Information
Technology
Summary
Chapter
1
–
An
Introduction
to
Information
Systems
4-‐11
and
12-‐19
A
system
is
a
set
of
elements
or
components
that
interact
to
accomplish
goals.
The
elements
themselves
and
the
relationships
among
them
determine
how
the
system
works.
System
performance
can
be
measured
in
various
ways:
1. Efficiency:
a
measure
of
what
is
produced
divided
by
what
is
consumed
2. Effectiveness:
a
measure
of
the
extent
to
which
a
system
achieves
its
goals;
it
can
be
computed
by
dividing
the
goals
actually
achieved
by
the
total
of
the
stated
goals.
3. System
performance
standard:
a
specific
objective
of
the
system.
Information
is
that
which
reduces
uncertainty,
a
collection
of
facts.
Unprocessed
facts
are
data,
processed
facts
are
information
(both
a
collection
of
facts
which
can
come
in
a
variety
of
formats).
An
information
system
is
a
set
of
interrelated
components
that
collect,
manipulate,
store
and
disseminate
information
and
provide
a
feedback
mechanism
to
meet
an
objective.
-‐ Input
is
the
activity
of
gathering
and
capturing
data.
-‐ Processing
means
converting
or
transforming
this
input
into
useful
outputs
(can
involve
making
calculations,
comparing
data,
and
taking
alternative
actions.
These
results
are
stored.
⇒ Storage
involves
keeping
data
and
information
available
for
future
use.
-‐ Output
involves
producing
useful
information,
usually
in
the
form
of
documents
or
reports.
-‐ Feedback
is
information
from
the
system
that
is
used
to
make
changes
to
input
or
processing
activities
⇒ Forecasting:
Predicting
future
events
to
avoid
problems.
This
can
be
used
to
estimate
future
sales
and
order
more
inventory
before
a
shortage
occurs.
Characteristics
Definitions
Accessible
Information
should
be
easily
accessible
by
authorized
users
so
they
van
obtain
it
in
the
right
format
and
at
the
right
time
to
meet
their
needs
Accurate
Accurate
information
is
error
free.
In
some
cases,
inaccurate
information
is
generated
because
inaccurate
data
is
fed
into
the
transformation
process
Complete
Complete
information
contains
all
the
important
facts,
but
not
more
facts
than
are
necessary
Economical
Information
should
also
be
relatively
economical
to
produce.
Decision
makers
must
always
balance
the
value
of
information
with
the
cost
of
producing
it
Flexible
Flexible
information
can
be
used
for
a
variety
of
purposes.
For
example,
information
on
how
much
inventory
is
on
hand
for
a
particular
part
can
be
used
by
a
sales
representative
in
closing
a
sale,
by
a
production
manager
to
determine
whether
more
inventory
is
needed,
and
by
a
financial
executive
to
determine
the
total
value
the
company
has
invested
in
inventory.
Relevant
Relevant
information
is
important
to
the
decision
maker
Reliable
Reliable
information
can
be
depended
on.
In
many
cases,
the
reliability
of
the
information
depends
on
the
reliability
of
the
data-‐
collection
methods.
In
other
instances,
reliability
depends
on
the
source
of
the
information.
A
rumour
from
an
unknown
source
that
oil
prices
might
go
up
may
soon
not
be
reliable
(even
though
it
might
be
useful)
Secure
Information
should
be
secure
from
access
by
unauthorized
users
Simple
Information
should
be
simple,
not
overly
complex.
Sophisticated
and
detailed
information
might
not
be
needed.
In
fact,
too
much
information
can
cause
information
overload,
whereby
a
decision
maker
has
too
much
information
and
is
unable
to
determine
what
is
really
important.
Timely
Timely
information
is
delivered
when
it
is
needed.
Knowing
last
week’s
weather
conditions
will
not
help
when
trying
to
decide
what
coat
to
wear
today
Verifiable
Information
should
be
verifiable.
This
means
that
you
can
check
it
to
make
sure
it
is
correct,
perhaps
by
checking
many
sources
for
the
same
information.
A
computer-‐based
information
system
(CBIS)
is
a
single
set
of
hardware,
software,
databases,
telecommunications,
people
and
procedures
that
is
configured
to
collect,
manipulate,
store
and
process
data
into
information.
Technology
infrastructure:
all
the
hardware,
software,
databases,
telecommunications,
people
and
procedures
that
are
configured
to
collect,
manipulate,
store
and
process
data
into
information.
1
, -‐ Hardware:
any
machinery
that
assists
in
the
input,
processing,
storage
and
output
activities
of
an
information
system
-‐ Software:
the
computer
programs
that
govern
the
operation
of
the
computer
-‐ Database:
an
organised
collection
of
electronic
information
-‐ Telecommunications:
the
electronic
transmission
of
signals
for
communications;
enables
organisations
to
carry
out
their
processes
and
tasks
through
effective
computer
networks
• Networks:
computers
and
equipment
that
are
connected
in
a
building,
around
the
country
or
around
the
world
to
enable
electronic
communications
• Internet:
the
world’s
largest
computer
network,
actually
consisting
of
thousands
of
interconnected
networks,
all
freely
exchanging
information.
• Cloud
computing:
a
computing
environment
where
software
and
storage
are
provided
as
an
Internet
service
and
are
accessed
via
a
web
browser.
• Intranet:
an
internal
company
network
built
using
Internet
and
World
Wide
Web
standards
and
products
that
allows
people
within
an
organisation
to
exchange
information
and
work
on
projects
• Extranet:
a
network
based
on
web
technologies
that
allows
selected
outsiders,
such
as
business
partners,
suppliers
or
customers,
to
access
authorised
resources
of
a
company’s
intranet
-‐ Procedures:
the
strategies,
policies,
methods
and
rules
for
using
CBIS
A
transaction
is
any
business-‐related
exchange,
such
as
payments
to
employees,
sales
to
customers
and
payments
to
suppliers.
A
transaction
processing
system
(TPS)
is
an
organised
collection
of
people,
procedures,
software,
databases
and
devices
used
to
record
completed
business
transactions,
An
enterprise
resource
planning
(ERP)
system
is
a
set
of
integrated
programs
capable
of
managing
company’s
vital
business
operations
for
an
entire
multisite,
global
organisation.
-‐ E-‐commerce:
any
business
transaction
executed
electronically
between
companies,
companies
and
consumers,
consumers
and
other
consumers,
business
and
the
public
sector,
and
consumers
and
the
public
sector.
-‐ Mobile
commerce
(m-‐commerce):
conducting
business
transactions
electronically
sing
mobile
devices
such
as
smartphones.
-‐ Electronic
business
(e-‐business):
using
information
systems
and
the
Internet
to
perform
all
business-‐related
tasks
and
functions.
A
management
information
system
(MIS)
is
an
organised
collection
of
people,
procedures,
software,
databases,
and
devices
that
provides
routine
information
to
managers
and
decision
makers.
A
decision
support
system
(DSS)
is
an
organised
collection
of
people,
procedures,
software,
databases,
and
devices
used
to
support
problem-‐specific
decision
making.
• Artificial
intelligence
(AI)
is
the
ability
of
computer
systems
to
mimic
or
duplicate
the
functions
or
characteristics
of
the
human
brain
or
intelligence.
• Expert
system
is
a
system
that
gives
a
computer
the
ability
to
make
suggestions
and
act
like
an
expert
in
a
particular
field.
⇒ Knowledge
base:
a
component
of
an
expert
system
that
stores
all
relevant
information,
data,
rules,
cases,
and
relationships
used
by
the
expert
system.
• Virtual
reality
is
the
simulation
of
a
real
or
imagined
environment
that
can
be
experienced
visually
in
three
dimensions.
2
, Chapter
2
–
Information
Systems
in
Organisations
34-‐44
and
48-‐54
An
organisation
is
a
formal
collection
of
people
and
other
resources
established
to
accomplish
a
set
of
goals.
The
value
chain
is
a
series
of
activities
that
includes
inbound
logistics,
warehouse
and
storage,
production,
finished
product
storage,
outbound
logistics,
marketing
and
sales,
and
customer
service.
A
traditional
view
of
information
systems
holds
that
organisations
use
them
to
control
and
monitor
processes
and
ensure
effectiveness
and
efficiency.
-‐ Organisational
structure:
organisational
subunits
and
the
way
they
relate
to
the
overall
organisation
1. Traditional
organisational
structure:
an
organisational
structure
similar
to
a
managerial
pyramid,
where
the
hierarchy
of
decision
making
and
authority
flows
from
strategic
management
at
the
top
down
to
operational
management
and
non-‐management
employees.
Also
called
a
hierarchical
structure
⇒ Flat
organisational
structure:
an
organisational
structure
with
a
reduced
number
of
management
layers
⇒ Empowerment:
giving
employees
and
their
managers
more
responsibility
and
the
authority
to
make
decisions,
take
certain
actions
and
have
more
control
over
their
jobs.
2. Project
and
Team
Organisational
Structures
⇒ Project
organisational
structure:
a
structure
centred
on
major
products
⇒ Team
organisational
structure:
a
structure
centred
on
work
teams
or
groups
3. Virtual
Organisational
Structure:
a
structure
that
employs
individuals,
groups
or
complete
business
units
in
geographically
dispersed
areas
that
can
last
for
a
few
weeks
or
years,
often
requiring
telecommunications
or
the
Internet.
-‐ Organisational
change:
the
responses
that
are
necessary
so
that
for-‐profit
and
non-‐profit
organisations
can
plan
for,
implement,
and
handle
change.
-‐ Outsourcing:
contracting
with
outside
professional
services
to
meet
specific
business
needs
-‐ On-‐demand
computing:
contracting
for
computer
resources
to
rapidly
respond
to
an
organisation’s
varying
workflow.
Also
called
on-‐demand
business
and
utility
computing
-‐ Downsizing:
reducing
the
number
of
employees
to
cut
costs
-‐ Organisational
learning:
the
adaptations
to
new
conditions
or
alterations
of
organisational
practises
over
time.
Reengineering;
also
known
as
‘process
design’
and
‘business
process
reengineering’
(BPR).
The
radical
redesign
of
business
processes,
organisational
structures,
information
systems
and
values
of
the
organisation
to
achieve
a
breakthrough
in
business
results.
Continuous
improvement:
constantly
seeking
ways
to
improve
business
processes
to
add
value
to
products
and
services.
Technology
diffusion:
a
measure
of
how
widely
technology
is
spread
throughout
the
organisation
Technology
infusion:
the
extent
to
which
technology
is
deeply
integrated
into
an
area
or
department
3
