Table Of Content

Information Systems for Business and Beyond David T. Bourgeois, Ph.D. Saylor URL: http://www.saylor.org/courses/bus206 Attributed to: David T. Bourgeois, Ph.D. saylor.org Contents Introduction 1 Part 1: What Is an Information System? Chapter 1: What Is an Information System? David T. Bourgeois 5 Chapter 2: Hardware David T. Bourgeois 14 Chapter 3: Software David T. Bourgeois 26 Chapter 4: Data and Databases David T. Bourgeois 39 Chapter 5: Networking and Communication David T. Bourgeois 52 Chapter 6: Information Systems Security David T. Bourgeois 64 Part 2: Information Systems for Strategic Advantage Chapter 7: Does IT Matter? David T. Bourgeois 76 Chapter 8: Business Processes David T. Bourgeois 85 Chapter 9: The People in Information Systems David T. Bourgeois 94 Chapter 10: Information Systems Development David T. Bourgeois 104 Part 3: Information Systems Beyond the Organization Chapter 11: Globalization and the Digital Divide David T. Bourgeois 120 Chapter 12: The Ethical and Legal Implications of Information Systems David T. Bourgeois 129 Chapter 13: Future Trends in Information Systems David T. Bourgeois 144 Answers to Study Questions 150 Bibliography 162 SSaayylloorr UURRLL:: hhttttpp::////wwwwww..ssaayylloorr..oorrgg//ccoouurrsseess//bbuuss220066 iv AAttttrriibbuutteedd ttoo:: DDaavviidd TT.. BBoouurrggeeooiiss,, PPhh..DD.. saylor.org Introduction Welcome to Information Systems for Business and Beyond. In this book, you will be introduced to the concept of information systems, their use in business, and the larger impact they are having on our world. Audience This book is written as an introductory text, meant for those with little or no experience with computers or information systems. While sometimes the descriptions can get a little bit technical, every effort has been made to convey the information essential to understanding a topic while not getting bogged down in detailed terminology or esoteric discussions. Chapter Outline The text is organized around thirteen chapters divided into three major parts, as follows: • Part 1: What Is an Information System? Chapter 1: What Is an Information System? – This chapter provides an overview of information systems, including the history of how we got where we are today. Chapter 2: Hardware – We discuss information systems hardware and how it works. You will look at different computer parts and learn how they interact. Chapter 3: Software – Without software, hardware is useless. In this chapter, we discuss software and the role it plays in an organization. Chapter 4: Data and Databases – This chapter explores how organizations use information systems to turn data into information that can then be used for competitive advantage. Special attention is paid to the role of databases. Chapter 5: Networking and Communication – Today’s computers are expected to also be communication devices. In this chapter we review the history of networking, how the Internet works, and the use of networks in organizations today. Chapter 6: Information Systems Security – We discuss the information security triad of confidentiality, integrity, and availability. We will review different security technologies, and the chapter concludes with a primer on personal information security. • Part 2: Information Systems for Strategic Advantage Chapter 7: Does IT Matter? – This chapter examines the impact that information systems have on an organization. Can IT give a company a competitive advantage? We will SSaayylloorr UURRLL:: hhttttpp::////wwwwww..ssaayylloorr..oorrgg//ccoouurrsseess//bbuuss220066 1 AAttttrriibbuutteedd ttoo:: DDaavviidd TT.. BBoouurrggeeooiiss,, PPhh..DD.. saylor.org 2 Information Systems for Business and Beyond discuss seminal works by Brynjolfsson, Carr, and Porter as they relate to IT and competitive advantage. Chapter 8: Business Processes – Business processes are the essence of what a business does, and information systems play an important role in making them work. This chapter will discuss business process management, business process reengineering, and ERP systems. Chapter 9: The People in Information Systems – This chapter will provide an overview of the different types of people involved in information systems. This includes people who create information systems, those who operate and administer information systems, those who manage information systems, and those who use information systems. Chapter 10: Information Systems Development – How are information systems created? This chapter will review the concept of programming, look at different methods of software development, review website and mobile application development, discuss end- user computing, and look at the “build vs. buy” decision that many companies face. • Part 3: Information Systems beyond the Organization Chapter 11: Globalization and the Digital Divide – The rapid rise of the Internet has made it easier than ever to do business worldwide. This chapter will look at the impact that the Internet is having on the globalization of business and the issues that firms must face because of it. It will also cover the concept of the digital divide and some of the steps being taken to alleviate it. Chapter 12: The Ethical and Legal Implications of Information Systems –The rapid changes in information and communication technology in the past few decades have brought a broad array of new capabilities and powers to governments, organizations, and individuals alike. This chapter will discuss the effects that these new capabilities have had and the legal and regulatory changes that have been put in place in response. Chapter 13: Future Trends in Information Systems –This final chapter will present an overview of some of the new technologies that are on the horizon. From wearable technology to 3-D printing, this chapter will provide a look forward to what the next few years will bring. For the Student Each chapter in this text begins with a list of the relevant learning objectives and ends with a chapter summary. Following the summary is a list of study questions that highlight key topics in the chapter. In ordertogetthebestlearningexperience,youwouldbewisetobeginbyreadingboththelearningobjectives and the summary and then reviewing the questions at the end of the chapter. Saylor URL: http://www.saylor.org/courses/bus206 Attributed to: David T. Bourgeois, Ph.D. saylor.org Introduction 3 For the Instructor Learningobjectivescanbefoundatthebeginningofeachchapter.Ofcourse,allchaptersarerecommended for use in an introductory information systems course. However, for courses on a shorter calendar or courses using additional textbooks, a review of the learning objectives will help determine which chapters can be omitted. At the end of each chapter, there is a set of study questions and exercises (except for chapter 1, which only offers study questions). The study questions can be assigned to help focus students’ reading on the learning objectives. The exercises are meant to be a more in-depth, experiential way for students to learn chaptertopics.Itisrecommendedthatyoureviewanyexercisebeforeassigningit,addinganydetailneeded (such as length, due date) to complete the assignment. Saylor URL: http://www.saylor.org/courses/bus206 Attributed to: David T. Bourgeois, Ph.D. saylor.org Part 1: What Is an Information System? Saylor URL: http://www.saylor.org/courses/bus206 Attributed to: David T. Bourgeois, Ph.D. saylor.org Chapter 1: What Is an Information System? David T. Bourgeois Learning Objectives Upon successful completion of this chapter, you will be able to: • define what an information system is by identifying its major components; • describe the basic history of information systems; and • describe the basic argument behind the article “Does IT Matter?” by Nicholas Carr. Introduction If you are reading this, you are most likely taking a course in information systems, but do you even know what the course is going to cover? When you tell your friends or your family that you are taking a course in information systems, can you explain what it is about? For the past several years, I have taught an Introduction to Information Systems course. The first day of class I ask my students to tell me what they think an information system is. I generally get answers such as “computers,” “databases,” or “Excel.” Thesearegoodanswers,butdefinitely incomplete ones.Thestudyofinformationsystemsgoesfarbeyond understanding some technologies. Let’s begin our study by defining information systems. Defining Information Systems Almost all programs in business require students to take a course in something called information systems. Butwhatexactlydoesthattermmean?Let’stakealookatsomeofthemorepopulardefinitions,firstfrom Wikipedia and then from a couple of textbooks: • “Information systems (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.”1 • “Information systems are combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organizational settings.”2 • “Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and viualization in an organization.”3 1.Wikipedia entry on "Information Systems," as displayed on August 19, 2012.Wikipedia: The Free Encyclopedia. San Francisco: Wikimedia Foundation.http://en.wikipedia.org/wiki/Information_systems_(discipline). 2.Excerpted fromInformation Systems Today - Managing in the Digital World, fourth edition. Prentice-Hall, 2010. 3.Excerpted fromManagement Information Systems, twelfth edition, Prentice-Hall, 2012. Saylor URL: http://www.saylor.org/courses/bus206 5 Attributed to: David T. Bourgeois, Ph.D. saylor.org 6 Information Systems for Business and Beyond As you can see, these definitions focus on two different ways of describing information systems: the components that make up an information system and the role that those components play in an organization. Let’s take a look at each of these. The Components of Information Systems As I stated earlier, I spend the first day of my information systems class discussing exactly what the term means. Many students understand that an information system has something to do with databases or spreadsheets. Others mention computers and e-commerce. And they are all right, at least in part: information systems are made up of different components that work together to provide value to an organization. ThefirstwayIdescribeinformationsystemstostudentsistotellthemthattheyaremadeupoffivecomponents:hardware, software,data,people,andprocess.Thefirstthree,fittingunderthecategorytechnology,aregenerallywhatmoststudentsthinkof when asked to define information systems. But the last two, people and process, are really what separate the idea of information systems from more technical fields, such as computer science. In order to fully understand information systems, students must understand how all of these components work together to bring value to an organization. Technology Technology can be thought of as the application of scientific knowledge for practical purposes. From the inventionofthewheeltotheharnessingofelectricityforartificiallighting,technologyisapartofourlives in so many ways that we tend to take it for granted. As discussed before, the first three components of information systems – hardware, software, and data –all fall under the category of technology. Each of thesewillgetitsownchapterandamuchlengthierdiscussion,butwewilltakeamomentheretointroduce them so we can get a full understanding of what an information system is. Hardware Informationsystemshardwareisthepartofaninformationsystemyoucantouch–thephysicalcomponents of the technology. Computers, keyboards, disk drives, iPads, and flash drives are all examples of information systems hardware. We will spend some time going over these components and how they all work together in chapter 2. Software Software is a set of instructions that tells the hardware what to do. Software is not tangible – it cannot be touched. When programmers create software programs, what they are really doing is simply typing out lists of instructions that tell the hardware what to do. There are several categories of software, with the two main categoriesbeingoperating-systemsoftware,whichmakesthehardwareusable,and applicationsoftware,whichdoessomethinguseful.Examplesofoperatingsystems include Microsoft Windows on a personal computer and Google’s Android on a mobile phone. Examples of application software are Microsoft Excel and Angry Birds. Software will be explored more thoroughly in chapter 3. Saylor URL: http://www.saylor.org/courses/bus206 Attributed to: David T. Bourgeois, Ph.D. saylor.org