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Overview of Is and Organizations

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Overview of IS and Organizations

- System: a set of interacting of interdependent components forming an integrated whole. state of a system (dynamic / static); environment of a system (open / closed [no environment]) system thinking

- Organizations: A purposive aggregation of individuals, concerted effort to a common goal.

- IS: combination of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organizational settings. (pp.47)

- Five key elements: hardware, software, data, people and telecommunications networks

- Information technology (IT): hardware, software and networking components of an IS.

- IT more technical / IS more managerial / difference is shrinking

- Data: raw symbols, unformatted, and unstructured. No meaning; little value until processed. Usually words and numbers. (the most basic element of any IS)

- Information: formatted data. Organized. Processed. Useful. Representation of reality. Transformed from raw data by IS – need to add contextual cues. [context] data(input) -> IS -> (output) information

- Characteristics: expandable, compressible, substitutable, transportable, diffusive, shareable – cannot be managed like other objects.

- Knowledge: ability to understand information (to use information). Body of governing procedures. Authenticated information. (d->i->k: value added, context added) [experience]

- Need knowledge before formulating information / collecting data.

- Functions of IS elements: pp.49

- IS people, career, and competencies (required skills / knowledge) of IS personnel [technical, business, systems]: pp.51

- Organizations / Types of IS: pp.55

- (examples) CRM: Sales force automation, ERP: financial / human resource management, SCM: procurement planning

- IS decentralization (flexibility, adaptability, responsiveness) vs. centralization (coordination, economies of scale, compatibility, connectivity) pp.57

- IS Dual Nature: can both work effectively of go awry. pp.58

- IS matters: gain competitive advantage, support good biz model. Competitive advantage is not permanent – it is fleeting.

- Business Process: activities organizations perform in order to reach their business goals (pp. 80), including core activities (lec 3, pp.298) that transform inputs and product outputs, and supporting activities (lec 3, pp. 309) that enable the core activities to take place.

- Organizational structure: 3 decision-making levels (pp. 81) Operational Level. Routine, day2day business process. Interactions with customers. Foremen and supervisors. Improve efficiency

- IS designed to automate repetitive activities (e.g. transaction processing) and to improve efficiency. To optimize processes and to better understand the underlying causes of any performance problems.

- Time frame: hours / days. Day2day decisions are made – highly structured and recurring.

- Structured decision: procedures to follow for a given situation can be specified in advance. Straightforward. Can be directly programmed and made with little/no human intervention.

- Transaction: anything that occurs as part of your daily business of which you must keep a record.

- Managerial / Tactical Level. Midlevel managers and functional managers. Improve effectiveness

- Focus on monitoring and controlling



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