The Strategic Role Of Information Systems
The Strategic Role Of Information Systems. Introduction Information system (IS) äSet of interrelated components: collect, manipulate, store, and disseminate.
Dec 19, 2015
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The Strategic Role Of Information
Systems
Introduction
Information system (IS)Set of interrelated components: collect,
manipulate, store, and disseminate data and information
Provides feedback to meet an objectiveExamples: ATMs, airline reservation
systems, course reservation systems
Information Concepts: Data, Information, and Knowledge
Data: raw factsAlphanumeric, image, audio, and video
Information: collection of facts organized in such a way that they have additional value beyond the value of the facts themselves
Figure 1.2: The Process of Transforming Data into Information
Data, Information, and Knowledge
The Value of Information
Value of information is directly linked to how it helps decision makers achieve their organization’s goals
For example, value of information might be measured in:Time required to make a decisionIncreased profits to the company
The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information
The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information (continued)
What Is an Information System?
Figure 1.3: The Components of an Information System
Computer-Based Information Systems
Figure 1.4: The Components of a Computer-Based Information System
Traditional View of the Systems
Four types of system configuration:Centralized Systems Duplicated SystemsDecentralized SystemsNetworked Systems
Global System Configuration
Business Information Systems
Figure 1.5: Business Information Systems
Types of Information Systems
TYPES OF INFORMATION SYSTEMS
Enterprise Systems
Enterprise Systems
Benefits:
Firm structure and organization: One organization
Management: Firm-wide knowledge-based management processes
Technology: Unified platform
Business: More efficient operations and customer-driven business processes
Challenges:
Difficult to build: Require fundamental changes in the way the business operates
Technology: Require complex pieces of software and large investments of time, money, and expertise
Centralized organizational coordination and decision making: Not the best way for the firms to operate
Management Information Systems
Management information system (MIS)Organized collection of people,
procedures, software, databases, and devices
Provides routine information to managers/decision makers
Primary focus is operational efficiency
Management Information Systems
Figure 1.10: Management Information System
Decision Support Systems
Decision support system (DSS)Organized collection of people, procedures,
software, databases, and devicesSupports problem-specific decision making
Focus is on decision-making effectiveness
Decision Support Systems
Figure 1.11: Essential DSS Elements
Specialized Business Information Systems: Knowledge Management, Artificial Intelligence,
Expert Systems, and Virtual Reality Knowledge management systems (KMSs):
an organized collection of people, procedures, software, databases, and devices to create, store, share, and use the organization’s knowledge and experience
Artificial intelligence (AI): field in which the computer system takes on the characteristics of human intelligence
Artificial Intelligence
Figure 1.12: The Major Elements of Artificial Intelligence
Organizations and Information Systems
Figure 1.16: The Value Chain of a Manufacturing Company
Organizations and Information Systems
Supply chain management (SCM)Determines required supplies, needed
quantities, processing, and shipmentCustomer relationship management (CRM)
Helps company manage all aspects of customer encounters, including marketing, advertisement, sales, service, and maintaining loyalty
Specific Applications: Customer Relationship Management (CRM)
Specific Applications: Supply Chain
How do information systems facilitate supply chain management?
Specific Applications: Collaborative Commerce
How do information systems facilitate collaborative commerce?
Performance-Based Information Systems
Figure 1.18: Three Stages in the Business Use of Information Systems
Roles, Functions, and Careers in the IS Department
Figure 1.19: The Three Primary Responsibilities of Information Systems
Global Challenges in Information Systems
Cultural challengesLanguage challengesTime and distance
challenges Infrastructure
challengesCurrency challenges
Product and service challenges
Technology transfer issues
State, regional, and national laws
Trade agreements
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