Zusammenfassung
Summary Business Information Systems (2.1)
- Kurs
- Hochschule
This is a summary of the lectures of BIS (2.1)
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Inhaltsvorschau
LECTURE ONE: INTRODUCTION TO THE COURSE: MANAGING IN THE DIGITAL WORLDIn this course, you learn how IS help managing information resources, how organizations can benefit from
these IS, and what the organizational impact is of recent technological innovations.
We cover various topics; some have a more managerial focus, such as IS strategy, structure and culture, and
others a more technical focus, such as the basics of programming and databases, recent technological
developments, and security.
We take an international perspective on these topics and pay extra attention to outsourcing, offshoring and
how cultures differ with regard to IT and IS adoption and use.
TODAY’S LEARNING OBJECTIVES
• Understand current developments in terms of digital innovation and the information society.
• Describe the roe of Information Systems (IS) in organizations as we move to the digital world.
• Explain what an IS is and understand its data, technology, people and organizational components.
Digital innovation: “A product process (not only IT, but broader), or business model that is perceived as new,
requires some significant changes on the part of adopters (organizational change: role of the individual), and
is embodied in or enabled (importance of technology) by IT.” – Fichman et al., 2014, p. 330
WHAT IS SO SPECIAL ABOUT DIGITAL INNOVATION?
Three important characteristics from digital innovation:
• Digitalization: the practice of something that used to be physical/analog, changing into a digital
version
• Moore’s law
• Network effects: the value of innovations increases when more people will use it (being the only user
on snapchat/Instagram/email is not fun)
Digital innovations go through four phases:
• Discovery
• Development
• Diffusion
• Impact: only when digital innovations are used on a large scale, you can see the impact it has on
society.
Ø Applied to online meetings/zoom
o Digitalization: from physical, face-to-face meetings to virtual gatherings
o Moore’s law: made possible by exponential growth in computing power, data processing,
smart algorithms, networking capacity, etc.
o Network effects: suppose you are the only Zoom user, the service would not be much use to
you.
WHY IS DIGITAL INNOVATION IMPORTANT FOR YOU?
• New technologies “enable transformations in the way we live and work, how companies organize,
and the structure of entire industries”
• Managers have to understand these transformations in order to be effective
• Managers have the opportunity (or even obligation) to become ‘digital innovators’
INFORMATION TECHNOLOGY
Hardware: about the devices (you can see and touch them).
,Software: all types of computer software.
Networks: connects hardware with each other.
IT & IS
Information technology (IT)
Ø Not about IT, but you need the basic knowledge
This course is about Information Systems (IS)
• IT
• Organization
• People
Digital innovation
• Rapid technological developments
• Radical changes in how organizations deal with information
5 IT MEGATRENDS
• Mobile
• Social media
• Internet of things
• Cloud computing
• Big data
IS: TECHNOLOGY, ORGANIZATION AND PEOPLE
Interrelated ¹ separable
à Where to start solving problems?
Aim of this course: integrative view on IS
DATA
• Raw symbols, such as words and numbers
(or sounds, light pulses, …)
• Have no meaning in and of themselves
• Of little value until processed
Characteristics
• Represent facts
• Recorded by observation or research
• Not organized to convey specific meaning
Example: 3108201330
INFORMATION
• Representation of reality
• Can help to answer questions about who, what, where and when
• Results from formatting, organizing and processing of data to make it useful
à Information systems consist of data
à You need context to give meaning to data, which gives you information
Characteristics:
• Processed
• Contextually relevant
, • Meaningful and useful to human recipients
Example: 31-08-2020 is date, 13:30 is time
KNOWLEDGE
The ability to understand information, form opinions, and make decisions or predictions based on
information
Knowledge = skills + experience + accumulated learning + judgment
Characteristics:
• Result of activities and related information processing
• Needed for:
o Decisions
o Understanding and relating data or information
à You need knowledge to create new data
RELATION BETWEEN DATA, INFORMATION AND KNOWLEDGE
IS, DATA, INFORMATION AND IT
Information Systems (IS):
• Combinations of hardware, software and telecommunications networks that people build and use to
collect, create and distribute useful data in organizational settings.
• Primary function: to convert data into information
Information Technology (IT):
• Hardware, software, networks
• One of the components of an IS (next to people and
organizations)
WHY INFORMATION SYSTEMS?
Organizational information processing
• Increasing need for information
o Markets increasingly complex, dynamic, globalized, etc.
• Increasingly availability of data
o Especially in digital form – “big data”
, Technological innovation
• Computers, Internet, mobile, smart devices, wearables, artificial intelligence, robotics, etc…
o “Relatively cheap and increasingly easy-to-use world-wide digital infrastructure of
computers, mobile devices, broadband network, and advanced application platforms” –
Fichman et al., 2014
Increased capacity for information processing
How to deal with all that information? (Galbraith, 1974)
• Reduce need for information processing
o Create buffers, reduce coordination
o Feasible in today’s complex, uncertain, globalizing environment?
• Increase capacity for information processing
o Information Systems
o Technological capabilities
INCREASING CAPACITY IN IT
General developments in IT:
• Digital innovation: digitalization, increasing capacity, network effects
o Hardware: smaller, processing capacity, storage capacity, more functions, networked
o Software: smarter, modular, interconnected
o Networks: larger scope, mobile, transmission capacity, interconnected
• Rapid, ongoing innovation in IT
• Increasing capacity for information processing
THE INFORMATION AGE: BIG DATA
Digital innovation has exponentially increased the amount of available information, and our capacity to store
and transmit it
à But are we really talking about information here?
Challenge is:
• To make sense of all that data (to turn it into information)
• To derive value from all the untapped data (only a very
small percentage is analyzed)
IS AND PERFORMANCE
Many studies find IS positively related to organizational performance
• Financial results
• Operational efficiency
• Competitive advantage
In three ways (Valacich & Schneider):
• Automate: doing things more efficiently, accurately and consistently
• Learning/informate: doing things better, based on available information
• Supporting strategy/transform: doing things smarter, fundamentally redefine business and industry
processed and relationships
But there are many more conditions…
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