Information Systems Defined
Basic definitions and
foundational Information
Systems concepts
© Gabriele Piccoli
Course Roadmap
• Part I: Foundations
– Chapter 1: Introduction
– Chapter 2: Information Systems Defined
– Chapter 3: Organizational Information Systems and
Their Impact
• Part II: Competing in the Internet Age
• Part III: The Strategic use of Information Systems
• Part IV: Getting IT Done
© Gabriele Piccoli
Learning Objectives
1.
The definition of information system (IS) and information technology (IT)
and the difference between the two.
2.
The definition of information system success and information system
failure.
3.
The principal reasons why modern firms create and deploy information
systems.
4.
The influence of the firm’s context and the external environment in which
it is embedded on organizational information systems.
5.
The four components that make up an information system and the
manner in which they interact.
6.
How to design successful information systems and how to troubleshoot
problematic information systems implementations.
© Gabriele Piccoli
Information System: Definition
Formal, socio-technical, organizational
systems designed to collect, process,
store, and distribute information
© Gabriele Piccoli
Formal vs. Informal
© Gabriele Piccoli
IS ≠ IT
• Opened: 1907
• First implementation of
computers in hospitality:
New York Hilton, 1963
• Did they have an
Information System in
1907?
© Gabriele Piccoli
The Four Components of an
Information System
•
•
•
•
IT
Process
People
Structure
© Gabriele Piccoli
Value to Managers
• A solid understanding of the characteristics of
each of the four components
• An appreciation of how they relate and interact
with one another
• Appropriate business decisions as a general or
functional manager
© Gabriele Piccoli
Information Technology Component
• Hardware
– Computer, cell phone
• Software
– Microsoft Office
• Telecommunication equipment
– Internet
© Gabriele Piccoli
Don’t Forget!
• The design of IT enables and constrains
the behavior of the Information System
Software, particularly a custom
developed application, is an
opinion of how data should be
represented, organized, and
manipulated
© Gabriele Piccoli
Process Component
• The series of steps necessary to complete
a business activity
• Examples:
– Check-in at a hotel
– Credit approval at a bank
– Materials receiving at a warehouse
• There are multiple ways to perform an
activity: Every process is designed.
© Gabriele Piccoli
Don’t Forget!
Official business
process
© Gabriele Piccoli
Informal process
People Component
• Those individuals or groups
directly involved in the
information system
– End-users
– Managers
• Their needs are a critical concern
in designing and implementing a
new Information System
© Gabriele Piccoli
Structure Component
• The organizational structure component
(structure for short) encompasses:
– The organizational design
• Hierarchy, decentralized, loose coupling
– The reporting configuration
• Functional, divisional, matrix
– The organizational relationships
• Communication and reward mechanisms
• Culture
© Gabriele Piccoli
Systemic Effects: Components
Working Together
• The four components of an Information
System are Interdependent
• Changes in on component may affect all
others
• Success is based
on the proper
interaction of IT with
the other
components
© Gabriele Piccoli
The Purpose of Information
Systems
• Fulfilling organizational processing needs
• Improve efficiency and effectiveness
• Achieve a (specified) Information System
goal.
• Example: Grocery store
– To increase the efficiency and speed of
customer check-out by using self-check out
stations.
© Gabriele Piccoli
Information Systems Success
• Has the system delivered expected
results?
• What are some of the unintended
results?
– Positive
– Negative
© Gabriele Piccoli
IS Success is often Elusive
© Gabriele Piccoli
Don’t Forget!
• Every organization is unique
• Even fierce competitors often have different:
– Firm strategy: The manner in which the
organization intends to achieve its objectives.
– Firm culture: The collection of beliefs,
expectations, and values shared by the
members of an organization.
– Infrastructure: The technological backbone of the
firm. It constrains and enables opportunities for
future information systems projects.
© Gabriele Piccoli
External Environment
• External environment:
– The legal and regulatory context
– The competitive landscape
– The general business and social trends
surrounding the organization
© Gabriele Piccoli
Bringing it all Together:
Information Systems in Context
© Gabriele Piccoli
Information Systems and
Organizational Change
First Order
Change:
Automate
© Gabriele Piccoli
Second
Order
Change:
Informate
Third Order
Change:
Transform
First Order Change: Automate
• First order change only
affects the technical
subsystem
• Thus, it is:
– Easiest to envision
– Easiest to justify
– Easiest to manage.
© Gabriele Piccoli
Second Order Change: Informate
• Second order change
affects the people
component
• It thus provides more
of a challenge to
implementation
© Gabriele Piccoli
Third Order Change: Transform
• Third order change affects
organizational structures
• It seeks to transform how
the organization operates
• It requires significant
managerial and
executives’ involvement
© Gabriele Piccoli
Implications
• IT should NOT be the start of your
Information System design process
– Strategy may be inspired by IT but
– IT selection is a point of arrival not departure
• Never forget Systemic Effects
• Optimize the Information System as a
whole, not the components individually
• Organizations are dynamic, re-evaluate
often
© Gabriele Piccoli
What we Learned
1.
The definition of information system (IS) and information technology (IT)
and the difference between the two.
2.
The definition of information system success and information system
failure.
3.
The principal reasons why modern firms create and deploy information
systems.
4.
The influence of the firm’s context and the external environment in which
it is embedded on organizational information systems.
5.
The four components that make up an information system and the
manner in which they interact.
6.
How to design successful information systems and how to troubleshoot
problematic information systems implementations.
© Gabriele Piccoli