Chapter 2 : Information Systems and Modern Organization

   

   # Types of Information systems

·        Computer –Based Information System ( CBIS):  Use computer technology to perform some or all of their tasks.

·        It composed of:

o   Hardware: is a device such as a processor, monitor, keyboard or printer.

o   Software: is a program or collection of programs that enable hardware to process data.

o   Database: is a collection of related files or tables containing data.

o   Network: is a connecting system (wireline or wireless) that permits different computers to share resources.

o   Procedures: are the set of instructions about how to combine the above components in order to process information and generate the desired output.

o   People: are those individuals who use the hardware and software, interface with it, or use its output.

·        Capabilities of Information Systems:

o   Perform high-speed, high-volume numerical computations.

o   Provide fast, accurate communication and collaboration within and among organizations.

o   Store huge amounts of information in small space.

o   Allow quick, inexpensive access to vast amounts of information worldwide.

o   Interpret vast amounts of data quickly and efficiently.

o   Increase effectiveness and efficiency of people working in groups in one place or around the world.

o   Automate semiautomatic business process and manual tasks.

·        Application Program: is a computer program designed to support a specific task, a business process or another application program.

·        Breadth of Support of Information systems:

o   Functional area information systems support particular functional areas in an organization.

o   Enterprise resource planning systems tightly integrate the functional area information systems via a common database.

o   Transaction processing systems support the monitoring, collection, storage, and processing of data from the organization’s basic business transactions.

o   Interorganizational information systems connect two or more organizations.  Examples are supply chain management systems and electronic commerce systems.

·        Information Systems Support for Organizational employees:

·        Office automation Systems (OAS):

o   Used by Clerical staff, lower level managers, middle managers, knowledge worker, executives.

·        Functional Area information systems (FAIS):

o   Used by clerical staff, lower level managers, Middle managers.

·        Expert Systems:

o   Used by lower level managers, middle managers , knowledge workers

·        Business Intelligence systems:

o   used by Middle managers , knowledge workers

·        Dashboards:

o   Used by lower level managers, middle managers, knowledge worker, executives.

    # Competitive Advantage and Strategic Information Systems

·        Competitive Advantage: An advantage over competitors in some measure such as cost, quality, or speed, leads to control of a market and to larger-than average profits.

·        Strategic Information Systems (SIS) provide a competitive advantage by helping an organization to implement its strategic goals and to increase its performance and productivity.

·        Porter's Competitive Force Model:

·          Porter's Value Chain Model:

o   Primary activities are those business activities that relate to the production and distribution of the firm’s products and services, thus creating value for which customers are willing to pay.  Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and customer service.

o   Support activities do not add value directly to a firm’s products and services, but support the primary activities.  Support activities include accounting, finance, management, human resources management, product and technology development (R&D), and procurement.

·        Strategies for Competitive Advantage:

Cost Leadership:	Differentiation:	Innovation:	Operational Effectiveness:	Customer-orientation:
Produce products and/or services at the lowest cost in the industry.	Offer different products, services or product features.	Introduce new products and services, add new features to existing products and services or develop new ways to produce them.	Improve the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals.	Concentrate on making customers happy.

 

    # why are Information Systems Important to Organization and society:

IT will reduce the number of middle managers:	IT will change the manager’s job:	IT impacts employees at work:	IT provides quality-of-life improvements:
Few Staff & Line Managers.	Make decisions more effective & efficient. IT lead to change managerial requirements.	Increasing the use of IT lead to job stress & more anxious.	IT provides more flexibility to improve the quality od leisure time.

                    

·        Ergonomic: Science of adapting machines and work environment to people, focuses on creating an environment that is safe, well lit and comfortable.

·        Ergonomic Products:  

o   Wrist support

o   Back support

o   Eye-protection filter

o   Adjustable foot rest

     # Managing Information Resources

·        The Role of the IS Department

o   The ISD is responsible for corporate-level and shared resources and for using IT to solve end users’ business problems.

o   End users are responsible for their own computing resources and departmental resources.

o   ISD and end users work together as partners to manage the IT resources.

 

Traditional Major Information systems Functions:	New Information System Functions:
Managing systems development and systems project management	Educating IS staff about the business
Managing computer operations	Incorporating the Internet and e-commerce into the business
Providing technical services	Educating non-IS managers about IT
Infrastructure planning, development, control	Initiating and designing strategic information systems