An information system is a set of interrelated components that collect or retrieve, process, store, and distribute information to support decision making and control in an organization. Information systems can also be used to analyze problems, visualize complex subjects, and create new products. Information is data, or raw facts, shaped into useful form for humans. Figure 1-3
Computer literacy focuses primarily on knowledge of information technology. Information systems literacy, the understanding of information systems, includes a behavioral and technical approach to understanding the broader organization, management, and information technology dimension of systems and their power to provide solutions. The field of management information systems (MIS) tries to achieve this broader information systems literacy. Figure 1-5
Each organization has a unique culture, or fundamental set of assumptions, values, and ways of doing things, that are accepted by most of its members. Parts of an organization's culture can be found in its information systems. For example, UPS's organizational focus on customer service can be found in the package tracking system available to customers. Information systems may also reflect the organizational politics or conflicts that result from differing views and opinions in an organization. Information technology is one of the many tools used by management to cope with change. A firm's information technology (IT) infrastructure is a technology platform or foundation on which a firm can build its information systems. IT infrastructure consists of:
The World Wide Web is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format on the Internet. Web pages contain text, graphics, animations, sound, and video and are linked to other Web pages. The Web can serve as the foundation for new kinds of information systems such as UPS's Web-based package tracking system From a business perspective, an information system is an important instrument for creating value for the firm. Information systems enable the firm to increase its revenue or decrease its costs by providing information that helps managers make better decisions or that improves the execution of business processes. Every business has an information value chain in which raw data is systematically acquired and then transformed through various stages that add value to that information. The value of an information system to a business, as well as the decision to invest in any new information system, is, in large part, determined by the extent to which the system will lead to better management decisions, more efficient business processes, and higher firm profitability. Figure 1-7
Complementary investments include:
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