Info Systems Chap # 1

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Info Systems: Chap 1 Week 1

Information System:Purpose is to get the right information to the right people at the right time in the

right amount and in the right format as IS systems are intended to supply useful information.

Fig 1.1

-One of the primary goals of information systems is to economically process data into information and

knowledge.

- Data items refer to an elementary description of things, events, activities, and transactions that are

recorded, classified, and stored but which are not organized to convey any specific meaning.

-Information refers to data that has been organized so that they have meaning and value to the

recipient.

-Knowledge Consists of data &/or information that has been organized and processed to convey

understanding, experience, accumulated learning and expertise as applied to a current business problem.

Information Technology Architecture:

Architecture:

-IT Architecture is a high level map or plan of the information assets in an organization. Guide for current

operations & a blueprint for future direction. Integrates the entire organizations business needs for

information, the infrastructure and all the applications. Shows how all aspects of information technology

in an organization fit together.

Information Technology Infrasturcture:

-IT infrastructure consist of the physical facilities, IT components, It services, and IT Personnel that

support the entire organization.

-IT Components are the computer hardware, software, and communication technologies that provide

the foundation for all of an organizations info system.

-IT personnel use IT components to produce IT services, which include data management, system

development and security management.

-IT infrastructure should not be confused with its platform. A firms platform consists only of its IT

components and therefore a platform is a part of an IT infrastructure. FIG 1.3

-Best represented by the internet and the functionality of the World Wide Web.

-Enables individuals to connect, compute, communicate, collaborate, and compete everywhere and

anywhere, anytime and all the time; to access limitless amount of information, services, and

entertainment; exchange knowledge; and to produce and sell goods and services.

-Operates without regard to geography, time, distance, or even language barriers.

-Globalization is the integration and increasing interdependence across geographic boundaries, of

economic, social, culture, and ecological facets of life.


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-Currently being enabled by rapid advance in information technology.

The three stages of Globalization:

1. Globalization 1.0: -1492 to 1800- Force: how much muscle, horsepower, wind power, or steam power a

country had and can deploy.

2. Globalization 2.0: - 1800 to 2000- Force: Force behind globalization was multinational companies.First Half of this Era:

- Globalization was driven by falling transportation costs due to thedevelopment of the steam engine and the railroads.

Second Half of this Era:

- Globalization was driven by falling telecommunications costs resultingfrom the telegraph, telephones, computers, satellites, fibre-optic cable,

and the internet and World Wide Web. The global economy began

appearing during this era.

3. Globalization 3.0:-2000- Driven by the convergence of 10 forces that Friedman calls flatteners

-Each era has been characterized by a distinctive focus. Globalization 1.0: Countries, Globalization 2.0:Companies, Globalization 3.0: Groups & individuals.

Friedmans 10 Flatteners:Have to return to this section

Business Pressures:

-Business Environmentis a combination of social, legal, economic, physical, and political factors that

affect business activities.

- Changes in these factors are likely to create business pressures on Orgs. [Fig 1.5]

Market pressures:

-Market pressures are generated by global economy and strong competition, the changing nature of the

workforce, and powerful customers.

Global Economy and Strong Competition:

-Move has been facilitated by:

- The emergence of the global, web-based platform.

- Regional agreements: NAFTA, European market with single currency.

- Rise of India & China as economic powerhouses has markedly increase

global competition.- Important Pressures for businesses in Global Market:

-Cost of labour: Varies widely among countries

- Cost higher is developed countries than in developing countries.

- Developed countries usually offer greater benefits ie health care making cost of doing business even

higher

-Result: Therefore many labour-intensive industries have moved their operations to countries with low

labour cost. IT has made such moves much easier to implement.


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The Changing Nature of the Workforce:

-Diversified, particularly in developed countrie and in all types of positions. Ie: women, minorities, person

with disabilities.

-IT is easing the integration of these employees into the traditional workforce. IT is also enabling people

to work from home.

Powerful Customers:

-Consumer sophistication and expectation increase as customer become more knowledgeable about the

availability and quality of products and services.

-Customers: use the internet to find detailed information about products and services, compare

prices, and purchase items at electronic auctions.

-Organizations recognize the importance of customers and have increased their efforts to acquire and

retain them. As a result, firms try to know as much as possible about their customer to better anticipate

and serve their needs. This process is calledcustomer intimacy.

-CIis an important part ofCRM.

Technology Pressures:

-Pressures related to technology. Technology innovation & Information overload.

Technology Innovation & Obsolescence:

-New and improved technologies rapidly create or support substitutes for products, alternative serve

options, and superb quality. As a result, todays state-of-the-art products may be obsolete tomorrow.

These changes require businesses to keep up with consumer demands.

Information Overload:

-Information available on the internet doubles approx every year, much of it is free.

-The internet and other telecommunications networks are bringing a flood of information to managers.To make decisions effectively and efficiently, managers must be able to access, navigate and utilize these

vast stores of data, information, and knowledge.

- Information technologies, such as searfch engines and data mining, provide valuable support for these

efforts.

Societal/Political/Legal Pressures:

-Include social responsibility, government regulation/deregulation, spending for social programs,

spending to protect against fraud and terrorism, and ethics.

Social Responsibility:

-Range from the state of the physical environment, to companies contributions to educations. Efforts

know as organization social responsibility.

-Our social problem that affects modern business is the digital divide. The digital divide refers to the

wide gap between those who have access to information and communications technology and those who

do no. The gap exists both within and among countries.

-Canadian federal and provincial gov are attempting to close the digital divide within the country

by encouraging training and by supporting educations and infrastructure improvements.

-Solutions: Internet Kiosks/Caf, Computer with internet access at libraries.


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Compliance with Government Regulations and Deregulation:

-Government regulations regarding health, safety, environmental control, and equal opportunity.

Businesses may view gov regulations as constraints on their activities.

-Deregulation can intensify competition.

- Laws effect business operations ie calculation of income taxes, payroll or health taxes, and the

calculation and collection of sales or excise taxes.

-In response to corporate scandals and data privacy risks, countries have passed laws and regulations to

govern business activities. Ie: PIPED: Personal information protection and electronic documents act or

PHIPA: Personal health information protection act.

- The process of becoming and remaining compliant with legislation can be expensive and time

consuming.

-Orgs rely on IT to provide the necessary controls and information for compliance.

- Software & Hardware play a huge role in ensuring compliance with safety regulations and

saving lives.

Protection against Fraud or Terrorist Attacks:

-Individuals and organizations need to protect their information to help prevent these fraud and terror ie

identity theft, fraudulent transactions.-IT can help protect orgs by providing security systems and possibly identifying patterns of behavior

associated with terrorist activities.

Ethical Issues:

-General standards of right and wrong, in this scenario, right and wrong in information-processing

practices.

-Crucial as if handled poorly can damage an orgs image and destroy employee morale.

- Ranges from monitoring email to invading the privacy of millions of customers whose data is stored in

private and public databases.

-IT can improve the method of processing data by businesses to promote a healthier lifestyle and cleaner

environment.

Organizational Responses:

-Orgs are responding to the pressures by implementing IT such as strategic systems, customer focus,

make-to-order and mass customization, and e-business.

Strategic Systems:

-Provide organizations with advantages that enable them to increase their market share and/or profits,

to better negotiate with suppliers, or to prevent competitors from entering their markets.

Customer Focus:

- Orgs attempt to provide excellent customer service can mean the difference between attracting and

keeping customers or losing them to competitors.

- Numerous IT tools and business processes have been designed to keep customers happy.

Make-to-order & Mass Customization:

-Strategy of producing customized products and services.

- Business problem is how to manufacture customized goods efficiently and at a reasonably low cost.

Part of the solution is to change manufacturing processes from mass production to mass

customizations.


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E-Business & E-Commerce:

-Doing business electronically is an essential strategy for companies competing in todays business

environment.

- To plan for the most effective responses, companies formulate strategies. In the new digital economy,

these strategies rely heavily on information technology, especially strategic information.

1. Information systems and information technologies are integral to your life.

2. The IS field offers many career opportunities.

3. All functional areas in organization utilize information systems.

IT Offers Career Opportunities:

-Becoming knowledgeable about IT can improve your chances of landing a good job. Even though

computerization eliminates some jobs, it creates many more.

- It is vital to the operation of modern businesses, it offers many employment opportunities.

Myth #1:

-There are no computing jobs. In fact, The IT job market is quite strong.

Myth #2:

-There will be no IT jobs when I graduate. In fact, the four fastest growing jobs requiring a

bachelors degree from 2002 through 2012 are IT-related.

Myth #3:

-All IT-related jobs are moving offshore. In fact, some IT jobs are offshored, but the more highly

skilled IT jobs will typically not be offshored. In addition, jobs related to a companys core competenciesor projects will typically not be offshored, and neither will jobs requiring close business-to-customer

contact.

Myth #4:

-Computing and IT salaries are low due to cheaper overseas labour. In fact, graduates with

management information systems majors typically common among the highest starting salaries of any

business major.

IT Is Used By All Departments:

-Since organizations cannot operate without information technology, every manager and professionalstaff member should learn about IT within his or her specialized field as well as across the entire

organization and among organizations.

-IT systems are integral to every functional area of an organization.


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Info Systems Chap # 1

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