Chapter 1
Information Systems: People,
Technology, Processes, and Structure
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives (1 of 3)
• Identify two key management
responsibilities in implementing successful
information systems
• State three reasons why organizations
employ the Leavitt’s Diamond model to
introduce new systems into the workplace
• Describe four fundamental information
system types based on their sphere of
influence
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives (2 of 3)
• Discuss the traditional and contemporary
view of the role that information systems
play in an organization’s value chains
• Identify four benefits of creating a strategic
plan
• Identify four drivers that help set the
information system organizational strategy
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives (3 of 3)
• Identify three ways the IS organization can
be perceived by the rest of the
organization, and how each can influence
the IS strategy
• Identify six non-technical skills needed to
be an effective information system worker
• Identify two benefits of obtaining a
certification in an IS subject area
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Learn About Information
Systems?
• Corporate leaders are using technology to
rework their products and services
• Students must be familiar with fundamental
information system concepts
• Gain the ability to recognize and capitalize
on information system opportunities
• Become more valuable to an organization
• Have career advancement opportunities
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What is an Information System
System Vs. Information System
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What is an Information System
• Information system
• Interrelated components working together
• Collect, process, store, and disseminate
information
• Includes a feedback mechanism to monitor and
control its operation
• Used to accomplish work-related tasks and
everyday living activities
• Used to used to analyze large amounts of
data
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Information Systems—A Means to
Achieve Competitive Advantage
• Competitive advantage
• Generates more sales
• Achieves superior profit margins
• Gained through cost leadership,
differentiation, focus
• Requires considerable effort to sustain
• Managers’ key role
• Identify and use information systems to gain a
competitive advantage
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managers’ Role in Implementing
Successful Information Systems
(1 of 7)
• Leavitt’s Diamond model
• Used to introduce new systems into the
workplace
• Intended to lower stress, encourage teamwork,
and increase successful implementation
• Model highlights four key components
• People, technology infrastructure, processes,
and structure
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managers’ Role in Implementing
Successful Information Systems
(2 of 7)
FIGURE 1.1: Leavitt’s Diamond
Leavitt’s Diamond proposes that every organizational system operates within a context
composed of people, technology infrastructure, processes, and human structure.
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managers’ Role in Implementing
Successful Information Systems
(3 of 7)
• People - the most important element of
information systems
• Employee requirements for success
• Training and an understanding of the need for
the information system
• Motivation to use the information system
• Access to system support people as needed
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managers’ Role in Implementing
Successful Information Systems
(4 of 7)
• Technology infrastructure
• Resources include hardware, software,
databases, networks, facilities, and third-party
services
• Required to meet customers’, suppliers’, key
business partners’, regulatory agencies’, and
employees’ needs
• Forms the foundation of every computer-based
information system
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managers’ Role in Implementing
Successful Information Systems
(5 of 7)
Infrastructure
Component
2017
2018
2019
Data center systems
$178
$179
$179
Enterprise software
$355
$389
$421
Devices
$667
$704
$710
IT services
$933
$985
$1,030
Communications
services
$1,393
$1,427
$1, 443
Total Spending (billions)
$3,526
$3,684
$3,783
TABLE 1.1 Global IT projected spending 2017–2019
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managers’ Role in Implementing
Successful Information Systems
(6 of 7)
• Processes
• Process: Structured set of related activities
• Takes input, adds value, creates an output
• Procedure describes steps to follow to
achieve a specific end result
• How to achieve an end result
• Who does what and when
• What to do if something goes wrong
• Using an information system involves
setting up and following many procedures
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managers’ Role in Implementing
Successful Information Systems
(7 of 7)
• Structure
• Defines relationships between organization
members
• Defines the necessary roles, responsibilities,
and lines of authority
• Employees must understand and accept their
roles and responsibilities
• Roles and responsibilities often change with
the introduction of a new information system
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Information Systems
• Personal information system
• Improves productivity of individual users in
performing stand-alone tasks
• Workgroup information system
• Enables people to work together effectively
• Enterprise information system
• Facilitates organization-wide business needs
• Interorganizational IS
• Enables the sharing of information across
organizational boundaries
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Planning (1 of 2)
• Strategic planning
• Managerial process designed to identify
initiatives and projects to achieve
organizational objectives
• Must recognize that the organization and
everything around it is in a state of flux
• Benefits
• Provides a framework and clearly defined
direction to guide decision making
• Provides effective use of organization’s
resources
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Planning (2 of 2)
• Benefits (continued)
• Allows organization to be proactive
• Improves communication
• Considerations
• Long-term impact of each strategy on revenue
and profit
• Degree of risk involved
• Amount and types of resources required
• Potential competitive reaction
• Must be consistent with organizational plan
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Information System Strategic
Planning (1 of 4)
• Identify resources to invest in
• Support corporate and business unit strategies
• Includes technologies, vendors, competencies,
people, systems, and projects
• IS plan influences:
• New technology innovations
• Innovative thinkers
• Perception of IS organization
• Cost center/service provider
• Business partner/business peer
• Game changer
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Information System Strategic
Planning (2 of 4)
FIGURE 1.3: Drivers that set IS organizational strategy and determine information system investments
Planners must consider many factors in setting IS organizational strategy.
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Information System Strategic
Planning (3 of 4)
Cost
Center/Service
Provider
Business Partner/
Business Peer
Game Changer
Strategic planning Inward looking
focus
Business focused
Outward looking
IS goals
Improve
IS/business
Partnership
Control IS costs;
expand IS services
Drive business
innovation;
deliver new
products and
services
Control/reduce
IS costs; improve
IS operations
and
services
TABLE 1.2 The IS strategic planning spectrum
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Information System Strategic
Planning (4 of 4)
Cost
Center/Service
Provider
Business Partner/
Business Peer
Game Changer
Strategy
React to
strategic plans
of
business units
Execute IS projects
to
support plans of
business
Use IS to achieve
competitive
advantage
Typical projects
Eliminate
redundant or
ineffective IS
services
Implement new
systems and
technology
infrastructure;
redesign business
processes
Provide new ways
for
customers to
interact with
organization
TABLE 1.2 (continued) The IS strategic planning spectrum
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Information System Roles
(1 of 6)
• Chief information officer
• Employs IS department’s equipment and
personnel
• Achieves organization’s goals
• Understands finance, accounting, return on
investment
• Software developer
• Creative mind behind computer programs
• Develops applications and operating systems
• Tests, debugs, and upgrades software
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Information System Roles
(2 of 6)
• Information systems security analyst
• Plans, designs, implements, and maintains
integrity of systems and data
• Analyzes security measures to identify and
implement improvements
• Develops and delivers security measures
training
• Creates security breach action plans
• May work for computer companies, consulting
firms, or business and financial companies
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Information System Roles
(3 of 6)
• Systems analyst
• Consults with management and users
• Defines scope of and requirements for new
information systems
• Brings business and information systems
together
• Programmer
• Converts program design into a working
program
• Written in one of many computer languages
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Information System Roles
(4 of 6)
• Web developer
• Designs and maintains Web sites
• May monitor Web site performance/capacity
• Business analyst
• Improves company competitiveness and
performance
• Evaluates and solves business challenges
• Must possess a broad set of business
knowledge and skills
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Information System Roles
(5 of 6)
2018 Median
Annual Salary
Number of Jobs,
2016
Number of New
Job Openings,
2016–2026
CIO
$202,500
N/A
N/A
Software Developer
$115,000
1,256,300
302,400
Information Systems
Security Analyst
$115,250
100,000
28,500
Systems Analyst
$89,500
600,500
54,400
Programmer
$65,000
294,900
−21,300
Web Developer
$66,100
162,900
24,400
Business Analyst
$92,000
N/A
N/A
TABLE 1.3 Median annual salary for different information system positions
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Information System Roles
(6 of 6)
• Other IS careers
• Consultants at large firms
• Technology company employees
• Work on cutting edge technology
• Small business entrepreneurs starting their
own IS business
• IS entrepreneurs or freelancers
• Write programs, work on IS projects with larger
businesses, or write phone apps
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Shadow IT (1 of 3)
• Shadow IT
• IS and solutions built and deployed by
departments outside of the IS department
• Enables business managers to quickly create
highly innovative solutions to real business
problems and to test out these solutions
• May employ non-approved vendors, software,
or hardware and may not meet the IS
department standards
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Shadow IT (2 of 3)
Pros
Cons
Enables the business to test
The systems and processes developed may lack
quick solutions to business
necessary levels of security required to meet
needs without delays brought on compliance standards
by involvement of information
systems
Can create an innovative,
synergistic partnership between
the information systems
department and other business
units
Can create tension between the CIO who has
responsibility for technology within the
organization and business managers who want
more of a role in the information system
decisions
Provides the opportunity to
evaluate and test many more
information system initiatives
Individual departments may buy services,
software, and hardware that
the company could get a better deal through
central purchasing
TABLE 1.4 Pros and cons of shadow IT efforts
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Shadow IT (3 of 3)
Pros
Cons
May be wasteful and duplicate work already
being done by the IS organization
Issues can arise over responsibility to fix “nonapproved” solutions
TABLE 1.4 (continued) Pros and cons of shadow IT efforts
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Summary
• Managers must use information systems to
gain competitive advantage
• Leavitt’s Diamond helps to successfully
introduce new systems into the workplace
• Strategic planning helps identify desired
outcomes and formulate feasible plans to
achieve objectives
• Various IS workers need a variety of skills
and certifications
Stair/Reynolds, Principles of Information Systems, 14th Edition. © 2021 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.