Chapter 1

How Information Systems Transform Business

Information systems are transforming businesses by enhancing operational efficiency, enabling
new products and services, and fostering customer intimacy. They are essential for decision-
making, competitive advantage, and overall survival in a globalized market.

What's New in Management Information Systems

Recent trends include the emergence of mobile digital platforms, the growing use of big data,
and the rise of cloud computing, which allows software to run over the Internet.

What is an Information System?

An information system is a combination of software, hardware, and telecommunications
networks designed to collect and process data for decision-making. Its components include
management, organization, and technology, which work together to support business operations.

Importance of Complementary Assets

Complementary assets, such as skilled personnel and efficient processes, are crucial for
maximizing the value derived from information systems, ensuring they effectively support
organizational goals.

Academic Disciplines in Information Systems

The study of information systems incorporates various academic disciplines:

• Technical Approach focuses on the technology and systems design.

• Behavioral Approach examines user interaction and organizational behavior.

Chapter 2
What are Business Processes?
Business processes are collections of activities required to produce a product or service,
supported by flows of material, information, and knowledge among participants. They reflect
how organizations coordinate work and manage information.

How are they related to Information Systems?

Information systems support business processes by facilitating the flow of information and
resources, enhancing efficiency, and enabling better decision-making across the organization.
How do systems serve different management groups?
Systems provide tailored information and tools for various management levels, enhancing
decision-making and operational efficiency. They link the enterprise by integrating processes
across departments, improving overall organizational performance.

Why are systems for collaboration and social business important?

Collaboration systems enable teamwork and communication, while social business systems
leverage social media tools to enhance engagement and innovation. They foster a collaborative
culture, leading to improved business processes and outcomes.

What is the role of the information systems function in a business?

The information systems department is responsible for managing IT services, maintaining
hardware, software, and data storage. It organizes the information systems function to ensure
technology aligns with business goals and operates effectively.

Chapter 3
Key Features for Managers in Information Systems
1. Understanding Organizations: Managers must grasp the structure, culture, and
processes of organizations to effectively implement information systems.

2. Impact of Information Systems: Information systems influence economic performance,

organizational behavior, and design implications, enhancing efficiency and decision-
making.

3. Competitive Strategies: Tools like Porter’s model and the value chain help managers
leverage information systems for competitive advantage, addressing challenges like
sustaining advantage and aligning IT with business goals.

Chapter 4

Ethical, Social, and Political Issues Raised by Information Systems

Information systems raise issues related to privacy rights, intellectual property protection,
accountability for harm, data quality standards, and the preservation of cultural values. Key
technology trends, such as digital surveillance and data mining, exacerbate these concerns by
making personal information easily accessible and exploitable. The ethical implications of these
systems necessitate a framework for responsible conduct and decision-making.
Principles for Conduct in Ethical Decisions
Guiding principles for ethical decisions include responsibility, accountability, and liability,
which help clarify who is responsible for actions and their consequences. Ethical analysis
involves evaluating situations against candidate ethical principles and professional codes of
conduct to ensure fair and just outcomes. These frameworks assist individuals and organizations
in navigating complex ethical dilemmas in the information age.

Challenges to Privacy and Intellectual Property

Contemporary information systems and the Internet challenge individual privacy by enabling
extensive surveillance and data collection, often without consent. Intellectual property rights are
difficult to enforce in a digital landscape where ownership is hard to trace, leading to increased
risks of infringement. These challenges necessitate robust legal frameworks to protect personal
and intellectual rights in the digital realm.

Impact on Accountability, Liability, and Quality of Life

Information systems have complicated the establishment of accountability and liability due to the
anonymity and scale of digital interactions, leading to computer-related liability issues. System
quality concerns, such as data accuracy and errors, directly affect individuals' lives, influencing
equity and access to information. Additionally, the pervasive use of technology raises health
risks, including repetitive strain injuries and cognitive decline, impacting overall quality of life.
IT infrastructure refers to the combination of hardware, software, networks, and services that are
necessary to operate and manage an organization's IT environment. It provides the foundation for
various IT-enabled processes and activities.

Chapter 5

IT infrastructure refers to the combination of hardware, software, networks, and services that
are necessary to operate and manage an organization's IT environment. It provides the foundation
for various IT-enabled processes and activities.

The stages of IT infrastructure evolution are often described as follows:

1. Mainframe and centralized computing: In the early days of computing, IT infrastructure

revolved around large mainframe computers that were centrally managed and accessed by users
through terminals.
2. Client-server computing: This stage introduced the use of personal computers (clients)
connected to server systems through local area networks (LANs), allowing for distributed
processing and greater user autonomy.

3. Enterprise computing: As organizations grew, they needed scalable and reliable IT

infrastructure solutions. This stage involved the adoption of enterprise-wide systems, such as
Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Supply
Chain Management (SCM) systems.

4. Cloud computing: With advancements in virtualization and internet technologies, cloud

computing emerged as a key infrastructure model. It enables on-demand access to a shared pool
of computing resources over the internet, providing scalability, flexibility, and cost-efficiency.

The drivers of IT infrastructure evolution include:

1. Technological advancements: Innovation in hardware, software, networking, and storage

technologies drives the evolution of IT infrastructure. Examples include the development of
faster processors, larger storage capacities, and more efficient network protocols.

2. Business needs and growth: As businesses expand, their IT infrastructure must adapt to
support increased demand for processing power, storage, and network connectivity. Changes in
business requirements, such as the need for global operations or remote access, also influence
infrastructure evolution.

3. Cost considerations: Organizations seek cost-effective IT infrastructure solutions that provide

the necessary capabilities without excessive investments. Factors such as hardware and software
costs, maintenance expenses, and energy consumption influence infrastructure decisions.

4. Security and compliance requirements: The growing importance of data security and
compliance regulations drives organizations to invest in infrastructure that can protect sensitive
information and meet regulatory standards.

The components of IT infrastructure include:

1. Computer Hardware Platforms: This includes servers, mainframes, personal computers,

mobile devices, and other hardware components.

2. Operating System Platforms: The software that manages and controls hardware resources
and provides a platform for other software applications.

3. Enterprise Software Applications: Systems and applications designed to support various

business functions like ERP, CRM, SCM, and more.
4. Data Management and Storage: Systems for managing data, including databases, data
warehouses, and storage technologies.

5. Networking/Telecommunications Platforms: Networking hardware (routers, switches) and

protocols that enable data transmission and communication.

6. Internet Platforms: Infrastructure that supports internet connectivity, including internet

service providers (ISPs), web servers, and other related technologies.

7. Consulting and System Integration Services: Services provided by consulting firms and
system integrators to assist organizations in designing, implementing, and managing IT
infrastructure solutions.

Some current trends in computer hardware platforms are:

- The Mobile Digital Platform: The proliferation of smartphones, tablets, and other mobile
devices has led to increased demand for mobile computing power and connectivity.

- Consumerization of IT and BYOD (Bring Your Own Device): Employees now expect to use
their personal devices for work, leading to the need for secure and manageable infrastructure to
support this trend.

- Quantum Computing: Quantum computers harness quantum mechanical phenomena to

perform computational tasks exponentially faster than classical computers, potentially
revolutionizing IT infrastructure capabilities.

- Virtualization: Virtualization technology allows multiple operating systems and applications

to run on a single physical server, improving resource utilization and flexibility.

- Cloud Computing: The shift towards cloud computing enables organizations to access IT
resources and services on-demand over the internet, reducing the need for on-premises
infrastructure.

- Edge Computing: With the growth of IoT devices and the need for real-time data processing,
edge computing brings computing power closer to the data source, enabling faster data
processing and reducing latency.

- Green Computing: The focus on reducing environmental impact has led to the development of
energy-efficient hardware components and strategies for sustainable IT infrastructure.
- High-Performance and Power-Saving Processors: Processor manufacturers continually
strive to improve performance while reducing power consumption to support the increasing
demands of computing.

Some current computer software platforms and trends include:

- Linux and Open Source Software: Linux has gained popularity as an open-source operating
system, and open-source software is increasingly used in various applications and development
environments.

- Software for the Web: Java, JavaScript, HTML, and HTML5 are widely used to develop web-
based software applications and services.

- Web Services and Service-Oriented Architecture: Web services and service-oriented

architecture (SOA) enable application integration and interconnectivity through standardized
protocols (like HTTP and XML).

- Software Outsourcing and Cloud Services: Organizations are increasingly outsourcing

software development and utilizing cloud services for software deployment, reducing the need
for in-house infrastructure.

Managing IT infrastructure also involves considerations for scalability and flexibility,

security and privacy, cost management, legacy systems integration, vendor management
and relationships, and disaster recovery and business continuity planning. To address these
challenges, organizations utilize IT service management (ITSM), IT operations management
(ITOM), IT asset management (ITAM), network management, security management, and cloud
management solutions to ensure efficient and effective management of their IT infrastructure.

Bonus Note (From references not slide)

 Chapter 1

How Information Systems Transform Business & Their Importance

• Enable faster decision-making through data analysis and reporting.

• Facilitate communication, collaboration, and global connectivity.
• Automate routine processes, reducing costs and improving efficiency.
• Support customer engagement and enhance product/service offerings.
• Essential for managing data, operations, and staying competitive in a global market.

What's New in Management Information Systems

• Cloud computing, AI, and Big Data analytics.

• Mobile applications and platforms.
 • Cybersecurity advancements and concerns.
• Globalization-driven business strategies.

What is an Information System? How it Works

• Definition: A system that collects, processes, stores, and disseminates information to

support decision-making and control in an organization.
• Components:
o Management: Decision-making and planning.
o Organization: Structure, processes, and culture.
o Technology: Hardware, software, and data management.

Why Complementary Assets are Essential

• IT investments need supportive organizational changes (e.g., processes, human

resources).
• Successful use of information systems depends on leadership, business models, and
operational alignment.

Dimensions of Information Systems

• Management: Leadership, strategy, and decision-making.

• Organization: Business functions, culture, and processes.
• Technology: IT infrastructure, software, and data management.

Academic Disciplines Studying Information Systems

• Technical Approach: Computer science, engineering – focuses on IT design and

capabilities.
• Behavioral Approach: Sociology, psychology – explores user interaction and
organizational impact.
• Sociotechnical Systems: Integration of both technical and human aspects for optimizing
IT use.

 Chapter 2

Business Processes

• Definition: A series of tasks or activities that achieve a specific organizational goal.

• Relation to Information Systems: Information systems automate, streamline, and
enhance business processes for better efficiency and effectiveness.

How Information Technology Improves Business Processes

 • Automates routine tasks, reducing time and errors.
• Provides real-time data for better decision-making.
• Improves communication across departments and with customers.
• Enables process innovation and optimization.

Systems for Different Management Groups

• Operational-Level Systems: Support day-to-day processes (e.g., payroll, inventory

management).
• Management-Level Systems: Provide reports and analytical tools for middle
management (e.g., MIS, decision support systems).
• Strategic-Level Systems: Help senior executives with long-term planning (e.g.,
Executive Information Systems).

Systems for Linking the Enterprise

• Enterprise Resource Planning (ERP): Integrates all business functions into one
platform, improving coordination.
• Customer Relationship Management (CRM): Enhances customer interactions and data
management.
• Supply Chain Management (SCM): Streamlines processes between a company and its
suppliers.

E-business, E-commerce, and E-government

• E-business: Using digital technology to run a business (internal and external processes).
• E-commerce: Buying and selling goods/services online.
• E-government: Providing government services and engagement online for citizens.

Why Systems for Collaboration and Social Business Are Important

• Facilitate teamwork and innovation by enabling communication across teams.

• Encourage real-time knowledge sharing, leading to faster decision-making.
• Enhance relationships with customers through social platforms.

What Is Collaboration?

• Definition: Working together to achieve shared goals, often involving cross-functional

teams.

What Is Social Business?

 • Definition: Using social media platforms to engage employees, customers, and partners
for business processes.

Business Benefits of Collaboration and Social Business

• Faster problem-solving and innovation.

• Improved productivity through streamlined communication.
• Enhanced employee and customer engagement.

Building a Collaborative Culture and Business Processes

• Encourage openness, communication, and teamwork.

• Align collaboration efforts with business objectives.

Tools and Technologies for Collaboration and Social Business

• Collaboration Tools: Email, video conferencing, document sharing platforms (e.g.,

Microsoft Teams, Slack).
• Social Business Platforms: Internal social networks, customer feedback platforms (e.g.,
Yammer, Salesforce).

Role of the Information Systems Function in a Business

• Supports business operations by managing IT infrastructure and systems.

• Develops and maintains technology solutions aligned with business goals.
• Ensures data security and efficient use of resources.

The Information Systems Department

• Roles: System analysts, database administrators, IT support.

• Function: Designs, implements, and manages systems to meet business needs.

Organizing the Information Systems Function

• Managed under the Chief Information Officer (CIO) to align IT with business strategy.

 Chapter 3

Features of Organizations Managers Need to Know to Build and Use Information Systems

• What Is an Organization?: A structured social unit that uses resources to achieve

specific goals.
 • Features of Organizations:
o Hierarchy: Levels of authority and roles.
o Business Processes: Routines and procedures for tasks.
o Culture: Organizational values and norms.
o Politics: Power and influence dynamics.
o Environment: Interaction with external market conditions.

Impact of Information Systems on Organizations

• Economic Impacts:
o Reduces transaction and agency costs.
o Enhances productivity and efficiency.
• Organizational and Behavioral Impacts:
o Changes in job roles, decision-making processes, and power structures.
o Promotes flatter organizational structures with fewer hierarchical levels.
• The Internet and Organizations:
o Increases global reach and connectivity.
o Enables virtual organizations and telecommuting.
• Implications for Design and Understanding of Information Systems:
o Requires designing systems that align with organizational structures and goals.
o Understanding the unique culture, processes, and politics is crucial for successful
implementation.

Porter’s Competitive Forces Model & Competitive Strategies Using Information Systems

• Porter’s Competitive Forces Model:

o Identifies five forces shaping industry competition:
1. Rivalry among existing competitors.
2. Threat of new entrants.
3. Threat of substitute products/services.
4. Bargaining power of suppliers.
5. Bargaining power of customers.
• Information System Strategies for Dealing with Competitive Forces:
o Low-Cost Leadership: Automating processes to reduce costs (e.g., Walmart).
o Product Differentiation: Using technology to offer unique products/services
(e.g., Apple).
o Focus/Niche Market: Targeting specific markets with specialized offerings.
o Customer and Supplier Intimacy: Using CRM and SCM to build stronger
relationships.
• The Internet’s Impact on Competitive Advantage:
o Lowers barriers to entry.
o Increases the bargaining power of customers through price transparency.
 o Allows businesses to expand globally with minimal overhead.
• The Business Value Chain Model:
o Breaks down a company’s activities into primary (production, sales) and support
(HR, IT) activities.
o Information systems can optimize each activity, enhancing overall value.
• Synergies, Core Competencies, and Network-Based Strategies:
o Synergies: Combining efforts across different business units to achieve efficiency
(e.g., mergers).
o Core Competencies: Leveraging unique skills or knowledge to gain a
competitive edge.
o Network Economics: The value of a network increases as more users join (e.g.,
social media platforms).

Challenges Posed by Strategic Information Systems

• Sustaining Competitive Advantage:

o Rapid technological changes can make innovations short-lived.
o Competitors may quickly imitate successful systems.
• Aligning IT with Business Objectives:
o IT investments must support the overall business strategy.
o Requires ongoing collaboration between IT and business departments to ensure
alignment.
• Addressing These Challenges:
o Continuously innovate and adapt systems to maintain an advantage.
o Ensure clear communication and alignment between IT goals and business
objectives.

 Chapter 4

Ethical, Social, and Political Issues Raised by Information Systems

• A Model for Thinking about Ethical, Social, and Political Issues:

Information systems create new situations that raise ethical, social, and political concerns,
which can be analyzed using a framework that considers rights, obligations, and conflicts.
• Five Moral Dimensions of the Information Age:
1. Information Rights and Obligations: Who owns and controls information?
2. Property Rights and Obligations: How should intellectual property be
protected?
3. Accountability and Control: Who is responsible for the harm caused by
systems?
4. System Quality: How safe and reliable are information systems?
5. Quality of Life: How do IT systems affect individuals' lives?
• Key Technology Trends that Raise Ethical Issues:
o Increased data collection and surveillance.
 o Advances in AI and automation affecting jobs and decision-making.
o Growing digital divide and unequal access to technology.

Specific Principles for Conduct to Guide Ethical Decisions

• Basic Concepts: Responsibility, Accountability, and Liability:

o Responsibility: Accepting the consequences of decisions and actions.
o Accountability: Mechanisms to identify who is responsible for specific actions.
o Liability: Legal structures that allow individuals or organizations to recover
damages for harm.
• Ethical Analysis:
1. Identify the facts.
2. Define the conflict or dilemma.
3. Identify stakeholders.
4. Evaluate the options using ethical principles.
5. Make a decision.
• Candidate Ethical Principles:
o Golden Rule: Treat others as you want to be treated.
o Immanuel Kant's Categorical Imperative: If an action is not right for everyone,
it is not right for anyone.
o Utilitarian Principle: The greatest good for the greatest number.
o Risk Aversion Principle: Minimize harm.
o Ethical "No Free Lunch" Rule: Assume all tangible and intangible assets
belong to someone.
• Professional Codes of Conduct:
o Guidelines from professional organizations (e.g., ACM, IEEE) that govern
behavior and ethical standards in the IT field.

Challenges Posed by Information Systems to Privacy and Intellectual Property

• Information Rights: Privacy and Freedom in the Internet Age:

o The Internet enables massive data collection and surveillance, raising concerns
over personal privacy.
o Users often have little control over how their data is collected, stored, and used by
companies.
• Property Rights: Intellectual Property:
o The digital nature of information systems makes it easy to copy and distribute
intellectual property, complicating traditional notions of ownership.
o Software piracy, illegal downloading, and digital rights management (DRM) are
key issues.
Impact of Information Systems on Accountability, Liability, and Quality of Life

• Computer-Related Liability Problems:

o Determining who is liable for system failures or software defects can be
challenging.
o Harm caused by faulty systems, such as financial loss or injury, raises legal
questions about accountability.
• System Quality: Data Quality and System Errors:
o Poor data quality or system errors can lead to wrong decisions, financial losses,
and personal harm.
o Systems must ensure accuracy, reliability, and security to mitigate these risks.
• Quality of Life: Equity, Access, and Boundaries:
o Information systems can widen the gap between those with access to technology
and those without.
o IT blurs the lines between work and personal life, raising issues of work-life
balance and digital boundaries.
• Health Risks:
o Repetitive Strain Injury (RSI): Caused by repetitive computer tasks.
o Computer Vision Syndrome (CVS): Eye strain from prolonged screen use.
o Cognitive Decline: Overreliance on technology may negatively impact critical
thinking and memory.

 Chapter 5

IT Infrastructure and Its Evolution

• Defining IT Infrastructure:
IT infrastructure includes the hardware, software, networking, and data storage elements
that support an organization's operations and IT functions.
• Evolution of IT Infrastructure:
1. Mainframe Era (1950s–1970s): Centralized computing using large mainframes.
2. PC Era (1980s): Personal computers introduced for individual productivity.
3. Client/Server Era (1990s): Decentralized computing with networked systems.
4. Enterprise Computing Era (2000s): Integrated systems for company-wide
computing.
5. Cloud and Mobile Era (2010s–Present): Distributed computing via the cloud and
mobile devices.
• Technology Drivers of Infrastructure Evolution:
o Moore’s Law: Computing power doubles every 18-24 months.
o Law of Mass Digital Storage: Cost of storing data decreases over time.
o Metcalfe’s Law: The value of a network increases as more users join.
o Declining Communication Costs: Enables global connectivity and access to IT
resources.
 o Technology Standards: Compatibility and integration improve through
standardized systems (e.g., Ethernet, Internet).

Components of IT Infrastructure

• Computer Hardware Platforms: Servers, workstations, and personal devices like

laptops and smartphones.
• Operating System Platforms: Windows, Linux, UNIX, macOS, Android, and iOS,
managing hardware and software resources.
• Enterprise Software Applications: ERP, CRM, SCM systems that integrate
organizational functions (e.g., SAP, Oracle).
• Data Management and Storage: Databases, data warehouses, and cloud storage
solutions for managing vast amounts of information.
• Networking/Telecommunications Platforms: LANs, WANs, and telecommunications
systems supporting data transfer and connectivity.
• Internet Platforms: Web servers, browsers, and internet services that facilitate online
operations.
• Consulting and System Integration Services: Third-party services that assist in
implementing and managing IT infrastructure.

Current Trends in Computer Hardware Platforms

• The Mobile Digital Platform: Increased reliance on smartphones and tablets for
business operations and communication.
• Consumerization of IT and BYOD (Bring Your Own Device): Employees using
personal devices in the workplace, impacting security and infrastructure management.
• Quantum Computing: Experimental technology that uses quantum mechanics to solve
complex problems faster than classical computers.
• Virtualization: Allows multiple virtual machines to run on a single physical server,
improving efficiency.
• Cloud Computing: Delivers computing services (storage, applications, etc.) over the
internet, reducing the need for physical hardware.
• Edge Computing: Processes data closer to the source (IoT devices) to reduce latency and
improve real-time decision-making.
• Green Computing: Efforts to reduce the environmental impact of computing, including
energy-efficient servers and data centers.
• High-Performance and Power-Saving Processors: Processors that provide faster
performance while consuming less power, such as ARM processors.

Current Computer Software Platforms and Trends

 • Linux and Open Source Software: Free, open-source platforms like Linux and
applications available to the public, driving innovation and reducing costs.
• Software for the Web:
o Java: Cross-platform programming language.
o JavaScript: Web scripting for interactive features.
o HTML5: Standard for web content, supporting multimedia and mobile
responsiveness.
• Web Services and Service-Oriented Architecture (SOA): Modular web services that
can be combined to create new business processes and systems.
• Software Outsourcing and Cloud Services: Shifting software development and IT
services to third-party providers, including cloud-based solutions like SaaS (Software as a
Service).

Challenges of Managing IT Infrastructure and Solutions

• Dealing with Platform and Infrastructure Change:

o Rapid technology evolution requires continuous upgrades and changes in strategy.
o Managing legacy systems while integrating new technologies.
• Management and Governance:
o Ensuring that IT infrastructure aligns with business goals and meets regulatory
requirements.
o Establishing clear policies for security, data privacy, and resource usage.
o Implementing governance frameworks like ITIL (Information Technology
Infrastructure Library) or COBIT (Control Objectives for Information and Related
Technologies) for managing IT operations effectively.