Information Systems Flashcards
What is an Information System?
IS = IT + users / people
What is IT (Information Technology)?
Hardware that gets enabled by Software (or vice versa)
-> goal is to process data
What is the difference between data, information and knowledge?
Data: Raw symbols without meaning.
Information: Formatted and / or processed Data
Knowledge: Information that is understood and can be used for decisions
What is a system?
A blackbox that transforms input into output.
How do information systems help businesses gain a competitive advantage?
- Competitive Advantage Defined: The concept of competitive advantage involves operating uniquely compared to competitors to gain an edge.
- Unique and Not Easily Copied: Competitive advantage needs to be somewhat unique and challenging for competitors to replicate; otherwise, it won’t remain an advantage.
- Forms of Competitive Advantage: Competitive advantages can manifest as access to resources, competence (know-how), efficient operations, technological innovations, patents, and depth of information.
- Information Systems’ Role: Information systems play a crucial role in achieving competitive advantages by helping organizations operate more effectively than their rivals.
- Efficient Resource Use: Information systems facilitate efficient resource utilization, with information being a key resource in modern organizations. This includes using information for strategic decision-making, streamlining processes, and understanding customer needs and habits.
- Example: For instance, human resource management software, integrated with other systems, helps organizations utilize their employees more efficiently, reducing costs, and enabling competitive pricing to attract more customers.
- Understanding the Organization: Information systems act as a window into an organization’s inner workings, helping to demystify complex processes and providing data from different parts of the organization for informed strategic decision-making.
- Efficiency and Resource Utilization: Information systems enhance organizational efficiency through the optimal use of various resources, including human resources, fleet management, and production inputs.
- Data Collection and Understanding: They also collect data from different parts of the organization, turning it into valuable information for a deeper understanding of internal processes.
In essence, information systems make organizations more efficient by maximizing resource utilization and simultaneously provide crucial insights into their internal workings, contributing to gaining competitive advantages.
What are advantages and disadvantages of a custom software?
Advantages:
+ Adaptability
+ Unique - Potential competitive advantage
+ Less reliant on outside providers
Disadvantages:
- Costly
- Takes development time
- Need for internal competencies or new hires
What are advantages and disadvantages for packaged software solutions?
Advantages:
+ Stress tested products, potentially many users.
+ Built in outside of org expertise, meaning one can focus on what we as an org does best
rather then developing new softwares.
+ Updates
+ Experience, in terms of implementation and maintenance
Disadvantages:
- Might pay for elements not needed as they are not tailor made products
- Comparability with current systems and personnel
- Scalability in terms of both investment and output
- Others may use the same programs, not a venue for competitive advantage among others
using the same system
- Relying heavily outside consultants, meaning the provider might go bankrupt, be untrustworthy so on and so forth.
How should information systems and knowledge management complement each other?
- Information Systems and Knowledge Management Relationship: Information systems and knowledge management should complement each other, mutually enhancing efficiency and effectiveness within an organization.
- Intentional Design and Use: Information systems should not be treated as mere tools for information storage and exchange; they should be designed, selected, and maintained with the organization’s specific needs in mind.
- From Information to Knowledge: Information systems should facilitate the transition from raw data (information) to knowledge by providing meaningful ways to extract context, meaning, and learning from the information.
- Utilization of Information Systems for Knowledge Management: Knowledge management should leverage information systems to access and store existing knowledge, ensuring an organization’s long-term viability.
- Example: For instance, organizations often rely on specific individuals to store critical knowledge. Information systems should be updated and maintained to enable the transfer of this knowledge to new hires when needed.
- Tacit Knowledge Inclusion: Information systems should incorporate tacit knowledge (knowledge that is hard to document), such as experiential insights, by using AI elements to learn from user behavior and adapt accordingly.
- AI-Driven Efficiency: AI elements in information systems can enhance efficiency by identifying common user behaviors and streamlining processes or sending relevant data to decision-makers for improved system design.
- Understanding the Black Box: Information systems and knowledge management together help organizations understand and optimize their internal processes and systems by shedding light on their workings and importance to users.
What are the four conversion strategies when implementing a new Information System?
- Direct Conversion
- Pilot Conversion
- Phased Conversion
- Parallel Conversion
Starting at lowest cost / highest risk going to highest costs / lowest risks.
What challenges might occur when implementing a new information system?
- Minimizing Disruption: The impact of disruption varies based on factors like operating hours, seasonal demand fluctuations, revenue loss, and reputation damage. Timing for changes should be strategically chosen.
- Adaptation Period: Assess how long it would take for employees and stakeholders to adapt to the new system, considering their familiarity with such systems and its reliability.
- Existing System Condition: Evaluate the functionality of the current system to determine if it’s at risk of failure.
- Change Management: The impact of change, whether significant or small, involves dealing with emotions, resistance, and expectations of stakeholders. Stakeholders may require guidance and support during the transition.
- Positive Experience with Information Systems Shifts: Overall, experiences with information system transitions have been positive, especially when considering a phased approach over a direct switch. Pilots or gradual deployment allow for smoother adaptation, reduce disruptions, and support continuous improvement.
- Negative Impacts of Overlapping Systems: Overlapping systems can hinder efficiency and performance, leading to redundancy, increased labor, and potential delays.
- Context-Driven Change: Context and circumstances should guide change efforts, and careful consideration is essential when implementing changes within an organization, especially in the warehouse management sector, where time and efficiency are critical.
How can companies be guided by attempting to implement a new information system?
Systems…
1. Investigation (planning / selection)
2. Analysis (Requirements -> what should be done, not how it should be done)
3. Design (make or buy / prototyping)
4. Implementation (programming, testing, training, introduction)
5. Maintanance (correct, adapt, improve, prevent)
Describe the purpose of a model within a DSS (decision support system).
- uses Data, Information, and Knowledge and is crucial for making informed decisions.
- Business Intelligence (BI):
- Examines structured and unstructured data to understand past and present situations.
- Focuses on “what” and “how” by analyzing historical and current data.
- Advanced Analytics and Business Analytics:
- Analyze structured and unstructured data to understand trends and more.
- Focus on “what,” “how,” and “why,” looking at future trends in the company.
- Visual Analytics: Utilizes digital or managerial dashboards to present data effectively.
- Supporting Decision Making: All these tools assist companies in making informed decisions by providing insights into trends, issues, and competitors.
Describe how changes in businesses’ competitive landscape influence changing information system infrastructure needs.
- Competitive Advantage with Information Systems:
Firms of all sizes and types can achieve competitive advantage through information systems. - Changing Nature of Information Technology:
- Information technology is evolving rapidly, influenced by advances in smartphones, social networks, and industry changes.
- Companies like Google, Facebook, and Amazon use IT to add value and gain a competitive edge.
- Amazon.com’s IT Expertise:
- Amazon.com leverages its IT expertise and offers cloud computing services to other businesses, generating revenue and competitive advantage.
- Continuously Updating IT:
- Information technology is constantly changing, making it crucial for businesses to stay current.
- Relying on the same IT practices may not sustain a competitive edge, as other companies can adopt them as well.
- Importance of IT Expertise:
- Having IT knowledge and expertise is vital for gaining a competitive advantage.
- Some companies choose to outsource IT jobs to countries with skilled IT professionals to maintain a competitive edge.
- Outsourcing for Expertise:
- Outsourcing IT allows companies to focus on their core competencies while benefiting from the expertise of IT professionals in other regions.
How can B2B processes be improved by using SCM information systems?
- Information systems optimize B2B processes, making the supply chain leaner and more efficient.
- Mature B2B processes involve advanced IT systems and multi-enterprise integration.
- Multi-enterprise processes treat organizations as part of the supply chain, share data, and align objectives.
- Advanced IT systems facilitate data and process sharing internally and externally.
- Transparency in supply chain management is achieved through advanced information technology systems.
Examples:
- Enhanced communication between a company and a third-party logistics provider (3PL) using information systems.
–> Quick response to challenges in goods pickup.
- Instant order processing and communication with suppliers for efficient inventory management.
- Real-time identification and communication of production stoppages to prevent delays and losses.
Explain the levels / quality of processes maturity and why they are relevant when introducing a new information system.
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Business Process Definition:
- A business process comprises structured tasks for service or product production.
- Companies investing in business processes perform better than those focusing solely on IT.
- Applying technology to a poorly designed process can accelerate mistakes.
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Importance of Business Process Quality:
- Business process quality outweighs the significance of technology.
- A business process can be visualized as a flowchart of activities.
- Four levels of business process maturity:
- Disconnected processes: Independent, functionally organized processes, limited information, manual systems.
- Internal integration: Functionally organized processes with higher information sharing, departmental KPIs, limited IT integration.
- Intra-company and limited external integration: Cross-functional processes, external stakeholder involvement, shared data, common IT systems, planning tools.
- Multi-enterprise integration: Organization functions as a unified supply chain, extensive collaboration, shared IT systems, common goals, advanced IT systems.
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Ideal Business Process and IT Relationship:
- Mature business process with advanced IT systems is ideal.
- Poorly designed business process with advanced IT leads to potential failure.
- Analogy: Car and map example:
- Best: Fast car and a new map (quick and efficient).
- Second best: Slow car and a new map (slower but effective).
- Third best: Slow car and an old map (slower but still functional).
- Worst: Fast car and an old map (inefficient and prone to failure).
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Considerations for Implementing Information Systems:
- A company should assess its business process maturity before implementing an information system.
- Mature business processes are more critical than advanced technology for successful implementations.
