Chapter 1

computer-based information system

A single set of hardware, software, databases, networks, people, and procedures that are configured to collect, manipulate, store, and process data into information.

diffusion of innovation theory

A theory developed by E.M. Rogers to explain how a new idea or product gains acceptance and diffuses (or spreads) through a specific population or subset of an organization.

Lewin's change model

A three-stage approach for implementing change that involves unfreezing, moving, and refreezing.

_____________ encompasses all the activities required to get the right product into the right customer's hands in the right quantity at the right time and at the right cost.

supply chain management

Continuous enhancement of an existing product is an example of _____________ innovation.

sustaining

Which of the following is not a true statement regarding the use of virtual teams?

t is usually easy and convenient for all members of a virtual team to meet at the same time and physical location.

Which of the following is not a key organizational complement that must be in place to ensure successful implementation and use of the system?

the latest technology

The ____________ is a series of activities that an organization performs to transform inputs into outputs in such a way that the value of the input is increased.

value chain

information system

A set of interrelated components that collect, process, store, and disseminate data and information; an information system provides a feedback mechanism to monitor and control its operation to make sure it continues to meet its goals and objectives.

process

A set of logically related tasks performed to achieve a defined outcome.

procedure

A set of steps that need to be followed to achieve a specific end result, such as enter a customer order, pay a supplier invoice, or request a current inventory report.

certification

A process for testing skills and knowledge; successful completion of a certification exam results in a statement by the certifying authority that confirms an individual is capable of performing particular tasks.

value chain

A series (chain) of activities that an organization performs to transform inputs into outputs in such a way that the value of the input is increased.

The Bureau of Labor Statistics forecasts an increase of ________ new computing jobs in the time period 2012 to 2022.

1.2 million

information

A collection of data organized and processed so that it has additional value beyond the value of the individual facts.

change management model

A description of the phases an individual or organization goes through in making a change and outlining principles for successful implementation of change.

virtual team

A group of individuals whose members are distributed geographically, but who collaborate and complete work through the use of information systems technology.

organization

A group of people that is structured and managed to meet its mission or set of group goals.

organizational complement

A key component that must be in place to ensure successful implementation and use of an information system.

supply chain

A key value chain whose primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service.

technology acceptance model (TAM)

A model that specifies the factors that can lead to better attitudes about an information system, along with higher acceptance and usage of it.

technology infrastructure

All the hardware, software, databases, networks, people, and procedures that are configured to collect, manipulate, store, and process data into information.

force field analysis

An approach to identifying both the driving (positive) and restraining (negative) forces that influence whether change can occur.

Information systems are composed of fundamental components that must be carefully assembled and integrated to work well together.

An information system (IS) is a set of interrelated components that collect, process, store, and disseminate data and information; an information system provides a feedback mechanism to monitor and control its operation to make sure it continues to meet its goals and objectives. A computer-based information system (CBIS) is a single set of hardware, software, databases, networks, people, and procedures that are configured to collect, manipulate, store, and process data into information. An organization's technology infrastructure includes all the hardware, software, databases, networks, people, and procedures that are configured to collect, manipulate, store, and process data into information.

enterprise information system

An information system that an organization uses to define structured interactions among its own employees and/or with external customers, suppliers, government agencies, and other business partners.

group information system

An information system that improves communications and supports collaboration among members of a workgroup.

personal information system

An information system that improves the productivity of individual users in performing stand-alone tasks.

Information systems must be implemented in such a manner that they are accepted and work well within the context of an organization and support its fundamental business goals and strategies.

An organization is a group of people that is structured and managed to meet its mission or set of group goals. Organizations affect and are affected by their environment. The value chain is a series of activities that an organization performs to transform inputs into outputs in such a way that the value of the input is increased. The supply chain is a key value chain whose primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Supply chain management encompasses all the activities required to get the right product into the right consumer's hands in the right quantity at the right time and at the right cost. Information systems have transformed the nature of work and the shape of organizations themselves. They are often so intimately involved in the activities of the value chain that they are a part of the process itself. A virtual team is a group of individuals whose members are distributed geographically, but who collaborate and complete work through the use of information systems. Innovation is the application of new ideas to the products, processes, and activities of a firm, leading to increased value. Innovation is the catalyst for the growth and success of any organization. Innovation may be classified as sustaining or disruptive. Business process reengineering is a form of innovation that involves the radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in results. Continuous improvement is a form of innovation that continually improves business processes to add value to products and services. Organizational culture consists of the major understandings and assumptions for a business, a corporation, or an organization. According to the concept of organizational learning, organizations adapt to new conditions or alter practices over time. Organizational change deals with how organizations successfully plan for, implement, and handle change. The ability to introduce change effectively is critical to the success of any information system project. Several change models can be used to increase the likelihood of successfully introducing a new information system into an organization. Lewin's three-stage organization change model divides the change implementation process into three stages: unfreezing, moving, and refreezing. The model also identifies key tasks that need to be performed during each stage. Lewin's force field analysis is an approach to identifying the driving (positive) and restraining (negative) forces that influence whether change can occur. Leavitt's diamond proposes that every organizational system is made up of four main components—people, tasks, structure, and technology—that all interact. To successfully implement a new information system, appropriate changes must be made to the people, structure, and tasks affected by the new system. The user satisfaction and technology acceptance model specifies the factors that can lead to better attitudes about the use of a new information system, along with higher acceptance and use of it. The diffusion of innovation theory explains how a new idea or product gains acceptance and diffuses through a specific population or subset of an organization. A key point of this theory is that adoption of any innovation does not happen all at once for all people; rather, it is a drawn-out process, with some people quicker to adopt the innovation than others. The theory groups adopters into five categories and recommends a different adoption strategy for each category.

Leavitt's diamond

An organizational change model that proposes that every organizational system is made up of four main components—people, tasks, structure, and technology—that all interact; any change in one of these elements will necessitate a change in the other three elements.

___________ of large information system projects fail, at least in part, due to a failure to prepare business users for the actual change to come.

Between 30 and 70 percent

continuous improvement

Constantly seeking ways to improve business processes and add value to products and services.

The value of information is directly linked to how it helps decision makers achieve the organization's goals.

Data consists of raw facts; information is a collection of data organized and processed so that it has additional value beyond the value of the individual facts. The value of information created depends on the relationships defined among existing data. Turning data into information is a process performed to achieve a defined outcome. This process requires knowledge, which is the awareness and understanding of a set of information and the ways in which that information can be made useful to support a specific task or reach a decision. Information has many different characteristics. It can be accessible, accurate, complete, economical to produce, flexible, relevant, reliable, secure, simple to understand, timely, and verifiable. The importance of each of these characteristics varies depending on the situation and the kind of decision you are trying to make. The value of information is directly linked to how it helps people achieve their organizations' goals.

restraining forces

Forces that make it difficult to accept a change or to work to implement a change.

_______is a collection of raw facts organized and processed so that it has additional value beyond the value of the individual facts.

Information

The ___________ change model is helpful in identifying and addressing negative feelings that make it difficult for users to accept the move to a new information system.

Lewin's force field analysis

data

Raw facts such as an employee number or total hours worked in a week.

The information system worker functions at the intersection of business and technology and designs, builds, and implements solutions that allow organizations to effectively leverage information technology systems.

Successful information system workers need to have a variety of personal characteristics and skills, including the ability to work well under pressure, good communication skills, solid analytical and decision-making skills, effective team and leadership skills, and adeptness at implementing organizational change. Technology is one of the fastest-growing areas of the U.S. economy, which has a strong demand for information system workers. Opportunities in information systems are available to people from foreign countries under the H-1B and L-1 visa programs. The IS organization has three primary functions: operations, development, and support. Typical operations roles include data center manager, system operator, information system security analyst, and LAN administrator. Typical development roles include software developer, systems analyst, programmer, and Web developer. Typical support roles include database administrator and system support specialist. Only about 60 percent of all information technology outlays are controlled by the information systems department. Shadow IT is a term used to describe the information systems and solutions built and deployed by departments other than the information systems department. In many cases, the information systems department may not even be aware of these efforts. Besides working for an IS department in an organization, IS personnel can work for a large consulting firm or a hardware or software manufacturer. Developing or selling products for a hardware or software vendor is another IS career opportunity. Certification is a process for testing skills and knowledge; successful completion of a certification exam results in an endorsement by the certifying authority that an individual is capable of performing particular tasks or jobs. Certification frequently involves specific, vendor-provided, or vendor-endorsed coursework.

innovation

The application of new ideas to the products, processes, and activities of a firm, leading to increased value.

knowledge

The awareness and understanding of a set of information and the ways that information can be made useful to support a specific task or reach a decision.

driving forces

The beliefs, expectations, and cultural norms that tend to encourage a change and give it momentum.

shadow IT

The information systems and solutions built and deployed by departments other than the information systems department. In many cases, the information systems department may not even be aware of these efforts.

supply chain management (SCM)

The management of all the activities required to get the right product into the right consumer's hands in the right quantity at the right time and at the right cost—from the identification of suppliers and the acquisition of raw materials through manufacture and customer delivery.

business process reengineering (BPR)

The radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results.

process design

The radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results.

reengineering

The radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results.

soft side of implementing change

The work designed to help employees embrace a new information system and way of working.

Managers have an essential role to play in the successful implementation and use of information systems—that role changes depending on which type of IS system is being implemented.

When considering the role of business managers in working with IS, it is useful to divide information systems into three types: personal IS, group IS, and enterprise IS. For each type of IS, certain key organizational complements must be in place to ensure successful implementation and use of the system. These complements include well-trained workers, system support, better teamwork, redesigned processes, and new decision rights.

Two quality characteristics that are critical for data used in accounting for the management of company assets, such as cash, inventory, and equipment are _____________.

accuracy and completeness

____________ is a process for testing skills and knowledge; successful completion of a certification exam results in an endorsement by the certifying authority that an individual is capable of performing particular tasks or jobs.

certification

Technology infrastructure includes all the hardware, software, databases, networks, ___________people, and procedures that are configured to collect, manipulate, store, and process data into information.

databases

When considering the role of business managers in working with IS, it is useful to divide information systems into these three types: __________.

enterprise IS, group IS, and personal IS

According to Jim Collins in his book Good to Great, those who build great companies understand that the ultimate throttle on growth for any great company is not markets, or technology, or competition, or products; rather, it is one thing above all others: __________.

great people

Organizations are considered to be ________systems, meaning that can affect and are affected by their surrounding environment.

open

the typical information systems organization is typically divided into three functions, including support, development, and ________

operations

Turning data into information is a __________ or a set of logically related tasks performed to achieve a defined outcome.

procedure

The three stages of Lewin's change model include (1) ceasing old habits and creating a climate that is receptive to change; (2) learning new work methods, behaviors, and systems; and (3) __________.

reinforcing changes to make the new process second nature, accepted, and part of the job