Principles of Information Systems - Chapter 1: Information Systems: People, Technology, Processes, and Structure

A set of vocabulary-style flashcards covering key concepts, terms, and definitions from Chapter 1: Information Systems: People, Technology, Processes, and Structure.

Information System

Interrelated components working together to collect, process, store, and disseminate information, with a feedback mechanism to monitor and control its operation.

Leavitt’s Diamond

A model for introducing new systems that considers four components: People, Technology infrastructure, Processes, and Structure to lower stress and increase success.

People (in Leavitt’s Diamond / IS)

The human element; end users who envision, design, build, support, maintain, and use information systems.

End User

Employees who work directly with information systems to achieve results.

Technology Infrastructure

Hardware, software, data centers/databases, networks/servers, facilities, and services that form the foundation of an IS.

Processes

A structured set of related activities that takes input, adds value, and creates an output.

Procedure

Steps to follow to achieve a specific end result; should describe who does what and when, and what to do if something goes wrong.

Structure

An organization’s framework of relationships, roles, responsibilities, and lines of authority; changes with new IS.

Five Component Model

An information system is made up of Hardware, Software, Data, People, and Procedures/Processes working together.

Hardware

Tangible technology components (equipment and devices) that can be touched.

Software

Programs and applications that run on hardware (intangible).

Data

Information about customers, products, inventories, orders, vendors, and employees—the central component of an IS.

Information Technology (IT)

The technical elements of hardware, software, and networks, and how data is structured, organized, and stored.

Information Systems (IS)

The application of IT components in business to solve problems, create value, and support tasks.

Modern View of IS

IS are integral to an organization’s value chain, often treated as part of the process itself.

Value Chain

Series of activities that transform inputs into outputs, adding value and creating products/services.

Primary Processes (Value Chain)

Inbound logistics, operations, outbound logistics, marketing and sales, and service.

Support Processes (Value Chain)

Tech infrastructure, human resources, accounting/finance, and procurement.

Supply Chain

The value chain for getting the right product to the right customer, right quantity, at the right time and cost; includes primary and support processes.

Value Chain vs Supply Chain

Value chain focuses on transforming inputs into outputs; supply chain emphasizes getting the product to the customer efficiently.

Competitive Advantage

Gaining an edge over rivals that leads to more sales or higher profit margins.

Cost Leadership

Competitive advantage by providing similar value at a lower cost.

Differentiation

Competitive advantage by offering a product perceived as better, allowing higher pricing.

Focus

Competitive advantage by understanding and serving a target market better than competitors.

Manager’s Role in IS

Identify and use IS to gain competitive advantage; ensure IS evolves with customer needs and market conditions.

Knowledge Check: Leavitt’s Diamond

A model used to introduce new systems by considering People, Technology, Processes, and Structure.

Information Systems Careers (Overview)

IS professionals at the intersection of business and technology; high demand; 4.7 million computer-related occupations in 2021; projected growth through 2031.

CIO (Chief Information Officer)

Executive responsible for IS strategy, ROI, compliance, and leadership of the IS department; requires strong technical, business, and interpersonal skills.

Software Developer

Creates, tests, debugs, upgrades software; collaborates with management and clients; skilled in multiple programming languages.

Information Systems Security Analyst

Plans, designs, implements, and maintains security measures; trains in security; develops breach action plans.

Systems Analyst

Bridges business and IS by defining scope, requirements, and coordinating hardware/software implementation.

Web Developer

Designs and maintains websites; monitors performance and capacity.

Data Science Analyst

Assembles, organizes, and analyzes data; can manipulate data and derive actionable insights.

Business Analyst

Improves competitiveness by solving business challenges; analyzes information across functions and may specialize by area.

Strategic Planning

Process to identify initiatives to achieve organizational objectives, recognizing that the environment is in flux.

Benefits of Strategic Planning

Provides direction, focuses resources, enables proactivity, and improves communication.

Impact of Strategic Planning

Shapes direction for all business units; considers revenue, risk, resources, and competitive reaction.