Lecture 9 Information Systems Flashcards
What is an Information System (IS)?
An Information System (IS) is a group of interrelated components that work together to carry out processes like input, processing, output, storage, and control to convert data into useful information. IS supports communication and information flow within an organization.
Difference Between IS and IT
Information Technology (IT) refers to the technology used in Information Systems, such as hardware, software, databases, and telecommunications.
Information Systems (IS) are broader, involving not only the technology but also the people, processes, and organizational structures that use the technology to achieve business goals.
IT is about the tools, while IS is about the whole system and how it supports business processes.
Types of Information Systems (IS)
Operational Systems
Monitoring Systems
Decision Support Systems
Communication Systems
Types of Information Systems (IS):
Operational Systems
Essential for daily tasks (e.g., payroll, order processing)
Types of Information Systems (IS):
Monitoring systems
Track and gather data (e.g., customer purchase tracking).
Types of Information Systems (IS):
Decision Support Systems (DSS)
Help organizations make informed decisions based on data analysis.
Types of Information Systems (IS):
Communication Systems
Tools like email and messaging apps that support communication.
ERP (Enterprise Resource Planning) Systems
manages core business processes across an organization (e.g., finance, HR, supply chain).
Key Features: Integration, real-time data, automation.
ERP (Enterprise Resource Planning) Systems Benefits
Improved efficiency, better collaboration, and enhanced decision-making.
Key Components of ERP Systems
Central Database: Stores and shares data across applications.
Modules: Common modules include Finance, HR, Supply Chain, and CRM.
Extranet: Allows external partners
(e.g., suppliers) to connect to the ERP system via the internet.
Disadvantages of ERP Systems
High Total Cost of Ownership (TCO), including license fees, consultancy, and maintenance.
High failure rates (70% of companies don’t achieve the expected benefits).
Organizational challenges (e.g., resistance to change, loss of cultural values).
ERP and Organizational Fit
ERP systems require alignment with the structure and culture of an organization.
They typically focus on control (e.g., centralization of information), which can impact coordination and standardization of processes.
CRM (Customer Relationship Management) Systems
CRM systems manage customer interactions to improve customer service and increase sales.
Types of CRM
Operational CRM
Analytical CRM
Operational CRM
Automates sales, marketing, and customer service processes.
Analytical CRM
Analyzes customer data for better decision-making and strategy (e.g., customer behavior analysis).
Impact of Culture on IS
Organizational culture influences which IS work best. For example:
Process-driven cultures benefit from integrated systems like ERP.
Human relations cultures favor systems like CRM or social media.
Technologies also shape organizational culture, such as social media making communication more informal or ERP leading to centralization.
Organizational Change and IS
Implementing new IS requires managing cultural and organizational change.
Resistance to change can occur, and employees need time to adapt to new processes, like learning new ways of ordering parts in an ERP system.
Business Process Redesign with ERP
Changing business processes often requires redesigning workflows.
ERP systems demand adjustments in areas such as data storage, business procedures, and employee roles to align with the system.
Culture and Technologies in an Organization
Different cultural orientations within organizations lead to preferences for different technologies and systems.
Conversely, technologies can shape culture (e.g., ERP can lead to more formal and centralized structures).
ERP’s Role in Business Process Integration
ERP helps integrate business functions such as finance, HR, and supply chain into a single system.
The system supports real-time decision-making and streamlines operations by reducing redundant tasks
Decision Support Systems (DSS)
DSS are tools designed to help organizations analyze data and make informed decisions.
They typically involve data analysis techniques like data mining, predictive analytics, and trend analysis.
Information Systems and Organizational Power
IS and IT systems can influence organizational power dynamics.
For example, controlling access to data can shift power, and technologies like RFID can transform supply chains, making them more efficient and transparent.
