Core Information Systems and Business Technology Principles

Information Systems Fundamentals

Information Systems (IS): A set of interrelated components that collect, retrieve, process, store, and distribute information to support decision-making in an organization.

The 5 Components of IS

• Hardware
• Software
• Data
• Procedures
• People

Emerging Digital Firms

Digital firms integrate technology into all aspects of operations (e.g., Zipcar, Amazon delivery, Instacart). These models proved essential during COVID-19 and labor shortages.

5 IT Megatrends

• Mobile
• Social Media
• Internet of Things (IoT)
• Cloud Computing
• Big Data

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

Dimensions of IS

Organizations, technology, and management. Complementary assets are required to enhance core IT investments (e.g., skilled analysts for analytics software).

Cloud Computing

Cloud Computing: A model where firms and individuals obtain computing resources over the internet. It features elastic leasing of pooled resources with low initial costs.

Cloud Service Models

• SaaS (Software as a Service): For employees/customers (e.g., Google Workspace, Salesforce).
• PaaS (Platform as a Service): For developers/testers (e.g., Heroku, Google App Engine).
• IaaS (Infrastructure as a Service): For network architects/sysadmins (e.g., AWS EC2, Rackspace).

Database Management

A database is a set of tables with relationships designed to track organizational data. Key benefits include flexibility, scalability, and performance.

Database Structure

Includes entities, attributes, relationships, and cardinalities (1:1, 1:M, M:N). An ERD (Entity Relationship Diagram) serves as a visual database model.

Enterprise Systems

• Financial Management System: Handles organizational monetary transactions.
• Human Capital Management (HCM): Includes HRM, workforce management, and talent management.
• Supply Chain Management (SCM): Optimizes the flow of products (Plan-Source-Make-Deliver-Return).
• Customer Relationship Management (CRM): Strategies to build and maintain customer relationships.
• ERP (Enterprise Resource Planning): Software that integrates core business processes like finance, HR, and manufacturing.

System Development

The SDLC (System Development Life Cycle) is the traditional process for creating information systems:

1. System definition
2. Requirements analysis
3. Component design
4. Implementation
5. System maintenance

Artificial Intelligence

• Machine Learning: Systems trained on data to recognize patterns and make predictions.
• NLP: Understanding and speaking natural language (e.g., Google Translate).
• Computer Vision: Digital systems that map and recognize images in real-time.
• Intelligent Agents: Software that performs repetitive tasks without human intervention.
• Expert Systems: Rule-based systems that provide advice or solve problems.