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Tuesday June 28th, 2011
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
problem solving
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Tuesday June 28th, 2011
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
-Incorporates elements of human design to accommodate how people will use the system
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