Maximizing Business Value with Information Systems

Differences Between IT and IS

What is the difference between IT and IS? Describe some of the functions of IS.

Information technology consists of all the hardware and software that a firm needs to use to achieve its business objectives. Information systems are more complex; an information system can be defined technically as a set of interrelated components that collect, process, store, and distribute information to support decision-making and control in an organization.

Information systems:

• Support decision-making, coordination, and control.
• Help employees analyze problems.
• Help employees visualize complex subjects.
• Help create new products.

Impact of IS on Corporate Strategies

How does a company's use of IS affect corporate strategies?

A firm's ability to effectively use IT is interdependent with its ability to implement corporate strategies and achieve corporate goals. More and more, the ability to compete and succeed depends on a company's ability to implement technology. What a business would like to do in the future can depend on what its systems will be able to do.

Achieving Operational Excellence Through IS

Define operational excellence. How can IS help achieve it?

Operational excellence is the achievement of higher levels of productivity, efficiency, and profitability. Information systems can help achieve operational excellence by improving communications with suppliers and optimizing the supply chain.

Modern Changes in Organizational Information Systems

What are the main changes taking place in organizational use of information systems? Which of these do you think is having the greatest impact on business?

The main changes taking place are:

1. Businesses using social networks to connect with customers and suppliers.
2. Businesses implementing tablet and mobile platforms, enabling work away from the office.
3. An increase in collaboration with customers and suppliers, who are more connected by networks to the firm and able to contribute to new products and services.

Business Processes and Information Systems

What are business processes? How are they related to information systems?

A business process is a logically related set of activities that defines how specific business tasks are performed, and it represents a unique way in which an organization coordinates work, information, and knowledge. Managers need to pay attention to business processes because they determine how well the organization can execute its business, and they may be a source of strategic advantage. Information systems automate parts of business processes, and they can help organizations redesign and streamline these processes.