Introduction Information Systems Foundation (Information Systems Foundation IS201)

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Abdisalam Issa-Salwe, Lecture Notes, Thames Valley University, 2008.Abdisalam Issa-Salwe, Lecture Notes, Thames Valley University, 2008.

Introduction Information SystemsFoundation

(Information Systems Foundation IS201)

Abdisalam Issa-Salwe

Taibah University

College of Computer Science & EngineeringInformation Systems Department

Lecture 1

Abdisalam Issa-Salwe, Lecture Notes, Taibah University, KSA, 2011.2

Abdisalam Issa-Salwe, Faculty of Computer Science & Engineering, Taibah University

Learning aim

Explain an approach that an organisationmay follow to formulate its strategicbusiness objectives

Discuss how information systems may beused to assist in achieving theseobjectives

Distinguish between a business strategyand an information systems strategy

Identify responsibility for the ownership ofthe IS strategy


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Why Information Systems?

Today it is widely recognised thatinformation systems knowledge isessential for managers because mostorganisations need information systemsto survive and prosper.

Information systems can help companiesextend their reach to faraway locations,offer new products and services, reshape

jobs and work flows, and perhapsprofoundly change the way they conduct

business.



Changing Contemporary Business Environment

Four powerful worldwide changeshave altered the businessenvironment. The first change is

Globalisation

Transformation of the Enterprise

Transformation of Industrial

EconomiesEmergence of the Digital Firm


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Globalisation

Management and control in a globalmarketplace

Competition in world markets

Global work groups

Global delivery systems




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Transformation of the Enterprise

Flattening Decentralisation

Flexibility

Location independence

Low transaction and coordinationcosts

Empowerment

Collaborative work and teamwork



Transformation of Industrial Economies

Knowledge- and information-basedeconomies

Productivity

New products and services

Knowledge: a central productiveand strategic asset

Time-based competition

Shorter product life

Turbulent environment

Limited employee knowledge base


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Globalisation of world economy (cont)

Globalisation and informationtechnology also bring new threatsto domestic business firms

Global communication andmanagement systems, customersnow can shop in a worldwidemarketplace, obtaining price andquality information reliably 24 hoursa day




The knowledge and informationrevolution began at the turn of thetwentieth century and has graduallyaccelerated

Knowledge and information arebecoming the foundation for manynew services and products.

Knowledge- and information-intenseproducts such as computer gamesrequire a great deal of knowledge toproduce.


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In a knowledge- and information-based economy, informationtechnology and systems take ongreat importance.

Knowledge-based products andservices of great economic value,such as credit cards, overnightpackage delivery, and worldwidereservation systems, are based on

new information technologies.




Definition of Information Systems

An organised method of transforming data intoinformation that can be used for decision making.(wps.prenhall.com/ca_ph_ebert_busess_3/0,6518,224378-,00.html)

The general term for computer systems in anorganisation that provide information about itsbusiness operations.(www.iib.qld.gov.au/itcareers/talk.asp)

A structured, interacting, complex of persons,machines, and procedures designed to produce

information which is collected from both internaland external sources for use as a basis fordecision-making in specific contract/procurementactivities.(www.projectauditors.com/Dictionary/I.html).


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Definition of Information Systems (cont)

The function within a businessorganisation that facilitates dataprocessing and enables the resultinginformation to be made available toemployees who need it. Also known asinformation technology.(www.minnesotamutual.com/news/glossary_pages/glossary_i.html)

the entire infrastructure, organisation,personnel, and components that collect,process, store, transmit, display,disseminate, and act on information(www.155.217.58.58/cgi-

bin/atdl.dll/fm/100-6/glossary.htm)



What is Information System (IS)?

A system is a set of interacting componentsthat operate together to accomplish a purpose.

A set of interrelated elements or componentsthat collect (input), manipulate (process), anddisseminate (output) data and information andprovide a feedback mechanism to meet anobjective.

Information Systems (IS) consist of technology

tools and systems that help to acquire, sustain,and proliferate information.


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An information system can bedefined technically as a set ofinterrelated components that collect(or retrieve), process, store, anddistribute information to supportdecision making, coordination andcontrol in an organisation.

IS support decision making, helpsmanagers to coordinate and control

organisation

What is Information System (IS)? (cont)



Why IS is important to organisations?

Understand the role and relevanceof an information system aids todecision making.

Identifying and evaluatingappropriate information systems.

Managing the process ofinformation gathering, processing,

storage and retrieval Managers make decisions using the

information available to them at thetime.


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Why IS is important to organisations? (cont)

System emphasizing a fair degreeof integration view;

Information stressing on processeddata which it is used by end users;

Management focusing on theultimate use systems for managerialdecision making.



is Concept

is Role: Increased Business & ManagementComplexities


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Increased Management Complexities

Technological Revolution Research & Development Explosion of Information Management Science Technologies Decision-making Onset of Computers



Functional Uses of IS

Enhance :

Quality of our operations Quality of our servicesWe achieve :

Efficiency Transparency Speedy Decision making


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Information as Critical

The information we have is notwhat we want,

The information we want is not theinformation we need,

The information we need is notavailable.



Strategic Uses of IS

Precise development of strategies,planning, forecasting andmonitoring

Problem solving

Decision-making

Separate work from location


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Life-blood of the organisationLife-blood of the organisationLife-blood of the organisation



Life-blood of the organisation (cont)

To ensure effective and efficientdecision making leading to prosperityof the Organisation.

Information as Resource

It is scarce

It has a cost

It has alternative uses

There is an opportunity costactor involved if one does notprocess information


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Why IS?

Right Information To the right person

At the right place

At the right time

In the right form

At the right cost



Organisational Information Requirement

Organisations require informationfor various purposes:

Information for planning

Information for controlling

Information for recording transactions

Information for performance

measurement Information for decision making


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Organisational Information Requirement (cont)

Planning: Planning requires a

knowledge of the availableresources, possible time-scales andthe likely outcome underalternative scenarios.

Controlling: Information is requiredto assess whether it is proceedingas planned or whether there issome unexpected deviation fromthe plan. It may consequently be

necessary to take some form ofcorrective action.



Recording Transactions: Information abouteach transaction or event is required, i.e.(a) for documentation of transactions, (b)

record transactions, for example foraccounting, audit and Tax purposes, and(c) permit the necessary controlling actionto be taken.

Performance measurement: Comparisonsagainst budget or the business plan areable to be undertaken.



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Decision making: Just as decisionmaking can be analysed into threelevels, so information necessary tomake decisions within anorganisation can be analysed in thesame way.



Classification through functional disciplines


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Organisational Systems and is



IS and Business Strategy

From a business perspective, aninformation system is an organisationaland management solution, based oninformation technology, to a challengeposed by the environment.

To fully understand information systems,a manager must understand the broaderorganisation, management, and

information technology dimensions ofsystems and their power to providesolutions to challenges and problems inthe business environment.


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IS and Business Strategy (cont)

Organisation has a limited set ofresources (e.g. time, people, money,physical resources) and they mustdecide how to use those resources.

Strategy is deciding what theorganisation is going to do and howit will use its resources

A business system is a collection ofpeople, machines and methodsorganised to accomplish a set of

specific functions.



IS and Business Strategy (cont) Contributing to the establishment of the

organisation's long term business objectives e.g.identifying and evaluating external factors whichmay impact on the organisation

Identifying and appraising the organisation's skillsand resources

Identifying and defining business options; evaluatingthese options, performing risk assessments andrecommending strategies for adoption

Analysing market and competitive developments inrelation to marketing strategy

Advising managers on critical economic and financialdevelopments

(CIMA Practical Experience Guidelines from January2003)


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37Abdisalam Issa-Salwe, Faculty of Computer Science & Engineering, Taibah University

Major Business Functions



Definitions of information

Data that has been interpreted,translated, or transformed to reveal theunderlying meaning;(www.nrcan.gc.ca/cfs-scf/science/prodserv/kmglossary_e.html)

Data that have been processed andpresented in a form suitable for humaninterpretation, often with the purpose of

revealing trends or patterns.(www.gtscompanies.com/glosscomp.html


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Information systems containinformation about significant people,places, and things within theorganisation or in the environmentsurrounding it.

By information we mean data thathave been shaped into a form thatis meaningful and useful to humanbeings

Information and Data



Data are streams of raw factsrepresenting events occurring inorganisations or the physicalenvironment before they have beenorganised and arranged into a formthat people can understand and use.

Information and Data (cont)


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Information and Data (cont)

Three basic activitiesinput, processing,and outputproduce the informationorganisations need.

Feedback is output returned toappropriate people or activities in theorganisation to evaluate and refine theinput.

Environmental factors such as customers,suppliers, competitors, stockholders, andregulatory agencies interact with the

organisation and its information systems.



The making of information


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Reference

Laudon, K. & Laudon, J. (2006): ManagementInformation Systems: Managing the Digital Firm, 9thed. Prentice Hall

BPP, Information Systems, Study Text, Paper 2.1,BPP Professional Education, United Kingdom.

Abdisalam Issa-Salwe, Lecture Notes, Thames ValleyUniversity, 2008.

Lachlan M. MacKinnon, Information: Types ofInformation System Systems,http://www.macs.hw.ac.uk/~lachlan/dbislectures/lectures/types.ppt,



Topic Questions What are the forces leading todays world economies?

Explain the importance of information to organisations

What is the difference between information and data

What is the role of information systems in today'scompetitive business environment?

What exactly is an information system? What domanagers need to know about information systems?

How are information systems transformingorganisations and management?

How has the Internet and Internet technology

transformed business? What are the major management challenges to building

and using information systems?

Introduction Information Systems Foundation (Information Systems Foundation IS201)

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