○​ IS - An organized system that collects, processes, stores, and disseminates information to support

decision-making, coordination, and control in an organization.

●​ Components of an Information System (The Five-Component Framework):
○​ Hardware: Physical components like servers, computers, and networking devices.
○​ Software: Applications and operating systems that process data.
○​ Data: Raw facts and figures transformed into meaningful insights.
○​ People: End users, IT professionals, and managers who interact with the system.
○​ Processes: Business procedures that define how IS should be used.
●​ Types of Information Systems:
○​ Transaction Processing Systems (TPS) – Automate routine business transactions (e.g.,
point-of-sale systems).
○​ Management Information Systems (MIS) – Provide summarized reports for middle managers.
○​ Decision Support Systems (DSS) – Help with complex decision-making using data analytics.
○​ Enterprise Resource Planning (ERP) Systems – Integrate various business functions into a
single system (e.g., SAP).
○​ Customer Relationship Management (CRM) Systems – Manage interactions with customers to
enhance sales and service.
●​ Digital Platforms: Serve as intermediaries connecting different user groups (e.g., Uber, Airbnb).
●​ Characteristics of Digital Platforms:
○​ Multisided Markets: Connect different types of users (buyers, sellers, advertisers, etc.).
○​ Data-Driven Optimization: Platforms use AI and machine learning to personalize user
experiences.
○​ Monetization Strategies: Revenue can come from transactions, subscriptions, advertising, or
freemium models.
●​ Marketplaces vs. Aggregators:
○​ Marketplaces: Connect buyers and sellers directly (e.g., Amazon, eBay).
○​ Aggregators: Collect and curate offerings from various providers to present a single unified
experience (e.g., Google Flights, Expedia).
-​ Digital Transformation: The integration of digital technologies into all aspects of a business.
-​ Digital Technology: The tools and systems that facilitate digital transformation.
-​ Digital Innovation: The creation of new digital products, services, or processes.
-​ Digital Entrepreneurship: Business ventures based primarily on digital technologies.
-​ General Manager: Oversees entire business units and strategy.
-​ Functional Manager: Manages specific departments (e.g., HR, Marketing).
-​ CIO (Chief Information Officer): Oversees IT strategy and implementation.
-​ End User: Uses the information system in daily operations.
-​ Information Systems: Broader concept, including people, processes, and technology.
-​ Information Technology: The hardware and software components of an IS.
-​ Example: An e-commerce website is an Information System; the database behind it is
Information Technology.
-​ the "evangelist effect" refers to The increase in value of a network as more people join
-​ The "long tail" strategy allows companies to generate revenue by offering a wide variety of niche products.
-​ IT is a subset of IS
-​ Businesses must choose between broad reach and deep, personalized interaction richness/reach trade-off
-​ Crowdsourcing - Leveraging the contributions of a large number of people to solve a problem
-​ The Internet of Things (IoT) refers to devices connected to the internet that can communicate with each
other.
-​ Business Intelligence (BI): Tools & techniques for data analysis.
-​ BI Infrastructure: The tech stack supporting BI (e.g., databases, analytics tools).
-​ Data Warehouse: Central repository storing structured data from various sources.
-​ Data Mart: A smaller, department-specific version of a data warehouse.
-​ OLAP (Online Analytical Processing): Enables fast, multi-dimensional analysis.
-​ Data Mining: Discovering patterns & trends from large datasets.
 -​ Relationship: Data warehouses store information, OLAP enables analysis, and data mining extracts
insights for BI.
-​ Big data: Large, complex datasets that traditional systems can't process.
-​ 3 Vs & Managerial Implications:
-​ Volume: Managing massive data storage.
-​ Velocity: Real-time data processing needs.
-​ Variety: Handling diverse data types (text, images, videos).

Relational Model & Its Limitations - A database model organizing data into tables with rows and
columns.Limitations:Struggles with unstructured data (e.g., social media, IoT). Scalability issues for Big Data
applications. Data Mining: Extracting patterns and insights from data.Big Data: A broad term for large, diverse
datasets requiring advanced storage & processing. Client-Server Model: Distributed system where clients request
services from a central server (e.g., websites, apps). Centralized Model: All computing is done on a single
mainframe or server. Client-server is more scalable & flexible.Centralized systems have stronger control but
are less adaptable.

●​ Business Integration: Aligning business processes across departments (e.g., customer service and sales
working together).
●​ Systems Integration: Connecting different IT systems (e.g., integrating CRM with ERP).

Enterprise System - A system that integrates core business processes across departments (e.g., ERP).

O2O (Online-to-Offline) Experience - Ordering Starbucks via app & picking it up in-store.

Organizational Change Due to IT Adoption

●​ First-Order Change (Automation): Improves efficiency but doesn’t alter processes.

○​ Example: Implementing payroll software for faster salary processing.
●​ Second-Order Change (Process Redesign): Modifies workflows and structures.
○​ Example: Shifting from paper-based to digital supply chain management.
●​ Third-Order Change (Transformation): Fundamental shift in business model.
○​ Example: Netflix transitioning from DVD rentals to streaming.

Moore’s Law: Computing power doubles approximately every two years while costs decrease.

●​ Direct Effects: Faster, cheaper hardware, leading to innovation (e.g., AI, cloud computing).
●​ Indirect Effects: Industry disruption, shorter product life cycles, and need for continuous learning &
adaptation.

A cloud solution offers scalability, remote access, and lower upfront costs but depends on internet connectivity and
raises security/privacy concerns. An on-premises solution provides full control, better security, and predictable
costs but requires higher initial investment and ongoing maintenance.

●​ Peer-to-Peer (P2P): All nodes act as both clients and servers, sharing resources directly. It is Scalable,
cost-effective, and decentralized (no single point of failure) but has Security risks, less control, and potential
inefficiency in resource management.
●​ Three-Tiered Architecture: Divides applications into three layers—presentation (UI), business logic, and
data storage. Has Better performance, security, and scalability but Higher complexity and infrastructure
costs.