Information systems have become a vital component of successful business firms and other organizations. They thus constitute an essential field of study in business administration and management. Since you probably intend to be manger, entrepreneur, or business professional, it is just as important to have a basic understanding of information systems as it is to understand any other functional area in business.
An
information system is a set of people, procedures, and resources that collects,
transforms, and disseminates information in an organization. Today’s end users
rely on many types of information systems (IS). They might include simple
manual (paper-and-pencil) information systems and informal (word-of-mouth)
information systems.
Anyone
who uses an information system or the information it produces is an end user.
This term usually applies to most people in an organization, as distinguished
from the smaller number of people who are information system specialists, such
as system analysts or professional computer programmers.
A managerial end user is a manger, entrepreneur, or
managerial-level professional who personally uses information systems. Most
managers are managerial end users.
The
Objective of information systems is to provide information at all levels of management
at the most relevant time, at an acceptable level of accuracy, and at an economical
cost.
Information
systems play a vital role in business success. They can provide the information
a business needs for efficient operations, effective management, and
competitive advantage. However, information systems can fail. If information
systems do not properly support the strategic objective, business operation, or
management needs of an organization, they can seriously damage its prospects
for survival and success. So, the proper management of information systems is a
major challenge for mangers. Thus, the information systems function represents:
·
A major functional area of business
that is as important to business success as the functions of accounting,
finance, operations management, marketing, and human resources management.
·
A major part of the
resources of an organization and its cost of doing business, thus posting a
major resource management challenge.
·
An important factor
affecting operational efficiency, employee productivity and moral, and customer
service and satisfaction.
·
A major source of
information and support needed to promote effective decision making by managers.
·
An important ingredient in
developing competitive products and services that give an organization a strategic
advantage in the global marketplace.
·
A vital, dynamic, and
challenging career opportunity for millions of men and women.
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