Information System

and Business
Intelligence
Week 2 Session 1

Lecturers Name:
Lecturer’s Email Address:
Student Progress
Tracker
Student Formativ Formative Formative MEQ Formative
Name e Task 1 Task 2 Task 3 Task 4
 This is your responsibility and
Formative taskscompulsory.

You are required to start and complete your assignment in incremental

stages.
Each week you must submit the work you have created in draft format
to Moodle.
LO1 :Demonstrate a critical understanding of basic Module Learning
information technology and Business Intelligence (BI) Outcomes
principles and theories which explain the need for
business information systems.

LO2: Analyse the potential of information systems

and Business Intelligence (BI) to improve business
operations and performance within a global business
context.
LO3: Critically evaluate the role of Business
Intelligence (BI) in supporting organisations to detect
issues and problems, make strategic decisions,
identify market trends, and discover new business
opportunities.
LO4: Apply knowledge of Business Intelligence (BI) to
real-world problems and scenarios, and critically
analyse emerging real-world problems of artificial
intelligence (AI), machine learning, and data
warehousing.
 SO1: Introduction to the Technology
Session Acceptance Model (TAM).
Outcomes
SO2: Schumpeter’s Creative Destruction.

SO3: Selecting Business intelligence.

LO4: Real World Examples of Business

Intelligence at work.
 Session Learning Module Learning Outcomes
Outcomes

LO1 :Demonstrate a critical

SO1: Introduction to the Technology
understanding of basic information
Acceptance Model (TAM).
technology and Business Intelligence
(BI) principles and theories which
SO2: Schumpeter’s Creative Destruction
Link explain the need for business
information systems.

SO3: Selecting Business intelligence LO2: Analyse the potential of

information systems and Business
Intelligence (BI) to improve business
LO4: Real World Examples of Business operations and performance within a
Intelligence at work global business context.
 Glossary Sample – Go to Moodle and
Download your glossary, save it, and
referof Terms
Glossary to itfor often.
Information P
Systems and Business Prescriptive Analytics: The use of data to determine the best course of action to achieve
Intelligence. desired outcomes.

Predictive Analytics: The branch of advanced analytics that is used to make predictions
This glossary provides a foundational understanding of key
about unknown future events based on historical data.
terms for students studying information systems and
business intelligence at a higher education level.
Q
A Query: A request for information from a database.
Agile: A methodology in project management and software
development that emphasises flexibility, collaboration, rapid R
delivery, and continuous improvement.
RDBMS/Relational Database Management System: A database management system
Algorithm: A step-by-step procedure or formula for solving a based on the relational model, which stores data in tables and allows for relationships
problem, often used in data processing and computational between data.
tasks.

Analytics: The systematic computational analysis of data or

S
statistics, used to discover, interpret, and communicate SQL/Structured Query Language: A standardised programming language used for
meaningful patterns in data. managing and manipulating relational databases.
API/Application Programming Interface: A set of tools, SCM/Supply Chain Management: The management of the flow of goods and services,
definitions, and protocols for building and integrating including all processes that transform raw materials into final products.
application software, allowing different software systems to
communicate with each other.
Session Learning
Outcomes

SO1: Introduction to the Technology Acceptance

Model (TAM)
Theories for IS and BI
Technology Acceptance Model (TAM):

TAM, developed by Davis in 1989 (Schaie, 2021), suggests that two main
factors influence technology acceptance:
1. The degree to which a person believes that using a particular
system would enhance their job performance.
2. The degree to which a person believes that using a particular
system would be free of effort.
These factors influence users' attitudes towards using the technology,
which in turn affects their behavioural intention to use it and ultimately
their actual usage behavior. (Schaie, 2021; Wandira, Fauzi and Nurahim, 2
 Technology Acceptance Model
(TAM)
Resistance to change is common - What happens when a company
makes a change?

Watch the following video and make some notes on the

Technology Acceptance Model (TAM).
The technology acceptance model
(TAM)

TAM is an information system theory which models how users accept

and use technology. This means that when users are presented with a
new technology, a certain numbers of factors influence their decision
about how and when they will use them. Watch the following video and
answer Should you add TAM to your glossary?
this question.
What are the two determinants?
Technology Acceptance Model

(Ho et al.,
2004)
The two determinants are ...
1. Perceived usefulness (PU)

This this is the degree to which a person believes that using a particular
system would enhance his or her job performance, meaning that how
this usage can enhance the life of the user. The perceived usefulness is
meant to enhance the person's life and his or her digital presence and
digital existence in a virtual world.

2. Perceived ease of use (PEOU)

This is the degree to which a person believes that using a particular

system would be free from effort (Schaie, 2021).
Assignment Focus
What makes people change?
How will you convince the CEO in your
assignment that BI is the answer?
Session Learning
Outcomes

SO2: Schumpeter’s Creative

Destruction
The Schumpeterian concept of Creative
Destruction
Schumpeter’s concepts of creative destruction and the entrepreneurial
role are highly relevant to the fields of Information Systems and
Business Intelligence. These theories provide a framework for
understanding how technological innovations disrupt traditional
business models and drive progress. By embracing the principles of
innovation and adaptability, organisations can leverage IS and BI
technologies to enhance their competitiveness and contribute to
economicWatch
growth. the video on Schumpeter.

• What is Schumpeter’s opinion on growth?

• Share with the class the main points you took from the video.
(Dodgson and Gann,
2018)
Joseph Schumpeter
Schumpeter's concept of "creative
destruction" relates to Information Systems
(IS) and Business Intelligence (BI) as both
play a critical role in the continuous cycle
of innovation and market disruption that
Schumpeter described.

Creative destruction refers to the process by which new technologies,

business models, or innovations render existing ones obsolete, leading
to economic progress and market evolution.
Watch the following video and ask yourself
how Creative Destruction relates to IS and (Reisman, 2008)

BI
(United 4 Social Change, 20
Assignment
Focus/Formative Task
Class discussion

How does this align to

your assignment?
 How do TAM and Schumpeter’s
Creative Destruction connect ?

TAM and Schumpeter’s Creative Destruction connect through their focus

on how technological innovation and change influence businesses and
user behaviour.
Here’s how they relate:

1. Technological Innovation as a Driver of Creative

Destruction.
2. Resistance to Technological Change
3. Adoption of Disruptive Technologies
4. Innovation Cycles and Business Evolution
Critically Evaluate the impact Schumpeter’s
Creative Destruction has on IS and BI
Schumpeter described creative destruction as motivation in manufacturing process
that increases productivity. In other words, “a process of industrial mutation that
incessantly revolutionises the economic structure from within, incessantly destroying
the old one.”

There is strong relationship in the capitalist system regarding the concept of creating
and destroying existing structures through entrepreneurial innovations. Therefore, a
strong relationship between innovation and competition.
The relevance of Schumpeter to technology and innovation is that without creative
destruction, there might not be innovation. However, there must be change agents to
make creative destruction happen because it involves competition between old and
new technologies.
Innovative technologies and future innovation may be
hindered by regulations which are made simply to
protect new innovations. This is strategic as
businesses need to recoup returns on investments. (Norbäck and Persson, 2023)
Possible
Answers
1. IS supports the creative destruction process by enabling businesses to
innovate and adapt to new market conditions. Advanced IS allows
organisations to streamline operations, improve decision-making, and
Together, IS and BI help
enhance customer engagement, often leading to the creation of new
businesses
products or services navigate
that can disrupt and
existing thrive
market in
leaders.
environments characterised by
2. BI tools help businesses analyse vast amounts of data to gain insights
creative destruction, enabling
into market trends, customer behaviours, and competitor strategies. This
them
intelligence allows to remain
companies competitive
to identify opportunities and
for innovation and
innovative.
areas where they can disrupt the market, effectively becoming agents of
creative destruction themselves. By leveraging BI, firms can make data-
driven decisions that challenge existing norms and pave the way for new
industry standards.
What is Schumpeter’s impact on IS and BI
adoption?
Market Dynamics Strategic Decision-Making
Competition and Innovation: Investment in Innovation:
Schumpeter’s theories highlight the Understanding the principles of creative
importance of competition in fostering destruction encourages businesses to
innovation. In the IS and BI sectors, invest in cutting-edge IS and BI
intense competition drives continuous technologies to stay ahead of
improvement and the development of competitors and capitalise on new
more sophisticated and user-friendly opportunities.
tools.

Adaptability: Schumpeter’s ideas

Economic Growth: By adopting underscore the need for businesses to be
advanced IS and BI technologies, adaptable and open to change.
businesses can achieve higher Embracing IS and BI innovations can help
productivity and efficiency, contributing organisations navigate and thrive in a
to overall economic growth and rapidly changing technological
(Liebowitz, 2019)

development. landscape.
Class discussion
Considering what you now know about DIKW and TAM, what
do you think companies experience when implementing
new technology into their businesses. How can they pre-
empt any problems? Skim the text and share your ideas.

Possible answers Possible answers

Announce the effective and
bi-directional
Align the competitive
communication of the
advantage of the new
expected change and what
technology to the
to expect.
organisation’s success.
Highlight the competitive
Set up a help desk for
advantage the company
(Leonard-Barton and Kraus, 1985) assistance.
should gain .
Assignment Focus
Include a theory in your
assignment
Why would you consider including theories in your work?
Write up how you are going to include a theory in your
assignment.

If Schumpeter’s theory explains the "what" and "why" of technological

change, while TAM provides insight into the "how“, how would this affect
how users adopt and interact with the new technologies which drive
market evolution?

Both are crucial for understanding the dynamics of technological change

in business environments.
Task 1 – 30 mins to prepare, 30 mins
to present.
Working in groups, prepare and present your findings to the class. Use PPTs, and visuals
[from the text] to demonstrate your points. Post onto the forum and include critical
evaluation.
Why does generative AI make creative destruction more creative
and less destructive. Read the article and present your
findings on the following points.

1.How does using artificial intelligence (AI)

alter the understanding of creative
destruction?
2.If AI improves all the time, is creative
destruction necessary?
3.How do your answers impact the Technology
Acceptance Model (TAM).

Norbäck and Persson, 2023

Assignment Focus

Make a note of anything you consider relevant to your assignment.

Session Learning
Outcomes

SO3: Selecting Business intelligence.

Why do companies need BI and
analytics? Discuss.
As companies strive to increase efficiency and the competitive edge
in an ever-evolving business landscape, having a comprehensive
understanding of the essential concepts around business intelligence
and analytics is crucial.

Business analytics can create valuable insights integral to an

organisation’s success by analysing vast quantities of structured and
unstructured data, which will be analysed, improvements adopted to
How could
enhance this
business go wrong
productivity andand how can
streamline you anticipate
processes.
the issues?
What is the process for selecting a BI
Tool or platform which fits a company’s
needs?
• Selecting the right BI tool requires careful planning, thorough
evaluation, and collaboration with stakeholders.
• By following a structured approach, companies can ensure
that the chosen BI tool aligns with their business goals, data
requirements, and user needs.
• Ultimately this will lead to better data-driven decision-
making.
Can you think of an essential list
which for selecting a BI tool?
Discuss.
1. Defines Requirements: Business goals, data sources, user
roles.
2. Evaluates Data Needs: Volume, variety, integration.
3. Sets Budget/Timeline: Costs, implementation timeline.
4. Researching Tools: Market research, shortlist candidates.
5. Evaluation Tools: Functionality, ease of use, scalability,
security.
6. Demos/Trials: Vendor demos, free trials.
7. Support/Training: Assess vendor support, training options.
8. Aids Decision Making: Compare tools, stakeholder input.
9. Plan Implementation: Detailed plan, monitoring metrics.
Session Learning
Outcomes

SO4:Recognising and assessing data

maturity
Data maturity
Data maturity refers to an organisation’s ability to effectively manage,
analyse, and leverage data for decision-making and operational efficiency.
It is a measure of how well an organisation uses data to achieve its
business goals, reflecting the development of data practices,
infrastructure, and culture within the organisation.

Typically, data maturity is assessed through several stages.

Task – Using your digital assistant, brainstorm the components a

company may look for when assessing the readiness of data.
Ensuring a high level of data maturity allows an
organisation to make more informed decisions, improve
operational efficiency, and gain a competitive advantage
Assessing your data maturity
What happens as the business grows?

(Data Orchard, 2022; Sprinkle,

2024)
Stage 1: Source data, scattered

The source data stage is when your data is scattered among a

couple of individual sources, like Google Analytics, Salesforce, and
an individual database or two. At this stage, when it comes to BI
reporting, the bulk of the work has to do with wrangling your
disparate data sources. You will be forced to conduct analysis in
silos, e.g. within one source, without an easy way to combine that
data with other source data besides dumping it all into Excel,
which could turn into a silo of its own.
Stage 2: Lake, centralised and unstructured

The data lake stage is when you first start combining data across sources, i.e., blending
data, into a central spot where it all exists together, usually in an unstructured way. To
do BI reporting at the lake stage, you will need to do some preliminary
transformations, like column selection or hashing out personally identifiable
information, to make sure all your data can work together.
Stage 3: Warehouse, centralized and structured

The data warehouse stage is when you structure your centralised

data in a way that makes it easier to use across your
organisation. BI reporting at the warehouse stage is easy, with
the right BI platform, and most of your work will be querying and
visualising data.
Stage 4: Mart, centralised, structured, and specialised

The data mart stage is when teams across your organisation need
specialised access to only certain sections of your structured data. BI
reporting at the data mart stage is simple and should be focused on
empowering non-technical users to create reports or dashboards on
their own.
Discussion Points – in groups 15 mins

1. Challenges and Opportunities in Stage 1: Source Data

 Discuss the challenges of dealing with scattered data sources such as Google
Analytics, Salesforce, and individual databases.
2. Transitioning to Stage 2: Lake
 Examine the benefits of centralising data into a data lake, where disparate
data sources can be blended, and consider the challenges
3. Advantages of Stage 3: Warehouse
 Discuss the impact of structured data on BI reporting efficiency, including
streamlined querying and visualisation processes.
4. Empowering Users in Stage 4: Mart
 Discuss the role of self-service BI tools in empowering non-technical users to
create their own reports and dashboards.
Assignment Focus

Discussion Points – how does this align to your

assignment?
Reference List
Data Orchard (2022) Data Orchard Data Maturity Framework, Data Orchard. Available at:
https://static1.squarespace.com/static/5d514d1775e9c90001345670/t/620b8207ec052e35eb5d713c/1644921354014/
Data_Orchard_Data_Maturity_Framework_v2.1+2022-14-02.pdf (Accessed: 24 September 2024).

Dodgson, M. and Gann, D. (2018) Innovation: A Very Short Introduction. Oxford University Press. Available at:
https://doi.org/10.1093/actrade/9780198825043.001.0001.

Ho, K. et al. (2004) ‘Technology-enabled knowledge translation: Frameworks to promote research and practice’, Journal of Continuing Education in the Health
Professions, 24(2), p. 90. Available at: https://doi.org/10.1002/chp.1340240206.

Leonard-Barton, D. and Kraus, W.A. (1985) Implementing New Technology, Harvard Business Review. Available at: https://hbr.org/1985/11/implementing-new-
technology (Accessed: 22 February 2024).

Liebowitz, J. (2019) Strategic Intelligence: Business Intelligence, Competitive Intelligence, and Knowledge Management. 1st edn. Auerbach Publications.
Available at: https://www.routledge.com/Strategic-Intelligence-Business-Intelligence-Competitive-Intelligence/Liebowitz/p/book/9780367391010 (Accessed: 1
June 2023).

Norbäck, P.-J. and Persson, L. (2023) ‘Why generative AI can make creative destruction more creative but less destructive’, Small Business Economics
[Preprint]. Available at: https://doi.org/10.1007/s11187-023-00829-4.

Reisman, D. (2008) ‘Reviewed Work: Prophet of Innovation: Joseph Schumpeter and Creative Destruction’, The Economic History Review, 61(1), pp. 272–274.

Schaie, K.W. (2021) ‘Work, Retirement and Aging’, in Handbook of the Psychology of Aging. Available at: https://research.ebsco.com/linkprocessor/plink?
id=c2855128-44c4-3344-ac82-0089a5fbdb87 (Accessed: 24 September 2024).

Schumpeter’s Creative Destruction: Die to Live (2021). go.publishing.com (Economic Theory Series | Academy 4 Social Change). Available at:
https://www.youtube.com/watch?v=qR9AdIdRnXU (Accessed: 24 September 2024).

Sprinkle (2024) Unlocking the Power of Data Lake Architecture: A Comprehensive Guide. Available at: https://www.sprinkledata.com/blogs/data-lake-
architecture (Accessed: 24 September 2024).

Wandira, R., Fauzi, A. and Nurahim, F. (2024) ‘Analysis of Factors Influencing Behavioural Intention to Use Cloud-Based Academic Information System Using
Extended Technology Acceptance Model (TAM) and Expectation-Confirmation Model (ECM)’, Journal of Information Systems Engineering and Business
Intelligence, 10(2), pp. 179–190. Available at: https://doi.org/10.20473/jisebi.10.2.179-190.