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The document outlines the components and types of Information Systems (IS), including hardware, software, data, people, and processes, as well as various systems like Transaction Processing Systems and Customer Relationship Management Systems. It discusses digital platforms, their characteristics, and the implications of digital transformation, along with concepts like business intelligence, big data, and organizational change due to IT adoption. Additionally, it covers models such as client-server and peer-to-peer, highlighting their advantages and limitations.

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8 views

Notes

The document outlines the components and types of Information Systems (IS), including hardware, software, data, people, and processes, as well as various systems like Transaction Processing Systems and Customer Relationship Management Systems. It discusses digital platforms, their characteristics, and the implications of digital transformation, along with concepts like business intelligence, big data, and organizational change due to IT adoption. Additionally, it covers models such as client-server and peer-to-peer, highlighting their advantages and limitations.

Uploaded by

saniya3737
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© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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○​ IS - An organized system that collects, processes, stores, and disseminates information to support

decision-making, coordination, and control in an organization.


●​ Components of an Information System (The Five-Component Framework):
○​ Hardware: Physical components like servers, computers, and networking devices.
○​ Software: Applications and operating systems that process data.
○​ Data: Raw facts and figures transformed into meaningful insights.
○​ People: End users, IT professionals, and managers who interact with the system.
○​ Processes: Business procedures that define how IS should be used.
●​ Types of Information Systems:
○​ Transaction Processing Systems (TPS) – Automate routine business transactions (e.g.,
point-of-sale systems).
○​ Management Information Systems (MIS) – Provide summarized reports for middle managers.
○​ Decision Support Systems (DSS) – Help with complex decision-making using data analytics.
○​ Enterprise Resource Planning (ERP) Systems – Integrate various business functions into a
single system (e.g., SAP).
○​ Customer Relationship Management (CRM) Systems – Manage interactions with customers to
enhance sales and service.
●​ Digital Platforms: Serve as intermediaries connecting different user groups (e.g., Uber, Airbnb).
●​ Characteristics of Digital Platforms:
○​ Multisided Markets: Connect different types of users (buyers, sellers, advertisers, etc.).
○​ Data-Driven Optimization: Platforms use AI and machine learning to personalize user
experiences.
○​ Monetization Strategies: Revenue can come from transactions, subscriptions, advertising, or
freemium models.
●​ Marketplaces vs. Aggregators:
○​ Marketplaces: Connect buyers and sellers directly (e.g., Amazon, eBay).
○​ Aggregators: Collect and curate offerings from various providers to present a single unified
experience (e.g., Google Flights, Expedia).
-​ Digital Transformation: The integration of digital technologies into all aspects of a business.
-​ Digital Technology: The tools and systems that facilitate digital transformation.
-​ Digital Innovation: The creation of new digital products, services, or processes.
-​ Digital Entrepreneurship: Business ventures based primarily on digital technologies.
-​ General Manager: Oversees entire business units and strategy.
-​ Functional Manager: Manages specific departments (e.g., HR, Marketing).
-​ CIO (Chief Information Officer): Oversees IT strategy and implementation.
-​ End User: Uses the information system in daily operations.
-​ Information Systems: Broader concept, including people, processes, and technology.
-​ Information Technology: The hardware and software components of an IS.
-​ Example: An e-commerce website is an Information System; the database behind it is
Information Technology.
-​ the "evangelist effect" refers to The increase in value of a network as more people join
-​ The "long tail" strategy allows companies to generate revenue by offering a wide variety of niche products.
-​ IT is a subset of IS
-​ Businesses must choose between broad reach and deep, personalized interaction richness/reach trade-off
-​ Crowdsourcing - Leveraging the contributions of a large number of people to solve a problem
-​ The Internet of Things (IoT) refers to devices connected to the internet that can communicate with each
other.
-​ Business Intelligence (BI): Tools & techniques for data analysis.
-​ BI Infrastructure: The tech stack supporting BI (e.g., databases, analytics tools).
-​ Data Warehouse: Central repository storing structured data from various sources.
-​ Data Mart: A smaller, department-specific version of a data warehouse.
-​ OLAP (Online Analytical Processing): Enables fast, multi-dimensional analysis.
-​ Data Mining: Discovering patterns & trends from large datasets.
-​ Relationship: Data warehouses store information, OLAP enables analysis, and data mining extracts
insights for BI.
-​ Big data: Large, complex datasets that traditional systems can't process.
-​ 3 Vs & Managerial Implications:
-​ Volume: Managing massive data storage.
-​ Velocity: Real-time data processing needs.
-​ Variety: Handling diverse data types (text, images, videos).

Relational Model & Its Limitations - A database model organizing data into tables with rows and
columns.Limitations:Struggles with unstructured data (e.g., social media, IoT). Scalability issues for Big Data
applications. Data Mining: Extracting patterns and insights from data.Big Data: A broad term for large, diverse
datasets requiring advanced storage & processing. Client-Server Model: Distributed system where clients request
services from a central server (e.g., websites, apps). Centralized Model: All computing is done on a single
mainframe or server. Client-server is more scalable & flexible.Centralized systems have stronger control but
are less adaptable.

●​ Business Integration: Aligning business processes across departments (e.g., customer service and sales
working together).
●​ Systems Integration: Connecting different IT systems (e.g., integrating CRM with ERP).

Enterprise System - A system that integrates core business processes across departments (e.g., ERP).

O2O (Online-to-Offline) Experience - Ordering Starbucks via app & picking it up in-store.

Organizational Change Due to IT Adoption

●​ First-Order Change (Automation): Improves efficiency but doesn’t alter processes.


○​ Example: Implementing payroll software for faster salary processing.
●​ Second-Order Change (Process Redesign): Modifies workflows and structures.
○​ Example: Shifting from paper-based to digital supply chain management.
●​ Third-Order Change (Transformation): Fundamental shift in business model.
○​ Example: Netflix transitioning from DVD rentals to streaming.

Moore’s Law: Computing power doubles approximately every two years while costs decrease.

●​ Direct Effects: Faster, cheaper hardware, leading to innovation (e.g., AI, cloud computing).
●​ Indirect Effects: Industry disruption, shorter product life cycles, and need for continuous learning &
adaptation.

A cloud solution offers scalability, remote access, and lower upfront costs but depends on internet connectivity and
raises security/privacy concerns. An on-premises solution provides full control, better security, and predictable
costs but requires higher initial investment and ongoing maintenance.

●​ Peer-to-Peer (P2P): All nodes act as both clients and servers, sharing resources directly. It is Scalable,
cost-effective, and decentralized (no single point of failure) but has Security risks, less control, and potential
inefficiency in resource management.
●​ Three-Tiered Architecture: Divides applications into three layers—presentation (UI), business logic, and
data storage. Has Better performance, security, and scalability but Higher complexity and infrastructure
costs.

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