1. Information Systems (IS):
- Definition: A mechanism to collect, process, store, and distribute information within and outside an organization to improve effectiveness and efficiency.
- Components: An organized combination of people, hardware, software, communication, network, data resources, policies, and procedures that handle information.
2. Benefits of IS:
- Storage & Retrieval: Efficient storage, safety, and retrieval of information.
- Processing: Fast processing and distribution of information.
- Analysis: Improved analytical capabilities for effective decision-making.
- Operations & Service: Enhanced business operation management and customer service.
- Accuracy: Real-time information and reduced risk of errors.
- Competitive Advantage: Competitive advantage through data-driven insights.
3. Types of IS:
- Operational Support Systems:
- Transaction Processing System (TPS): Records and processes business transactions (e.g., point of sale system).
- Process Control System: Monitors and controls physical processes (e.g., refinery sensor system).
- Enterprise Collaboration System: Enhances team communication and productivity (e.g., video conferencing).
- Management Support Systems:
- Management Information System (MIS): Provides reports to managers and professionals (e.g., sales reports).
- Decision Support System (DSS): Aids managers in decision-making (e.g., advertising analysis).
- Executive Information System (EIS): Provides critical internal and external information to executives (e.g., performance highlights).
4. Expanding Role of IS in Business:
- 2000s-2010: Enterprise resource planning, business intelligence, data mining, visualization, customer relationship management.
- 1990-2000: Electronic business and commerce.
- 1980-1990: Strategic and end-user support.
- 1970-1980: Decision support.
- 1960-1970: Management reporting.
- 1950-1960: Data processing.
5. Impact of IS on Organization:
- Workflow & Productivity: Better information flow for improved workflow and productivity.
- Transaction Processing: Accurate and timely transaction processing.
- Decision Making: Data-driven decision making.
- Collaboration: Enhanced workgroup and team collaboration.
- Quality: Improved quality of goods and services.
- Data Management: Effective data management and executive support.
- Competitiveness: Increased competitiveness.
6. Impact of IS on Society:
- Positive:
- Effective communication through various channels.
- Increased availability of information leading to greater awareness.
- Promotion of globalization and reduction of cultural gaps.
- Improved services and access to online services.
- Negative:
- Overabundance of information.
- Increased potential for fraud.
- Job security concerns.
- Cybersecurity threats.
7. IS in Organizational Strategy & Competitive Advantage:
- Customer & Supplier Engagement: Engage customers and suppliers by developing valuable relationships.
- Switching Costs: Create high switching costs.
- Operational Quality: Improve operational quality and efficiency.
- Technological Advancements: Utilize technological advancements for new opportunities (e.g., new product development).
8. Characteristics of Good IS:
- Relevance: Relevant and impactful information for decision-making.
- Accuracy: Accurate and reliable data and calculations.
- Timeliness: Useful and timely information for current needs.
- Completeness: Complete information without gaps.
