Fundamental Information Systems Concepts and Principles

Dr. Dwyer Fall 2012

Value of informationDoes information have value?When is there a ‘market’ for

information? (parties willing to pay)

What are the critical qualities of information?

Information as a resourceThe success of an organization

depends on its ability to collect and analyze relevant information to make strategic decisions to seize opportunities

The success of a professional depends on their ability to collect and analyze relevant data in order to recommend and implement strategic actions

“Systems” perspectiveSystems Theory - interaction between

sub-systems (technology systems & organizational system/social system)

Derives from biological systems, where components interact with each other (predators v. prey)

Interacting components that affect each other

Dynamic (always changing) – non-deterministic

Lee system interaction diagram

Model of an IS

Information ArchitectureWhat technology

(hardware/software) needs to be in place for this to work?

Response time?Latency?Down time?

Technology innovation sppead up system evolution

Information as a resourceHelps organizations make better

decisionsThe quality of the information is

related to the quality of the decision

The ‘fit’ of the information is related to the quality of the decision

Information qualityRelevanceAccuracyTimelinessActionablecomplexity

Information <->DecisionsNature of the problemIdentify possible solutionsEstimate the degree to which

solution will solve the problem

Thompson's Typology of Decision ProcessesWhere both preferences and cause/effect

relations are clear, decision making is "computational". These decisions are often short term and information about the decision is fairly unambiguous.

Where outcome preferences are clear, but cause/effect relations are uncertain, Thompson suggest that "judgment" takes over and you make your best educated guess. These decisions are based on prior experience and are often qualitative in nature.

Dec. Proc. Cont.When the situation is reversed, and

preferences are uncertain, then you rely on compromise between different groups. Political coalitions may be built which rely on negotiating and bargaining.

When neither preferences nor cause/effect relations are clear, then you rely on "inspirational" leadership. This is where the charismatic leader may step in and this type of decision often takes place in times of crisis.

Daft & Lengel “Why do organizations process

information?”in order to reduce uncertainty and

equivocality. Uncertainty is defined as “the difference

between the amount of information required to perform the task and the amount of information already possessed by the organization.”

Equivocality is defined as ambiguity, or the existence of more than one possible interpretation or analysis of a situation.

Information needsUncertainty is a simpler problem to solve,

because the information does exist to ultimately answer any open questions.

Equivocality cannot be resolved by the collection of more information. Instead organizations can only work to reduce equivocality by pooling group opinion and expertise, and applying human judgment to make a decision.

Uncertainty and equivocality, drive the need for organizations to process information.

IS analyst mustUnderstand information needsUnderstand decision type and

requirements