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How are information systems transforming business, and what is their relationship to globalization?
E-mail, online conferencing, smartphones, and tablet computers have become essential tools for
conducting business. Information systems are the foundation of fast-paced supply chains. The Internet allows many businesses to buy, sell, advertise, and solicit customer feedback online. Organizations are trying to become more competitive and efficient by digitally enabling their core business processes and evolving into digital firms. The Internet has stimulated globalization by dramatically reducing the costs of producing, buying, and selling goods on a global scale. New information system trends include the emerging mobile digital platform, online software as a service, and cloud computing.
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.
What exactly is an information system? How does it work? What are its management, organization,
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 represents a combination of management, organization, and technology elements.
The management dimension of information systems involves issues such as leadership, strategy, and
management behaviour. The technology dimension consists of computer hardware, software, data
management technology, and networking/telecommunications technology (including the Internet).
The organization dimension of information systems involves issues such as the organization’s
hierarchy, functional specialties, business processes, culture, and political interest groups.
The information systems department is the formal organizational unit responsible for information
technology services. It is responsible for maintaining the hardware, software, data storage, and
networks that comprise the firm’s IT infrastructure. The department consists of specialists, such as
programmers, systems analysts, project leaders, and information systems managers, and is often
headed by a CIO.
E-mail, online conferencing, smartphones, and tablet computers have become essential tools for
conducting business. Information systems are the foundation of fast-paced supply chains. The Internet allows many businesses to buy, sell, advertise, and solicit customer feedback online. Organizations are trying to become more competitive and efficient by digitally enabling their core business processes and evolving into digital firms. The Internet has stimulated globalization by dramatically reducing the costs of producing, buying, and selling goods on a global scale. New information system trends include the emerging mobile digital platform, online software as a service, and cloud computing.
Why are information systems so essential for running and managing a 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.
What exactly is an information system? How does it work? What are its management, organization,
and technology components?
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 represents a combination of management, organization, and technology elements.
The management dimension of information systems involves issues such as leadership, strategy, and
management behaviour. The technology dimension consists of computer hardware, software, data
management technology, and networking/telecommunications technology (including the Internet).
The organization dimension of information systems involves issues such as the organization’s
hierarchy, functional specialties, business processes, culture, and political interest groups.
What is the role of the information systems function in a business?
The information systems department is the formal organizational unit responsible for information
technology services. It is responsible for maintaining the hardware, software, data storage, and
networks that comprise the firm’s IT infrastructure. The department consists of specialists, such as
programmers, systems analysts, project leaders, and information systems managers, and is often
headed by a CIO.
