1. Explain why information systems are so essential in business today. Information systems are a foundation for conducting business today. In many industries, survival and even existence is difficult without extensive use of information technology. Information systems have become essential for helping organizations operate in a global economy. Organizations are trying to become more competitive and efficient by transforming themselves into digital firms where nearly all core business processes and relationships with customers, suppliers, and employees are digitally enabled. Businesses today use information systems to achieve six major objectives: operational excellence; new products, services, and business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival.
2. Define an information systems from both a technical and a business perspective. From a technical perspective, an information system collects, stores, and disseminates information from an organization’s environment and internal operations to support organizational functions and decision making, communication, coordination, control, analysis, and visualization. Information systems transform raw data into useful information through three basic activities: input, processing, and output. From a business perspective, an information system provides a solution to a problem or challenge facing a firm and provides real economic value to the business. 3. Identify and describe the three dimensions of information systems. An information system represents a combination of management, organization, and technology elements. The management dimension of information systems involves leadership, strategy, and management behavior. The technology dimensions consist of computer hardware, software, data management technology, and networking/telecommunications technology (including the Internet). The organization dimension of information systems involves the organization’s hierarchy, functional specialties, business processes, culture, and political interest groups.
Six reasons why information systems are so important for business today include:
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Information systems are the foundation for conducting business today. In many industries, survival and even existence without extensive use of IT is inconceivable, and IT plays a critical role in increasing productivity. Although information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that provide firms with a strategic advantage.
The textbook defines an information system as a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.
Data are streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use.
Information is data that have been shaped into a form that is meaningful and useful to human beings.
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