It vs Is

Information Technology vs Information Systems

Abstract

Though Information Technology and Information Systems have two very different meanings, they are often used synonymously and can be confusing. The first part of this paper defines Information Technology and Information Systems and explains their components and infrastructure. Figures are used to depict the correlation and aid in understanding. The second part of this paper focuses on the Progressive Group of Insurance Companies. An analysis of their IT solutions is given and substantiated through examples from their website. The importance of management in the introduction and adoption of new IT systems is validated through Progressive’s continuous IT innovations which have increased revenue, decreased costs, and improved customer service. Finally, this paper provides a sample Change Management Continuum Model which identifies seven stages of commitment that an organization can take to effectively introduce and implement a new IT capability

Information Technology

Information Technology (IT), simply stated, is managing and distributing information by means of computers and software. “An organization’s defined set of IT hardware, software, and networks is called its IT infrastructure” (Reynolds, 2010). IT infrastructure may also include transmission media, such as cable television lines, and equipment that regulate transmission paths. IT falls under the umbrella of Information Systems discussed later. Figure 1 illustrates a sample representation of components that are typically part of an IT capability.

Figure 1 Sample IT Components

Information Systems

Information systems (IS) are the combination of IT and human activities that support the distribution of data. Organizations use IS for their day to day activities and rely on it to accomplish their overall mission. For example, organizations use IS for accounting and payroll, personnel management, and inventory. Figure 2 depicts a...