UNDERSTANDING

INFORMATION
SYSTEMS
PREPARED BY:
REYMARK DELENA

ISY 102 FUNDAMENTALS IN INFORMATION SYSTEMS

OVERVIEW

• The fundamental point of this

module is to provide a core of
Information Systems principles
and the application of IS in the
management of organizations.
• This module will also be devoted
to expanding and clarifying the
business process and the types
of Information Systems and its
various ethical and social issues.

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OBJECTIVES

Explain Describe Analyze Understand

Explain why Describe an Analyze the effects Understand the

Information information system of Information ethical, social, and
Systems are so and its Systems on political issues are
essential in management, business raised by
business today. organization, and organizations Information
technology Systems.
components.
 Lesson 1
The Role of Information Systems in Business Today
LO: Explain why Information Systems are so essential in
business today
Lesson 2
LESSONS IN THIS Business Processes and Types of Information Systems
LO: Describe an Information System and its management,
MODULE AND organization, and technology components
LEARNING Lesson 3
Information Systems Impact to Organizations
OUTCOMES LO: Analyze the effects of Information Systems on business
organizations
Lesson 4
Ethical and Social Issues Related to Information Systems
LO: Understand the ethical, social, and political issues are
raised by Information Systems
FACULTY PROFILE
INTRODUCTION

• Understanding Information Systems! Here, you are going to learn various fields such
as accounting, finance, marketing management, and operations management that
utilizes Information Systems. So, let us learn, what is the role of Information
Systems? Furthermore, why is it essential in such careers? Let us find the answers in
this lesson
THE ROLE OF INFORMATION SYSTEMS IN BUSINESS TODAY

• As managers, most of you will work for

firms that are intensively using
Information Systems and making
substantial investments in Information
Technology. You will undoubtedly want to
know how to invest this money wisely. If
you make wise choices, your firm can
outperform competitors. If you make
poor choices, you will be wasting valuable
capital. This book is dedicated to helping
you make wise decisions about
Information Technology and Information
Systems.

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SOURCE: LAUDON, K. C.& LAUDON, J. P. (2017). MANAGEMENT INFORMATION SYSTEMS:
MANAGING THE DIGITAL FIRM (13TH ED.). PEARSON EDUCATION. ISBN: 978-013-30-5069-1

Information Technology capital

investment, defined as hardware,
software, and communications
equipment, grew from 32 percent
to 52 percent of all invested
capital between 1980 and 2009

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HOW INFORMATION SYSTEMS ARE TRANSFORMING
BUSINESS?

Increase in wireless technology use, Web sites

Increased business use of Web 2.0 technologies

Cloud computing, mobile digital platform allows more distributed

work, decision-making, and collaboration

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WHAT ARE THE GLOBALIZATION OPPORTUNITIES?

● Internet has drastically reduced costs of operating on global scale

● Presents both challenges and opportunities

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WHAT IS NEW IN MANAGEMENT INFORMATION SYSTEMS?

CHANGE BUSINESS IMPACT

TECHNOLOGY

Cloud computing platform emerges as a major business area of A flexible collection of computers on the Internet begins to perform tasks
innovation traditionally performed on corporate computers. Major business applications are
delivered online as an Internet service (Software as a Service, or SaaS).

Big data Businesses look for insights from huge volumes of data from Web traffic, e-mail
messages, social media content, and machines (sensors) that require new data
management tools to capture, store, and analyze.

A mobile digital platform emerges to compete with the PC as a The Apple iPhone and Android mobile devices are able to download hundreds of
business system thousands of applications to support collaboration, location-based services, and
communication with colleagues. Small tablet computers, including the iPad,
Google Nexus, and Kindle Fire, challenge conventional laptops as platforms for
consumer and corporate computing.

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WHAT IS NEW IN MANAGEMENT INFORMATION SYSTEMS?
CONT.…

CHANGE BUSINESS IMPACT

MANAGEMENT

Managers adopt online collaboration and social networking software Google Apps, Google Sites, Microsoft Windows SharePoint Services, and IBM
to improve coordination, collaboration, and knowledge sharing Lotus Connections are used by over 100 million business professionals worldwide
to support blogs, project management, online meetings, personal profiles, social
bookmarks, and online communities.

Business intelligence applications accelerate More powerful data analytics and interactive dashboards provide real time
performance information to managers to enhance decision making.

Virtual meetings proliferate Managers adopt telepresence videoconferencing and Web conferencing
technologies to reduce travel time, and cost, while improving collaboration and
decision making.

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WHAT IS NEW IN MANAGEMENT INFORMATION SYSTEMS?
CONT.…

CHANGE BUSINESS IMPACT

ORGANIZATION

Social business Businesses use social networking platforms, including Facebook, Twitter, and
internal corporate social tools, to deepen interactions with employees,
customers, and suppliers. Employees use blogs, wikis, e-mail texting, and
messaging to interact in online communities.

Telework gains momentum in the workplace More powerful data analytics and interactive dashboards provide real time
performance information to managers to enhance decision making.

Co-creation of business value Sources of business value shift from products to solutions and experiences, and
from internal sources to networks of suppliers and collaboration with customers.
Supply chains and product development become more global and collaborative;
customer interactions help firms define new products and services.

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6 STRATEGIC BUSINESS OBJECTIVES

1. Operational excellence
2. New products, services, and business models
3. Customer and Supplier Intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
6 STRATEGIC BUSINESS OBJECTIVES

1. Operational excellence Improvement of efficiency

to attain higher profitability

Information systems,
technology an important
tool in achieving greater
efficiency and productivity
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6 STRATEGIC BUSINESS OBJECTIVES

2. New products, services, and ● Business model: describes how

business models company produces, delivers, and
sells product or service to create
wealth
● Information systems and
technology a major enabling tool
for new products, services,
business models
● Examples: Apple’s iPod, iTunes,
iPhone, iPad, Google’s Android OS,
and Netflix

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6 STRATEGIC BUSINESS OBJECTIVES

3. Customer and supplier intimacy ● Serving customers well leads to

customers returning, which raises
revenues and profits
● Intimacy with suppliers allows
them to provide vital inputs,
which lowers costs

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6 STRATEGIC BUSINESS OBJECTIVES

4. Improved decision making ● Without accurate information:

managers must use forecasts, best
guesses, luck
● Leads to: overproduction,
underproduction of goods and
services, misallocation of
resources, poor response times,
and poor outcomes raise costs,
lose customers

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6 STRATEGIC BUSINESS OBJECTIVES

5. Competitive advantage • Delivering better performance

• Charging less for superior
products
• Responding to customers and
suppliers in real time
• Examples: Apple, Walmart, UPS

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6 STRATEGIC BUSINESS OBJECTIVES

6. Survival • Business firms also invest in

Information Systems and
technologies because they are
necessities of doing business.
Sometimes these “necessities”
are driven by industry-level
changes.

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THE INTERDEPENDENCE BETWEEN ORGANIZATIONS AND
INFORMATION TECHNOLOGY

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