Chapter 1 organisation, and technology dimensions

- IS as an academic discipline
1. Definition: Information system (IS) + The study of information systems focusing on their
- A boundary-spanning field connecting business and use in business and management
Information Technology (IT) 2. Functions of an Information System
- Main components of an IS: human, technology, and - Input: Captures raw data from a company or
tasks that humans perform using technology external environment
- Processing: Converts raw data into meaningful
- Information – Data (streams of raw facts) that have
information
been shaped into a form that is meaningful and
useful to people - Output: Transfers processed information to people
or activities that use it
- System - A set of interrelated components that
work together 3. Business Perspective on Information Systems

- From a technical perspective - Organisational Dimension of IS

+ Collects, stores, and disseminates information
(from both an organisation’s environment and
internal operations)
+ Goal: To support organisational functions, decision-
making, communication, coordination, control, and
analysis
- From a business perspective
+ Provides a solution to a problem or challenge facing
a company
+ Represents a combination of management,
IS serve each level in the:
+ Organizational hierarchy Separation of business
functions (e.g., sales and marketing, human
resources, finance and accounting, manufacturing
and production)
+ Business processes
+ Organisational culture
+ Organisational politics
- Management Dimension of IS: IS support managers
in their work and decision-making
- Technology Dimension of IS 5. A Sociotechnical Perspective on Information
Systems
+ Hardware and software
Optimal organizational performance achieved by
+ Information Technology (IT) infrastructure jointly optimizing both social and technical systems
+ Data management technology used in production

+ Networking and telecommunications technology 6. The Value of Information Systems to Business

4. The Information Systems Discipline - Emerging mobile digital platform

- Growing business use of “big data”
- Studying Information Systems - Growth in cloud computing
7. Strategic Business Objectives of Information
Systems
1. Operational excellence IS can enhance business processes by Increasing
2. New products, services, and business models efficiency of existing processes and Enabling entirely
3. Customer and supplier intimacy new processes
4. Improved decision-making
4. E-Business, E-Commerce, E-Government
5. Competitive advantage
6. Survival E-business: Use of digital technology and the internet
to drive major business processes
Chapter 2 E-commerce: Buying and selling goods and services
1. Definition of a Business Process through the internet
- A collection of activities that takes one or more E-government: Use of digital technology and the
kinds of input and creates an output that is of value internet to deliver information and services to
to the customer citizens, employees, and businesses
- Flows of material, information, and knowledge 5. Types of Information Systems
- Can be tied to a functional area or be cross- Transaction processing systems (TPS):
functional - Serve operational managers and staff
- Perform and record daily routine transactions
2. Functional Business Processes
necessary to conduct business
- Manufacturing and production - Allow managers to monitor status of operations and
- Finance and accounting relations with external environment
- Serve predefined, structured goals and decision
- Sales and marketing making -
- Human resources Provide answers to routine questions about the flow
of transactions
3. Business Processes and Information Systems (IS)
Business Intelligence (BI) Systems - Collects data from different firm functions and
Management information systems (MIS): stores data in single central data repository
- Serve middle management - Resolves problem of fragmented data
- Provide reports on firm’s current performance, - Enable processes across the company, at different
based on data from TPS organisational levels with suppliers and customers
- Provide answers to routine questions with
Supply chain management (SCM):
predefined procedure for answering them
- Typically have little analytic capability - IS that automate the flow of information between a
Decision support systems (DSS): company and its suppliers
- Serve middle management - Manage firm’s relationships with suppliers
- Support non-routine decision making - Share information about: orders, production,
- May use external information as well TPS/ MIS data inventory levels, delivery of products and servies
- Goal: right amount of products to destination with
Executive support systems (ESS):
least amount of time and lowest cost
- Support senior management
Customer relationship management (CRM):
- Filter critical data to senior managers
- Address non-routine decisions which require - IS that track all the ways in which a company
judgment, evaluation, and insight interacts with its customers
- Incorporate data about external events as well as - Provide information to coordinate all of the
summarized information from internal MIS and DSS business processes that deal with customers
- Examples: Analysis of trends, forecasting + Sales
+ Marketing
Enterprise Applications
+ Customer service
Enterprise Resource Planning (ERP) systems - Helps firms identify, attract, and retain most
profitable customers
Knowledge management systems (KMS): 8. Tools for Collaboration and Teamwork
- Support processes for capturing and applying
- Email and instant messaging
knowledge and expertise how to create produce,
deliver products and services - Wikis
- Collect internal knowledge and experience within - Collaboration and social business platforms: Virtual
firm and make it available to employees meeting systems (e.g., Webex, Skype)
- Link to external sources of knowledge
6. Intranets: 9. The Time/Space Collaboration Tool Matrix
- Internal company websites accessible only by
employees
Extranets:
- Company websites accessible externally only to
vendors and suppliers
- Often used to coordinate supply chain
7. Systems for Collaboration and Social Business
Collaboration: Working with others to achieve shared
and explicit goals
Social Business:
- Use of social networking platforms, including
Facebook, Twitter, and internal corporate social
tools, to engage employees, customers, and suppliers
- Goal: To deepen interactions and to facilitate
Chapter 3
1. Features of organizations:
exchange of information, expertise, and knowledge
- Use of hierarchical structure
- Accountability, authority in system of impartial
decision making
- Adherence to principle of efficiency
- Routines and business processes
- Organizational politics, culture, environments, and
structures
2. The Impact of Information Systems on
Organisations
- Transaction cost theory: companies grow larger 3. Porter’s Competitive Forces Model
because they can conduct transactions internally
more cheaply than external companies. Provides general view of firm, its competitors, and
enviroment
- IS and internet can help companies reduce
transaction costs Five competitive forces:
- IS helps outsourcing instead of hiring employees 1. Traditional competitors
- IS helps increases the accessibility, storage, and 2. New market entrants
distribution of information and knowledge for 3. Substitute products and services
companies 4. Customers
- Information systems can reduce the number of 5. Suppliers
levels in an organization by providing managers with 4. IS-Enabled Strategies for Dealing with
information to supervise larger numbers of workers Competitive Forces
and by giving lower-level employees more decision- - maintaining low costs
making theory - differentiating products or services
- focusing on market niche
- strengthening ties with customers and suppliers - IS enable business models based on large networks
- increasing barriers to market entry with high levels of users or subscribers that take advantage of
of operational excellence network economics
5. Value Chain Model
- Firm as series of activities that add value to
Chapter 4
5 moral dimensions of the information age:
products or services - Information rights and obligations
- Highlights activities where competitive strategies - Property rights and obligations
can best be applied: primary activities vs. support - Accountability and control
activities - System quality
6. Synergies: - Quality of life

- The creation of a whole that is greater than the

simple sum of its parts
Chapter 5
1. Information Technology (IT) Infrastructure
- IS tie together the operations of disparate business
- The shared technology resources that provide the
units
platform for IS
7. Core competence
- Consists of a set of hardware, software, and services
- Activity at which a company excels as a world-class
leader that are shared across the entire organisation
- Relies on knowledge, experience, and its sharing - Provides the foundation for the organisation to
across business units operate
- IS help companies leverage their core competences - Set of firmwide services including:
by promoting the sharing of knowledge + Computing platforms providing computing services
+ Telecommunications services
+ Data management services - The global system of interconnected computer
+ Application software services networks that uses the internet protocol suite to link
+ Physical facilities management services devices worldwide
+ IT management, education, and other services
- Consists of private, public, academic, business, and
2. IT Infrastructure has seven main components
government networks
1. Hardware platforms
2. Operating system platforms - Carries a vast range of information resources and
3. Enterprise software platforms services
4. Networking and telecommunications platforms 5. Technology Drivers of IT Infrastructure Evolution
5. Services of consultants and system integrators
6. Database management software - Increasing Processing Power (Moore’s Law )
7. Internet platforms - Decreasing Costs of Transistors
3. 5 stages of evolution of IT Infrastructure - Decreasing Costs of Storing Data (Law of Mass
(1) the mainframe era, Digital Storage )

(2) the personal computer era, - Increasing Demand for More Processing and Storage
Power (Metcalfe’s Law and Network Economics )
(3) the client/server era,
- Declining Costs of Communication and the
(4) the enterprise computing era Exponential Growth in the Size of the Internet
(5) the cloud and mobile computing era 6. Current Trends in Hardware Platforms
4. Internet (Interconnected Network) - Mobile Digital Platforms: Smartphones, Netbooks,
Tablets, Networked e-Readers, Wearable devices
- Customerization of IT
- BYOD - Organise Data in a List (One-Dimensional Array)
- Green IT (Green Computing) - Organise Data in a Hierarchy
- Cloud Computing - Organise Data in a Table
7. Current Trends in Software Platforms 2. The Data Hierarchy in a Computer System
- Open-Source Soft ware - Databese: group of related files
- File: group of records of sample type
- Programming Languages for the Web
- Record: group of related fields
- Service-Oriented Architecture (SOA) - Field: groups of characters as word(s) or number
8. External Sources for Company Software - Byte: represents one character, number, or symbol
- Software packages from a commercial software - Bit: starting point in the data hierarchy, can be
vendor either a 0 or a 1
- Software outsourcing 3. Problems with the traditional file environment
- Cloud-based software services (files maintained separately by different
departments):
- Service Level Agreement (SLA) - Data redundancy: presence of duplicate data in
9. Challenges of Managing IT Infrastructure multiple files
- Data inconsistency: same attribute has different
- Dealing with the Changes in IT Infrastructure
value
- Management and Governance of IT Infrastructure - Program-data dependence: when changes in
program requires changes to data accessed by
Chapter 6 program
1. Introduction to Data Storage - Lack of flexibility
- Poor security
- Lack of data sharing and availability
4. Database Management System (DBMS)
- An application to create and manage a database
- Separates physical and logical views of data
- Solves problems of the traditional file environment 6. Ways to Improve Data Quality
+ Controls redundancy - Data quality audit
+ Eliminates inconsistency
+ Uncouples programs and data - Data cleansing
+ Enables a company to centrally manage data and - Information policy
data security
7. Relational Database Management System
Main functionality (RDBMS)
- Data definition: Specifies the structure of database
- An application to create and manage a relational
content
database
- Data dictionary: Specifies the characteristics of
- Creates and modifies the data structure
fields
- Data manipulation language: Structured Query - Allows to work with and manipulate data (Create,
Language (SQL) Read, Update, Delete)
5. Linking Internal Databases to the Web - Protect and secure data
- Enhance data sharing and understanding
- Simplify the process of entering new data
8. Big Data unstructured data set
- Massive sets of unstructured/semi-structured data - Web mining: Discovery and analysis of useful
patterns and information from the web

CHAPTER 7
1. What are the principal components of
telecommunications networks and key networking
technologies?
Computer network:
- 2 or more connected computers
- Major components in simple network
+ Client and server computers
+ Network interfaces (NICs)
9. Business Intelligence (BI) Infrastructure + Connection medium
- Hadoop cluster + Network operating system
- Data warehouse + Hubs, switches, routers
- Data mart Networks in large companies:
- In-memory computing - Hundreds of local area networks (LANs) linked to
- Analytic platform firmwide corporate network
- Various powerful servers
10. Tools for Finding Useful Information + Website
- Online analytical processing (OLAP) + Corporate intranet, extranet
- Data mining: Finds hidden patterns and + Backend systems
relationships in datasets
- Text mining: Extracts key elements from large
- Mobile wireless LANs (Wifi networks) - TCP/IP and connectivity:
- Videoconferencing system + Protocols: rules that govern transmission of
- Telephone network information between 2 points
- Wireless cell phones + Transmission Control Protocol/ Internet Protocol
(TCP/IP): common worldwide standard that is basis
Key digital networking technologies:
for Internet
- Client/server computing:
+ Districted computing model + Department of Defense reference model for TCP/
+ Clients linked through network controlled by IP: 4 layers: application layer, transport layer,
network server computer internet layer, network interface layer
+ Server sets rules of communication for network and 2. What are the different types of networks?
provides every client with an address so others can Types of networks:
find it on the network - Local area networks (LANs): ethernet, client/server
+ Has largely replaced centralized mainframe vs. peer-topeer
computing - Wide area networks (WANs)
+ The Internet: largest implementation of - Metropolitan area networks (MANs)
client/server computing - Campus area networks (CANs)
- Packet switching:
+ Method of slicing digital messages into parcels Chapter 8
(packets), sending packets along different 1. Categories of IS Security Challenges
communication paths as they become available, and
Why are IS vulnerable?
then reassembling packets at destination
+ Previous circuit-switched networks required - Accessibility of networks
assembly of complete point-to-point circuit
- Hardware vulnerability
+ Packet switching more efficient use of network’s
communications capacity - Software vulnerability
- Natural disasters - Companies can use fault-tolerant IS to make sure
that their IS are always available
- Use of networks/computers outside of the
company’s control 4. Organisational Activities for Securing Information
- Loss or theft of portable devices Systems
2. Business Value of Securing Information Systems - Disaster Recovery Planning and Business Continuity
A security breach can lead to: Planning
- Significant or total loss of business function
- Risk Assessment : determines the level of risk to a
- Reduced company market value
company if a specific activity or process is not
- Legal liability
properly controlled
3. What tools and technologies can be used for
- Information Systems Audit : helps organisations
securing IS?
determine the effectiveness of activities to secure IS
- Firewalls prevent unauthorised users from accessing
a private network Chapter 9
- Intrusion detection systems monitor private 1. ERP Business Value
networks for suspicious network traffic and attempts - Increase operational efficiency
to access corporate IS - Provide company-wide information to support
decision-making
- Passwords, tokens, smart cards, and biometric - Enable rapid responses to customer requests for
authentication information or products
- Antivirus and antispyware software - Include analytical tools to evaluate overall
organisational performance
- Encryption
2. Supply Chain
- Upstream supply chain: Company’s suppliers, + Optimise sourcing and manufacturing plans
suppliers’ suppliers, and processes for managing the + Establish inventory levels
relationships with them + Identify transportation modes
- Supply chain execution
- Downstream supply chain: Company’s customers,
+ Manage flow of products through distribution
customers’ customers, and processes for managing
centres and warehouses
the relationships with them
5. Push-Based and Pull-Based Supply Chain Models
- Internal supply chain
- Push-based model (build-to-stock, sequential supply
3. Timely and Untimely Information in a Supply
chain): Production schedules are based on guess of
Chain
demand
- Just-in-time strategy
- Pull-based model (build-to-order, concurrent supply
+ Components arrive as they are needed
chain): Demand-driven: customer orders trigger
+ Finished goods are shipped after leaving the
events in the supply chain
assembly line
- Safety stock buffer for lack of flexibility in the supply 6. SCM Business Value
chain - Match supply to demand, reduce inventory levels
- Reduce supply chain costs
- Bullwhip effect: information about product demand
- Improve delivery service
gets distorted as it passes
- Speed product time to market
from one entity to next across supply chain
- Increase sales, profitability
4. SCM Modules
7. CRM Objectives
- Supply chain planning
+ Model existing supply chain - Capture and integrate customer data from all over
+ Enable demand planning the organization
- Consolidate and analyze customer data - More flexible, web-enabled, and capable of
- Distribute customer information to various systems integration with other IS
and customer touch points across enterprise
- Can run in cloud infrastructures or on mobile
- Provider single enterprise view of customers platforms
8. CRM Business Value - CRM software has added social networking
- Increase customer satisfaction capabilities to enhance internal collaboration,
- Increase effectiveness of marketing campaigns deepen interactions with customers, and use data
- Reduce marketing costs and costs for customer from social networking sites
acquisition and retention - Are incorporating business intelligence capabilities
- Increase sales revenue for analysing the large quantities of data they
generate
9. What are the challenges posed by enterprise
applications?
- difficult to implement
Chapter 10
1. E-Commerce: The process of buying and selling
- Require extensive organisational change, large new goods and services electronically using the internet
software investments, and careful assessment 2. Features of E-Commerce
- Cannot provide value if they are implemented 1. Ubiquity: Availability everywhere and anytime, no
without time and space borders, enhance convenience and
improving flawed processes low cost
2. Global reach: Reach across national boundaries
- Employees require training
around the globe
10. How are enterprise applications taking 3. Universal technology standards: one set of the
advantage of new technologies? internet standards for all market participants
4. Richness: support of ‘rich messages’: Messages goods
that can integrate video, audio, and text - Industries with digital goods are undergoing
5. Interactivity: interaction with the user revolutionary changes (publishers, record labels)
6. Information density: Increasing amount of
4. Types of E-Commerce
information available to all market participants 
Greater price 1. Business-to-Customer (B2C) : Sales to consumers
7. Personalisation and customization: Opportunity to (Amazon.com )
modify messages and goods easily 2. Business-to-Business (B2B): Sales among
8. Social technology: Promotion of user content companies (Grainger.com)
generation and social networking
3. Customer-to-Customer (C2C) : Sales among
Effects of digital markets on how companies conduct consumers (Ebay.com)
business
5. E-Commerce Revenue Models
- Reduced costs for both the customer and the seller - Advertising
- Reduced information asymmetry - Sales
- Dynamic pricing - Subscription
- Increased disintermediation - Freemium
- Transaction fee
3. Digital Goods
- Affiliate websites
- Goods that can be delivered over a digital network
(Music, video, software,…)
- Costs of producing the first unit are almost the
Chapter 11
1. Knowledge Management
entire costs of the product
- The set of business processes developed in an
- Costs of delivery over the internet are very low
organization to create, gather, store, maintain, and
- Marketing costs remain the same as for physical
disseminate the organisation’s knowledge
- Key activities - Unstructured: Decision-maker must provide the
+ Knowledge generation judgment, evaluation, and insight to solve the
+ Knowledge integration problem (senior management)
+ Knowledge sharing
- Structured (operational management)
- Challenges
+ Repetitive and routine
+ Only explicit knowledge can be documented and
+ Involve defined procedure for handling
shared
+ Do not have to be treated each time as new
+ Would not work if people are not motivated to
share their knowledge or pay attention to what other - Semi-structured: Only a part of the problem has a
people know clear answer provided by the defined procedure
(middle management)
2. Types of Knowledge
2. Stages in Decision-Making
- Explicit Knowledge
- Intelligence: problem discovery
- Tacit Knowledge
- Design: solution discovery
3. 3 major types of knowledge management
systems: - Choice: choosing solutions
- Enterprise-wide knowledge management systems - Implementation: solution testing
- Knowledge work systems (KWS)
- Intelligent techniques 3. IS Support of
-Structured Decisions :
Chapter 12 + Standardised reports are produced by MIS based on
1. Types of Decisions
TPS
+ Used mostly by operational and middle managers
- Semi-Structured Decisions :
+ More sophisticated analysis and custom reports are
done by DSS
+ Used mostly by business analysts, middle managers
- Unstructured Decisions :
+ Important decisions dealing with the profitability
and success of the company
+ Used mostly by senior managers
+ Decisions where there is no agreed-on procedure
for arriving at a solution