ALL chapters MIS
Chapter 1 MIS
Summary Chapter 1
1. Explain why information systems are so essential in business today.
Information systems are a foundation for conducting business today. In many industries, survival and even
existence is difficult without extensive use of information technology. Information systems has become
essential for helping organizations operate in a global economy. Organizations are trying to become more
competitive and efficient by transforming themselves into digital firms where nearly all core business
processes and relationships with customers, suppliers, and employees are digitally enabled. Businesses today
use information systems to achieve six major objectives: operational excellence; new products, services, and
business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-
2. Define an information systems from both a technical and a business perspective.
From a technical perspective, an information system collects, stores, and disseminates information from an
organization’s environment and internal operations to support organizational functions and decision making,
communication, coordination, control, analysis, and visualization. Information systems transform raw data
into useful information through three basic activities: input, processing, and output. From a business
perspective, an information system provides a solution to a problem or challenge facing a firm and provides
real economic value to the business.
3. Identify and describe the three dimensions of information systems.
An information system represents a combination of management, organization, and technology elements. The
management dimension of information systems involves leadership, strategy, and management behavior. The
technology dimensions consist of computer hardware, software, data management technology, and
networking/telecommunications technology (including the Internet). The organization dimension of
information systems involves the organization’s hierarchy, functional specialties, business processes, culture,
and political interest groups.
4. Assess the complementary assets required for information technology to provide value to a
An information system is part of a series of value-adding activities for acquiring, transforming, and
distributing information to improve management decision making, enhance organizational performance, and,
ultimately, increase firm profitability. Information technology cannot provide this value unless it is
accompanied by supportive changes in organization and management called complementary assets. These
complementary assets include new business models, new business processes, a supportive organizational
culture, incentives for management support and innovation, training, and social assets such as standards, laws
and regulations, and telecommunications infrastructure. Firms that make appropriate investments in these