INF152 – Topic 1:
Introduction to Information Systems and
Organizational strategy, competitive
advantage, and Information Systems
Chapters 1 and 2:
1.1 (1.1) Why Should I Study Information Systems?
1.2 (1.2) Overview of Computer-Based Information Systems
1.3 (1.3) How Does IT Impact Organizations?
1.4 (1.4) Importance of Information Systems to Society
1.5 (2.1) Business Processes
1.6 (2.2) Business Process Improvement, Business Process Reengineering, and Business Process Management
1.7 (2.3) Business Pressures, Organizational Responses, and Information Technology Support
1.8 (2.4) Competitive Advantage and Strategic Information Systems
Module Outcomes
1. Have knowledge and an understanding of the importance of information systems in
an organisation.
2. Have knowledge and an understanding of organisational strategy, competitive
advantage, and information systems.
3. Have knowledge and an understanding of ethics and privacy in information
technology context.
4. Have knowledge and an understanding of information security.
5. Have knowledge and an understanding of data and knowledge management.
6. Have knowledge and an understanding of telecommunications and networking.
(1.1) Why Should I Study Information Systems?
• The Informed User—
You!
• IT Offers Career
Opportunities
• Managing Information
Resources
(1.1) Why Should I Study Information Systems?
The Informed User—You!
1.
2.
3.
4.
5.
6.
You benefit more when you understand what is “behind” IT applications
You can provide valuable input
You can recommend and help select IT applications
You will be aware of new technology
You understand how IT improves performance
Understanding IT is beneficial to entrepreneurs
(1.1) Why Should I Study Information Systems?
IT Offers Career Opportunities
IT is vital to modern business, providing many lucrative career
opportunities:
• Programmers, business analysts, systems analysts, and designers
• Chief information officer (CIO)—executive in charge of the IS
function
• Career opportunities will remain strong in the future
(1.1) Why Should I Study Information Systems?
Read:
The Top 25 Highest-Paying Technology Jobs and Their Duties (Birt, 2024)
Article duration:
04:00 (estimated)
Discussion:
Create a shortlist for yourself, listing three possible careers you
would consider in the future.
In class, discuss some of the highest-paying jobs in IT.
(1.1) Why Should I Study Information Systems?
Top Job Rankings: U.S. News & World Report U.S. News & World Report
(out of 25)
#1 Software Developer
#12 IT Manager
#23 Web Developer
(1.1) Why Should I Study Information Systems?
Top Job Rankings: Median Starting Salary
(1.1) Why Should I Study Information Systems?
Read:
The results of ITWeb’s IT Salary Survey are in (ITWeb Surveys Team, 2023)
Article duration:
04:00 (estimated)
Discussion:
Discuss with your lecturer the gender gap in the IT industry, as
analysed by ITWeb.
(1.1) Why Should I Study Information Systems?
Managing Information Resources
• Managing information resources is difficult and complex because:
• ISs have an enormous strategic value to organizations
• ISs are very expensive to acquire, operate, and maintain
• Evolution of the MIS function within the organization
• MIS personnel vs. end users
• Changing role of the IS department
• Traditional function of the MIS department
• New (consultative) functions of the MIS department
(1.1) Why Should I Study Information Systems?
Figure 1.1 MIS provides what users see on their computer screens.
(1.1) Why Should I Study Information Systems?
Traditional Function of the MIS Department
• Managing systems development and systems project management
• Managing computer operations
• Staffing, training, and developing IS skills
• Providing technical services
• Infrastructure planning, development, and control
(1.1) Why Should I Study Information Systems?
New (Consultative) Functions of the MIS Department
• Initiating and designing specific strategic IS
• Incorporating the Internet and e-commerce into the business
• Managing system integration including Internet, intranets, and extranets
• Educating non-MIS staff about IT
• Educating MIS staff about the business
• Partnering with business-unit executives
• Managing outsourcing
• Proactively using business and technical knowledge to seed innovative IT
ideas
• Creating business alliances with business partners
(1.2) Overview of Computer-Based Information Systems
Types of Computer-Based Information Systems
• Data, Information, Knowledge
• IT Infrastructure
• IT Components
• IT Personnel
• IT Services
(1.2) Overview of Computer-Based Information Systems
FIGURE 1.2 Data, information, and knowledge.
(1.2) Overview of Computer-Based Information Systems
FIGURE 1.3 Computer-based information systems.
(1.2) Overview of Computer-Based Information Systems
FIGURE 1.4 IT inside your organization.
(1.2) Overview of Computer-Based Information Systems
IT Components
• Hardware
• Software
• Database
• Network
• Procedures
• People
(1.2) Overview of Computer-Based Information Systems
Major Capabilities of Information Systems
(1.2) Overview of Computer-Based Information Systems
Types of Computer-Based Information Systems
• Breadth of support of ISs
• Support for organizational employees
(1.2) Overview of Computer-Based Information Systems
Breadth of Support of Information Systems: FAIS
• Functional Area Information Systems (FAISs)
• Accounting
• Finance
• Production & operations management
• Marketing
• HR
(1.2) Overview of Computer-Based Information Systems
Breadth of Support of Information Systems: ERP and TPS
• Two information systems support the entire organization:
• Enterprise resource planning (ERP) Systems
• Provide communication among functional areas
• Transaction processing systems (TPS)
• Support the “real time” monitoring, collection, storage, and
processing of data from the organization’s day-to-day operations
(1.2) Overview of Computer-Based Information Systems
Breadth of Support of Information Systems IOS
• Interorganizational information systems (IOS)
• Supports many interorganizational operations
• Examples of IOS:
• Supply chain management (SCM)
• Electronic commerce (e-commerce) systems
(1.2) Overview of Computer-Based Information Systems
FIGURE 1.5 IS that function among multiple organizations.
(1.2) Overview of Computer-Based Information Systems
Support for Organizational Employees
• Clerical workers
• Knowledge workers
• Functional area information systems
• Business analytics (BA) or business intelligence (BI)
• Expert systems (ES)
• Dashboards (aka digital dashboards)
(1.2) Overview of Computer-Based Information Systems
TABLE 1.4 Types of Organizational ISs
(1.3) How Does IT Impact Organizations?
(1.3) How Does IT Impact Organizations?
• IT Impacts Entire Industries
• IT Reduces the Number of Middle Managers
• IT Changes the Manager’s Job
• Will IT Eliminate Jobs?
• IT Impacts Employees at Work
(1.3) How Does IT Impact Organizations?
Examples
• Book Industry
• Music Industry
• Video Industry
• Software Industry
• Video Game Industry
• Photography Industry
(1.3) How Does IT Impact Organizations?
Read:
AI’s Impact On Music In 2025: Licensing, Creativity And Industry Survival
(Berger, 2024)
Discussion:
In class, discuss the impact of Artificial
Intelligence (AI) on the music industry.
Article duration:
04:00 (estimated)
(1.3) How Does IT Impact Organizations?
IT Reduces the Number of Middle Managers
• IT makes middle managers more productive
• Consequently, IT reduces the number of middle managers required
(1.3) How Does IT Impact Organizations?
IT Changes the Manager’s Job
• Decision making is the most important managerial task
• IT changes the way managers make decisions
• IT provides near-real-time information
• Managers have less time to make decisions
• IT provides tools for analysis to assist in decision making
(1.3) How Does IT Impact Organizations?
Will IT Eliminate Jobs?
• The competitive advantage of replacing people with IT and machines is
increasing rapidly
• Increasing the use of IT in business also:
• Creates new job categories
• Requires more employees with IT knowledge and skills
(1.3) How Does IT Impact Organizations?
IT Impacts Employees at Work
• IT impacts employees’ health and safety
• Job stress
• Long-term use of the keyboard
• IT provides opportunities for people with disabilities
• Speech-recognition for employees unable to type due to physical
impairment
• Audible screen tips for employees who are visually impaired
(1.3) How Does IT Impact Organizations?
FIGURE 1.6 Ergonomic products protect computer users.
(1.4) Importance of Information Systems to Society
• IT Affects Our Quality of Life
• The Robot Revolution is Here Now
• The Emergence of Cognitive Computing: IBM Watson
• IT Impacts Health Care
(1.4) Importance of Information Systems to Society
IT Affects Our Quality of Life
• IT has changed the way we work
• Smartphones provide constant access to text, email, and voice
communications
• The lines between time at work and leisure time at home have
become blurred
• Surveys indicate employees take laptops and smartphones on vacation
(1.4) Importance of Information Systems to Society
The Robot Revolution is Here Now
• Industrial robots versus cobots
• Amazon Robotics
• Drones
• Autonomous vehicles
(1.4) Importance of Information Systems to Society
The Emergence of Cognitive Computing: IBM Watson
IBM has labeled the type of processing demonstrated by Watson as
cognitive computing. Watson has four primary capabilities:
• The ability to:
• understand human language, with all of its nuance and ambiguity
• learn and absorb information
• formulate hypotheses
• understand the context of a question
(1.4) Importance of Information Systems to Society
IT Impacts Health Care
• IT used in health care to:
• Make better/faster diagnoses
• Streamline the process of researching and developing new drugs
• To enhance the work of radiologists
• Allow surgeons to use virtual reality to plan complex surgeries and
use robots to remotely perform surgery
(1.4) Importance of Information Systems to Society
Watch:
A look at how artificial intelligence is shaping the health industry
Discussion:
In class, discuss the impact of AI
on the health industry.
Video duration:
05:00
(2.1) Business Processes
• Cross-Functional Processes
• Information Systems and Business Processes
• Robotic Process Automation
(2.1) Business Processes
• A business process is an ongoing collection of related activities that
create a product or service of value to the organization, its business
partners, and/or its customers
• Comprised of three elements:
• Inputs
• Resources
• Outputs
• Efficiency vs. effectiveness
(2.1) Business Processes
Cross-Functional Processes
• No single functional area is responsible
• Steps executed in a coordinated, collaborative way
• Procurement and fulfillment cross-functional processes
(2.1) Business Processes
Table 2.1 Examples of Business Processes
(2.1) Business Processes
(2.1) Business Processes
FIGURE 2.1 Business process
e-ticket ordering.
(2.1) Business Processes
Information Systems and Business Processes
• IS’s vital role in three areas of business processes
• Executing the process
• Capturing and storing process data
• Monitoring process performance
(2.1) Business Processes
Executing the Process
IS’s help execute the process by:
• Informing employees when it is time to complete a task
• Providing required data
• Providing a means to complete the task
(2.1) Business Processes
Capturing and Storing Process Data
Processes generate data
• Dates, times, product numbers, quantities, prices, addresses, names,
employee actions
IS’s capture and store process data (aka transaction data)
Capturing and storing data provides immediate, real-time feedback
(2.1) Business Processes
Monitoring Process Performance
• IS evaluates information to determine how well a process is being
executed
• Evaluations occur at two levels:
• Process level
• Instance level
• Monitoring identifies problems for process improvement
(2.1) Business Processes
Robotic Process Automation
• Robotic process automation (RPA) is a system that enables enterprises to
automate business processes and tasks that historically were carried out
by employees.
• Companies that employ RPA develop software “robots”—known as
bots—that automate the steps in a business process.
(2.1) Business Processes
Watch:
What is RPA (Robotic Process Automation)?
Discussion:
In class, discuss how RPA is used for collaboration.
Video duration:
07:11
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
• Reengineering
• Improvement
• Management
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
Measures of Excellence in Executing Business Processes
• Customer satisfaction
• Cost reduction
• Cycle and fulfillment time reduction
• Quality
• Differentiation
• Productivity
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
Business Process Reengineering (BPR)
• Michael Hammer & James Champy, 1993, Reengineering the Corporation
• BPR
• A radical redesign of an organization’s business processes to increase
productivity and profitability
• Examines business processes with a “clean slate” approach
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
Business Process Improvement (BPI)
• BPI
• An incremental approach to move an organization toward business
process centered operations
• Focuses on reducing variation in process outputs by identifying the
underlying cause of the variation
• Six Sigma is a popular methodology for BPI
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
BPI and DMAIC
Five basic phases of successful BPI
• Define
• Measure
• Analyze
• Improve
• Control
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
BPI versus BPR
BPI
•
•
•
•
•
•
Low risk/low cost
Incremental change
Bottom-up approach
Takes less time
Quantifiable results
All employees trained in
BPI
BPR
• High risk/high cost
• Radical redesign
• Top-down approach
• Time consuming
• Impacts can be overwhelming
• High failure rate
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
Business Process Management (BPM) and Key Components
• A management system used to support continuous BPI initiatives for core
business processes over time
• Important components of BPM:
• Process modeling
• Business activity monitoring (BAM)
(2.2) Business Process Reengineering, Business Process Improvement,
and Business Process Management
BPMS and Social BPM
• Business process management suite (BPMS)
• An integrated set of applications used for BPM
• Emerging trend of social BPM
• Technologies enabling employees to collaborate across functions
internally and externally using social media tools
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
• Business Pressures
• Organizational Responses
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Business Pressures
• Market pressures
• Technology pressures
• Societal, political, and legal pressures
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
FIGURE 2.2 Business pressures, organizational performance and responses,
and IT support.
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Market Pressures
• Globalization
• Changing nature of the workforce
• Powerful customers
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Globalization
The integration and interdependence of economic, social, cultural, and
ecological facets of life, made possible by rapid advances in IT.
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Changing Nature of the Workforce
• The workforce is becoming more diversified:
• Women
• Single parents
• Minorities
• Persons with disabilities
• IT is enabling telecommuting employees
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Powerful Customers
• Increasing consumer sophistication and expectations
• Consumers are more knowledgeable about
• Products and services
• Price comparisons
• Electronic auctions
• Customer relationship management (CRM)
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Technology Pressures
• Technological innovation and obsolescence
• Rapid development of both new and substitute products and services
• Information overload
• Vast stores of data, information, and knowledge
• Difficulties in managing data for decision making
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Societal, Political, and Legal Pressures
• Social responsibility
• Compliance with government regulations
• Protection against terrorist attacks
• Ethical issues
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Social Responsibility
• Green IT
• Facilities design and management
• Carbon management
• International and U.S. state environmental laws
• Digital Divide
• One Laptop per Child (OLPC)
• one.laptop.org
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Social Responsibility and Philanthropy in Business
• PatientsLikeMe
• Kiva
• DonorsChoose
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Compliance with Government Regulations
• Sarbanes–Oxley Act
• USA PATRIOT act
• Gramm–Leach–Bliley Act
• Health Insurance Portability & Accountability Act (HIPAA)
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Protection against Terrorist Attacks
• Employees in military reserves called to active duty
• Information technology used to identify and protect against terrorists and
cyberattacks
• Department of Homeland Security (DHS)
• Office of Biometric Identity Management (OBIM) program
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Ethical Issues
General standards of right and wrong
• Information-processing activities
• Monitoring employee e-mail
• Privacy of customer data
(2.3) Business Pressures, Organizational Responses, and Information
Technology Support
Organizational Responses
• Strategic systems
• Customer focus
• Make-to-order and mass customization
• E-business and e-commerce
(2.4) Competitive Advantage and Strategic Information Systems
• Competitive Strategy
• Strategic Information Systems (SIS)
• Porter’s Competitive Forces Model
• Porter’s Value Chain Model
• Strategies for Competitive Advantage
• Business–Information Technology Alignment
(2.4) Competitive Advantage and Strategic Information Systems
Porter’s Competitive Forces Model
1.
2.
3.
4.
5.
Threat of entry of new competitors
Bargaining power of suppliers
Bargaining power of customers/buyers
Threat of substitute products or services
Rivalry among existing firms within the industry
(2.4) Competitive Advantage and Strategic Information Systems
FIGURE 2.3
Porter’s
Competitive
Forces Model.
(2.4) Competitive Advantage and Strategic Information Systems
Porter’s Value Chain Model
• Value chain
• A sequence of activities through which the organization’s inputs are
transformed into valuable outputs
• Primary activities
• Relate to production and distribution of products and services
• Support activities
• Support primary activities contributing to competitive advantage
(2.4) Competitive Advantage and Strategic Information Systems
FIGURE 2.4 Porter’s Value Chain Model.
(2.4) Competitive Advantage and Strategic Information Systems
Five primary activities for manufacturing
1.
2.
3.
4.
5.
Inbound logistics (inputs)
Operations (manufacturing and testing)
Outbound logistics (storage and distribution)
Marketing and sales
Services
(2.4) Competitive Advantage and Strategic Information Systems
Four support activities
1.
2.
3.
4.
Firm’s infrastructure (accounting, finance, management)
Human resources management
Product and technology development (R&D)
Procurement
(2.4) Competitive Advantage and Strategic Information Systems
Strategies for Competitive Advantage
❑Cost leadership
❑Differentiation
❑Innovation
❑Operational effectiveness
❑Customer orientation
(2.4) Competitive Advantage and Strategic Information Systems
FIGURE 2.5 Strategies for Competitive Advantage.
(2.4) Competitive Advantage and Strategic Information Systems
Business–Information Technology Alignment
Six characteristics of excellent alignment:
1.Organizations view IT as an engine of innovation that continually transforms the
business, often creating new revenue streams.
2.Organizations view their internal and external customers and their customer service
function as supremely important.
3.Organizations rotate business and IT professionals across departments and job
functions.
4.Organizations provide overarching goals that are completely clear to each IT and
business employee.
5.Organizations ensure that IT employees understand how the company makes (or
loses) money.
6.Organizations create a vibrant and inclusive company culture.