Information Systems: Appunti di Sistemi

IT in Business Summary

Chapter 1. The value of information

Information Technology and Information Systems deal with the following things:

• Data - raw symbols or unconnected facts;
• Information - data that has been processed and it is now useful;
• Knowledge - when information is applied to some decisions or actions;
• Wisdom - using the knowledge for the greater good;

Lately, with the Information Systems, it has been possible to connect and process data to help with management decision-making. Even if in the last years there were some movements to manage knowledge, it is difficult to think that it will be possible to manage wisdom.

Moreover, the previous hierarchy helps to frame two important concepts: usefulness and connectedness. The former is the shift from data to information, through the connection of data elements, that it will be interpreted and applied (only the useful information will be used), while the latter is that once the knowledge level is reached we understand that we need more data and information.

Another important aspect is information literacy, which is the ability to efficiently and effectively determine what information is needed, then access, evaluate, use, and manage that information in an ethical manner. Today we have a huge amount of information and it comes at a price. It is important to comprehend how to find and use information and how to manage it effectively.

The information is used for three main purposes:

• Communication - process by which information is exchanged between individuals through a common system. The organization must exchange information to share ideas, coordinate actions, and transmit information to stakeholders.
• Process support - information is used to coordinate activities that lead to a specific goal or outcome. Information is used at each stage in the process (what was ordered, who is the customer, where to sell, and so on). So the information must be communicated and processed throughout the process.
• Decision making - choose among alternatives, using the right information; without it, it is impossible to decide.

Finally, two other aspects of information are: 1) some businesses treat information as a product; 2) information can be used to gain strategic value.

Chapter 2. Introduction to information systems

Information systems are everywhere nowadays, so it’s very important to understand them. A system is a set of interacting components, working together to form a complex, integrated whole in order to achieve some goals by taking inputs and processing them to produce outputs. The main features of a system are:

• It is made up of components (different kinds) that work together to achieve a purpose.