2. INTRODUCTION
Reason in Participating in Decisions
about Information Systems
• IS must be managed as a critical
resource.
• IS enable change in the way people
work together.
• IS are part of almost every aspect of
business.
3. INTRODUCTION
Reason in Participating in Decisions
about Information Systems
• IS enable business opportunities and
new strategies.
• IS can be used to combat business
challenges from competitors.
4. A Business View
Information technology (IT) is a critical
resource for today’s business.
Three major types of business
resources – people, money, and
machines – it needs to be managed
wisely.
IT spends a significant portion of
corporate budgets.
5. A Business View
Decisions about IS directly affect the
profits of a business. The basic
formula: Profit = Revenue – Expenses
can be used to evaluate the impact of
these decisions.
6. A Business View
Failure to consider IS strategy when
planning
business
strategy
and
organizational strategy leads to one of three
business consequences:
1) IS that fail to support business goals
2) IS that fail to support organizational
systems
3) Misalignment between business and
organizational strategies
7. A Business View
Organizational systems represent the
fundamental elements of business – its
people, work processes and structure – and
the plan that enables them to work efficiently
to achieve business goals.
15. Questions
Indicate whether each of the following is
information, data or knowledge:
a) A daily sales report of each sales transaction
that is sent to the chief operating officer.
b) A daily sales report of each sales transaction
over P100,000 that is sent to the division
marketing manager.
c) A monthly production report that is sent to
shop floor supervisors who don’t use the
report because they believe the figures
reported are outdated and inaccurate
16. Questions
Indicate whether each of the following is
information, data or knowledge:
d) An exception report of all accounts that are
more than 90 days past due, which is sent to
the Accounts Receivable Manager
e) A list of Social Security numbers
f) The contact list in an individual’s LinkedIn
account
