Why Information Systems Are so Essential in Business Today

Topics: Management, Knowledge management, Information systems Pages: 5 (1107 words) Published: August 13, 2011
Explain why information systems are so essential in business today: Information systems are a foundation for conducting business today. In many industries, survival and the ability to achieve strategic business goals are difficult without extensive use of information technology. 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

Define an information system from both a technical and a business perspective. From a technical perspective, an information system collects, stores and distributes 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 represents a combination of management, organization and technology elements. The management decision of information systems involves issues such as leadership, strategy, and management behavior. The technology dimension consists of computer hardware, software, data management technology and networking/telecommunications technology (including the internet). The organization dimension of information sytems involves issues such as the organizations hierarchy, functional specialties, business processes, culture and political interest groups.

Identify and describe the three dimensions of information systems: Organizations
Key elements of organizations – people/structure/business process/politics/culture -orgs have structures – different levels and specialties

Upper – managerial/professional/technical
Lower – operational personnel

Senior management – makes long rate strategic decisions about products and services and financial performance Middle management – carries out programs and plans of senior management Operational management – monitors daily activities of business

Knowledge workers – engineers, scientists, architects – design products and services and create new knowledge for firm Data works – secretaries, clerks – do paperwork
Production or service workers – produce product and deliver service

Business functions specialized tasks performs by business orgs -sales and marketing – sell
-mfg and production – manage assets
Human resources – attract, develop, maintain labor force, records

-make sense of the situations faced
-exercise responsible leadership
-create new products and services; even re-create organization from time to time

IT is a tool managers cope with change

Computer hardware – physical equipment used for input, processing and output -includes computers, input, output and storage devices, telecommunication devices

Computer software

Data management – software governing the organization of data on physical storage media

Network and telcom technology – physical devices and software – links to hardware

Network – links 2 or more computers to share data or resources Example: printer

Internet – most used network

Intranet – internal corp based on internet technology

Extranet – private intranets extended to authorized users outside of organization -firms use to coordinate activities with other firms for making purchases, collaboration on designs and other inter-organizational work

World wide web

IT infrastructure – provides foundation/platform on which the company builds it’s IT on -orgs must carefully design and manage it’s IT so it has the tech services it needs for the work it wants to accomplish

Assess the complementary assets required for information technology to provide value to a business. In order to obtain...
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