Chapter 1Information Systems Revolution

• A new world– The Internet and international trade– Major mail-order computer vendors such as

• Dell, Gateway– Dell’s biggest moneymaker is not in selling computers, it

makes most of its money selling its stock.

Data vs. Information

• Data is the basic raw element of facts.– September 25, 2000– Monday– CSLA– CIS 301

• Information is the processed data that is useful and meaningful to people.– Today is Monday, September 25, 2000. This is my

first day of attending a CIS 301 course at CSLA.

• What is the relationship of data and information in terms of feedback?

Usable Information in IS

• Activities:– Input: captures raw data– Processing: converts the input into more

meaningful form– Output transfers the processed information to

people or activities where it will be used.– Output to feedback to data evaluation to

effective feedback.

Information Systems Literacy vs. Computer Literacy

• Information systems literacy:– An understanding of the organization and

management dimensions as well as technological dimensions

• Computer literacy:– An understanding of computers.

Organizational Dimension

• Information systems:– Part of organizations and in some cases they are

the organization (credit card companies, financial information services)

– SOPs and the culture are deeply embedded within them

Management Dimension

• Management:– Information systems supply tools and

information needed by managers to:• allocate, coordinate, and monitor their work

• make decisions

• create new product and services

• make long-range strategic decisions

Technology Dimension

• Technology:– Information Systems Technology used by

management to carry out their functions.• Hardware

• software

• storage

• telecommunications

– The glue that holds the organization together

Behavioral vs. Technical Approach to IS

• Behavioral Approach:– Focuses on questions such as behavioral problems of:

• systems utilization, implementation, and systems design

• social and organizational impacts of info systems

• political impacts of info systems

• individual responses to info systems

• cognitive models of human reasoning

– Solutions involve: • Changes in attitudes, management, organization policy, and

behavior

Technical Approach

• Emphasizes mathematically based, normative models to study:– information systems and the physical technology and

formal capabilities of info systems

• Solutions:– Deals with improvement in computer hardware, methods

of computation, methods of efficient data storage and access, software quality assurance, application of “normative” models of management, and operations research models.

Are we in this relationship together?

• A change in strategy, rules, or procedures requires changes in software, hardware, databases, and communication technology and vice versa.

• An organization’s present and future accomplishments depend in many respects on what its systems will permit it to do.

The Internet and WWW: the Org. playing rules/roles have

changed

• A separation of work from location through the virtual organization– Who makes the decisions now? Worker Empowerment

• Flattening of organizations

• Increased organizational flexibility

• Electronic commerce

• Reorganized work flows

Flexibility of Organizations

• Mass customization (Dell)

• Direct link from supplier to customer

• One-to-one custom selling and servicing (iflyswa)

Key Management Challenges

• Strategic Business Challenge:– How can we use information technology to

design organizations that are competitive and effective?

Challenges cont.

• Globalization Challenge:– How can firms understand the systems

requirements of a global economic environment?

• Information Architecture Challenge:– How can organizations develop an information

architecture that supports their business goals?

Challenges cont.

• The information systems investment challenge:– How can organizations determine the business

value of information systems?

Now, It’s your turn

• Describe a system in terms of inputs, processes, and outputs in terms of its management, organization, and technology features.

• Example:– System: (payroll system)– Inputs: (empno, empid, empsal, pay_type)– Processes: calculate gross pay, deduc., emp info– Output: updated emp rec, checks, paystubs.

Organizational features to exercise

• Technology:– size/kind computer; storage medium, payroll software,

database technology

• Organization:– size/type of staff to run system– place/function area of payroll system

• Management:– payroll management problems system solved/designed

to solve, reason for installation. Expedite, eliminate, solve various problems?

An understanding of Information Systems

• Technical Disciplines:– Computer Science

– Management Science

– Operations Research

– MIS (technical side)

• Behavioral Disciplines:– Sociology

– Political Science

– Psychology

– MIS (behavioral)