Module 1 - An Introduction to Information Systems in Organizations 

Introduction:

We live in an information economy. Information itself has real value, and in order to stay
competitive, organizations require a steady flow of information about their business
partners, competitors, customers, employees, markets, and suppliers. Information systems
are increasingly being used to gather, store, digest, analyze, and make sense out of all this
information. Indeed, information systems are even embedded in and control many of the
products we use on a daily basis. Using information systems, individuals communicate
instantaneously with one another; consumers make purchases online using mobile
devices; project members dispersed globally and across multiple organizations collaborate
effectively; financial institutions manage billions of dollars in assets around the world; and
manufacturers partner with suppliers and customers to track inventory, order supplies,
and distribute goods faster than ever before.

Information systems will continue to change businesses and the way we live. Indeed, many
corporate leaders are using technology to rework every aspect of their organization from
product and service creation through production, delivery, and customer service. To
prepare to participate in and lead these innovations, you must be familiar with
fundamental information concepts. Regardless of your college major or chosen career,
knowledge of information systems is indispensable in helping you land your first job. The
ability to recognize and capitalize on information system opportunities can make you an
even more valuable member of your organization and will ultimately help advance your
career.

(Stair et al, 2018, p. 4)

Learning Outcomes:

At the end of this module, you should be able to:

·         Distinguish data from information and knowledge, and describe the characteristics of
quality data.

·         Identify the fundamental components of an information system and describe their

function.

·         Identify the three fundamental information system types and explain what
organizational complements must be in place to ensure successful implementation and
use of the system.
·         Define the term “the soft side of implementing change,” and explain why it is a critical
factor in the successful adoption of any major change.

·         Identify and briefly describe five change models that can be used to increase the
likelihood of successfully introducing a new information system into an organization.

·         Define the types of roles, functions, and careers available in the field of information
systems. 

The value of information is directly linked to how it helps decision makers achieve
the organization’s goals. 

Data consists of raw facts; information is a collection of data organized and processed so
that it has additional value beyond the value of the individual facts. The value of
information created depends on the relationships defined among existing data. Turning
data into information is a process performed to achieve a defined outcome. This process
requires knowledge, which is the awareness and understanding of a set of information and
the ways in which that information can be made useful to support a specific task or reach a
decision. 

Information has many different characteristics. It can be accessible, accurate, complete,

economical to produce, flexible, relevant, reliable, secure, simple to understand, timely,
and verifiable. The importance of each of these characteristics varies depending on the
situation and the kind of decision you are trying to make. The value of information is
directly linked to how it helps people achieve their organizations’ goals. 

Information systems are composed of fundamental components that must be

carefully assembled and integrated to work well together. 

An information system (IS) is a set of interrelated components that collect, process, store,
and disseminate data and information; an information system provides a feedback
mechanism to monitor and control its operation to make sure it continues to meet its goals
and objectives. 

A computer-based information system (CBIS) is a single set of hardware, software,

databases, networks, people, and procedures that are configured to collect, manipulate,
store, and process data into information. 

An organization’s technology infrastructure includes all the hardware, software, databases,

networks, people, and procedures that are 
Managers have an essential role to play in the successful implementation and use of
information systems—that role changes depending on which type of IS system is
being implemented. 

When considering the role of business managers in working with IS, it is useful to divide
information systems into three types: personal IS, group IS, and enterprise IS. 

For each type of IS, certain key organizational complements must be in place to ensure
successful implementation and use of the system. These complements include well-trained
workers, system support, better teamwork, redesigned processes, and new decision rights. 

Information systems must be implemented in such a manner that they are accepted
and work well within the context of an organization and support its fundamental
business goals and strategies. 

An organization is a group of people that is structured and managed to meet its mission or
set of group goals. Organizations affect and are affected by their environment. 

The value chain is a series of activities that an organization performs to transform inputs
into outputs in such a way that the value of the input is increased. 

The supply chain is a key value chain whose primary activities include inbound logistics,
operations, outbound logistics, marketing and sales, and service. Supply chain
management encompasses all the activities required to get the right product into the right
consumer’s hands in the right quantity at the right time and at the right cost. 

Information systems have transformed the nature of work and the shape of organizations
themselves. They are often so intimately involved in the activities of the value chain that
they are a part of the process itself. 

A virtual team is a group of individuals whose members are distributed geographically, but
who collaborate and complete work through the use of information systems. Innovation is
the application of new ideas to the products, processes, and activities of a firm, leading to
increased value. Innovation is the catalyst for the growth and success of any organization.
Innovation may be classified as sustaining or disruptive. 

Business process reengineering is a form of innovation that involves the radical redesign of
business processes, organizational structures, information systems, and values of the
organization to achieve a breakthrough in results. Continuous improvement is a form of
innovation that continually improves business processes to add value to products and
services. 
Organizational culture consists of the major understandings and assumptions for a
business, a corporation, or an organization. According to the concept of organizational
learning, organizations adapt to new conditions or alter practices over time. 

Organizational change deals with how organizations successfully plan for, implement, and
handle change. The ability to introduce change effectively is critical to the success of any
information system project. 

Several change models can be used to increase the likelihood of successfully introducing a
new information system into an organization. 

Lewin’s three-stage organization change model divides the change implementation process
into three stages: unfreezing, moving, and refreezing. The model also identifies key tasks
that need to be performed during each stage. 

Lewin’s force field analysis is an approach to identifying the driving (positive) and
restraining (negative) forces that influence whether change can occur. 

Leavitt’s diamond proposes that every organizational system is made up of four main
components—people, tasks, structure, and technology—that all interact. To successfully
implement a new information system, appropriate changes must be made to the people,
structure, and tasks affected by the new system. 

The user satisfaction and technology acceptance model specify the factors that can lead to
better attitudes about the use of a new information system, along with higher acceptance
and use of it. 

The diffusion of innovation theory explains how a new idea or product gains acceptance
and diffuses through a specific population or subset of an organization. A key point of this
theory is that adoption of any innovation does not happen all at once for all people; rather,
it is a drawn-out process, with some people quicker to adopt the innovation than others.
The theory groups adopters into five categories and recommends a different adoption
strategy for each category. 

The information system worker functions at the intersection of business and

technology and designs, builds, and implements solutions that allow organizations to
effectively leverage information technology systems. 

Successful information system workers need to have a variety of personal characteristics

and skills, including the ability to work well under pressure, good communication skills,
solid analytical and decision-making skills, effective team and leadership skills, and
adeptness at implementing organizational change.
Technology is one of the fastest-growing areas of the U.S. economy, which has a strong
demand for information system workers.

Opportunities in information systems are available to people from foreign countries under
the H-1B and L-1 visa programs.

The IS organization has three primary functions: operations, development, and support.

Typical operations roles include data center manager, system operator, information system
security analyst, and LAN administrator.

Typical development roles include software developer, systems analyst, programmer, and
Web developer.

Typical support roles include database administrator and system support specialist.

Only about 60 percent of all information technology outlays are controlled by the
information systems department. Shadow IT is a term used to describe the information
systems and solutions built and deployed by departments other than the information
systems department. In many cases, the information systems department may not even be
aware of these efforts.

Besides working for an IS department in an organization, IS personnel can work for a large
consulting firm or a hardware or software manufacturer. Developing or selling products for
a hardware or software vendor is another IS career opportunity.

Certification is a process for testing skills and knowledge; successful completion of a

certification exam results in an endorsement by the certifying authority that an individual is
capable of performing particular tasks or jobs. Certification frequently involves specific,
vendor-provided, or vendor-endorsed coursework.

(Stair et al, 2018, pp. 32-34)