DIMENSIONS OF INFORMATION SYSTEMS PDF

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Current role of information systems in business, the challenges and opportunities of globalization, the emerging digital enterprise, the strategic business objectives of information systems, operational excellence, new products, services and models business and perspectives on information systems....

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DIMENSIONS OF INFORMATION SYSTEMS

To fully understand information systems, you need to understand the broader dimensions of your organization, management, and information technology in your system, along with your power to provide solutions to challenges and problems in the enterprise environment. We refer to this broader understanding of information systems, which encompasses an understanding of the levels of management and organization of systems, as well as their technical dimensions, such as literacy in information systems. In contrast, computational literacy focuses on knowledge of information technology. The field of administrative information systems (MIS) seeks to obtain this broader literacy in information systems. MIS systems deal with behavioral aspects, as well as the technical aspects surrounding the development, use and impact of information systems used by company managers and employees. Let's examine each dimension of information systems: organizations, information management and technology. Organizations Information systems are an integral part of organizations. Certainly, for some companies, such as credit reporting companies, there would be no business without an information system. The key elements of an organization are its people, its structure, its business processes, its policies and its culture. Organizations have a structure composed of different levels and areas. Its structures reveal a clear division of labor. Authority and responsibility in a company are organized as a pyramid hierarchy or structure. The upper levels of this hierarchy consist of managerial, professional and technical employees, while the base levels of the pyramid consist of operational personnel. High-level management makes powerful strategic decisions about products and services, as well as ensures the company's financial performance. Mid-level management carries out high-level management plans and programs and operational management is responsible for overseeing the day-to-day activities of the company. Knowledge workers, such as engineers, scientists, or architects, design products or services and create new knowledge for the company, while data workers (secretaries or administrative assistants) help with programming and communications at all levels of the company. Production or service workers are the ones who produce the product and offer the service. Experts are employed and trained for different business functions. The main business functions, or specialized tasks performed by commercial organizations, consist of sales and marketing, manufacturing and production, finance and accounting, and human resources. An organization coordinates work through its

hierarchy and business processes, which are logically related tasks and behaviors to get the job done. Developing a new product, fulfilling an order, and hiring an employee are examples of business processes. The business processes of most organizations include formal rules for performing tasks, which have been developed over a long period of time. These rules guide employees through a variety of procedures, from writing an invoice to responding to customer complaints. Some of these business processes are in writing, but others are informal work practices (such as the requirement to return phone calls from co-workers or customers) that have not been documented. Information systems automate many business processes. For example, how a customer receives credit or an invoice is frequently determined by an information system that incorporates a set of formal business processes. Each organization has a unique culture, or fundamental set of assumptions, values, and ways of doing things, that most of its members have accepted. You may notice organizational culture in action when you look at your college or school. Some basic assumptions of college life are that teachers know more than students, the reason students attend school is to learn, and that classes follow a regular itinerary. It is always possible to find parts of an organization's culture integrated into its information systems. For example, UPS's interest in putting customer service first is an aspect of its organizational culture that can be found in the company's package tracking systems, which we'll describe later in this section. Different levels and areas of an organization create different interests and views. These opinions often conflict over how the company should operate and how resources and rewards should be distributed. Conflict is the basis of organizational policy. Information systems arise from this cauldron from different perspectives, conflicts, commitments and agreements that are a natural part of all organizations. Administration The work of the administration is to make sense of the different situations facing organizations, make decisions and formulate action plans to solve organizational problems. Managers perceive business challenges in the environment; establish an organizational strategy to respond to these challenges and allocate financial and human resources to coordinate work and succeed. In the course of this process, they must exercise responsible leadership. But a manager needs to do more than manage what already exists, create new products and services, and even recreate the organization from time to time. A good part of the responsibility of management is creative work driven by new knowledge and information. Information technology can play an important role in

helping managers design and deliver new products and services, and redirect and redesign their organizations. Information technology Information technology is one of several tools that managers use to cope with change. Computer hardware is the physical computer used for input, processing, and output activities in an information system. It consists of the following: computers of various sizes and shapes (including pocket mobile devices); various input, output and storage devices; and telecommunications devices that connect computers to each other. Computer software consists of detailed, pre-programmed instructions that control and coordinate computer hardware components in an information system. Data storage technology consists of software that governs the organization of data on physical storage media. Networking and telecommunications technology, consisting of physical and software devices, connects multiple pieces of hardware and transfers data from one physical location to another. Computers and communications equipment can be networked to share voice, data, images, sound, and video. A network links to two or more computers to share data or resources, such as a printer. The world's largest and most widely used network is the Internet: a "global network of networks" that uses universal standards to connect millions of different networks with more than 1.4 billion users, in more than 230 countries around the world. The Internet created a new "universal" technology platform, where new products, services, strategies and business models can be created. This same technology platform has internal uses, as it provides connectivity to link different systems and networks within a company. Internal corporate networks based on Internet technology are called intranets. Private intranets that extend to authorized users outside the organization are called extranet; companies use these networks to coordinate their activities with other companies to make purchases, collaborate on design, and other types of internal work for the organization. For most companies today, the use of Internet technology is both a business need and a competitive advantage. Word Wide Web is an Internet-provided service that uses universally accepted standards to store, retrieve, and display information in a page layout on the Internet. Web pages contain graphics, animations, sounds, and video, and are linked to other web pages. When you click highlighted words or buttons on a web page, you can link to related pages to find additional information and links or links to other locations on the web. The Web can serve as the basis for new types of information systems, such as the UPS Web-based packet tracking system, which we will describe in the next interactive session.

All of these technologies, along with the people needed to operate and manage them, represent resources that can be shared across the organization and constitute the company's information technology (IT) infrastructure. It infrastructure provides the foundation, or platform, on which a company can build its specific information systems. Each organization must carefully design and manage its IT infrastructure, so that it has the set of technology services it needs for the work it wants to do with information systems. The Interactive Technology Session describes some of the common technologies used in today's computer-based information systems. UPS invests heavily in information systems technology to increase the efficiency of your business and make them more customer-oriented. It uses a variety of information technologies, such as barcode identification systems, wireless networks, large mainframe computers, laptops, the Internet, and many different pieces of software to track packages, calculate quotas, maintain customer accounts, and manage logistics. Now let's identify the organizational, management, and technology elements in the UPS package tracking system we just described. The organization item supports the package tracking system in the UPS sales and production functions (the main UPS product is a service: package delivery). Specifies the procedures required to identify packages with sender and recipient information, inventory, track the final route of packages, and provide package status reports for UPS customers and customer service representatives. The system must also provide information to meet the needs of managers and workers. UPS drivers should be trained in package collection and delivery procedures, as well as how to use the package tracking system so they can work effectively, efficiently, and effectively. Customers may require some training to use UPS's internal package tracking software or website. The management of the company is responsible for monitoring service levels and costs, as well as promoting the company's strategy of combining low cost and superior service. Management decided to use IT systems to increase the ease of shipping a package through UPS and verify its delivery status, reducing package costs and increasing sales revenue. Support technology for this system consists of pocket computers, barcode identifiers, wired and wireless communications networks, desktop computers, UPS data center, package delivery data software technology, UPS internal package tracking software, and word Wide Web access software. The result is an information systems solution for the business challenge of providing a high level of service at low prices versus increased competition. IT'S NOT JUST TECHNOLOGY: A BUSINESS PERSPECTIVE ON INFORMATION SYSTEMS

Managers and companies invest in technology and information systems because they offer real economic value to the company. The decision to create or maintain an information system means that the yields on this investment will be greater than other investments in buildings, machines or other assets. These higher yields will be expressed as productivity gains, revenue increases (which will increase the company's value in the stock market) or perhaps as a superior long-term strategic positioning of the company in certain markets (which will produce higher revenues in the future). We can see that, from a business perspective, an information system is an important tool that can generate value for the company. Information systems enable the company to increase revenue or reduce costs by providing information that helps managers make better decisions or improves the execution of business processes. For example, the information system for analyzing supermarket box data can increase a company's profitability by helping managers make better decisions about the products that retail supermarkets should store and promote. Each company has a value chain of information, where raw information is systematically acquired and then transformed through several stages that add value to that information. The value of an information system for a company, as well as the decision to invest in any new system, is largely determined by the degree to which it helps to obtain better management decisions, more efficient business processes and greater profitability of the company. While there are other reasons why systems are created, their primary purpose is to contribute to corporate value. From a business perspective, information systems are part of a series of activities that add value to acquire, transform, and distribute the information managers can use to improve decision-making, organizational performance, and ultimately increase business profitability. The business perspective promotes a focus on the organizational and managerial nature of information systems. An information system represents an organizational and management solution, based on information technology, for an environmentally imposed challenge or problem. These systems offer a solution that leverages new interactive digital technology and internet-created opportunities. They opened new channels to sell tickets and interact with customers, which improved business performance. COMPLEMENTARY ASSETS: ORGANIZATIONAL CAPITAL AND THE RIGHT BUSINESS MODEL If we are aware of the organizational and managerial dimensions of information systems, we can understand why some companies get better results from their information systems than others. Performance studies of information technology

investments show that there is considerable variation in the yields that companies receive. Some of them invest and receive a lot (quadrant 2); others invest an equal amount and receive small yields (quadrant 4). In addition, other companies invest little and receive a lot (Quadrant 1), while others invest and receive little (Quadrant 3). This suggests that investing in information technology alone does not guarantee good yields. What does this variation between companies explain? The answer is in the concept of complementary assets. Investments in information technology alone cannot increase the effectiveness of organizations and managers unless they are based on values, structures, and behavior patterns in the organization, as well as other complementary assets. Commercial companies need to change the way they do their business so that they can actually reap the benefits of new information technologies. Some companies do not adopt the right business model that adapts to new technologies or seeks to preserve an old business model doomed to failure by new technologies. For example, record companies refused to change their old business model based on traditional music stores for distribution, rather than adopting a new online distribution model. As a result, online legal music sales are controlled by a technology company called Apple Computer, rather than record companies. Complementary assets are those necessary to obtain value from a primary investment (Thirteen, 1988). For example, harnessing the value of automobiles requires significant complementary investments in roads, roads, gas stations, repair facilities, and a legal regulatory structure to set standards and control drivers. Research on the purchase of business information technology indicates that companies that support this type of expenditure with that of complementary assets, such as new business models and processes, management behavior, organizational culture or training, receive higher yields, while companies that do not make these complementary investments receive fewer (or none) yields in their technology acquisitions (Brynjolfsson , 2003; Brynjolfsson and Hit, 2000; Daven and Kauffman, 2000; Laudon, 1974). These investments in organization and administration are also known as organizational and managerial capital. The main complementary investments businesses must make to take advantage of the value of their IT spending. Some of them involve tangible assets, such as buildings, machinery, and tools. However, the value of these IT purchases depends heavily on complementary investments in management and organization. Key complementary organizational investments are a supportive business culture that appreciates efficiency, efficiency and efficiency, an appropriate business model, efficient business processes, decentralization of authority, highly distributed decision rights, and a strong information systems development (SI) team.

Important complementary management assets are strong management support at the highest level of change, incentive systems that monitor and reward individual innovation, an emphasis on teamwork and collaboration, training programs, and a management culture that appreciates flexibility and knowledge. Important social investments (not those made by the company, but society at large, other companies, governments and other key market participants) are the culture of Internet and Internet support, education systems, network and computer standards, regulations and laws, and the presence of technology and service companies. CONTEMPORARY METHODOLOGIES FOR INFORMATION SYSTEMS The study of information systems is a multidisciplinary field. There is no dominant theory or perspective. Problems and solutions in the study of information systems. In general, the field can be divided into technical and behavioral methodologies. Information systems are sociotechnical systems. Although they are composed of machines, devices and "hard" physical technology, they require considerable organizational and intellectual social investments to function properly. TECHNICAL METHODOLOGY The technical methodology for information systems emphasizes mathematicalbased models for the study of information systems, as well as the physical technology and formal capabilities of information systems. The disciplines that contribute to technical methodology are computer science, management science and operations research. Computing is responsible for the automatic processing of information and computer methods, as well as efficient data storage and access methods. Management science emphasizes the development of models for decision-making and management practices. Operations research focuses on mathematical techniques to optimize selected organizational parameters, such as transportation, inventory control, and transaction costs. BEHAVIORAL METHODOLOGY An important part of the field of information systems is responsible for the behavioral aspects that arise in the long-term development and maintenance of information systems. Aspects such as strategic business integration, design, implementation, utilization and management cannot be usefully explored with the models used in the technical methodology. There are other behavioral disciplines that contribute to important concepts and methods. For example, sociologists study information systems with a focus on how groups and organizations shape system development and how they affect individuals, groups, and organizations. Psychologists study them with an interest in how

decision makers perceive and use formal information, and economists understand the production of digital goods, the dynamics of digital markets, and how new information systems change structures and control costs within the company. Behavioral methodology does not ignore technology. To be sure, information system technology is often the stimulus for a behavioral problem or problem. But the approach to this methodology is usually not in technical solutions. Instead, it focuses on changes in attitudes, management and organization policy, and behavior. SOCIOTECHNICAL SYSTEMS Companies that make investments and seek to gain value from technology; managers and employees looking to achieve business value (and other goals); and the legal, social and cultural context (the environment of the company). Together, these actors produce what we know as management information systems. The Management Information Systems (MIS) study emerged to focu...