Defining Information Systems
Almost all programs in
business require students
to take a course in
something called information systems. But what exactly does that term mean? Let’s take a look at some of the more popular definitions, first from Wikipedia and then from a couple
of textbooks :
- Information systems (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.
- Information systems are combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organizational settings.
- Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and viualization in an organization.
The Components of Information Systems
As
I stated earlier,
I spend the first day of my information systems
class discussing exactly
what the term means.
Many students understand that an information system has something
to do with databases or spreadsheets. Others mention
computers and e-commerce. And they are all right, at least in part:
information systems are made up of different components that work together to provide value to an organization.
The first way I describe information systems to students
is to tell them that they are made up of five components: hardware,
software, data, people, and process.
The first three, fitting under the
category technology, are generally what most students
think of when asked to define information systems. But the last two, people and process, are really what separate the idea of information systems from more technical
fields, such as computer science. In order to fully
understand information systems,
students must understand how all of these components work together to bring value to an organization.
A.
Technology
Technology can be thought of as the application of scientific knowledge
for practical purposes.
From the invention of the wheel to the harnessing of electricity for artificial lighting,
technology is a part of our lives in
so many ways that we tend to take it for granted. As discussed
before, the first three components of information systems – hardware, software, and data –
all fall under the category
of technology. Each of
these will get its own chapter and a much lengthier discussion, but we will take a moment here to introduce them so we can get a full understanding of what an information system is.
B.
Hardware
Information systems hardware is the part of an information system
you can touch – the physical components of the technology.
Computers, keyboards, disk drives,
iPads, and flash drives are all examples
of information systems hardware. We will spend some time going over these components and how they all work together in chapter 2.
C.
Software
Software is a set of instructions that tells the hardware what to do. Software is not
tangible – it cannot be touched. When programmers create
software programs, what they are really doing is simply typing out lists of instructions that tell the hardware what to do. There are several categories of software, with the two main categories being operating-system
software, which makes the hardware
usable, and application software,
which does something useful. Examples of operating systems include Microsoft Windows on a personal
computer and Google’s
Android on a mobile phone. Examples of application software
are Microsoft Excel and Angry Birds. Software
will be explored more thoroughly in chapter 3.
D.
Data
The third component is data. You can think
of data as a collection of facts. For example, your street address, the city you live in, and your phone number are all pieces of data. Like software,
data is also intangible. By themselves, pieces of data are not really
very useful. But aggregated, indexed,
and organized together
into a database, data can become a powerful tool for businesses. In fact, all of the definitions
presented at the beginning of this chapter focused
on how information systems manage
data. Organizations collect
all kinds of data and use it to make
decisions. These decisions
can then be analyzed as to their effectiveness and the organization can be improved.
Chapter 4 will focus on data and databases, and their uses in
organizations.
E.
Networking
Besides the components of hardware,
software, and data, which have long been considered the core
technology of information systems, it has been suggested that one other component should
be added: communication. An information system can exist without the ability to communicate – the first personal
computers were stand-alone machines that did not access
the Internet. However,
in today’s hyper-connected world, it is an extremely rare computer that does not connect to another device
or to a network. Technically, the networking communication component
is made up of hardware
and software, but it is such a core
feature of today’s information systems
that it has become its own category. We will be covering networking in chapter 5.
F.
People
When thinking about information systems, it is easy to get focused on the technology components and forget that we must look beyond these tools to fully understand how they integrate into an
organization. A focus on the people involved in information
systems is the next step.
From the front-line help-desk workers, to systems analysts, to programmers, all the way up to the chief
information officer (CIO), the people involved
with information systems are an
essential element that must not be
overlooked. The people component will be covered
in chapter 9.
G.
Process
The
last component of information systems
is process. A process is a series of steps
undertaken to achieve a desired outcome
or goal. Information systems are becoming
more and more integrated with organizational processes, bringing more productivity and better control
to those processes. But simply automating activities using technology is not enough
– businesses looking
to effectively utilize information
systems do more. Using technology to manage and improve processes, both within a company and externally with suppliers and customers, is the ultimate
goal. Technology buzzwords
such as “business process reengineering,” “business process management,”
and “enterprise resource
planning” all have to do with the continued improvement of these business
procedures and the integration of technology with them. Businesses hoping to gain an advantage
over their competitors are highly focused
on this component of information systems. We will discuss processes
in chapter 8.
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