Ch. 2: Describe the difference between information systems and information technology. Provide an example of each. Information Systems are defined as a formal, sociotechnical, organizational systems designed to collect, process, store, and distribute information; encompassing both the formal and informal aspects of the process. In its simplest form IS is any information gathering process one uses to better their business practice, either for immediate or future gains or insight. There are four main components of modern IS, from Structure, to People, to the Process, and to the Information Technology. Structure is the organizational structure and it is the interaction of resistance to change, such as incentive systems and relationships available to the people involved to either participate or abstain from the process. The People are the organizations employees who have their own skills, attitudes, and personal perceptions/agendas. The Process is the series of steps needed to complete the necessary steps to complete the business activity. With the Information Technology is the software used to process the information gathering process. All of these steps must work together in order for the overall process to be successful. If the people involved do not participate then every step will fail, therefor they are the most important piece to the overall process; as a manager one will have to keep in mind how an adoption of a given process will affect the end user. An example of IS could be the information a business gathers when one first starts a relationship with a prospective customer. Such as when someone opens a bank account relationship, not only do most banks want the basic federally required information, but what they truly want is the information regarding was the individual is in regards to cross-selling. This is a mix of formal and informal processes used by banks to not only provide current needed bank products but also future banking products.
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