IS312: information systems theory and applications LECTURE 2 Cont. : Information Systems and Organizational Systems Information Systems Department
Outlines • Difference between IS & IT. • What is Information Systems (IS)? • Components of IS and their relationships. • IS and Organizational system • The importance of IS in Business (effectiveness, efficiency). Information Systems Department
The importance of IS in business Efficiency Effectiveness Information Systems Department
Efficiency (doing things right) Firm achieve its efficiency by reducing resource waste while maximize productivity Information Systems Department Defined as the ratio of input to output
Efficiency (Doing Things Right) • More output with the same input Case: Imagine a hospital without information system to manage patients’ personal and historical information . How can we solve this problem???
More output with the same input Information Systems Department As an immediate solution, we create a folder for each patient containing his historical information (saves doctor’s time in asking questions)
Efficiency (Doing Things Right) More output with less input • Since no need to search for their files to find specific information Information Systems Department A higher degree of efficiency can be achieved using a computerized IS
Efficiency (Doing Things Right) Grocery Store Example3 CASE1 Information Systems Department Same output with less input Firm become more efficient by cost reductions - through a reduction in excess inventory, or by eliminating mistakes in operations.
Same output with less input Grocery Store Example3 CASE2 Reduce the input (manager’s time) to achieve the same output (restock all items) Information Systems Department
Same output with less input Grocery Store Example3 CASE 3 Information Systems Department
Effectiveness (doing the right thing) Information Systems Department Effectiveness: it is the ability of an organization to achieve its stated goals and objectives Responding better to its requirements A firm makes better decisions & is able to carry them out successfully A firm is more effective
Effectiveness (Doing the Right Thing) Customer aspects
Effectiveness (doing the right thing) 1 2 Information Systems Department Grocery Store Example3
Effectiveness (More Examples) Information Systems Department
Effectiveness Staff aspects Information Systems Department
Effectiveness • Share information between individuals, departments, or organizations Organization aspects Information Systems Department
The difference.. Information Systems Department Efficiency refers to doing things in a right manner. the output to input ratio.. focuses on getting the maximum output with minimum resources. Effectiveness, on the other hand, refers to doing the right things. It constantly measures if the actual output meets the desired input.
To understand faster!!! • Refer to Book_2, chapter (2), p.(23-30) for further reading Information Systems Department
Questions .. Thank you for listening Information Systems Department