Chapter 1

IT vs. IS:
Information Technology (IT) is all forms of technology (tool) used to create/ store/ exchange/
and use information.

Also, refers to any computer-based tool that people use to work with information and to
support the information and information-processing needs of an organization.

Information Systems (IS) is collects/ process/ store/ analyses/ and disseminate information for
a specific purpose to get the right information to the right people, time, and amount.

Also, is the combination of technology (the “what”), people (the “who”) and process (the
“how”) that organization uses to produce and manage information.

Why Should I Study Information Systems? Home Conexus

1) You are the most connected generation in history.
2) You practice continuous computing.
3) You are surrounded by a personal, movable information network.

4)You can pull information from the Web and push your ideas back to the Web.

The Informed User – You!

Informed User: a person knowledgeable about information systems and information
technology.
Informed users: tend to get more value from whatever technologies/systems they use.

Reasons why you should be an informed user:

1) You will benefit more from your organization’s IT applications because you will
understand what is “behind” those applications.
2) You will be able to enhance the quality of your organization’s IT applications with your
input.
 3) Will keep you abreast of both new information technologies and rapid developments in
existing technologies.
4) Improve the organizations’ performance, productivity, and teamwork.
5) Build your own company (entrepreneur).

Digital nomad: is someone who uses information technologies such as smart phones, wireless
Internet access, and Web-based applications to work remotely from anywhere.

IT Offers Career Opportunities page 9:

“Top Jobs” in America:

• Software architect #1
• Database administrator #7
Not only do IS careers offer strong job growth, but the pay is excellent as well.

Managing Information Resources Page 11/ Table 1.2

➢ Traditional Functions of MIS Department
➢ Consultative Functions of MIS Department

Overview of Computer-Based Information Systems

Data items: an elementary description of (things/ events/ activities/ and transactions) that are
recorded, classified, and stored but are Not organized to convey any specific meaning.
 ➢ Numbers
➢ Letters
➢ Figures
➢ Sounds
➢ Images

Examples of data items:

• Collections of numbers (e.g., 3.11, 2.96, 3.95, 1.99, 2.08)

• Characters (e.g., B, A, C, A, B, D, F, C)
• 3.5 / high / 6:00 pm

Information: Data that have been organized so that they have meaning and value to the
recipient.
Example:

• A grade point average (GPA) by itself is data, but a student’s name coupled with his or
her GPA is information.
• Sultan got 3.5 GPA.
• The temperature is very high today.
• Oman Air will depart at 6:00 pm to London.

Knowledge: Data and/or information that have been organized and processed to convey
(understanding/ experience/ accumulated learning/ and expertise) as they apply to a current
business problem.
Know-what/ Know-how
Explicit knowledge /Tacit knowledge
For example:

Suppose that a company recruiting at your school has found over time that students with grade
point averages over 3 have experienced the greatest success in its management program.
Based on this accumulated knowledge, that company may decide to interview only those
students with GPAs over 3.

The company utilizes information—GPAs—to hiring successful employees.

SEE THE TABLE IN PAGE 13

Computer-Based Information Systems

Computer-based information systems: Information systems that use computer technology to
perform some or all their intended tasks.

Hardware: Consists of devices such as the processor, monitor, keyboard, and printer. Together,
these devices accept, process, and display data and information.

Software: A program or collection of programs that enable hardware to process data.

Database: A collection of related files or tables containing data.

Network: A connecting system (wireline or wireless) that permits different computers to share
resources.

Procedures: the set of instructions about how to combine the above components in order to
process information and generate the desired output.

People: individuals who use the hardware and software, interface with it, or uses its output

Capabilities of Information Systems

➢ Perform high-speed, high-volume numerical computations.
➢ Provide fast, accurate communication and collaboration within and among
organizations.
➢ Store huge amounts of information in small space.
➢ Allow quick, inexpensive access to vast amounts of information worldwide.
➢ Interpret vast amounts of data quickly and efficiently.
➢ Increase effectiveness and efficiency of people working in groups in one place or around
the world.
➢ Automate semiautomatic business process and manual tasks.
Types of Information Systems

Information Systems Inside an Organization

Information Technology Infrastructure: The IT components + IT services + IT personnel that

support an entire organization.
 ➢ IT components (platform) consist of hardware, software, telecommunications and
networks, and wireless communications.

➢ IT services consist of data management, managing security and risk, and systems
development.

➢ IT personnel use IT components to produce IT services.

Breadth of Support of Information Systems

Functional area information systems (FAIS): Support particular functional areas (accounting IS,
finance IS, production/operations management (POM) IS, marketing IS, and human resources
IS) in an organization.

Enterprise resource planning (ERP) systems: are designed to correct a lack of communication
among the functional area ISs.
- Tightly integrate the functional area information systems via a common database.
- Enhance communications among the functional areas of an organization.
- For this reason, experts credit ERP systems with greatly increasing organizational
productivity.

Transaction processing system (TPS): Supports the monitoring, collection, storage, and
processing of data from the organization’s basic business transactions, each of which generates
data.
A transaction is anything that changes the firm’s database.
Within an organization, different functions or departments can define a transaction differently.
Example:
➢ When you are checking out at Walmart: transaction occurs each time the cashier swipes
an item across the bar code reader.
(point-of-sale (POS) system at Carrfour)

➢ In accounting, a transaction is anything that changes a firm’s chart of accounts.

➢ Consider a scenario in which a student transfers from one section of an Introduction to

MIS course to another section. This move would be a transaction to the university’s
information system, but not to the university’s accounting department (the tuition
would not change).
Interorganizational information systems (IOSs): connect two or more organizations.
Example:
Support many interorganizational operations:
→ Supply chain is the flow of materials, information, money, and services from suppliers of
raw materials through factories and warehouses to the end customers.

Support for Organizational Employees

Office automation systems (OASs): typically support the clerical staff, lower and middle
managers, and knowledge workers.
These employees use OASs to develop:
Documents (word processing and desktop publishing software)
Schedule resources (electronic calendars)
Communicate (e-mail/ voice mail/ videoconferencing/ and groupware)

Business intelligence systems (BI): provide computer-based support for complex, nonroutine
decisions, primarily for middle managers and knowledge workers. (They also support lower-
level managers, but to a lesser extent)

Expert systems (ES): attempt to duplicate the work of human experts by applying reasoning
capabilities, knowledge, and expertise within a specific domain.

Dashboards (digital dashboards): a special form of IS that support all managers of the
organization.
They provide rapid access to timely information and direct access to structured information in
the form of reports.

How Does IT Impact Organizations?

IT Reduces the Number of Middle Managers: IT makes managers more productive, and it
increases the number of employees who can report to a single manager. Thus, IT ultimately
decreases the number of managers and experts
IT Changes the Manager’s Job
IT often provides managers with near-real-time information, meaning that managers have less
time to make decisions, making their jobs even more stressful.
Fortunately, IT also provides many tools (for example: business analytics applications such as
dashboards/ search engines/ and intranets) to help managers handle the volumes of
information they must deal with on an ongoing basis.

Will IT Eliminate Jobs?

IT Impacts Employees at Work

➢ IT Impacts Employees’ Health and Safety
Ergonomics: The science of designing machines and work settings that minimize injury
and illness.
The goal: safe environment/ well-lit/ and comfortable.
For example: 1) Antiglare screens that alleviate problems of fatigued or
damaged eyesight
2) Chairs that contour the human body
to decrease backaches.

➢ IT Provides Opportunities for People with Disabilities

For example: Individuals who cannot type can use a voice operated keyboard/ and
individuals who cannot travel can work at home.

Importance of Information Systems to Society

❖ IT Affects Our Quality of Life

❖ Robot Revolution on the Way

❖ Improvements in Healthcare
The patient swallows the Pill Cam (camera). The camera takes an image of the digestive tract at
intervals and sends the images to a device that patients wear on their belts. The patients take
their devices to their doctors who download the images and view them on a screen.

IMPORTANT: Read the summary in book page 25