Samenvatting
Samenvatting IT modeling & economics
- Instelling
- Vrije Universiteit Brussel (VUB)
Samenvatting slides IT modeling & economics
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Samenvatting IT modeling and economics“Information technology and business are becoming inextricably interwoven. I don’t think
anybody can talk meaningfully about the one without talking about the other.”
Bill Gates
Chapter 1: Information systems development
Relevance
• Information technology (generally, technology) and information systems are
(arguably) the most important tools organizations nowadays have at their disposal
to …
– support,
– automate,
– rationalize,
– streamline, and
– coordinate
• their operational and decision making processes …
• … and as such to become more efficient(met zo weinig mogelijk kosten) and
effective(zo goed mogelijk), …
– To achieve cost-savings – decrease the bottom line
– But as well to generate additional revenues – increase the top line
• Examples?
• Both large multinationals as well as small and medium local enterprises use
information systems to store, process and report information and to support
processes:
– Has penetrated our entire society
– Customers/citizens nowadays in fact expect IT and IS to be used by
enterprises and governments to provide better, real-time services (e.g.
webservices)
• The development of information systems is therefore of crucial importance for the
success of any enterprise and organization, and should be managed carefully –
requiring specific knowledge and tools
• The very existence of organizations depends on IT and IS
,1. Basic concepts
Informatics
• Informatics is the science of information processing (with computers)
– Economy – Economics
– Information processing - Informatics
– What is information?
• Typically, in order to process information organizations use information systems
– Trend: evolution towards paperless organization
• These information systems make use of information technology, but also involve
other aspects
Information technology
• IT concerns one aspect of IS
• IT concerns the different technological components an information system requires
in order to function:
– Computer hardware
– Computer software (software = technology!)
– Telecommunication and networktechnology (ICT > IT)
– Technology to manage and manipulate data resources
System
• General definition of a system: in its simplest form, a system is a clearly delineated
(afgebakend) set of interrelated components which cooperate to realize a set of
common objectives
– Broadly applicable concept: cell, human, eco-system, planet, planetary
system, …
– Boundaries depend on the adopted perspective
– Subsystems
– Interface – interaction
Information system
• An organized combination of (all or some of the following elements):
– People
– Hardware
– Software
– Communication networks
– Data resources
– Policies and procedures
• That stores, retrieves, transforms or processes, and disseminates (verspreiden)
information to end-users throughout an organization in a controlled manner
,• Definition system: ‘… to realize a set of common objectives’
• Use of IS within organizations:
– At a more abstract level than “storing, retrieving, …” (see previous slide)
– Increase the efficiency and effectiveness of:
• Business processes
• Management decision making
• Collaboration
– In support of both:
• Product development,
• Customer support,
• … in principle any business function
– Additionally: strategic role, innovation, competitive advantage
• Remark:
– Support business processes
– Support management decision making
– Hence a need for:
– Process modeling
– Data modeling
, Development of IS
• In this course we focus on the development of information systems
• Main research question:
How do we develop information systems that meet the user requirements by supporting
business processes and decision making by providing the required information to end-
users
• … from a managerial, non-technical perspective!
• We focus on what the solution should look like, rather than how to implement it.
Information
• What is data?
– Information is everything that can be captured and stored as a sequence of
zeros and ones, and as such everything that may be represented as a bit-
sequence
• What is information?
– Information is everything that can be captured and stored as a sequence of
zeros and ones, and as such everything that may be represented as a bit-
sequence … and which has utility (use or value) to the consumer, receiver, or
end-user
– Information = data with utility (use or value) to the receiver
• What is the difference between information and data?
• What is the difference between information and knowledge?
• What is the difference between knowledge and wisdom?
• Subjective!
– Meaning: depending on the subject
• Typically dependent on or determined by the involved level of:
– Aggregation
– Transformation or processing
– Understanding
– Utility for the information consumer
Model
• General definition of a model: a model is a simplified and/or idealized
representation of (part of) reality
– Business model: Dell
– Physical model: prototype
– Graphical model:
– Mathematical or computer model:
• Set of equations or formulas
• Credit risk modeling
• Linear regression model: 𝑦 = 𝛽! + 𝛽"𝑥" + 𝛽#𝑥#
• Modeled (part of) reality: system
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