INFS1001 Lecture 1

What is a Business?
1. What is the purpose of a business (a firm)? Profit
Production of a products and services to add value
Division of labour (specialization), dealing with complexity
Collaboration of individuals to achieve a greater goal
Governance and control
Efficient allocation of resource (input/output)

Effectiveness (Do the right things value/quality

customers willing to pay a premium
Efficiency (Do the things right, cheap and quick cost)

Manufacturing (tangible products):

Original Equipment Manufacturers (OEMs) brandholders:
Toyota, Apple, Lenovo, Siemens
Suppliers/license producers: parts, components
Raw materials: steel, coal, rubber

Service:
Professional services: e.g architects, financial planning,
accounting, solicitors etc.
Travel, leisure, hospitality
Technology: IT services, engineering
Education: TAFE, Universities, etc.

2. How is a business organized internally?

Functional organization:
Vertical & Horizontal distribution of tasks
o Horizontal Dividing an organization into different
departments
Functional specialization
 o Vertical Dividing an organization into different
hierarchical levels
Chain of command
Process organization:
o Organise materials/value flow through the organization
o Fulfill orders, get things done (operations)

Cross functional complexities are hard to manage

Such complexities dont exist in isolation part of a supply
chain, also exists externally (partners in supply chain,
distributors etc.)
Information System helps streamline collaboration

3. Where does a business operate? Who are market players?

In the market, as a part of the supply change

What is an Information System?

5 fundamental components of computer-based information
systems (mandatory to be called an IS):

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 1. Computer hardware (IT)
2. Software (IT)
3. Data (IT)
4. Procedures
5. People

Example: Airline Reservation System

1. Hundreds of computers, routers etc. linked together
2. Hundreds of different programs to record customer details,
promotions etc.
3. About flights, customers, reservations etc.
4. Followed by airline personnel, travel agents, customers
5. Customers, travel agents, airline staff, IT personnel

How does IT differ from IS?

IT includes raw technology such as:
Hardware
Software
Data components

It alone will not help an organization achieve goals until it is

embedded in an information system (IS)

IS = IT + people + procedures

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What is MIS or BIS?
MIS = Management Information Systems
BIS = Business Information Systems
MIS = BIS & refers to the academic discipline that looks at the
development and use of information systems that help businesses
achieve goals and solve problems

Key elements of BIS:

Business goals and objectives
Information systems
Information
Business Processes
Development and use
Change, innovation and transformation

Development and Use of Information Systems

Any business professional needs to:
1. Take an active role in IS to ensure that systems meet their
needs
2. Understand what Information Systems are and how they
operate
3. Understand what the impact of IS is on the workplace and
the organization as a whole
4. Learn to read and speak the language of IS professionals
5. Consider users/ needs during new development
6. Learn how IT systems are developed and deployed

How do successful Business Professionals use IS?

Email, websites and instant messaging do not provide
competitive advantage

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 Companies needs information systems that support the work
of the business professionals
Developing the right IS requires input from those with the
knowledge of the business not just IT experts

o Think creatively about problems, challenges and

opportunities and find ways to apply IT and IS
o Create innovative applications using emerging (new)
technologies
o Find ways to gain a competitive advantage with
information systems

Key Points:
Business organization:
o Hierarchy, functional specialization and processes
Information systems:
o Five component framework
o IS is not IT
Business Information Systems (business first):
o IS assist to achieve goals
o IS support existing business operations
o IS help to innovate and create new business