Information Systems Topic 1 Introduction to Information Systems o Data, Information and knowledge · Data: Raw fact, not meaningful on its own. · Examples include names, timelines, person, place, thing, event " Information: Processed data, revealing meaning behind the facts, processes include summing, ordering, averaging, grouping, comparing · Examples include sales figures, projects behind schedule · Knowledge: Facts, information and skills acquired through experience or education · Examples include likely cause for project failure or ways of avoiding project failure o What is an Information System (IS)? " A group of components that interact to produce information · Five fundamental components of a computer-based information system · Computer Hardware (Computer Side) · Software (Computer Side) · Data (Bridge) · Procedures (Human Side) · People (Human Side) o Business Processes: Standardised set of activities that accomplish a specific task " Generate information by giving context to data . Automation moves work or procedures from human side to computer side o Types of Business (either service or product industry based) ? Sole Proprietorship · Not separate legal entity · One director, one shareholder, one-person company . Partnership · Not separate legal entity · Jointly running a business with another person (up to 20) · Corporation · Separate legal entity · Has the right to enter into contracts, loans, borrow money, sue, be sued, hire employees, own assets and pay taxes · Single or several shareholders o Common departments " Accounting Finance " Human Resources Marketing · Operations Management · Sales
Topic 2 Organisational Strategy, Innovation and Systems for Competitive Advantage o Decision Making Information is important, so managers can make informed decisions · Information has to be accurate, timely, complete and relevant o Organisational Strategy " Every organisation exists for a reason · Often to make profit · Help its members · Community service (humanitarian aid or charities) " Every organisation has goals and objectives, from these organisational strategy is developed . Establishing the structure, features and functions for the information system to be used . The information system must align with the goals of the organisation · Aim to gain Competitive Advantage through the elements of organisational strategy · Competitive Advantage: A favourable or superior business position (typically temporary) · Principles for Competitive Advantage o Creating new products or services o Enhancing existing products or services o Differentiating products or services o Locking in customers o Locking in suppliers o Create barriers to market entry o Establish alliances o Reduce costs Industry Structure Competitive Strategy Value Chains Business Processes Information Systems revenirs across the industry Bett Lowest cost product/service across the Industry echinocigy Dereigriett Becaining poves plantoner Lowest cost withinan Berte product/service within an industry segment inbound industry segment Primery Activities
· Elements of Organisational Strategy . Industry Structure - Examination of the industry or environment the business operates in o Porter's Five Forces Model was developed for determining industry structure (determines characteristics, profitability, sustainability, sources of strong competition) Bargaining Power of Customers · High when buyers have multiple sellers to