BUAN 132 - Chapter 1: Information Systems in Global Business Today

Information System

A set of interrelated components that collect, process, store, and distribute information to support decision making, coordination, control, analysis, and visualization in an organization

Information Technology (IT)

All the hardware and software technologies a firm needs to achieve its business objectives. Includes computers, storage devices, networks, and software.

Digital Firm

An organization where nearly all significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. Core business processes are accomplished through digital networks.

A logically related set of activities that defines how specific business tasks are performed. Represents the way work is organized, coordinated, and focused to produce a valuable product or service.

Data

Streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use.

Information

Data that has been shaped into a form that is meaningful and useful for decision making

Survival

Information systems that are absolutely necessary for a firm to stay in business and remain competitive

Input

The activity of capturing or collecting raw data from within the organization or its external environment

Processing

The activity of converting, manipulating, and analyzing raw input into meaningful form

Output

The activity of transferring processed information to people or activities that will use it

Feedback

Output that is returned to appropriate members of the organization to help them evaluate or correct the input stage

Hardware

The physical equipment used for input, processing, and output activities in an information system

Software

Detailed, preprogrammed instructions that control and coordinate computer hardware components

Data Management Technology

Software that organizes, manages, and processes business data related to inventory, customers, and vendors

Networking and Telecommunications

Physical devices and software that link various computer hardware components and transfer data

Internet

A global network of networks using universal standards to connect millions of networks worldwide

World Wide Web

A service provided by the Internet using universally accepted standards for storing, retrieving, formatting, and displaying information

Intranets

Internal corporate networks based on Internet technology available only to authorized organizational users

Extranets

Private intranets extended to authorized users outside the organization, such as suppliers or customers

Network Economics

The idea that the value of a product or service increases as the number of network participants expands

Business Model

An abstraction of how a company will produce, deliver, and sell a product or service to create wealth

IT Infrastructure

The shared technology resources that provide the platform for the firm's information systems applications

Complementary Assets

Assets required to derive value from a primary investment, such as organizational capital and management practices

Organizational Capital

The investment a firm makes in organizational structure, culture, and business processes

Enterprise Applications

Systems that span functional areas, focus on executing business processes across the firm, and include all management levels

Interorganizational Systems

Information systems that automate the flow of information across organizational boundaries

E-commerce

The process of buying and selling goods and services electronically involving computerized transactions

E-business

The use of digital technology and the Internet to execute major business processes in the enterprise

Collaboration

Working with others to achieve shared and explicit goals using information systems

Social Business

The use of social networking platforms to engage employees, customers, and suppliers

Business Intelligence

Applications and technologies for consolidating, analyzing, and providing access to data to help make better decisions

Knowledge Management

The set of processes to create, store, transfer, and apply knowledge in the organization