BIS I - Business Information Systems Flashcards
What is a Business Information System? (!)
1) Entails the entire flow of information within the organization, e.g. between the organization and management.
2) IS link the organization with its environment, e.g. customers, suppliers, etc..
3) IS provide data storage and computing power, control options for management, and enable core activities of the organization
4) Connects the management with the organization via an (Enterprise) Application system, that in itself entails information/data flow between business processes, the ICT infrastructure and the Application software
The growing interdependencies between the firm and its IS/IT:
1) Increasing complexity of software development projects and application systems
2) Changes in strategy, rules, and business processes require changes in hardware, software, databases and telecommunications. The flexibility of an organization depends on the flexibility of its systems.
3) Changes in IT can bring about new business opportunities. The technological progress often triggers this: data storage, internet bandwidth, computational power, or new concepts, e.g. Big Data and Cloud computing
The concepts of data and information TBD
a. Data: raw, unorganized facts at the lowest level of abstraction.
b. Information: is data that has been processed to give meaningful insights.
c. Information systems form the synapse/connection between data and corresponding information
The business information value chain:
1) Business perspective: IS are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability
2) IS Are a value creation instrument.
3) To design and use IS efficiently, the relevant aspects of the organization, management, and technology must be understood
Function of an IS:
1) An IS contains information about an organization and its surrounding environment. Three basic activities produce the information needed:
a. Input, processing, output.
2) Feedback: is output returned to appropriate people/activities in the organization to evaluate & refine the input
3) Interaction of environmental actors (e.g. customers, suppliers, competitors, etc.) with the organization and its information and application systems
Complementary assets: Variation in returns on IT investments (!)
1) Returns on investments in IT vary, although the average ROI of investments into IT are far above those of alternatives.
2) Why this variation? Concept of complementary assets: assets required to derive value from a primary investment.
a. Firms that support their technology investments with investment in complementary assets receive superior returns, e.g. invest in technology and at the same time in the people to make It work
b. Returns on IT are provided by e.g. production increase (efficiency), better strategic positioning (turnover), compliance, etc.
3) Complementary assets, types and examples:
a. Organizational, e.g. organizational culture, efficient business processes, decentralized leadership, strong IT development team
b. Managerial, e.g. strong support from senior management for IT investments and related changes, incentives for innovations in management, management culture appreciating flexibility and knowledge-based decision-making processes
c. Social, e.g. the public internet and telecoms infrastructure, standards (both public and company-internal), training programs to enhance IT-knowledge of employees
Perspectives on Information Systems: Organization
a. The organizational structure of business functions mirrors the individual division of work, e.g. into sales and marketing, HR, finance & accounting, manufacturing and production
b. This separation causes specific operational routines, defined as formal business processes and rules. IS needs to reflect and operationalize these rules
a. Employee categories:
i. Knowledge workers: persons who design products & services and create new knowledge for the company
ii. Data Workers: persons who execute the business transactions of the company
iii. Production or Service Workers: persons who actually manufacture the products or execute the services of the company
Perspectives on IS: Management
1) Management perspective on IT: IT is an instrument to implement changes
2) Management tasks related to IS:
a. Interpreting situations, making decisions
b. Defining business strategies
c. Assigning human & financial resources
d. Developing new products & services or even re-creating the organization
3) Managers on different organizational levels
a. Own different roles and decision authorities
b. Diverging information needs result
c. Employee categories:
i. Senior Mgmt.: persons who make long-term strategic decisions
ii. Middle Mgmt.: is responsible for implementing and executing plans and arriving at objectives set by senior mgmt.
iii. Operational Mgmt.: plan, implement and control company operations and business processes
Perspectives on IS: Technology
1) All resources deployed by company employees form the firm’s IT infrastructure
2) Key terms:
a. Computer hardware & software: physical devices and software for input, processing and output
b. Data management and technology: physical devices and software for storing, administrating, and maintaining data
c. Communication technology: physical devices and software which connect various computer hardware components via networks and transfer data from one person/machine to another
d. Networking and telecommunications technology: the connection between two or more computers or network control devices in order to enable shared use of data or IT devices such as printers
e. Sums it all up: “IT infrastructure”: computer hardware, software, data, data storage technologies, communication devices including networks
E-Business, E-Commerce and Digital Business
1) Firms that are on their WAY to become successful e-business/e-commerce firms need to:
a. Re-define their business processes and business models
b. Change their corporate culture
c. Establish closer links with customers and suppliers and business partners
2) Firms that already are on their way to become digital businesses…
a. Re-invent their business model through digital transformation
b. Re-build their internal structures of assets and capabilities, and external relationships
c. Embrace the new options opened up by DIGITAL technologies and business
