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Introduction to IS & Fundamental Concepts. Infsy 540 Dr. R. Ocker. What are some characteristics of today’s business environment? . Characteristics of today’s business environment:. globalization global marketplace global competition global work groups global information systems.

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characteristics of today s business environment
Characteristics of today’s business environment:
  • globalization
    • global marketplace
    • global competition
    • global work groups
    • global information systems
characteristics of today s business environment1
Characteristics of today’s business environment:
  • transformation of industrial economies
    • knowledge and information-based economies
    • productivity
    • innovation
    • time-based competition
    • shorter product life
    • turbulent environment
characteristics of today s business environment2
Characteristics of today’s business environment:
  • transformation of the organization
    • flatter
    • decentralized
    • flexible
    • collaborative work and teamwork
    • empowered workforce
    • lower operating costs
transformation of the business enterprise
Transformation of the Business Enterprise
  • traditional business firm -
    • hierarchical
    • centralized
    • standard operating procedures for mass production
  • new style of business firm -
    • flatter
    • decentralized
    • flexible arrangement of generalists and specialists
transformation of the business enterprise1
Transformation of the Business Enterprise
  • similar to a symphony
  • consist of knowledge workers
    • college educated
    • members of profession (e.g., engineers, doctors, lawyers, scientists, etc.)
    • jobs consist primarily of creating new information and knowledge
  • IT has evolved to enable and support new form of organization
what is an information system is
What is an information system (IS)?
  • interrelated components working together to
    • collect, process, store, disseminate information
  • to support
    • decision making, coordination, control, analysis, and visualization in an organization
components of an is
Components of an IS
  • Hardware
  • software
  • databases
  • telecommunications (networks)
  • human resources (system professionals and end users)
  • procedures (specifications for the use, operation, & maintenance of IS)
3 activities in an is produce information
3 activities in an IS produce information
  • 1. input - capture of raw data
  • 2. processing - conversion, manipulation, and analysis of raw input
  • 3. output - distribution of processed information
  • CBIS - computer-based information system - our focus in this course
information vs data
Information vs. Data
  • information technology =

IS + telecommunications

  • information - data that have been shaped into a form that is meaningful and useful to humans
  • data - raw facts before they have been organized and arranged into a form useful to people
attributes of quality information
Attributes of Quality Information
  • Timely
  • complete
  • concise
  • relevant
  • accurate
  • precise
  • appropriate form
business perspective on is
Business perspective on IS
  • an IS is an organizational and management solution, based on IT, to solve a business problem
  • to use IS effectively, must understand
    • organization - e.g. culture
    • knowledge workers - users of technology
    • management - diff. levels require diff. types of systems
    • role of IT within the organization
sociotechnical perspective
Sociotechnical Perspective
  • We will take a sociotechnical perspective on IT - the technology and the organization must mutually adjust to one another to achieve satisfactory fit


technology people


different kinds of systems
Different kinds of systems
  • Organizations and info. systems can be divided into four levels:
    • operational-level
    • knowledge-level
    • management-level
    • strategic-level
organizational information systems provide
Organizational information systems provide:
  • knowledge-work support
  • support knowledge and data workers in an organization; help workers design products, distribute information, and cope with paperwork; fastest growing applications
  • operational support
  • monitor low-level activities and transactions of the organization
organizational information systems provide1
Organizational information systems provide:
  • management-level support
  • support management activities of monitoring, controlling, decision-making, and administrative activities of middle managers
  • executive-level support
  • support long-range planning activities of senior management
six major types of systems
Six Major types of Systems
  • TPS transaction processing systems
  • MRS management reporting systems DSS decision support systems
  • EIS executive information systems
  • PSS professional support systems
  • OIS office information systems
1 tps transaction processing systems
1. TPS transaction processing systems
  • operational level
  • perform and record daily routine transactions necessary to conduct the business
2 mrs management reporting systems
2. MRSmanagement reporting systems
  • Used by managers responsible for specific functions or processes in a firm
  • provide routine summary and exception reports
  • managers use these reports to help control their area of responsibility
3 dss decision support systems
3. DSSdecision support systems
  • Designed to support individual and collective decision making
  • often use information from external sources
  • more analytical power than other types of systems
4 eis executive information systems
4. EISexecutive information systems
  • strategic level of the organization
  • support long-term, strategic view
  • used by senior executives
  • easy access to summarized company data
  • incorporate external information on industry and economy
5 pss professional support systems
5. PSSprofessional support systems
  • Support performance of tasks specific to a given profession
  • For example
    • lawyers doing legal research
    • architects designing buildings
    • designers modeling a new automobile
6 oas office information systems
6. OASoffice information systems
  • support and help coordinate knowledge work in an office environment
  • emphasis on increased productivity
  • systems include e-mail, scheduling systems, word processing
7 expert systems es
7. Expert Systems (ES)
  • Branch of Artificial Intelligence
  • suggest a decision
  • based on a knowledge base (rather than a data base)
  • incorporate heuristics
    • informal “rules of thumb”
  • ES can be incorporated into all types of IS or can be used as stand-alone system
information architecture
Information Architecture
  • particular form that IT takes in an organization to achieve goals
  • computer systems base -
    • HW, SW, data, telecommunications
    • operated by technical people
information architecture1
Information Architecture
  • Managers design an organization’s information architecture
  • decide how to arrange and coordinate the various computer technologies and business system applications to meet the information needs of each level of the organization
    • operational, knowledge, management, strategic
  • more details next lecture
10 principal capabilities of is
10 Principal capabilities of IS
  • 1. Fast and accurate data processing with large-capacity storage and rapid communication between sites
  • 2. Instantaneous access to information
  • 3. Means of coordination
  • 4. Boundary spanning
  • 5. Support for decision making
10 principal capabilities of is1
10 Principal capabilities of IS
  • 6. Supporting organizational memory and learning
  • 7. Routinizing organizational practice
  • 8. Differentiation of products and services
  • 9. Modeling
  • 10. automation