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©2002, Pearson Education Canada1.2

Learning Objectives

• Analyze the role of information systems (IS) in today’s competitive business environment

• Define an information system from both a technical and business perspective, and distinguish between computer literacy & IS literacy

(continued . . .)

©2002, Pearson Education Canada1.3

Learning Objectives

• Explain how information systems are transforming organizations and management

• Assess the relationship between the digital firm, electronic commerce, electronic business and Internet technology

(continued . . .)

©2002, Pearson Education Canada1.4

Learning Objectives (Continued)

• Identify the major management challenges of building and using information systems

©2002, Pearson Education Canada1.5

Management Challenges

• Why information systems?

• Contemporary approaches to information systems

• New role of info systems in organizations

• Learning to use information systems: new opportunities with technology

©2002, Pearson Education Canada1.6

Why Information Systems?

• Organizations need IS to survive and prosper

• New challenges in the Canadian environment– Emergence of the global economy

– Transformation of industrial economies

– Transformation of the enterprise

– Emergence of the digital firm

©2002, Pearson Education Canada1.7

What is an Information System?

• A set of interrelated components that – collect (or retrieve),

– process,

– store, and

– distribute information

• to support decision-making and control in an organization.

©2002, Pearson Education Canada1.8

DATA vs. INFORMATION

• Raw facts

• Represent events

• E.g. sales from a cash register

• Organized data• Meaningful to

people• E.g. sales trends,

comparison of brands

©2002, Pearson Education Canada1.9

Four activities in an IS

1. INPUT 2.PROCESSING 3.OUTPUT

4. FEEDBACK

©2002, Pearson Education Canada1.10

Interaction with the IS

Information

System

ORGANIZATION

SUPPLIERSCUSTOMERS

REGULATORY AGENCIES

STOCKHOLDERS

COMPETITORS

©2002, Pearson Education Canada1.11

A Business Perspective on IS

Info

Systems

ORGANIZATIONS TECHNOLOGY

MANAGEMENT

©2002, Pearson Education Canada1.12

Literacy Components

• Information Systems Literacy– Broad understanding of computer-based IS

– Encompasses management & organizational dimensions

– Includes technical dimensions (IT)

• Computer Literacy– Knowledge of technical dimensions (IT)

©2002, Pearson Education Canada1.13

IS Support Business Functions

• Sales & Marketing

• Manufacturing & Production

• Finance

• Accounting

• Human Resources

©2002, Pearson Education Canada1.14

People in the Organization

• Managers

• Knowledge Workers– Create knowledge for the organization

• Data Workers– Process the organization’s paperwork

• Production & Service Workers

©2002, Pearson Education Canada1.15

Management in the Organization

• Senior managers– Long term strategic decisions

• Middle managers– Carry out plans of senior management

• Operational managers– Monitor organization’s daily activities

©2002, Pearson Education Canada1.16

Information Technology (IT) Infrastructure

• Computer Hardware

• Computer Software

• Storage Technology

• Communications Technology

©2002, Pearson Education Canada1.17

Approaches to IS

• Technical Approach– Emphasizes mathematically based models

to study IS

• Behavioural Approach

©2002, Pearson Education Canada1.18

Two Approaches to IS

SOCIOLOGYSOCIOLOGY

ECONOMICSECONOMICSPSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIOURAL APPROACHESBEHAVIOURAL APPROACHES

©2002, Pearson Education Canada1.19

The Preferred Approach to IS

IS performance is optimized when both the organization and the technology adjust to each other, until a good fit is obtained

The Sociological Approach:

©2002, Pearson Education Canada1.20

Interdependence of IS and the Organization

hardware

telecommunicationsdatabase

software

INFORMATION SYSTEMORGANIZATION

Business strategy

Rules & procedures

©2002, Pearson Education Canada1.21

The Impact of the Internet

Communicate & Collaborate

Access Information

Participate in Discussions

Supply Information

Find Entertainment

Exchange Business

Transactions

©2002, Pearson Education Canada1.22

Impact of IS on Organizational Design

• Flattening organizations

• Separating work from location

• Reorganizing workflows

• Increasing organizational flexibility

• Changing management process

• Redefining organizational boundaries

©2002, Pearson Education Canada1.23

Internet-based technologies

• Intranet– An internal network based on

Internet technologies

• Extranet– Private intranet that is accessible to

authorized outsiders

©2002, Pearson Education Canada1.24

The Emerging Digital Firm

• Electronic market– A marketplace that is created by computer &

communications technologies, linking buyers and sellers

• E-commerce– buying & selling goods and services electronically

• E-business– Organizational communication, coordination &

management using Internet technologies

©2002, Pearson Education Canada1.25

The Emerging Digital Firm

©2002, Pearson Education Canada1.26

Key Management Issues

• Strategic Challenge: – How can business use IT to become competitive,

effective and digitally enabled?

• Globalization Challenge

• Information Architecture & Infrastructure Challenge

• IS Investment Challenge

• Responsibility & Control Challenge

©2002, Pearson Education Canada1.27

Positive Impacts of IS

• Perform calculations & process paperwork faster than people

• Help companies learn about their customer’s preferences & purchases

• Provide new efficiencies (e.g. ATMs)

• Provide advances in medicine

• Internet allows distribution of information widely and quickly

©2002, Pearson Education Canada1.28

Negative Impacts of IS

• May replace people & eliminate jobs

• May allow organizations to violate personal privacy

• System outages can cause critical shutdowns

• Heavy users may experience health problems

• Internet can be used to distribute illegal copies of software and violate intellectual property regulations

©2002, Pearson Education Canada1.29

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