Week 1 Flashcards
What is Data
- Raw Facts
- Represent values of qualitative or quantitative variables
- Often observed and recorded
How is Data collected?
Through observations (subjective)
Through recordings (objective, measured)
Does Data on its own have meaning?
No, unprocessed Data has no meaning
Data must be processed into a useable form that can be understood by the information consumers
How does Data serve in an information system?
It serves as inputs to information
Five Characteristics of Data Quality
- Relevance
- Frequency
- Timeliness
- Accuracy
- Privacy
Data Quality Characteristics: Relevance of Data
What data to collect
Unrelated data are NOT needed, wastage of investment and causes information overload
Data Quality Characteristics: Frequency of Data
How often to collect data?
i.e. weather models
Data Quality Characteristics: Timeliness
When to collect data?
i.e. share price, especially when data is needed in real time
Data Quality Characteristics: Accuracy
Precision of Data?
i.e. speed camera malfunction triggers issuing fines, law suits from citizens
Data Quality Characteristics : Privacy
Protection from unauthorised access/use
Outsourced company employees cannot access financial health related data
Cost of Data
DATA IS NOT FREE
Costs involved in collecting and ensuring data quality through five characteristics
Value generated from data justifies its costs of collection?
Information
Information is the Output of processed data that carries meaning for the information consumers
Allows individuals to make decisions (AI too nowadays)
How is information created?
Through analysing or processing data
How is data processed?
Manually (human intelligence)
IT enabled Information Systems
Relationship between Data, Information & Knowledge
Data -> Information -> Knowledge
Data is processed within a context to give information (understandable meaning)
Knowledge is sought to question meanings of information received from processing data
Knowledge
- Produces insights
- Helps improve understanding relationship between pieces of information
Information Overload (Infobesity)
Too much information will reduce the quality of decision making (too much noise)
Why?
- Overgeneralization
- Selective of information that confirms previous point of view/ experience
3 Issues with Data & Information
- Information Overload
- Information not produced for management decision making
- Decisions driven by power and politics instead of information
6 Interesting Characteristics of Information (Economics)
- High production costs (collect and process)
- Negligible replication costs (copy to USB)
- Little distribution costs (networks infrastructure)
- Sunk Costs (cost for researching, rent, payroll, advertising)
- Information & carrier of information are different (CD vs information)
- Not consumed by use
Sunk cost
Cost that has already been spent but not recoverable in any case and future business decisions should not be affected by past spent
Positive Impacts of BIS on Business
- Information is customisable (can modify information products)
- Information is often time valued (value of information tied to users ability to access and use it when NEEDED) i.e. share price
- Information products can achieve significant profits (low replication and distribution costs i.e. Microsoft Office)
Business Information Systems
Systems intergrating
IT
PEOPLE
BUSINESS
Brings business functions and information modules => effective communication> = timely and accurate decision = productivity and competitiveness
4 Components of BIS
Structure
Technology
People
Process
Technical sub system (BIS)
NO human elements
Technology
Process
Social sub system
People
Structure
What must a business manager understand about the components of BIS
Understand the interaction between
Structure
Technology
People
Process
All four must work together
Components of BIS: IT
Technical component
- Hardware (computer)
- Software (Microsoft office)
- Telecommunication equipment (router)
Can be designed to
- enable action OR
- disable action (limited geography -> ERP systems USA cannot be used in China)
Components of BIS: Process
A series of steps necessary to complete a business activity i.e. hotel check in
Process can be formal or informal
Gaps between formal and information process - > users seek short-cuts for convenience
Potential discrepancy
Discrepancy between business processes as designed by organizations and the manner of which they are actually enacted may facilitate BIS failure from user perspective
Components of BIS : People
People component (individuals and groups)
Stakeholders, end users, managers or IT professionals
Have own set of skills, attitudes and personal agendas
Must understand peoples skills, interest and motiviations when designing/implementing IT based IS
What happens to a BIS when some groups (people) are not happy with the system?
The BIS may be under utilised or sabotaged
Components of BIS: Structure
Organisational design Reporting mechanisms (functional, matrix)
Why understanding of structure component of a BIS is crucial
- Introduction of IT systems may bring changes in organisational structures
- Some people may lose authority
- User resistance is likely to occur
- Adequate and appropriate trainings are needed to minimise resistance
Systemic Effects of the BIS
Interdependence of the components of the BIS
changes in one component affect other components of an IS
Components of BIS (Schematics)
social technical
Structure Technology
| X |
People Process
Organisational Impact of BIS
Business Process
People
Organisational hierarchy / structure
Business Performance
BIS Impact - Business Process Improvement
- Attempts to make small changes in processes
- Changes made over time
- Automate (manual to auto) and informate (to dispense information)
- Less risky
BIS Impact - Business Process Reengineering
- Radical changes
- Changes are generally made in one attempt
- Transformational changes
- Risky and can fail
BIS Impact - People
Efficiency
- Reduce time and resources in task completion- -Prompt decision making
- Remove repetitive tasks
Effectiveness
- Improve quality of decision making
- Access to more diverse, accurate and timely information
- Improved relationship between managers of various departments
BIS Impact - Structure
Empowers employees with BIS enabled decision making
Reduces layers of management hierarchy
BIS Impact - Business Performance
Strategic impact
Measures contribution of BIS towards meeting an organisations strategic objectives
However, flaws in BIS can negatively affect share price
Unintended Impact of BIS
- Deskillling (waitress replaced by robots
- Loss of Authority (structure)
- Monotonous working environment
Organisational Changes from BIS
First order change (automate)
Second order change (informate)
Third order change (transform)
Automate (First Order)
Simple changes (technical sub-system)
Changes to HOW process is performed
Scope is narrow
Limited senior management involvement
Informate
Second Order
Affects social and technical sub systems (Technology + People + Process)
The manner in which people interact with technology and process are modified (mainly on people)
Transform (Third Order)
Occur in all components of BIS
Disrupt organizational structure
