Introduction to Information Systems and Their Capabilities

Introduction to Information Systems and Their Capabilities

1.1 What Are Information Systems?

An information system is an organized set of components for collecting, transmitting, and storing, and processing data in order to deliver information for action. It is important to stress that in business firms and other organizations, this information is necessary for both operations and management. Most information systems in today's organizations are built around the information technologies of computers and telecommunications. They are computer-based information systems.

As we approach the twenty-first century, information technology emerges as the fundamental technology of business. It:

a. Enables efficient operations of a small business or a large corporation

b. Makes possible effective management

c. Supports the search for competitive advantage in the marketplace

d. Enables economic growth by moving to newer and more advanced technologies

e. Enables the globalization of businesses and enables global competition

As an individual, information systems literacy is necessary in order to:

a. Perform your job as a manager or a professional

b. Conduct a firm's activities

c. Seek opportunities in the marketplace for the products of a firm or of a nation.

Information systems literacy gives you the knowledge you need to apply information technology in a business setting to support your own work, the work of your team, and the operations of the organization at large in pursuit of its competitive goals.

1-2 What Do Information Systems Do for Organizations? [Figure 1.1][Slide 1.4]

Information systems in organizations include systems that:

a. Support business operations of the firm

b. Support its management

c. Assist general knowledge work (work with abstract information rather than with tangible materials).

Information systems include:

1. Transaction Processing Systems: Necessary for operational data processing.

2....