Information Systems Defined Basic definitions and foundational Information

Information Systems Defined Basic definitions and foundational Information Systems concepts © Gabriele Piccoli

Course Roadmap • Part I: Foundations – Chapter 1: Introduction – Chapter 2: Information Systems Defined – Chapter 3: Organizational Information Systems and Their Impact • Part II: Competing in the Internet Age • Part III: The Strategic use of Information Systems • Part IV: Getting IT Done © Gabriele Piccoli

Learning Objectives 1. The definition of information system (IS) and information technology (IT) and the difference between the two. 2. The definition of information system success and information system failure. 3. The principal reasons why modern firms create and deploy information systems. 4. The influence of the firm’s context and the external environment in which it is embedded on organizational information systems. 5. The four components that make up an information system and the manner in which they interact. 6. How to design successful information systems and how to troubleshoot problematic information systems implementations. © Gabriele Piccoli

Information System: Definition Formal, socio-technical, organizational systems designed to collect, process, store, and distribute information © Gabriele Piccoli

Formal vs. Informal © Gabriele Piccoli

IS ≠ IT • Opened: 1907 • First implementation of computers in hospitality: New York Hilton, 1963 • Did they have an Information System in 1907? © Gabriele Piccoli

The Four Components of an Information System • • IT Process People Structure © Gabriele Piccoli

Value to Managers • A solid understanding of the characteristics of each of the four components • An appreciation of how they relate and interact with one another • Appropriate business decisions as a general or functional manager © Gabriele Piccoli

Information Technology Component • Hardware – Computer, cell phone • Software – Microsoft Office • Telecommunication equipment – Internet © Gabriele Piccoli

Don’t Forget! • The design of IT enables and constrains the behavior of the Information System Software, particularly a custom developed application, is an opinion of how data should be represented, organized, and manipulated © Gabriele Piccoli

Process Component • The series of steps necessary to complete a business activity • Examples: – Check-in at a hotel – Credit approval at a bank – Materials receiving at a warehouse • There are multiple ways to perform an activity: Every process is designed. © Gabriele Piccoli

Don’t Forget! Official business process © Gabriele Piccoli Informal process

People Component • Those individuals or groups directly involved in the information system – End-users – Managers • Their needs are a critical concern in designing and implementing a new Information System © Gabriele Piccoli

Structure Component • The organizational structure component (structure for short) encompasses: – The organizational design • Hierarchy, decentralized, loose coupling – The reporting configuration • Functional, divisional, matrix – The organizational relationships • Communication and reward mechanisms • Culture © Gabriele Piccoli

Systemic Effects: Components Working Together • The four components of an Information System are Interdependent • Changes in on component may affect all others • Success is based on the proper interaction of IT with the other components © Gabriele Piccoli

The Purpose of Information Systems • Fulfilling organizational processing needs • Improve efficiency and effectiveness • Achieve a (specified) Information System goal. • Example: Grocery store – To increase the efficiency and speed of customer check-out by using self-check out stations. © Gabriele Piccoli

Information Systems Success • Has the system delivered expected results? • What are some of the unintended results? – Positive – Negative © Gabriele Piccoli

IS Success is often Elusive © Gabriele Piccoli

Don’t Forget! • Every organization is unique • Even fierce competitors often have different: – Firm strategy: The manner in which the organization intends to achieve its objectives. – Firm culture: The collection of beliefs, expectations, and values shared by the members of an organization. – Infrastructure: The technological backbone of the firm. It constrains and enables opportunities for future information systems projects. © Gabriele Piccoli

External Environment • External environment: – The legal and regulatory context – The competitive landscape – The general business and social trends surrounding the organization © Gabriele Piccoli

Bringing it all Together: Information Systems in Context © Gabriele Piccoli

Information Systems and Organizational Change First Order Change: Automate © Gabriele Piccoli Second Order Change: Informate Third Order Change: Transform

First Order Change: Automate • First order change only affects the technical subsystem • Thus, it is: – Easiest to envision – Easiest to justify – Easiest to manage. © Gabriele Piccoli

Second Order Change: Informate • Second order change affects the people component • It thus provides more of a challenge to implementation © Gabriele Piccoli

Third Order Change: Transform • Third order change affects organizational structures • It seeks to transform how the organization operates • It requires significant managerial and executives’ involvement © Gabriele Piccoli

Implications • IT should NOT be the start of your Information System design process – Strategy may be inspired by IT but – IT selection is a point of arrival not departure • Never forget Systemic Effects • Optimize the Information System as a whole, not the components individually • Organizations are dynamic, re-evaluate often © Gabriele Piccoli

What we Learned 1. The definition of information system (IS) and information technology (IT) and the difference between the two. 2. The definition of information system success and information system failure. 3. The principal reasons why modern firms create and deploy information systems. 4. The influence of the firm’s context and the external environment in which it is embedded on organizational information systems. 5. The four components that make up an information system and the manner in which they interact. 6. How to design successful information systems and how to troubleshoot problematic information systems implementations. © Gabriele Piccoli