BUS303: Strategic Information Technology

What 10 elements are included in the study of IS?

Control Traditionally, internal auditors and IS professionals have been charged with controlling business processes. However, this responsibility has expanded to others because of the difficulty of controlling modern, complex business processes. Today's business process owners need to work with internal auditing and the IS staff, and also business process owners in partnering companies, to ensure that the activities in their business processes are secure and reliable. Discuss control is the means by which one assures that the intended actually happens.

The next three elements of Information Systems study, business operations, events processing, and management decision making, comprise a major focus of this text, business processes. A business process is a set of business events that together enable the creation and delivery of an organization's products or services to its customers. It was the successful interaction among business processes that enabled Amazon.com to fill all those Harry Potter book orders during peak demand periods. Knowledge of these processes is essential for success as a technology user, consultant, business process owner, or Information Technology (IT) specialist.

Business Operations Organizations engage in activities or operations, such as hiring employees, purchasing inventory, and collecting cash from customers. An IS operates in concert with these business operations. Many IS inputs are prepared by operating departments - the action or work centers of the organization - and many IS outputs are used to manage these operations. Managers must analyze an IS in light of the work the organization performs. For example, to advise management and to prepare reports for management decision making, a marketing manager must understand the organization's product cycles.

Events Processing As organizations undertake their business operations, events, such as sales and purchases, occur. Data about these events must be captured and recorded to mirror and monitor business operations. The events have operational, managerial, and IS aspects. To design and use the IS, the business professional must know what event data are needed and how they are processed.

Management Decision Making The information used for a decision must be tailored to the type of decision under consideration. Furthermore, information is more useful if it recognizes the personal management styles and preferences of the decision maker. For example, the manager of Department A prefers to receive a monthly cash flow statement that groups receipts and payments into broad categories. The manager of Department B, on the other hand, wants to see more detailed information in the form of an analysis of payments by vendors. 

Systems Development and Operation Information Systems that process business events and provide information for management decision making must be designed, implemented, and effectively operated. Business professionals often participate in systems development projects. They may be users or business process owners contributing requests for certain functions, or auditors advancing controls for the new system. Choosing the data for a report, designing that report, or configuring an enterprise system are examples of systems development tasks that can be accomplished by a business professional.

Communications To present the results of their endeavors effectively, business professionals must possess strong oral and written communication skills. Have your professors been drumming this message into you? If not, you'll become acutely aware of its importance when you enter the job market. There are few easy answers in the study of IS. Professionals must evaluate alternatives, choose solutions, and defend their choices. Technical knowledge won't be enough for the last task.

Business Principles To design and operate the IS, a business professional must understand the use to which the information will be put. As an illustration, suppose you were designing an IS for the billing function at XYZ, Inc. Would you invoice customers at the time the customer's purchase order was received, or would you wait until XYZ's shipping department notified you that the goods had been shipped? You need to know the situations for which the former is normally correct (e.g., e-business retail sales) and for which the latter is correct (e.g., typical supply-chain operations for businesses).