Week 1
- Information System:
o Information systems (IS) is the study of complementary networks of hardware and
software that people, and organizations use to collect, filter, process, create and
distribute data. (Wikipedia)
o Information systems are combinations of hardware, software, and
telecommunications networks that people build and use to collect, create, and
distribute useful data, typically in organizational settings. (Information Systems
Today)
o Information systems are interrelated components working together to collect,
process, store, and disseminate information to support decision making,
coordination, control, analysis, and visualization in an organization. (Management
Information Systems)
o Information Systems are formal, sociotechnical, organizational systems designed to
collect, process, store, and distribute information. (Gabriele Piccoli)
Components of Information System:
- Information Technology
o Defined as hardware, software, and telecommunication equipment
o IT is a cornerstone of any modern IS
o IT enables and constrains action through rules of operation that stem from its design
- Process
o Defined here as the series of steps necessary to complete a business activity
o The same activities can be performed using a variety of different business processes
- IS failure
o The potential discrepancies between business processes as designed by the
organization and the manner in which they are actually enacted by people is often
the root cause of IS failure.
o When designing a new IS or when confronted with IS failure, it helps to think about
what possible obstacles exist that may make it difficult for employees to accurately
follow the business process
- People
o Individuals or groups directly involved in the information system:
End users
Managers
IT professionals
, o A genuine understanding of the people involved, including their skills, interests, and
motivations, is necessary when designing and implementing a new IS or when
troubleshooting an existing IS that is not performing as expected
- Structure
o The organizational design (hierarchy, decentralized); reporting (functional, divisional,
matrix); and relationships (communication and reward mechanisms) within the
information system
o The implicit or explicit rules that govern relationships between the people involved in
the information system
o Understanding the structure component is crucial because user resistance, incentive
systems, and relationships are often silent enemies of IS success that go undetected
before, and sometimes even after IS failure becomes apparent
- Systemic effects
o The four components of an Information System are interdependent, so changes in
one component may affect all other components of the system and, if not properly
managed, its outputs.
o You must ensure the proper interaction of IT with the other components
o The importance of systemic effects is critical not only when designing a new system
but also when troubleshooting an existing one that is underperforming
- IS and Organizational Change
o Three levels of organizational change:
1. First-order: automate
a. Only affects the Technical System
b. It occurs when an IT innovation is introduced that modifies how an
existing process is performed
c. Managing it is:
i. Easiest to envision
ii. Easiest to justify
iii. Easiest to manage
d. First order change requires little executive sponsorship or involvement
2. Second-order: informate
a. Affects the people component:
b. It occurs when the information flow of the process changes substantially
due to the introduction of new IT (e.g., new information available)
, c. Key challenges on managing it are: provide appropriate training
d. Overcome the human tendency to resist change
3. Third-order: transform
a. Affects the structure component:
b. A structural change on one of the other components, or a combination:
i. Technology a change in the way the organization selects,
uses, and manages technology
ii. People a change in the reporting and authority structure of
the organization
iii. Process a novel way of task accomplishment or a new set of
tasks
c. Managing it requires significant managerial and executive involvement
- Implications
o IT product should not be the point of departure but rather the point of arrival of your
information system design effort
Strategy may be inspired, not driven, by IT
o Never forget the systemic effects: the components of an IS mutually influence one
another
Anticipate these ripple effects and proactively manage them before they
become a cause for concern
o An information system is not designed “once and for all” as if it were a static artifict
- Alternative views
o Questions: when structure is part of the IS, how does IS relate to organization?
o Where is the information?
o
- Language Action Perspective (LAP)
o Focuses on what people do when communicating (how to do thing with words)
, o Does not start with technology, but with people communicating (how to do things
with words)
o Information System of an organization can be defined as the structure by means of
which people communicate
o Communication is not primarily transfer of data (or information), but developing a
relationship
- Rick Maes – the IM cube
o
- Summary
o Different views on Information Systems that have to do with different levels and
different perspectives
IT component used in IT application used in information process used in
business
Properties of the technology vs properties of human behaviour using
technology vs organizational structures
Information system as an aspect system of the organization (or the other
way round?)
o The recognition of information is weak in the US literature
o The fate of the mediator?
- IS roles
o IM is typically the bridge between business and IT
o Is the CIO going to be replaced by the CDO?
- CIO vs CDO – digitalization (Horlacher & Hess, 2016)
o Digital transformation = use of new digital technologies, such as social media,
mobile, analytics or embedded devices, in order to enable major business
improvements like enhancing customer experience, streamlining operations or
creating new business models.
o Digitalization ≠ digitization
o Digital transformation blurs the distinction between IT strategy and Business Strategy
- Information System:
o Information systems (IS) is the study of complementary networks of hardware and
software that people, and organizations use to collect, filter, process, create and
distribute data. (Wikipedia)
o Information systems are combinations of hardware, software, and
telecommunications networks that people build and use to collect, create, and
distribute useful data, typically in organizational settings. (Information Systems
Today)
o Information systems are interrelated components working together to collect,
process, store, and disseminate information to support decision making,
coordination, control, analysis, and visualization in an organization. (Management
Information Systems)
o Information Systems are formal, sociotechnical, organizational systems designed to
collect, process, store, and distribute information. (Gabriele Piccoli)
Components of Information System:
- Information Technology
o Defined as hardware, software, and telecommunication equipment
o IT is a cornerstone of any modern IS
o IT enables and constrains action through rules of operation that stem from its design
- Process
o Defined here as the series of steps necessary to complete a business activity
o The same activities can be performed using a variety of different business processes
- IS failure
o The potential discrepancies between business processes as designed by the
organization and the manner in which they are actually enacted by people is often
the root cause of IS failure.
o When designing a new IS or when confronted with IS failure, it helps to think about
what possible obstacles exist that may make it difficult for employees to accurately
follow the business process
- People
o Individuals or groups directly involved in the information system:
End users
Managers
IT professionals
, o A genuine understanding of the people involved, including their skills, interests, and
motivations, is necessary when designing and implementing a new IS or when
troubleshooting an existing IS that is not performing as expected
- Structure
o The organizational design (hierarchy, decentralized); reporting (functional, divisional,
matrix); and relationships (communication and reward mechanisms) within the
information system
o The implicit or explicit rules that govern relationships between the people involved in
the information system
o Understanding the structure component is crucial because user resistance, incentive
systems, and relationships are often silent enemies of IS success that go undetected
before, and sometimes even after IS failure becomes apparent
- Systemic effects
o The four components of an Information System are interdependent, so changes in
one component may affect all other components of the system and, if not properly
managed, its outputs.
o You must ensure the proper interaction of IT with the other components
o The importance of systemic effects is critical not only when designing a new system
but also when troubleshooting an existing one that is underperforming
- IS and Organizational Change
o Three levels of organizational change:
1. First-order: automate
a. Only affects the Technical System
b. It occurs when an IT innovation is introduced that modifies how an
existing process is performed
c. Managing it is:
i. Easiest to envision
ii. Easiest to justify
iii. Easiest to manage
d. First order change requires little executive sponsorship or involvement
2. Second-order: informate
a. Affects the people component:
b. It occurs when the information flow of the process changes substantially
due to the introduction of new IT (e.g., new information available)
, c. Key challenges on managing it are: provide appropriate training
d. Overcome the human tendency to resist change
3. Third-order: transform
a. Affects the structure component:
b. A structural change on one of the other components, or a combination:
i. Technology a change in the way the organization selects,
uses, and manages technology
ii. People a change in the reporting and authority structure of
the organization
iii. Process a novel way of task accomplishment or a new set of
tasks
c. Managing it requires significant managerial and executive involvement
- Implications
o IT product should not be the point of departure but rather the point of arrival of your
information system design effort
Strategy may be inspired, not driven, by IT
o Never forget the systemic effects: the components of an IS mutually influence one
another
Anticipate these ripple effects and proactively manage them before they
become a cause for concern
o An information system is not designed “once and for all” as if it were a static artifict
- Alternative views
o Questions: when structure is part of the IS, how does IS relate to organization?
o Where is the information?
o
- Language Action Perspective (LAP)
o Focuses on what people do when communicating (how to do thing with words)
, o Does not start with technology, but with people communicating (how to do things
with words)
o Information System of an organization can be defined as the structure by means of
which people communicate
o Communication is not primarily transfer of data (or information), but developing a
relationship
- Rick Maes – the IM cube
o
- Summary
o Different views on Information Systems that have to do with different levels and
different perspectives
IT component used in IT application used in information process used in
business
Properties of the technology vs properties of human behaviour using
technology vs organizational structures
Information system as an aspect system of the organization (or the other
way round?)
o The recognition of information is weak in the US literature
o The fate of the mediator?
- IS roles
o IM is typically the bridge between business and IT
o Is the CIO going to be replaced by the CDO?
- CIO vs CDO – digitalization (Horlacher & Hess, 2016)
o Digital transformation = use of new digital technologies, such as social media,
mobile, analytics or embedded devices, in order to enable major business
improvements like enhancing customer experience, streamlining operations or
creating new business models.
o Digitalization ≠ digitization
o Digital transformation blurs the distinction between IT strategy and Business Strategy
