An information system is a set of interrelated components that collect or retrieve, process, store, and distribute information to support decision making and control in an organization. Information systems can also be used to analyze problems, visualize complex subjects, and create new products. Show
Information is data, or raw facts, shaped into useful form for humans. Figure 1-3
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Computer literacy focuses primarily on knowledge of information technology. Information systems literacy, the understanding of information systems, includes a behavioral and technical approach to understanding the broader organization, management, and information technology dimension of systems and their power to provide solutions. The field of management information systems (MIS) tries to achieve this broader information systems literacy. Figure 1-5
The key elements of an organization are its people, structure, business processes, politics, and culture. An organization coordinates work through a structured hierarchy and formal standard operating procedures. Managerial, professional, and technical employees form the upper levels of the organization's hierarchy while lower levels consist of operational personnel. Figure 1-6
Experts are employed for the major business functions: the specialized tasks performed by organizations, which consist of sales and marketing, manufacturing and production, finance and accounting, and human resources. An organization coordinates work through its hierarchy and business processes. These processes may be documented and formal, or informal, unwritten work processes, such as how to handle a telephone call. Each organization has a unique culture, or fundamental set of assumptions, values, and ways of doing things, that are accepted by most of its members. Parts of an organization's culture can be found in its information systems. For example, UPS's organizational focus on customer service can be found in the package tracking system available to customers. Information systems may also reflect the organizational politics or conflicts that result from differing views and opinions in an organization. Information systems are also a key component in the ability of management to make sense of the challenges facing a company and in management's ability to create new products and services, manage the company, and even re-create the organization from time to time. Information technology is one of the many tools used by management to cope with change. A firm's information technology (IT) infrastructure is a technology platform or foundation on which a firm can build its information systems. IT infrastructure consists of:
The World Wide Web is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format on the Internet. Web pages contain text, graphics, animations, sound, and video and are linked to other Web pages. The Web can serve as the foundation for new kinds of information systems such as UPS's Web-based package tracking system From a business perspective, an information system is an important instrument for creating value for the firm. Information systems enable the firm to increase its revenue or decrease its costs by providing information that helps managers make better decisions or that improves the execution of business processes. Every business has an information value chain in which raw data is systematically acquired and then transformed through various stages that add value to that information. The value of an information system to a business, as well as the decision to invest in any new information system, is, in large part, determined by the extent to which the system will lead to better management decisions, more efficient business processes, and higher firm profitability. Figure 1-7
Some firms achieve better results from their information systems than others. Studies of returns from information technology investments show that there is considerable variation in the returns firms receive. Reasons for lower return on investment include failure to adopt the right business model that suits the new technology or seeking to preserve an old business model that is doomed by new technology. Figure 1-8
Complementary investments include:
Which of the following refers to the physical presence of a customer in a service system?To elaborate, customer contact refers to the physical presence of the customer in the system, and creation of the service refers to the work process that is entailed in providing the service itself.
Which activity is involved in the process of providing finished goods to the customer?Outbound Logistics: Activities required to get a finished product to a customer. These include warehousing, inventory management, order fulfillment, and shipping. Marketing and Sales: Activities associated with getting a buyer to purchase a product.
What is the term that refers to a process where customers wait in line for service?What is the term that refers to a process where customers wait in line for service? - Balking. - Line management.
Which of the following is a characteristic of a well designed service system quizlet?A characteristic of a well-designed service system is that it manages the evidence of service quality in such a way that customers are aware of the value of the service provided.
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