Information Systems Defined Chapter 2 Information Systems Defined Basic definitions and foundational Information Systems concepts © Akhilesh Bajaj, 2013

IPad Menus at McDonald’s Customers order at table and pick up order after it is made. They can surf the Internet, and read the news right from the table Good idea? Bad idea? -Customers will stay longer, they may mess up orders, most customers already have a device to browse web and only need a wi-fi connection, Maybe an app to order food may be better? © Akhilesh Bajaj

IS versus IT Businesses need information and use the technology of the day to store and retrieve it. E.g. centuries old businesses like wineries. People tapping into a system like Facebook: not an IS. Our book calls it an informal IS. IS involves: IT, people, process and structure. IT: H/w, s/w. S/w features, h/w features may support certain capabilities. Spreadsheets versus databases. © Akhilesh Bajaj

Component #2: Process The series of steps necessary to complete a business activity Examples: Order in a store Does the same process always involve the same steps, in the same sequence? How can IT support processes? © Akhilesh Bajaj

Informal versus formal activities Business Process Informal Process check the inventory and identify the needed items call individual suppliers for quotes and delivery dates compare the various quotes select one or more suppliers for each of the needed items based on the terms of the agreement call these suppliers and place the orders receive the goods upon delivery, checking the accuracy and quality of the shipped items pay the suppliers. Restocking the inventory What the book calls informal business process, is also called Workflow Title What the book formal business process, is also called Activities in workflow © Akhilesh Bajaj

Component #3: People Those individuals or groups directly involved in the information system End-users Managers IT professionals Addressing their needs and goals are critical for success of your IS What is the root cause of failure of an IS? © Akhilesh Bajaj

Component #4: Structure The organizational design Hierarchy, decentralized, loose coupling The reporting configuration Functional, divisional, matrix The organizational relationships Communication and reward mechanisms Organizational Culture E.g., Sales Force Automation system in an old fashioned sales organization. Knowledge management system with no incentives for knowledge sharing © Akhilesh Bajaj

Why build an IS? Store and retrieve data Visibility and availability of information to all roles Reduced data redundancy and other efficiencies Data versus Information versus Knowledge © Akhilesh Bajaj

Information Systems Success How do we measure the success of an IS? Technical? Business? End-user satisfaction? Other stakeholders satisfaction? Cost/benefit analysis? Strategic value? Positive - including employees’ empowerment and the widening scope of their responsibility Negative - including deskilling (i.e., the reduction of the scope of an individual's work to one, or a few, specialized tasks), loss of responsibility, and the creation of a monotonous working environment. © Akhilesh Bajaj

IS Success is often Elusive © Gabriele Piccoli

Same IS does not fit All Different strategies: Microsoft versus Apple Different Culture: Microsoft versus Apple Facebook versus Google? Different Infrastructure: Google versus Microsoft versus Apple Examples of same IS working in one company but failing in another? Sales Force Automation example in chapter 1? © Akhilesh Bajaj

Bringing it all Together: Information Systems in Context Different labor laws, taxes © Gabriele Piccoli

Automate, Informate, transform Automate: Process and Technology are affected. Tasks are automated. Interface is changed. Informate: People are affected. Roles may change. E.g., customers can place orders on their own now, manage their own information in the system. Check in-kiosks at check-in gates. Self-serve at grocery stores. Transform: The organization changes at the strategic level down. The industry may be transformed. A new business model is created. E.g., Amazon and books. iTunes and music. Wikipedia and reference information. Angie’s list and referrals. Craig’s list and online classifieds. © Gabriele Piccoli

Culture & IS Culture: the unwritten rules of the social game that are shared by the members of some group National Culture Organizational Culture © Gabriele Piccoli

National Culture Collectivism: feeling interdependent & bound to role by rules of position, loyalty and relatedness. Hierarchy: the degree to which subordinate people accept their position as natural Aggression: the corresponding dimension is called Masculinity versus Femininity. Otherness: Anxiety in the face of the unknown China & Anglo countries are uncertainty tolerant, latin & slav countries are uncertainty avoiding. Context: Short (African) - versus Long-term (Asian) Orientation. Happiness: Indulgence (Central America, Anglo countries) versus Restraint (SE Asia) Firm culture may be a reflection of the national culture. The IS should be designed keeping these questions in mind: “who decides what?” And “what is the decision making process?” © Gabriele Piccoli

China Britain tie-up Case Chinese workers like fixed contracts, security, valued guanxi (relationships). British workers liked planning, capturing data, cash when promised. They loved their ERP system. What’s the solution? © Akhilesh Bajaj