Information Systems & Business Intelligence – Exam Quick Review

Information Systems Basics

  • IS = interrelated components that collect, process, store & disseminate information for decision-making, coordination, control, analysis, visualisation.
  • Data ➜ processed into information (e.g., checkout data ➜ total detergent sales).

Functions of an IS

  • Input – capture raw data.
  • Processing – convert to meaningful form.
  • Output – deliver information to users/activities.
  • Feedback – output returned to refine input.

Environmental Actors

  • Competitors, Stockholders, Customers, Suppliers, Regulatory Agencies: each shapes IS requirements (innovation, efficiency, privacy, compliance, etc.).

Globalisation & Digital Firm

  • Internet “flattens” world; firms need global reach & supply-chain optimisation.
  • Digital firm: core processes & relationships digitally enabled (time-shift 24/7, space-shift global, real-time response, higher agility & profit).

Business Objectives Achieved with IS

  • Operational excellence
  • New products/services & business models
  • Customer & supplier intimacy
  • Improved decision making
  • Competitive advantage
  • Survival (legal/industry mandates)

IT Infrastructure Components

  1. Computer hardware platforms (PCs, servers, I/O, storage)
  2. Operating system platforms (Windows, macOS, Linux, iOS, Android)
  3. Enterprise software platforms (ERP, CRM, SCM)
  4. Data management platforms (DBMS: MySQL, SQL Server, Oracle)
  5. Networking & Internet platforms (LAN/WAN, TCP/IP, web servers)
  • Technology services (consulting, system integration)

Evolution & Hardware Trends

  • Mainframe/Minicomputer (1959– )
  • Personal Computer (1981– )
  • Client/Server (1983– )
  • Enterprise Computing (1992– )
  • Cloud & Mobile (2000– )
    Emerging: mobile platforms, BYOD, IoT, grid computing, virtualisation.

Porter’s Five Forces & IS Impact

  1. Traditional competitors – IS lowers cost, raises quality.
  2. New entrants – digital tech lowers barriers.
  3. Substitutes – IS enables differentiated offerings.
  4. Customer power – information transparency shifts power; IS supports loyalty & customisation.
  5. Supplier power – e-procurement & SCM increase bargaining strength.

Business Intelligence (BI) Overview

  • BI = processes & technologies turning data into insights for strategic, tactical, operational decisions.
  • Structured data ≈ 20%20\% of enterprise data; unstructured ≈ 80%80\% (images, audio, email, etc.).

BI Tools

  • Spreadsheets (Excel, Sheets)
  • Reporting software
  • Data visualisation (Tableau, Power BI)
  • Data mining & machine learning
  • OLAP (multidimensional analysis)

Data → Information → Knowledge

  • Data: raw, unprocessed facts.
  • Information: processed data with context (answers who/what/where/when/how).
  • Knowledge: insights & expertise applied to decisions.

BI Process to Actionable Knowledge

  • Collection & integration: consolidate internal/external sources, ensure quality.
  • Transformation & analysis: modelling, statistics, ML to find patterns/outliers.
  • Visualisation & reporting: interactive dashboards, charts for quick insight.
  • Ad-hoc querying: self-service exploration, drill-down.
  • Decision support & forecasting: what-if analysis, predictive models, collaboration.
  • Monitoring & alerting: real-time KPI tracking with automated notifications.