people use information
(their information behaviour) and will reflect the importance that company
leaders attribute to the use of information in achieving success or avoiding
Organizational Information cultures
oInformation-functional culture: Employees use information as a means
of exercising influence or power over others.
oInformation-Sharing culture: Employees across departments trust each
other to use information (especially about problems and failures) to
improve performance
oInformation- Inquiring Cultures: Employees across departments search
for information to better understand the future and align themselves
with current trends and new directions
oInformation- discovery culture: Employees across departments are
open to new insights about crisis and radical changes and seek ways to
create competitive advantages
If an organization operates with an information-discovery culture it will be
able to get products to market quickly and easily see a 360-degree view of its
entire organization.
Roles and Responsibilities in Information Technology
Recently there are more IT-related strategic positions such as chief
information officer (CIO), chief technology officer (CTO), chief security officer
(CSO), chief privacy officer (CPO), and chief knowledge officer (CKO)
Chief information officer: is an executive-level position that involves high-
level strategic planning and management of technologies and processes
pertaining to the creation, storage and use of information by a business.

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The CIO is responsible for (1) overseeing all uses of information technology
and (2) ensuring the strategic alignment of IT with business goals and
As such, the CIO must have a deep understanding of both technology and
business; the need for in-depth technology knowledge enables the CIO to
understand how technology can help business.
Broad roles of a CIO include:
oManager: ensure the delivery of all IT projects, on time and within
oLeader: ensure the strategic vision of It is in line with the strategic
vision of the organization
oCommunicator: advocate and communicate the IT strategy by building
and maintaining strong executive relationships.
It is interesting to note that the CIO role can differ internationally in terms of
how CIOs manage their time and the hurdles CIOs face, and the impact CIOs
have on their organization
Chief Technology officer (CTO): is responsible for ensuring the throughput,
speed, accuracy, availability, and reliability of an organizaton’s information
technology. CTO’s have direct responsibility for ensuring the efficiency of IT
systems throughout the organization.
Chief Security Officer (CSO): is responsible for ensuring the security of IT
systems and developing strategies and IT safeguards against attacks from
hackers and viruses.
Chief Privacy Officer: is responsible for ensuring the ethical and legal use of
information within an organization.
Chief Knowledge officer (CKO): is responsible for collecting, maintaining, and
distributing the organization’s knowledge. The CKO designs programs and
systems that make it easy for people to reuse knowledge.
All the above IT positions and responsibilities are critical to an organization’s
success. While many organizations may not have a different individual for
each of these positions, they must have leaders taking responsibility for all
these areas of concern
The Gap between Business Personnel and IT Personnel
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