Chapter 1: Importance of

Information Systems (IS)

1.1 Terminology and basic concepts
Management
1.2 Information, technology and business
1.3 History and trends of technology and
information systems
1.4 Comparison of Information Systems
with related fields
1.5 Information Systems (IS) Management
Compiled By Aregash A. 1
 1.1 Terminology and basic
•
concepts
Before diving into the role of information
systems (IS) management,
•
it's essential to understand the following key
terminology and concepts:
•
Data: Raw facts or figures that are processed
into information.
– Data alone is often meaningless until it's
interpreted and used to make decisions.
•
Information: Processed data that has meaning
and can be used for decision-making.
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•
Technology: refers to the application of
scientific knowledge, tools, techniques, and
systems to solve problems, enhance human
capabilities, or improve various processes.
– It encompasses everything from simple tools and
machines to advanced computing systems,
biotechnology, artificial intelligence, and etc.
•
Systems: A collection of interconnected
elements working together toward a common
goal

Compiled By Aregash A. 3
•
Information Systems (IS):
•
is an integrated set of components (the
combination of technology, people, and
processes) designed to collect, store, process,
and share information to support the
operations, decision-making, and strategy of
an organization.
•
Business:
•
the structured set of activities or tasks that
produce a specific service or product to satisfy
customer demands, generate
Compiled By Aregash A. revenue,
4 and
•
Strategy:
•
is a comprehensive plan or approach designed
to achieve long-term goals or objectives.
– It involves setting a direction, defining priorities,
allocating resources, and making decisions that
will guide actions toward desired outcomes.
•
sets the overall direction and goals
– It is often used to address challenges, exploit
opportunities, and respond to competitive
environments.

Compiled By Aregash A. 5
•
Management:
•
is the process of planning, organizing, leading,
and controlling resources (such as people,
finances, and materials) within an organization
to achieve its goals and objectives efficiently
and effectively.
•
It involves:
– making decisions,
– solving problems, and
– coordinating the efforts
Compiled of A.
By Aregash 6
•
In the context of Management of Information
Systems and Services (MISS), the term
"management" refers to the process of
planning, organizing, directing, and controlling
the resources and activities related to IS
within an organization.
•
The goal is to ensure that the organization’s IS:
– support its business objectives,
– enhance decision-making,
– optimize performance, and
Compiled By Aregash A. 7
–
•
Functions of management in MISs:
ü
Strategic management: Aligning IT and
business strategies to ensure that technology
investments drive organizational success.
ü
Project management: Leading IT projects,
including system implementations, upgrades,
and ongoing support, ensuring they meet
deadlines, budgets, and quality standards.
ü
Risk management: Identifying, assessing, and
mitigating risks related to IS, such as
cybersecurity threats or compliance
Compiled By Aregash A. 8 violations.
ü
Service management: Overseeing the delivery
of IT services to end-users and ensuring
service quality, availability, and efficiency.
ü
Change management: Effectively managing
changes to IS and IT infrastructure while
minimizing disruptions and maximizing
benefit.
ü
IT governance: Establishing policies,
procedures, and controls to ensure that IT
systems are managed and used in accordance
with laws, regulations, and organizational
goals. Compiled By Aregash A. 9
ü
Performance management: Monitoring the
effectiveness and efficiency of IS and services,
ensuring continuous improvement.
•
This includes the adoption of new technologies,
processes, and methodologies to optimize
performance and increase the value IT delivers to
the business.

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1.2 Information, Technology, and Business
•
Information and technology are integral to
business success today, influencing almost
every aspect of operations
•
IS integrate technology into business
operations to improve efficiency, enhance
decision-making, and achieve competitive
advantages.

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•
Information plays a crucial role in today's
business landscape, as it drives decision-
making, improves efficiency, enhances
customer experience, and fosters innovation.
– having accurate, timely, and relevant information
is crucial for identifying opportunities, solving
problems, and achieving goals.
•
With the rise of digital technologies,
businesses rely more on information than ever
before.
Compiled By Aregash A. 12
•
Here are some of the key ways in which
they are shaping businesses today:
v
Increased Efficiency and Productivity:
•
Automation: Technology automates repetitive
tasks, reducing the need for manual
intervention.
– This leads to significant time savings and
operational efficiency.
•
Collaboration tools: Cloud-based platforms like
Google Workspace, Microsoft 365, and project
management tools
Compiled(e.g., Asana,
By Aregash A. Trello)
13 enable
v
Data-driven decision making:
•
Big data analytics: Companies now have
access to vast amounts of data.
– By leveraging data analytics tools, businesses can
make more informed decisions, optimize
operations, and predict market trends.
•
Business Intelligence (BI) Tools: Tools like
Tableau, Power BI, and Google Analytics help
businesses track key metrics and gain insights
into customer behavior and business
performance.
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v
Global connectivity and reach:
•
E-Commerce: Online platforms such as
Amazon, Shopify, and eBay have transformed
retail businesses, allowing them to reach a
global customer base.
•
Digital Marketing: Social media platforms (e.g.,
Facebook, Instagram, LinkedIn) and search
engines (Google) provide businesses with a
direct way to reach targeted audiences,
driving brand awareness and sales.

Compiled By Aregash A. 15
v
Cost Reduction:
•
Cloud computing: Businesses no longer need
to invest in expensive physical infrastructure.
– Cloud services like AWS, Microsoft Azure, and
Google Cloud offer scalable solutions that reduce
IT maintenance costs.
•
Outsourcing and remote work: Technology
enables remote work, allowing businesses to
hire talent from around the world, reducing
overhead costs associated with physical office
spaces.
Compiled By Aregash A. 16
v
Improved Customer Experience:
•
Customer Relationship Management (CRM):
Tools like Salesforce, HubSpot, and Zoho CRM
help businesses manage customer
relationships, providing personalized services
and enhancing customer satisfaction.
•
AI Chatbots: AI-powered customer service
tools like chatbots can provide instant support
to customers and improving response times.

Compiled By Aregash A. 17
v
Innovation and Product Development:
•
Research & Development: Technology has
opened up new ways to conduct research,
such as through simulations, AI, and digital
prototyping, accelerating the pace of product
development.
•
3D Printing & IoT: These technologies enable
businesses to prototype and manufacture
products more efficiently, reducing time-to-
market and production costs.
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v
Cybersecurity Concerns:
•
As businesses become more digital, they face
increased risks of cyberattacks and data
breaches.
•
Businesses must invest in robust cybersecurity
systems to protect sensitive information and
ensure customer trust.
– Technologies like encryption, firewalls, and multi-
factor authentication are essential in safeguarding
business data.Compiled By Aregash A. 19
v
Supply chain optimization:
•
IoT and RFID technology allow businesses to
track inventory in real-time, improving supply
chain management, reducing waste, and
ensuring that products are delivered
efficiently.
– RFID(Radio Frequency Identification) use
electromagnetic fields to automatically, identify
and track tags attached to objects
•
Blockchain technology is also being explored
to enhance transparency
Compiled By Aregashand
A. reduce
20 fraud
v
Remote work and flexibility:
•
Technology has enabled the rise of remote
work, especially with tools like Zoom, Slack,
and Teams.
•
This flexibility can increase employee
satisfaction and attract a global talent pool.
•
Virtual meetings, cloud collaboration, and
digital document sharing have allowed
businesses to operate effectively even during
global disruptions like the COVID-19
pandemic. Compiled By Aregash A. 21
v
Disruptive Innovations:
v causing radical change in an existing industry or
market through being innovative.
•
New technologies such as AI, ML, and
Blockchain have created new business models
and disrupted traditional industries.
– For example, fintech has transformed banking,
and AI-powered analytics have revolutionized
decision-making processes.
•
fintech (financial technology) refers to the integration
of technology and innovation into offerings in financial
services. Compiled By Aregash A. 22
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Here are some key aspects of fintech:
•
Digital Payments:
– Mobile Wallets & Payments: Apps like Apple Pay,
Google Pay, and PayPal enable users to make
instant, secure payments using smartphones or
digital wallets.
– Peer-to-Peer (P2P) Transfers: Services like Venmo,
Zelle, and Cash App allow individuals to send and
receive money directly between accounts or users,
bypassing traditional banking channels.

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•
Lending & Borrowing:
– Online Lending Platforms: Fintech has disrupted
traditional lending by offering peer-to-peer (P2P)
lending and online personal loans.
•
Platforms like LendingClub, Prosper, and Upstart
provide borrowers with access to loans without going
through traditional banks.
– Crowdfunding: Websites like Kickstarter and
GoFundMe allow individuals and businesses to
raise funds for projects or ventures directly from a
large number of people.

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•
Cryptocurrency & Blockchain:
– Cryptocurrencies: Digital currencies like Bitcoin,
Ethereum, and Ripple use blockchain technology
to provide secure, decentralized transactions,
offering an alternative to traditional banking
systems.
– Blockchain: this technology underpins
cryptocurrencies and also has applications in
smart contracts, supply chain management, and
securing financial transactions, providing
transparency and security.
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•
The goal of any business is to deliver value to
customers and stakeholders.
– Information and technology are integral in
achieving this goal.
•
By leveraging technology to gather, analyze,
and disseminate information, businesses can
develop innovative products, optimize
operations, personalize customer experiences,
and gain a competitive edge.

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 1.3 History and Trends of technology and IS
•
The history of technology and IS has been
marked by rapid evolution, with major
milestones that have fundamentally shaped
modern society.
•
These advancements have impacted nearly
every sector, including business, healthcare,
education, and communication.

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•
Let’s take a closer look at the key historical
developments and emerging trends in
technology and Information Systems.
•
1. Pre-Computing Era (Before 1950s)
•
Early Tools and Machines:
– The history of technology dates back to ancient
civilizations when early humans created tools to
aid in survival.
•
Simple tools like the wheel, plow, and lever were
fundamental technologies in human progress.
•
Mechanical Devices:
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•
2. The Birth of Computers (1940s-1960s)
•
Early Computers:
– The development of electronic computers began
in the 1940s with machines like the ENIAC
(Electronic Numerical Integrator and Computer),
which was the first general-purpose
programmable computer.
•
UNIVAC:
– The first commercially produced computer,
UNIVAC (Universal Automatic Computer), was
used for business and government applications in
the 1950s. Compiled By Aregash A. 29
•
3. The Rise of Personal Computers (PC)(1960s-
1980s)
•
Minicomputers and Microprocessors:
– The invention of microprocessors in the early
1970s (e.g., Intel 4004) enabled the creation of
smaller, more affordable computers.
•
Minicomputers began being used in businesses and
universities.
•
The PC Revolution:
– In the 1980s, PCs became mainstream, with
companies like Apple (Apple II, 1977) and IBM
(IBM PC, 1981) leading
Compiled the charge
By Aregash A. in making
30
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4. The Internet Era (1990s-2000s)
•
The World Wide Web (WWW):
– The introduction of the WWW in the early 1990s
transformed the internet from a niche academic
tool to a global communication platform.
– Tim Berners-Lee’s invention of HTML and the first
web browser (Mosaic, later Netscape) allowed
businesses to connect with customers globally.

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•
Dot-com Boom:
– Refers to internet-based businesses
– The late 1990s witnessed the dot-com
boom, with many startups emerging to take
advantage of the new online world.
•
E-commerce giants like Amazon and eBay, as
well as search engines like Google, came to the
forefront.

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•
Client-Server Architecture:
– IS began shifting from centralized mainframe
systems to client-server architectures, where data
was stored on servers, and clients (PCs) accessed
and processed it remotely.
•
Enterprise Resource Planning (ERP) and CRM
Systems:
– In the 1990s, companies started adopting large-
scale ERP systems like SAP CRM systems like
Salesforce to streamline business operations and
manage customer relationships.
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•
5. The Mobile and Cloud Computing Era
(2010s-Present)
•
Smartphones:
– The launch of the iPhone in 2007 marked the
beginning of the mobile computing era.
– Smartphones transformed how we interact with
technology, leading to the development of mobile
apps and changing how businesses engage with
consumers.
•
Cloud Computing:
– Cloud computing technologies, like Amazon Web
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Services (AWS), Google Cloud, and Microsoft
•
Big Data and AI:
– The rise of big data analytics, AI, and ML has
enabled businesses to extract valuable insights
from massive datasets, enhancing decision-making
and automation across industries.
•
IoT (Internet of Things):
– The advent of IoT devices, such as
•
smart home products and industrial sensors, has
connected everyday objects to the internet, enabling
real-time data collection and automation in industries
like healthcare, manufacturing, and logistics.

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 Trends in Technology and Information
Systems (IS)
– Trends refers to that the direction/ patterns in
which technology is developing or changing.
•
Thus, the trends in Computing technology
includes:
ü
AI and ML
•
AI Automation: AI is increasingly used to
automate tasks that once required human
intelligence, such as data analysis, customer
service (via chatbots), and decision-making.
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ü
Cloud Computing
•
Hybrid and Multi-Cloud: Companies are
moving towards hybrid and multi-cloud
solutions, where they use a mix of on-
premises, private cloud, and public cloud
services to meet their needs for flexibility,
security, and scalability.
•
Serverless Computing: The serverless
architecture is gaining traction, where
companies use cloud services without
managing the underlying infrastructure,
reducing costsCompiled
and complexity.
By Aregash A. 37
ü
Big Data and Analytics
•
Data-Driven Decisions: Businesses are
increasingly relying on big data to drive
decision-making.
– Data analytics tools (e.g., Tableau, Power BI) help
organizations process and interpret large volumes
of data, leading to improved customer
experiences and optimized operations.
•
Real-Time Analytics: With IoT and other
technologies, businesses now analyze data in
real-time to make immediate decisions,
especially in industries like healthcare,
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ü
Cybersecurity
•
Heightened Focus on Security: As businesses
become more dependent on technology, there
is an increasing emphasis on cybersecurity to
protect sensitive information from data
breaches, ransomware, and other malicious
activities.
•
Zero-Trust Architecture: The zero-trust
security model, where access is never trusted
by default (even inside the organization), is
gaining popularity asBy aAregash
Compiled wayA. to strengthen
39
ü
Blockchain and Cryptocurrencies
•
Decentralized Systems: Blockchain technology,
the foundation of cryptocurrencies like Bitcoin
and Ethereum, has applications beyond
finance, such as supply chain management,
identity verification, and voting systems.
•
Smart Contracts: Blockchain is also enabling
smart contracts, which automatically execute
contract terms when predefined conditions
are met, offering potential for greater
transparency and efficiency.
Compiled By Aregash A. 40
ü
Internet of Things (IoT)
•
Connected Devices: IoT is driving the
development of "smart" homes, cities, and
industries, where everyday objects (like
thermostats, cars, and wearables) are
interconnected and provide valuable data for
improved efficiency and decision-making.
•
Industrial IoT (IIoT): In manufacturing, IIoT
devices allow real-time monitoring of
production processes, predictive
maintenance, Compiled
and supply
By Aregashchain
A. optimization.
41
ü
5G Networks
•
Faster, More Reliable Connectivity: 5G
networks promise faster data speeds, lower
latency, and greater capacity, enabling
innovations in areas like IoT, autonomous
vehicles, telemedicine, and smart cities.
•
Enhanced Mobile Experiences: 5G will allow
for more immersive experiences in gaming,
virtual reality (VR), and augmented reality
(AR).

Compiled By Aregash A. 42
ü
Virtual and Augmented Reality (VR/AR)
•
Immersive Experiences: VR and AR
technologies are transforming sectors such as
gaming, education, real estate, and healthcare
by offering immersive and interactive
experiences.
•
Enterprise Applications: Businesses are
adopting VR/AR for training, product
demonstrations, and customer engagement.

Compiled By Aregash A. 43
ü
Robotic Process Automation (RPA)
•
Automation of Repetitive Tasks: RPA involves
using bots to automate repetitive tasks, such
as data entry, processing transactions, and
customer service interactions.
– This leads to greater efficiency and lower
operational costs.
ü
Edge Computing
•
Decentralized Data Processing: Edge
computing involves processing data closer to
where it is generated (e.g., on IoT devices
Compiled By Aregash A. 44
or
•
The history of technology and IS has been
shaped by major milestones in computing,
communication, and automation.
•
Today, we are witnessing a convergence of
technologies like AI, IoT, blockchain, and 5G,
which are driving the next wave of innovation.
•
Businesses and individuals who embrace these
trends are poised to thrive in a rapidly
changing technological landscape.

Compiled By Aregash A. 45
 1.4 Comparison of Information
Systems (IS) with its related fields
•
Make discussion on the comparison of IS with
related fields(such as CS, SE, IT)
•
All closely related fields, but each has distinct
focuses, goals, and methods.
•
Here's a comparison and contrast of these
terms:

Compiled By Aregash A. 46
 Computer Science (CS)
•
CS is the study of computing, algorithms, and
the principles behind software and hardware
systems.
•
It is more theoretical than practical and
emphasizes understanding the underlying
concepts of computation and problem-solving.
•
It encompass:
– Algorithms and Data Structures: The study of how
data can be efficiently stored, manipulated, and
retrieved.
Compiled By Aregash A. 47
•
The objective of CS is to advance the
theoretical foundations of computing and
develop new techniques or technologies that
enhance computational capabilities.
•
Example: Designing a new sorting algorithm or
creating a machine learning model to predict
user behavior.

Compiled By Aregash A. 48
 Software Engineering (SE)
•
SE is the application of engineering principles
to software development.
– It focuses on the practical aspects of creating
reliable, scalable, and maintainable software
systems, with an emphasis on methodologies,
tools, and project management.

Compiled By Aregash A. 49
SE:
– Software Development Life Cycle (SDLC): The
structured process for planning, designing,
developing, testing, and maintaining software.
– Quality Assurance and Testing: Ensuring that
software meets performance, reliability, and
usability standards.
– Design Patterns and Architecture: Creating
reusable and scalable software architectures.
– Project Management: Managing
Compiled By Aregash A. timelines,
50
•
The objective of SE is to develop high-quality
software systems that meet user needs, are
delivered on time, and are cost-effective.
•
Example: Developing a mobile application
with a user-friendly interface and robust
backend functionality.

Compiled By Aregash A. 51
 Information Technology (IT)
•
IT is primarily concerned with the use of
technology to manage and process
information.
•
It includes everything from hardware and
software to networking, security, and the
systems needed to store and process data.
•
IT is more focused on the practical application
and management of technology in an
organization.
•
IT professionals work
Compiled with A.hardware,
By Aregash 52
•
Key areas of IT:
– Hardware (servers, storage, networking devices)
– Software (operating systems, applications)
– Networking (LAN, WAN, internet)
– Cybersecurity
– Database management
•
IT professionals typically manage, support,
and optimize an organization's technology
infrastructure.
•
They might work in roles like network
Compiled By Aregash A. 53
 Information Systems (IS)
•
IS is primarily concerned with the use of
technology to manage and process
information within an organization.
•
It includes both the technical aspects
(hardware, software) and the organizational
aspects (people, processes) of information
management.
•
Key Components:
– People: Users who interact with the system (e.g.,
employees, managers).
Compiled By Aregash A. 54
•
The objective/goal of IS is to ensure that:
– information flows efficiently across an
organization,
– supporting decision-making, coordination, and
business operations.
•
Example: A Customer Relationship
Management (CRM) system used by a sales
team to track customer interactions, manage
sales leads, and analyze customer data.

Compiled By Aregash A. 55
•
IS has a broader scope than its related fields
•
It typically include an ICT component but are
not purely concerned with ICT, focusing
instead on the end-use of IT.
– ISs help to control the performance of
business processes.
•
Its role is to support the key aspects of
running an organization, such as
communication, record-keeping, decision
making, data analysis and more.
Compiled By Aregash A. 56
•
IT profession is most closely aligned with IS
because IT professionals focus on ensuring
that the technical infrastructure is in place and
optimized to support business processes and
data flows.
•
IS professionals need a stable and secure IT
environment to operate effectively.
•
Because both IT and IS focus on the
management and use of technology to solve
business problems and improve organizational
efficiency. Compiled By Aregash A. 57
•
IT professionals manage the hardware,
networks, databases, and cloud platforms that
provide the foundation for IS.
•
Each component plays a vital role in ensuring
that technology systems are secure, efficient,
and aligned with organizational goals.
– They play a critical role in ensuring that IS are
reliable, secure, and available to meet business
needs.
•
IT professionals are responsible for designing,
implementing,Compiled
and maintaining
By Aregash A. these
58
•
While CS and SE are both integral to
developing the software components of IS
(like algorithms and custom applications
respectively), IT professionals focus on the
maintenance and management of the entire
technology ecosystem that supports IS.
•
This makes IT the most directly related to the
practical implementation and operational
management of IS in an organizational
context.
Compiled By Aregash A. 59
•
As businesses place increasingly higher
priorities on technical innovation and
integration, developing your skills in how to
generate, deliver, and secure data can help set
you apart in the job market.
– Understanding not only what data is needed, but
how to generate, deliver, and secure it to help
people and organizations operate more effectively
requires a diverse set of skills.

Compiled By Aregash A. 60
 Professional skills of IS
•
IS specialists play a key role in
organizations by managing and
implementing technology solutions.
– Their skill set typically includes a broad
range of abilities.
– Thus, the landscape is constantly evolving,
so continuous learning and adaptability are
crucial.

Compiled By Aregash A. 61
•
In order to become an IS specialist, you
need to possess a combination of:
Ø Technicalskills are about how to build,
manage, and secure the infrastructure and
software that businesses rely on.
Ø Softskills are about how to work with
people.
Ø Business skills are about how to align
technology with business needs and
objectives.
Compiled By Aregash A. 62
•
Here's how each of them differs and what
they encompass:
•
Technical Skills: These are the specific, job-
related skills required to operate technology,
tools, and processes in the IS field.
•
What they include:
Ø Programming & Development: Knowledge of
programming languages (e.g., Python, Java, C++).
Ø Systems Design & Architecture: Ability to design
databases, networks, or software systems.
Compiled By Aregash A. 63
Ø IT
Infrastructure Management:
Understanding hardware, operating
systems, networks, and cloud computing.
Ø Cybersecurity: Knowledgeabout securing
data and systems from unauthorized access
and attacks.
Ø DataAnalysis & Management: Expertise in
using data analytics tools, data visualization,
and database management systems.

Compiled By Aregash A. 64
Ø
Software and Tools: Proficiency in using
development environments, system
administration tools, and business software.
– Integrated Development Environment (IDE) (like
VS Code, JetBrains IntelliJ IDEA),
– Text Editors (Sublime, TextAtom, Notepad++),
– Build Tools (Maven and Gradle for Java, Webpack
for JavaScript applications, C/C++ projects),
– Package Managers (npm (Node.js), pip (Python),
Composer (PHP), Homebrew (macOS)),
– DBMS (MySQL, PostgreSQL, MongoDB65(NoSQL),
Compiled By Aregash A.
•
Soft Skills: These are personal attributes and
interpersonal skills that help professionals
collaborate effectively and handle challenges
in the workplace.
•
What they include:
– Communication Skills: The ability to explain
technical concepts to non-technical stakeholders,
write clear reports, and present ideas effectively.
– Teamwork & Collaboration: Working well with
others, especially when dealing with cross-
functional teams or projects.
Compiled By Aregash A. 66
– Problem-Solving: The ability to address
challenges creatively and find solutions to
complex issues.
– Adaptability: Being flexible and adjusting to
changes in technology, processes, or team
structures.
– Time Management: Effectively prioritizing
tasks and managing time to meet deadlines.
– Conflict Resolution: Managing and resolving
disagreements within teams or with clients.
Compiled By Aregash A. 67
•
Business Skills: These skills relate to
understanding the broader business context in
which IS operate and aligning technology
solutions with business goals.
•
What they include:
– Project Management: Ability to plan, execute, and
oversee projects, managing timelines, budgets,
and resources.
– Strategic Thinking: Understanding how technology
can provide competitive advantages or solve
business problems.
Compiled By Aregash A. 68
– Business Acumen:
•
Business Analysis: Understanding business processes,
identifying requirements, and aligning technology
solutions with business objectives and understanding
how systems can improve operations.
•
Cost-Benefit Analysis: Evaluating the return on
investment for technology implementations.
– Stakeholder Management: Engaging with clients,
vendors, and other key stakeholders to ensure
that technology solutions align with business
objectives.
– Change Management: Managing and guiding
organizational change, particularly during system
Compiled By Aregash A. 69
upgrades or the introduction of new technologies.
1.6 Information Systems (IS) Management
•
Among the previous listed jobs opportunities
of IS professionals in most organizations
,Information systems management is one.
•
Information systems managers are
responsible for overseeing :
– the planning, implementing, and maintaining of an
organization's IS, ensuring they align with business
goals and objectives.
– Managing IT infrastructure, teams, budgets, and
projects
Compiled By Aregash A. 70
•
The goal of ISM is to ensure that an
organization’s IT systems effectively support
its operations, strategy, and goals.
•
This involves managing the IT infrastructure,
people, processes, and technology, all of
which are integral to achieving business
objectives.
•
ISM typically sits at the intersection of
technology, business processes, and
organizational strategy.
Compiled By Aregash A. 71
•
Thus, management in IS and Services:
– refers to the process of overseeing and
directing the development,
implementation, and maintenance of
technology-based systems that support
business functions and operations.
•
This includes managing both the
technological infrastructure (hardware,
software, networks) and the services that
ensure these systems are operating
effectively and efficiently.
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•
Key responsibilities of the IS manager:
– Requirement engineering: analyzes all of an
organization's information needs and then
determines which systems could address them.
– Strategic Alignment: Ensuring that IT initiatives are
aligned with business objectives.
– Leadership: Leading the IT department and
managing IT professionals, including software
developers, systems analysts, network
administrators, and other IT staff.

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– Innovation: Identifying emerging technologies and
guiding the organization on how to integrate these
innovations into business operations.
– Risk Management and Compliance : Addressing
potential risks associated with cybersecurity threats,
data breaches, and technology failures.
•
And ensuring that the organization adheres to legal and
regulatory requirements concerning data security, privacy,
and IT governance.
– Budget Management: Managing the IT budget and
ensuring that resources are allocated efficiently for
projects, maintenance, and new initiatives.
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•
The MISS is necessary for several critical
reasons, as it directly impacts the efficiency,
competitiveness, and overall success of an
organization.

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v
Competitive Necessity
•
Market competitiveness: Companies that
manage there IS effectively can innovate, react
to market changes quickly, and gain a
competitive edge.
– Poor management can lead to inefficiencies,
outdated systems, or missed opportunities,
putting organizations at a disadvantage.
•
Customer expectations: In the age of digital
transformation, customers expect fast,
personalized, and accurate services.
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v
Operational Efficiency
•
Automation and optimization: Well-managed
IS streamline workflows, automate tasks, and
eliminate redundancies, increasing the overall
operational efficiency of an organization.
•
Minimizing errors: Proper management of IS
helps reduce human errors in processes like
inventory management, data entry, and
reporting, which can lead to costly mistakes
and inefficiencies.
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v
Risk management and security
•
Cybersecurity threats: As organizations rely
more heavily on digital systems, the risks of
cyberattacks, data breaches, and other
security threats increase.
•
Ethical responsibilities: Organizations have a
responsibility to handle their data ethically,
especially when it involves personal or
sensitive information.
– Managing IS ensures transparency and
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trustworthiness, as well as meeting ethical
•
Proper IS management ensures:
– compliance with these regulations,
– avoiding legal penalties and reputational damage
and
– guarantee transparency and trustworthiness,
– as well as meeting ethical obligations
•
This ensures that data is protected, systems are secure,
and privacy regulations (like GDPR, HIPAA) are adhered
to.

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– GDPR (General Data Protection
Regulation) and HIPAA (Health
Insurance Portability and
Accountability Act)
– are two significant data privacy and security
regulations that organizations must comply
with when handling sensitive personal or
health-related information.
– Although both regulations aim to protect
sensitive data,
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•
Disaster recovery: Effective IS management
includes implementing backup strategies and
disaster recovery plans, ensuring the business
can continue operations in case of system
failures or data loss.

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v
Business Continuity
•
Minimizing downtime: IS are often at the
heart of an organization’s operations.
– If these systems fail or malfunction, it can halt
business processes, resulting in lost revenue and
damaged reputation.
– Effective management helps ensure high system
uptime, reducing the risk of disruptions.
•
Preparedness for emergencies: Well-managed
IS have built-in disaster recovery plans,
ensuring business continuity in the event of a
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v
Cost Efficiency
•
Reducing operational costs: By optimizing
resources, automating tasks, and eliminating
inefficiencies, effective IS management helps
organizations save money.
•
Without it, organizations could incur high
costs due to redundant processes, poor data
management, or security breaches.
•
Resource allocation: IS allow businesses to
monitor and track resources effectively,
helping to prevent
Compiledwastage,
By Aregash A. reduce83
v
Supporting Strategic Goals
•
Aligning with business strategy: The right IS
management ensures that technology
investments align with the organization’s
strategic goals.
– This includes facilitating data-driven decision-
making, improving collaboration, and supporting
innovation.

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•
Data as a strategic asset: data-driven decision-
making
– In today’s world, data is a key resource:
•
Properly managing IS ensures that data is accurate,
accessible, and utilized effectively for decision-making.
•
Without efficient IS management, organizations may
struggle with poor data quality, which leads to
suboptimal decisions.
– Data overload: Organizations generate massive
amounts of data daily.
•
Managing this data properly allows businesses
to avoid the chaos of data overload85and derive
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v
Integration and Collaboration
•
Cross-department collaboration: IS connect
different departments and teams, ensuring
seamless communication, collaboration, and
information sharing.
•
Without effective management, organizations
risk working in silos, leading to inefficiencies
and missed opportunities.
•
Supply chain and vendor management: IS
management plays a critical role in
streamlining the flow
Compiled of information
By Aregash A. 86 between
v
Innovation, growth and agility
– agility means the capacity to quickly adapt to
technological advancements, changing customer
needs, evolving market conditions, and
unexpected disruptions.
•
Adopting new technologies: Effective IS
management ensures that businesses are
prepared to adopt and integrate new
technologies (such as AI, IoT, or cloud
computing) that can drive innovation and
improve processes.
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•
Adapting to growth and scalability: As
businesses grow, they need systems that can
scale with them.
•
Proper management ensures that IS
infrastructure can handle increased data,
transactions, and users without sacrificing
performance or stability.
•
Adaptation to change: With the rapid pace of
technological change, businesses must stay
agile.
•
A well-managed IS allows
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A. quick 88
adaptation
 Conclusion
•
MISS is about managing the services and
infrastructure that support the overall IS,
ensuring that technology functions smoothly
and aligns with the business needs.
•
As businesses continue to embrace new
technologies, understanding the fundamentals
of IS management will be essential for
navigating the complex digital landscape.
•
Effective MSS is necessary because it supports
to business efficiency, innovation, customer
satisfaction, security
Compiled Byand
Aregashcompliance,
A. 89 stay
End of Chapter 1.
Thanks!
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