Achieving Business Success: use
information, IT, business information systems
Information, information technology (IT) and business
information systems are everywhere in many different
business industries.
Successful organizations use information technology to
collect and process data to produce useful information
in an information system which manage business activities
such as sales, customer orders, billing etc.
Examples of business information systems: ATM, Octopus,
credit card, supermarket cashier machines, e-banking,
Amazon.com, online air ticket booking system, accounting
packages: receivables and payables.
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What is Information Technology(IT)?
• The technology involving the development,
maintenance, and use of computer systems,
hardware, software, and networks for the
processing and distribution of data.
• IT - a tool in managing and processing data,
information in a system, an important enabler of
business success and innovation
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Why Do We Use Information Technologies?
• A computer is a typical kind of information technologies.
• Take computer as an example, there are many
advantages of using them:
– Speed: huge processing speed
– Reliability: (quite) reliable hardware and software
– Consistency: consistent results
– Storage: huge storage capacity and many different
medium
– Communication: easy to be connected
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Data, Information
• Data - raw facts e.g. telephone number
• Information - data converted or processed
into a meaningful and useful context
• Information = processed data with
meaning and value.
• Example of information: average test score,
GPA, maximum monthly rainfall, minimum
yearly temperature, total monthly sales.
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Data and Information
•Data: raw facts, no meaning
•e.g. data in a spreadsheet
•Information: data that are processed and
integrated to be meaningful, e.g.
average, maximum, differences, chart,
etc.
•Knowledge: useful, regular patterns from
organized data and information, e.g. IF
<condition(s)> THEN <result>
•Wisdom: evaluate the discovered
knowledge and make recommendation
for the future.
Russ Ackoff “From Data to Wisdom”, Journal of
Applied Systems Analysis, Volume 16, 1989 p
3-9
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System Concepts
• A system is an integrated set of components or
entities, that interact to achieve a particular function
or goal. Components are:
•
•
•
•
•
Inputs are elements that enter the system
Processes convert or transform inputs into outputs
Outputs describe finished products or consequences of being in
the system
Feedback is the flow of information from the output to the
decision maker, who may modify the inputs or the processes
(closed loop)
The Environment contains the elements that lie outside but
impact the system's performance
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System
Environment: external entities
Output(s)
Input(s)
Processes
Feedback
Boundary: specified functions, jobs
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System Feedback
• Accurate Feedback usually increases effort;
that means more work for comparison of
output and feedback.
• Positive feedback given to salespeople may
increase their motivation to achieve better
quota.
• Negative feedback is designed to correct
activities that are not achieving the goals of the
system. E.g. if salespeople are not achieving
quotas, current sales technique may need to
be changed.
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Information Systems
• A set of interrelated components that collect,
manipulate (or process) and disseminate (or
distribute) data & information and finally provide
feedback to meet an objective.
• Can be manual and/or computerized.
• Main purpose is to convert data into valuable
information.
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Positive and Negative Impacts of
Information Systems
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THE INTERRELATIONSHIPS OF EFFICIENCY
AND EFFECTIVENESS IT METRICS
(measurements)
• Common types of efficiency IT metrics
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THE INTERRELATIONSHIPS OF EFFICIENCY
AND EFFECTIVENESS IT METRICS
(measurements)
• Effectiveness IT metrics (measurements) focus
on an organization’s goals, strategies, and
objectives
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