Chapter 1 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-day survival.
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 business.
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