Required reading
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	Textbook	Laudon & Laudon 1995 Ch. 1, pp. 2-18 Ch. 2, pp. 43-44 Ch. 3, pp. 64-73, 88-102
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Overview

There is a good bit of reading in these three chapters. At this point you should try to read through the whole of the three chapters fairly lightly and then go back and read the pages specified more closely. Your reading should give you a general idea of what the unit is about.

An important idea is that information systems (IS) have the three components of:

• people
• organisations
• technology.

You need to grasp this idea-it's a continuing theme through the text. A different text might define IS differently. O'Brien (1994), for example, says that IS are composed of people, hardware, software and data (information and technology). Why do you think Laudon and Laudon have included 'organisations' as part of IS?

On page 9, the text says that an IS will be shaped by the culture, values and ways of doing things that are unique to the organisation. Do you agree?

Note the discussion of information literacy. Can you relate this discussion back to what was said about lifelong learning in the introduction to this unit?

In Chapter 2, only two pages are specified for close study. This is not because the rest of the chapter is not important, but to keep down the amount of work you have to do in one week. You will be looking at different types of information systems in greater detail in later modules in this unit.

In Chapter 3, you are to attend at this point only to Learning Objectives 1 and 5, relating to:

• how businesses can use IS for competitive advantage, and
• ethical and social issues.

The ways in which IS can be used to competitive advantage should help you understand how important it is to study IS-not just people who aim at becoming IS professionals, but students who intend studying accounting, marketing or management.

In many textbooks, the discussion of ethics and social issues is left to the last module and is sometimes not examinable. This arrangement can mean that students, who are beginning to suffer overload from assignments and exam preparation, don't pay much attention. It appears much more desirable to look at these important topics at this point in your studies.

Review questions

REVIEW QUESTION 1-1	Textbook	Laudon & Laudon 1995 p. 29, Discussion questions 1, 2.
REVIEW QUESTION 1-2	Textbook	Laudon & Laudon 1995 p. 104, Discussion question 2.
REVIEW QUESTION 1-3	Textbook	Laudon & Laudon 1995 pp. 105-107, McKesson case study, questions 1, 2, 4.

Quiz

Mark the correct answer.

QUESTION 1

The people dimension of information systems involves such issues as:
(a) attitudes
(b) training
(c) the user interface
(d) ergonomics
(e) all of these.

QUESTION 2

Which of the following is an INPUT activity?
(a) Sorting
(b) Recording
(c) Transmitting
(d) Processing
(e) Printing

Put a tick in the appropriate box.	True	False
QUESTION 3
Ergonomics involves the development of new, friendlier software components in a system.
QUESTION 4
The physical equipment in an information system is called hardware.
QUESTION 5
Computer literacy requires detailed knowledge of hardware, software, systems design, and programming.
QUESTION 6
Computerization allows us to protect our privacy more effectively.
QUESTION 7
The linkage competitive strategy involves aiming marketing efforts at a particular group.
QUESTION 8
Differing ethical standards and business practices pose more challenges for global IS than language,law, or currency differences.
QUESTION 9
Illegal copying of software is a larger problem outside the United States.
QUESTION 10
Deciding what error levels are acceptable in software is an economic issue.
QUESTION 11
Computerization has NOT significantly reduced the number of white-collar jobs in this country.
QUESTION 12
There is serious concern that our society may be too dependent on computers.
QUESTION 13
Product differentiation is one of the major competitive strategies.

Answers to quiz

Question 1.	(e)
Question 2.	(b)
Question 3.	F
Question 4.	T
Question 5.	F
Question 6.	F
Question 7.	F
Question 8.	T
Question 9.	T
Question 10.	F
Question 11.	T
Question 12.	T
Question 13.	T

Answer pointers to Review questions

Taken from Simmons (1995).

REVIEW QUESTION 1-1

1. The most advanced computing technology is worthless unless an organization can effectively employ it. A technical specialist may understand hardware and be able to write computer programs, but she or he may not understand the information needs of the business. In addition, technical people generally lack the knowledge of behavioral disciplines necessary to make information systems easy to use. This argues for a multidisciplinary approach to the design and implementation of information systems rather than a strictly technical approach.

2. Computer hardware advances already far exceed those of any other component of information systems. Therefore, it is unlikely that faster chips can solve the problems that we currently experience with information systems. What is needed is an increase in people power to write programs, and procedures to harness this power.

REVIEW QUESTION 1-2

Most software expressly prohibits copying of software onto more than one computer. With the advent of communications software that allows one to manipulate the office computer from home, it is not clear where the lines are most appropriately drawn.

REVIEW QUESTION 1-3

1. People: people were worried about losing their jobs.
   Organization: management needed worker involvement to build a useful system.
   Technology: adaptations to existing technology were needed to provide utility.

   (Note: the question refers to the problems faced by McKesson after the installation of the scanner gun system and before AcuMax.)

2. The Economost system is very strategic. It provides an unique service to customers that allows them to place orders easily and instantly and facilitates the rapid filling of orders. The Economost system locks in customers and lowers operational costs.

   To maintain competitive advantage, McKesson should continue to upgrade its EDI system and seek other ways to use information systems to strategic advantage.

3. The solution seems to be quite ethical, if the promises are kept. Obviously, management should not make promises that cannot be kept. The issue of whether or not worker involvement was critical should not be the main factor in deciding whether or not to layoff employees. Keeping experienced workers and eliminating unnecessary positions through attrition has proven to make good business sense in many situations. Pulling the rug out from under one group of employees will create distrust and fear in other groups. On the other hand, there is an obligation to stockholders and customers who benefit from a lean company. Superfluous workers cost money and keeping them around may lead to a company that cannot afford to stay in business.