TOPICS 1 & 2 : Introduction and Researching Information Systems
What is an Information System?
Definition
The computer hardware and software which turns data (recorded activities) into information (something
meaningful for the interpreter). It collects, stores, processes and distributes information, supporting
decision-making in the organization
Definition: Technical vs Business Perspective
Technical perspective: an information system collects, stores, and disseminates information from an
organization’s environment and internal operations to support organizational functions and decision making,
communication, coordination, control, analysis, and visualization. Information systems transform raw data into
useful information through three basic activities: input, processing, and output
Business perspective: an information system provides a solution to a problem or challenge facing a firm and
represents a combination of management, organization, and technology elements
(Page 47)
1
, Management Role Organization Role Technology Role
Make important decisions and Organizations are hierarchically Used to cope with change
develop action plans to combat organized, with senior, middle,
potential organizational and operational management Computer hardware: physical
challenges. To do this they carrying out tasks of various equipment which allows for the
allocate scarce human and natures and difficulties input, processing and
financial resources communication of information
Creates new services and
Create new products and business processes Computer software:
services, monitoring their preprogrammed instructions which
success (creative work) An organization’s culture is control the computer hardware
partially embedded in its
Plan new IT infrastructure and information systems. For Networking and
make investments example, UPS’s number one telecommunications: hardware
priority is customer service, and and software allowing for data
this is displayed through its transmission between locations
company package tracking through a network. The internet is
systems the most widely used network
Offers cloud computing services
such as Amazon Web Services
and Microsoft Azure
Complementary Assets
Complementary investments must be made in organizations and management so that meaningful value can
be derived from information systems. These may include new business models and businesses processes,
a supportive organizational culture and management behavior, and appropriate technology, regulations, and
laws. New technology is unlikely to yield high results unless management make the appropriate changes to
support them
Academic Disciplines Used to Study Information Systems
Technical approach: uses mathematical models to study information systems, drawing from management
science, computer science, and operations research, which are concerned with theories on computability
and decision-making
Behavioral approach: addresses the behavioral challenges that may present themselves in the
development of information systems rather than the technical challenges. This is explored heavily in the
psychological, economics, and sociology fields of study, which explore the perception and use of information,
cost structures within a firm, and changing attitudes and behavior
Sociotechnical approach: adopting this hybrid approach will enhance an organization’s performance.
Information systems are complex, and because of this, no single approach can effectively capture them
2
,How Information Systems are Transforming Businesses and Why They are Essential for Running and
Managing a Business Today
“E-mail, online conferencing, smartphones, and tablet computers have become essential tools for conducting
business. Information systems are the foundation of fast-paced supply chains. The Internet allows many
businesses to buy, sell, advertise, and solicit customer feedback online. Organizations are trying to become
more competitive and efficient by digitally enabling their core business processes and evolving into digital
firms. The Internet has stimulated globalization by dramatically reducing the costs of producing, buying, and
selling goods on a global scale. New information system trends include the emerging mobile digital platform,
big data, and cloud computing. Information systems are a foundation for conducting business today. In
many industries, survival and the ability to achieve strategic business goals are difficult without extensive use
of information technology. Businesses today use information systems to achieve six major objectives:
operational excellence; new products, services, and business models; customer/supplier intimacy; improved
decision-making; competitive advantage; and day-to-day survival”
Data vs Information vs Knowledge
Data - Recorded descriptions of activities e.g. size, color, cost, weight etc.
Information - Data in context. Data turns into information when it becomes meaningful to the receiver
Knowledge - Property of people. Influences actions taken and decision-making
3
, SAP & FreshDirect
➔ Shows how important it is to distinct data from information from knowledge
FreshDirect delivers fresh groceries to their customers’ homes on the East Coast in the US
Initially, Fresh Direct had an enormous amount of data, but lack of meaningful information. SAP, a software
corporation making enterprise software to help its clients manage business operations, helped
FreshDirect to use its data to produce valuable reports
Success. Provided visibility into the workflow. Being able to see trucks driving in real-time means late
deliveries can be prevented, with increased transparency leading to customer satisfaction increasing
https://www.youtube.com/watch?v=y0ZxTFZPUSg
Decision Making in Organisations
Structured (rational) decision-making
1. Problem identification → discovering and fundamentally understand the core issue
2. Solution discovery → exploring alternative solutions to the problem
3. Choosing best solution
4. Solution testing & monitoring → evaluating the effectiveness of the solution
Unstructured decision-making
The greater the seniority, the more empowered the individual is to make unstructured decisions. These
would involve relying on own experience, for instance
Organizational structure
4
What is an Information System?
Definition
The computer hardware and software which turns data (recorded activities) into information (something
meaningful for the interpreter). It collects, stores, processes and distributes information, supporting
decision-making in the organization
Definition: Technical vs Business Perspective
Technical perspective: an information system collects, stores, and disseminates information from an
organization’s environment and internal operations to support organizational functions and decision making,
communication, coordination, control, analysis, and visualization. Information systems transform raw data into
useful information through three basic activities: input, processing, and output
Business perspective: an information system provides a solution to a problem or challenge facing a firm and
represents a combination of management, organization, and technology elements
(Page 47)
1
, Management Role Organization Role Technology Role
Make important decisions and Organizations are hierarchically Used to cope with change
develop action plans to combat organized, with senior, middle,
potential organizational and operational management Computer hardware: physical
challenges. To do this they carrying out tasks of various equipment which allows for the
allocate scarce human and natures and difficulties input, processing and
financial resources communication of information
Creates new services and
Create new products and business processes Computer software:
services, monitoring their preprogrammed instructions which
success (creative work) An organization’s culture is control the computer hardware
partially embedded in its
Plan new IT infrastructure and information systems. For Networking and
make investments example, UPS’s number one telecommunications: hardware
priority is customer service, and and software allowing for data
this is displayed through its transmission between locations
company package tracking through a network. The internet is
systems the most widely used network
Offers cloud computing services
such as Amazon Web Services
and Microsoft Azure
Complementary Assets
Complementary investments must be made in organizations and management so that meaningful value can
be derived from information systems. These may include new business models and businesses processes,
a supportive organizational culture and management behavior, and appropriate technology, regulations, and
laws. New technology is unlikely to yield high results unless management make the appropriate changes to
support them
Academic Disciplines Used to Study Information Systems
Technical approach: uses mathematical models to study information systems, drawing from management
science, computer science, and operations research, which are concerned with theories on computability
and decision-making
Behavioral approach: addresses the behavioral challenges that may present themselves in the
development of information systems rather than the technical challenges. This is explored heavily in the
psychological, economics, and sociology fields of study, which explore the perception and use of information,
cost structures within a firm, and changing attitudes and behavior
Sociotechnical approach: adopting this hybrid approach will enhance an organization’s performance.
Information systems are complex, and because of this, no single approach can effectively capture them
2
,How Information Systems are Transforming Businesses and Why They are Essential for Running and
Managing a Business Today
“E-mail, online conferencing, smartphones, and tablet computers have become essential tools for conducting
business. Information systems are the foundation of fast-paced supply chains. The Internet allows many
businesses to buy, sell, advertise, and solicit customer feedback online. Organizations are trying to become
more competitive and efficient by digitally enabling their core business processes and evolving into digital
firms. The Internet has stimulated globalization by dramatically reducing the costs of producing, buying, and
selling goods on a global scale. New information system trends include the emerging mobile digital platform,
big data, and cloud computing. Information systems are a foundation for conducting business today. In
many industries, survival and the ability to achieve strategic business goals are difficult without extensive use
of information technology. Businesses today use information systems to achieve six major objectives:
operational excellence; new products, services, and business models; customer/supplier intimacy; improved
decision-making; competitive advantage; and day-to-day survival”
Data vs Information vs Knowledge
Data - Recorded descriptions of activities e.g. size, color, cost, weight etc.
Information - Data in context. Data turns into information when it becomes meaningful to the receiver
Knowledge - Property of people. Influences actions taken and decision-making
3
, SAP & FreshDirect
➔ Shows how important it is to distinct data from information from knowledge
FreshDirect delivers fresh groceries to their customers’ homes on the East Coast in the US
Initially, Fresh Direct had an enormous amount of data, but lack of meaningful information. SAP, a software
corporation making enterprise software to help its clients manage business operations, helped
FreshDirect to use its data to produce valuable reports
Success. Provided visibility into the workflow. Being able to see trucks driving in real-time means late
deliveries can be prevented, with increased transparency leading to customer satisfaction increasing
https://www.youtube.com/watch?v=y0ZxTFZPUSg
Decision Making in Organisations
Structured (rational) decision-making
1. Problem identification → discovering and fundamentally understand the core issue
2. Solution discovery → exploring alternative solutions to the problem
3. Choosing best solution
4. Solution testing & monitoring → evaluating the effectiveness of the solution
Unstructured decision-making
The greater the seniority, the more empowered the individual is to make unstructured decisions. These
would involve relying on own experience, for instance
Organizational structure
4
