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Chapter 2

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Administrative Studies
ADMS 2511
Alison Weir

Chapter 2 – Summary Information Technology (IT) Governance and Management IT Governance  A structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing risk versus return over IT and its processes o First, relationships and processes; these would be designed by those who lead the organization o Second, achieve goals by adding value; they should make money or bring some sort of intangible benefit to the organization o Third, balance between risks and profits; systems should be secure so that they cannot be hacked into and private data exposed  Purpose of IT Governance is to provide effective oversight over the use of technology  Steering committee is important to manage information technology in an organization, while governance is important to manage IT throughout the organization o Includes planning, acquisition, implementations and ongoing support, as well as monitoring and evaluation so that decisions can be made about potential changes  Many things may go wrong without governance o Include objectives not being met, systems could be error prone, over budget, or hard to use  Smaller businesses implement IT governance by having an aware and knowledgeable owner-manager who actively selects business practices and software  Organizations select such systems so they can thrive and compete Types and Purposes of Information Systems  Inside your organization IT provides: Platform, Infrastructure, Transaction Processing Systems, Enterprise Resources Planning Systems and Functional Area’s IS  Outside your organization IT provides: Supply Chain Management, Customer Relationship Management, and Business to Business Computer-Based Information Systems Information System  Collects, processes, stores, analyses, and disseminates information for a specific purpose Computer-Based Information System (CBIS)  Information system that uses computer technology to perform some or all of its intended tasks Hardware  Device such as the processor, monitor, keyboard and printer. Together these devices accept data and information, process it and display it. Software  Program or collection of programs that enables the hardware to process data Database  Collection of related files or tables containing data Network  Connecting system (wire line or wireless) that permits different computers to share resources Procedures  Set of instructions about how to combine the above components in order to process information and generate the desired output People  Individuals who use the hardware and software, interface with it, or use its output Major Capabilities of IS  Perform high-speed, high-volume numerical computations  Provide fast, accurate communication and collaboration  Store huge amounts of information in a small, easy-to-access space  Allow quick and inexpensive access to vast amounts of data  Interpret vast amounts of data quickly and efficiently  Increase efficiency of people working in groups in one place or in several locations anywhere  Automate both semi-automatic business processes and manual tasks Application Program  Computer program designed to support a specific task or business process  Each department uses dozens of application programs  A collection of application programs in a single department is usually referred to as a departmental information system o Example: Human Resources Information System (HRIS) Functional Area Information System (FAIS)  A system that provides information to managers (usually mid-level) in the functional areas, in order to support managerial tasks of planning, organizing and controlling operations  Supports the activities within a specific functional area o System for processing a payroll Enterprise Resource Planning (ERP)  Designed to correct a lack of communication among the functional area information systems  Nearly all ERP systems are transactions processing systems, but not all transaction processing systems are ERP systems  Integrates all functional areas of the organizations o Oracle SAP Transactions Processing System (TPS)  Supports the monitoring, controlling, storage and processing of data from an organization’s basic business transactions  Processes transaction data from business events o Example: when a cashier swipes a product for you to purchase, it records the transaction, typically in real time Interorganizational Information System (IOSs)  Information systems that connect two or more organizations  Support interorganizational operations; supply chain management is best known  Supply Chain o Shows the flow of materials, information, money and services from raw material suppliers through factories and warehouses to end customers  Soft products include digitizable products, information flows and financial flows. Such flows/products can be represented in electronic form. They go through the Internet. o Example: Music downloads  Hard products include physical products. They are shipped. o Example: Computer from Dell Electronic Commerce Systems  Another type of interorganizational information system. Enable organizations to conduct transactions, called business-to –business (B2B) electronic commerce, and customers to conduct transactions with businesses, called business-to-consumer (B2C) electronic commerce Support for Organizational Employees  Clerical workers: support managers and work groups at all levels of the organizations o Bookkeepers, secretaries, insurance claim processors  Lower-level managers: handle the day-to-day operations of the organization, making routine decisions such as assigning tasks to employees and placing purchase orders  Middle managers make tactical decisions, which deal with activities such as short-term planning, organizing and control  Knowledge workers: professional employees such as financial and marketing analysts, engineers, lawyers and accountants o All knowledge workers are experts in a particular subject area o Provide advice to middle-managers or executives. Function in their area of expertise  Executives: make decisions that deal with situations that can significantly change the manner in which business is done o Introducing a new product line, acquiring other businesses, and relocating operations to a foreign country IT Support for each level of employee:  Office Automation System (OASs) – All o Typically support the clerical staff, lower and middle managers and knowledge workers and are often used by other employees too. Use to develop documents, schedule resources, communicate via email, videoconferencing o Supports daily work activities of individuals and groups  Microsoft Office  Business Intelligence (BI) Systems – Mainly middle managers and knowledge workers o Computer-based support for complex, non-routine decisions, primarily for middle managers and knowledge workers. Also support lower level managers. Allow users to perform their own data analysis  Expert Systems (ESs) – Mainly knowledge workers o Attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge and expertise within a specific domain Primarily designed to support knowledge workers o Mimics human expertise in a particular area and makes a decision  Credit card approval analysis  Dashboards (also called Digital Dashboards) – all managers and executives (executive dashboards) o Support all managers of the organization. They provide rapid access to timely information and direct access to structured information in the form of reports. Tailored dashboards to executive needs are called executive da
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