Processing: Converts raw data g into meaningful form – Output: Transfers processed information to people or activities that use it – Feedback: Output returned to organization members to help evaluate or correct inputs Figure 1-4 An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output—produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input.
Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems. 5 9/30/2009 Information Systems in Organizations • Organizational dimension of information systems – Hierarchy of authority, responsibility • Senior management • Middle management g • Operational management • Knowledge workers • Data workers • Production/service workers Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management.
Information systems serve each of these levels. Scientists and knowledge workers often work with middle management. Figure 1-6 Perspectives on Information Systems • Organizational dimension of information systems (cont.
) – Separation of business functions • Sales and marketing • Human resources • Finance and accounting • Manufacturing and production – Unique business processes – Unique business culture – Organizational politics Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems.
An information system creates value for the firm as an organizational and management solution to challenges posed by the environment. Figure 1-5 Information Systems Dimensions • Management dimension – Managers set organizational strategy for responding to business challenges – In addition, managers must act creatively: • C ti of new products and services Creation f d t d i • Occasionally re-creating the organization • Technology dimension – Computer hardware and software – Data management technology – Networking and telecommunications technology • Networks, the Internet, intra/extranets, World Wide Web IT infrastructure: provides platform that system is built