1. Importance of IS

Distinguish between Information Technology (IT) and Information Systems (IS). Explain what is meant by a socio-technical approach to the study of Information Systems in organisations. Discuss some impacts (good and bad) of IS to individuals, organisations and society at large. Use one organisation that you know (could be any organisation, as long as is well known) to describe the role of IS in supporting the functioning of that organisation.

Introduction

The modern world is heavily dependent on information, as the global economy is driven by the service and information sectors.  As a result, organisations are seeking to value and develop information systems to gain advantage over their competitors by improving efficiency and enhancing their output.

In this essay, I intend to distinguish between information technology and information systems, and explain how to approach the study of information systems in a socio-technical manner.  Furthermore, I will examine the impact of information systems on individuals, organisations and society as a whole.

Information technology and information systems

“There is a tendency on the part of some managers to regard information technology and information systems as being the same thing.“

(Benson, S., Standing, C. 2005, p.8)

However, this is not the case.  Information technology is essentially hardware, software and communication devices that are required by a firm to operate sufficiently and achieve their business objectives.  This can include laptops, printers, data servers, Linux and intranets.

In contrast, an information system integrates information technology.  It is a mechanism that enables decision making and control in an organisation by retrieving, processing, storing and distributing information.  Such a system can assist managers in analysing problems and producing new products or services.  They are multi-dimensional; alongside information technology, the firm’s culture, the management and the whole organisation.  Consequently, the functioning of information technology within a firm would directly affect the overall system.  Furthermore, there are various views on which dimension of information systems is the most important.  I believe that they are equally important and for a firm to be successful, the various elements of its information system have to be synchronized.  One function of a system may be important in one situation, while other functions are in other circumstances.

Information systems are developed by firms to improve operational efficiency, and by creating business models they allow firms to create new products and services.  In addition, they enable managers to make decisions more reliable and quicker.  Combining these factors together, as a whole, improving a firm’s information system can increase its competitive advantage.

“Businesses define their own information systems, and information systems constantly redefine business.”

(Benson, S., Standing, C. 2005, p.2)

The powerful effects of information systems are clearly demonstrated by Wal-Mart.  With the use of its Retail Link system, the firm has been able to achieve exceptional operational efficiency to become the world's largest public firm by revenue.

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As the importance of information systems for firms has developed over time, so has the role of chief information officer (CIO) within a firm.  The position involves determining the contribution of the information systems function in a business and how this relates to the overall strategic direction of the firm.  As a result, the CIO may even be present on the executive board.  Traditionally, a high proportion of CIOs came from technical background, for example, engineering or computer science.  However, as systems have evolved, more and more are entering the role from a managerial or strategic background.

Furthermore, ...

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