Chapter 1

• Information technology: any computer-based tool that people use to work with information and to support an organization's information and information processing needs
• information system: collects, processes, stores, analyzes, and disseminates information for a specific purpose
• IT is making the world smaller, enabling more and more people to communicate, collaborate, and compete, therefore levelling the competitive playing field
• continuous computing: surrounded my movable information network all the time
• informed user: a person knowledgable about information systems and information technologies
• digital transformation: the business strategy that leverages IT to dramatically improve employee, customer, and business partner relationships; to support continuous improvement in business processes; and to develop new business models
• transaction processing systems: support the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates data
• functional area information system: support a particular functional area within the organization
• interorganizational information systems: support many interorganizational operations. supply chain management
• enterprise resource planning: systems correct a lack of communication among the functional area information systems by tightly integrating the functional area information systems via a common database
• electronic commerce: systems enable organizations to conduct transactions with other organizations electronically
• business intelligence: systems provide computer-based support for complex, nonroutine decisions, primarily for middle managers and knowledge workers
• expert systems: attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain
• potential IT impacts on managers:

  • reduce the number of middle managers
  • real-time or near-time information reduces decision making time
  • increase the likelihood that mangers will have to supervise geographically dispersed employees and teams
• potential IT impacts on nonmanagerial workers:

  • eliminate jobs
  • experience a loss of identity
  • job stress and physical problems
• IT positive societal effects:

  • provide opportunities for people with disabilities
  • provide people with flexibility for work
  • robots take over mundane chores
  • enable healthcare improvements
• IT negative societal effects:

  • cause health problems for individuals
  • place employees on constant call
  • potentially misinform patients about their health problems
• application: a computer program designed to support a specific task or business process
• computer-based information system: an information system that uses computer technology to perform some or all of its intended tasks
• dashboards: a special form of IS that supports all managers of the organization by providing rapid access to timely information and direct access to structured information in the form of reports
• data items: an elementary description of things, events, activities, and transactions that are recorded, classified, and stored but are not organized to convey any specific meaning
• database: a collection of related files or tables containing data
• hardware: processor, monitor, keyboard, printer; these devices accept, process, and display data and information
• information technology components:

  • hardware
  • software
  • databases
  • networks
• information technology infrastructure = IT componenets + IT services
• knowledge workers: employees who are experts in a particular subject area and who create information and knowledge
• network: a connecting system that enables multiple computer to share resources
• supply chain: the flow of materials, information, money, and services from suppliers of raw materials through factories and warehouses to the end customers