Information Systems & Technology: A Deep Dive

Posted on Dec 11, 2024 in Other subjects

1. Data, Information, and Systems

What are they?

Data: Raw materials like symbols, numbers, words, and images used to produce information.

Information: Data within a context, giving it meaning.

System: The mechanism that generates information.

2. Information Systems

Definition

A set of interacting elements supporting business activities.

3. Computerized Information System Elements

• Hardware: Computers and peripherals.
• Human Resources: People using and feeding data into the system.
• Data/Information: Inputs for generating results.
• Programs: Software processing data and generating results.
• Telecommunications: Hardware and software for electronic information transmission.
• Procedures: Operating rules for the computer application.

4. Four Basic Activities of an IS

• Input: The system takes in data (manual or automatic).
• Data Storage: Recalling information from previous sessions (files).
• Information Processing: Performing calculations.
• Output: Delivering information (printers, workstations, etc.).

5. Information Technology

Definition

Technologies supporting information systems and data networks (satellites, telephone, fiber optics, software, system design, etc.).

6. Basic Objectives in Organizations

• Automate business processes.
• Provide information for decision-making.
• Achieve competitive advantage.

7. Transactional Systems

Definition and Characteristics

Systems automating business processes.

• Support operational, middle, and senior management.
• Strong input/output, simple calculations.
• Load data into databases.
• Easy to justify, short-term benefits.
• Manual work savings.
• Adaptable to market packages.
• Examples: Billing, payroll, inventory.

8. Decision Support Systems

Characteristics and Classification

• Implemented after transactional systems.
• Support middle and senior management decisions.
• Intensive calculations, scarce input/output.
• Difficult economic justification.
• Interactive and user-friendly.
• Often developed by end-users.
• Classifications: DSS, GDSS, EIS, EDSS.

9. Strategic Systems: Key Characteristics

• Usually developed in-house.
• Start with a specific process, then expand.
• Aim for unique competitive benefits.
• Benefits are not permanent.
• Support product and process innovation.

10. Stages of Information-Based Growth

a. Start-up Phase

• First computer acquisition.
• Transactional systems implemented.
• IT under accounting.
• Small management, administrator role.
• Small staff (operator, programmer).
• Resistance to change.
• Ends with successful IS implementation.

b. Expansion Stage

• Post successful initial IS.
• More transactional systems.
• Application proliferation (disorganized).
• IT under administrative management.
• Specialist recruitment (analysts, programmers).
• Lack of automated interfaces.
• Low development standards, poor quality.
• Resource rationalization.

c. Control and Formalization

• Need for resource control (budgeting).
• Focus on operational efficiency.
• IT in a management position.
• Priority criteria for development.
• Labor standards implemented.
• Personnel management integrated.
• Automated interfaces development.
• Systems planning (budgetary control).

d. Integration Stage

• Data and systems integration.
• New technologies (databases).
• Lower equipment/software costs.
• Changes in user and IT roles.
• System replacements.

e. Data Management Stage

• Information as a valuable resource.
• Proper data management.
• User responsibility for data integrity.
• Different access levels.

f. Maturity Stage

• IT as a basic function, top-level placement.
• Advanced systems (CIM, knowledge-based).
• Database applications, network integration.
• IT as a profit center.
• Rigorous planning (5+ year horizon).
• Good communication with users.

11. Strategic Vision

Understanding IT’s role in supporting competitive strategy.

12. Strategic Information Systems (SIS)

Using IT to shape competitive strategy, gain advantage, or reduce rivals’ advantage.

13. Information Systems Classification

• Traditional: Automate basic operations or generate information for decision-making.
• Strategic

14. Competitive Advantage Alternatives

• Reduce costs: Sell more at lower cost (automation).
• Increase barriers to entry: Elements needed to compete.
• Create high switching costs: Costs for changing suppliers.
• Develop new products/services: Temporary advantage.
• Differentiate products/services: Persuade consumers of superiority.
• Improve products/services: Offer better quality.
• Create partnerships: Collaborate with other companies.
• Engage suppliers/buyers: Make switching difficult.

15. Fundamental Competitive Forces

• Potential competitors: Barriers to entry.
• Clients: Purchasing power.
• Substitute products/services: Alternatives.
• Vendors: Competing for better terms.
• Rivalry among competitors: Pressure to improve position.

16. Factors Influencing Rivalry Intensity

• Market concentration: Fewer rivals, less intensity.
• Industry growth rate: High growth, less rivalry.
• Switching costs: High costs, less rivalry.

17. SIS Processes Affecting Profits

• Increased sales (better prices, quality).
• Improved customer service (barcodes, websites).
• Increased productivity and cost reduction.
• Improved financial resource management.

18. Competing Entities in the Processes

• Companies (resource management).
• Providers (electronic data interchange).
• Clients (product differentiation).
• Distribution channels (transport cost reduction).
• Competition (direct, potential, indirect).

19. Specific IT Applications for Competitive Advantage

a. Barcode and Point of Sale Systems

Advantages: Improved inventory control, purchasing, customer service, stock distribution.

Point of sale advantages: Inventory control, pricing, staff evaluation, databases.

Both allow storing customer habit information.

• Increased sales
• Increased productivity and cost reduction
• Improved customer service
• Improved financial resource management

b. Electronic Funds Transfer (EFT)

Real-time credit and debit without cash.

Advantages: Time-saving, customer loyalty, reduced expenses, immediate funds, reduced bank staff.

c. Electronic Data Interchange (EDI)

Customers analyze sales data and generate orders electronically.

Advantages: Improved information, stronger client-provider relationships, higher profit margins, increased service efficiency, reduced paperwork.

d. Electronic Customer Cards

Loyalty programs and customer preference tracking.

e. E-commerce (E-Business)

Automating business transactions and workflows.

Advantages: Ordering products/services, electronic data transfer, meeting customer expectations, competitive intelligence, intranets.

Includes: Customer transactions, B2B transactions, market research, information distribution.

f. Shared Inventories

Improved customer service, lower inventory levels, competitive advantage.

g. New Sales Strategies

Providing information and maintaining customer relationships.

h. Electronic Communication with Suppliers

Keeping dealers informed electronically.

i. Turnover of New Services

j. Productivity in Manufacturing Processes

Reduced costs, improved quality, faster product development.

Benefits: Faster product launches, reduced waste, better inventory management, improved quality control, automated manual functions.

k. Banking and Financial Services

ATMs, online banking, electronic shopping.

l. Voice Interfaces for Sales

Automated order taking and customer service.

m. Automatic Control of Industrial Processes

Benefits: Reduced raw material waste, improved quality, increased production volume, improved customer service.

20. Strategic Thrusts

Movements to gain or maintain competitive advantage.

21. Five Categories of Strategic Thrusts

• Differentiation: Distinguishing products/services (price, venue, promotions).
• Cost: Reducing costs (economies of scale, synergy, information).
• Growth: Increasing business volume (market expansion, new products, functional growth, globalization).
• Alliances: Collaborations for common goals (acquisitions, joint ventures).
• Innovation: Responding to opportunities (idea generation, development, launch).

22. SIS Planning Process Steps

a. Phase A:

Introduce IT managers to SIS, obtain permission for brainstorming.

b. Phase B:

Brainstorming with IT on opportunities.

c. Phase C:

Joint assessment of ideas.

d. Phase D:

Explain SIS to directors, analyze ideas, get permission for further planning.

e. Phase E:

Brainstorming with planning, final assessment.

23. Suggested Methodology for Sessions

• Introduce competitive advantage and SIS concepts.
• Apply SIS concepts to company cases.
• Review competitive position.
• Brainstorm opportunities.
• Analyze and assess opportunities.
• Select best ideas, describe advantages and key implementation elements.

24. Reengineering

Techniques for integrating business processes (innovation).

Reinventing work processes for cost, quality, service, and time improvements.

Starts with business process redesign.

25. Process Definition

A set of activities with inputs and value-added outputs for the customer.

26. Main Changes in Reengineering

• Work unit changes (teams).
• Multidimensional roles.
• Employee empowerment.
• Focus on education.
• Results-oriented performance.
• Ability-based promotions.
• Productivity-focused values.
• Managers as advisors.
• Customer focus.
• Flatter organization structure.
• Leaders focused on more than financials.

27. Computer Definition

A programmable electronic device storing, retrieving, and processing data.

28. Hardware Definition

Physical parts of a computer.

29. Software Definition

Programs with instructions for the computer.

30. Computer Elements

a. Central Processing Unit (CPU)

Processes instructions and data, consists of ALU and control unit.

b. Storage Devices

Permanent (hard drives, CDs) and volatile (RAM).

c. Main Memory

• RAM: Stores programs and data before execution.
• ROM: Read-only memory (BIOS).
• Cache: Faster access to frequently used data.

d. Peripheral Devices

• Input devices (keyboard, mouse).
• Output devices (monitors, printers).

31. Computer Classification

• Supercomputers: Largest and most powerful.
• Mainframes: For large data volumes.
• Minicomputers
• Microcomputers: Workstations and PCs.
• Laptops: Portable computers.
• Special-purpose computers: Specific tasks.

32. System Software

Routines supporting users in using computer resources (OS, editor, compilers).

33. Operating System (OS)

Manages computer resources, allocates CPU and memory, controls peripherals.

34. Application Software

User-developed programs for specific tasks (inventory, accounting).

35. Programming Language

Rules and standards for writing programs.

36. Machine Language

Low-level language using binary code (0s and 1s).

37. Assembly Language

Low-level language using symbols for instructions and addresses.

38. High-Level Language

Third-generation language requiring compilation (Pascal, C, Cobol).

39. Fourth-Generation Language

Allows users with limited knowledge to develop programs.

40. Object-Oriented Languages

Operations linked to data objects (C++, Visual Basic).

41. Assembler, Compiler, Interpreter

• Assembler: Translates assembly language to machine language.
• Compiler: Translates high-level language to machine language.
• Interpreter: Translates and executes instructions one by one.

42. Batch and Online Processing

• Batch: Sequential processing of jobs.
• Online: Immediate data updates (real-time).

43. File Definition

A storage element containing records with similar information.

44. Modern Technologies

• Multimedia: Combining multiple media.
• Client/Server: Requesting and supplying machines.
• Virtual Reality: Computer-simulated reality.
• Hypertext: Accessing additional information via links.
• Java: Object-oriented programming language.

45. Computer System

CPU, storage, input/output devices, communication devices.

46. CPU and Primary Storage

a. CPU

Manipulates data and controls other parts, consists of ALU and control unit.

b. Primary Storage (RAM)

Temporarily stores data and instructions.

47. RAM Functions

• Store software programs.
• Keep the operating system.
• Hold data used by programs.

48. Microprocessors

Chips integrating CPU circuits, speed based on bits processed and words moved.

49. Parallel Processing

Multiple processors working on parts of a problem simultaneously.

50. Secondary Storage

Long-term, non-volatile storage.

• Magnetic disks
• Optical drives (CD-ROM, CD-R, CD-RW)
• DVDs
• Magnetic tapes
• Network storage

51. RAID (Redundant Array of Independent Disks)

Technology for faster disk performance using multiple drives.

52. Network Attached Storage (NAS)

RAID devices connected to a network via a dedicated server.

53. Storage Area Network (SAN)

High-speed network connecting storage devices for sharing across servers.

54. Batch Processing

Accumulating transactions for processing as a group.

55. Online Processing

Processing transactions immediately.

56. Multimedia

Integrating multiple media types (text, graphics, sound, video).

57. Streaming Technology

Transferring data as a continuous flow.

58. Server and Server Farm

Server: Provides resources to other computers.

Server Farm: A large group of servers.

59. Distributed Processing

Using multiple linked computers for processing.

60. Centralized Processing

One central computer performs all processing.

61. Client/Server Computing

Dividing processing between clients and servers.

62. Network Computers (NCs)

Simplified computers downloading software and data from a central server.

63. Peer-to-Peer Computing

Linked computers sharing tasks over a network.

64. Program, System Software, Application Software

• Program: Set of instructions.
• System software: Manages computer resources.
• Application software: Performs specific tasks.

65. Operating System

Controls and manages computer activities, allocates resources, oversees operations.

66. Source Code and Compiler

• Source code: High-level language instructions.
• Compiler: Translates source code to machine language.

67. Graphical User Interface (GUI)

User interface using icons and mouse.

68. Object-Oriented Programming

Combines data and procedures, objects encapsulate data.

69. Visual Programming, Java, HTML, XML, XHTML

• Visual programming: Developing programs by arranging objects.
• Java: Platform-independent language.
• HTML: Page description language for web pages.
• XML: Describes document structure.
• XHTML: Combination of HTML and XML.

70. Software Package

Pre-coded, commercially available programs.

71. Productivity Software Packages

• Word processing
• Spreadsheets
• Data management (databases)
• Presentation software
• Integrated software packages
• Email software
• Web browsers
• Groupware

72. Enterprise Resource Planning (ERP) Software

Set of interdependent modules for various business functions.

73. Middleware

Software connecting separate applications.

74. Web Server

Software locating and managing web pages.

75. Capacity Planning and Scalability

• Capacity planning: Predicting system saturation.
• Scalability: Expanding to serve more users.

76. Total Cost of Ownership (TCO)

Total cost of technology resources.

77. Storage Service Provider (SSP)

Third-party provider renting storage space.

78. Application Service Provider (ASP)

Company providing applications and services remotely.

79. Administrative and Business Continuity Service Providers

• Administrative service providers: Manage applications, networks, storage, security.
• Business continuity service providers: Disaster recovery and continuous availability.

80. Utility Computing

Paying only for used IT resources (on-demand computing).