Tomas, Lovely Joy Y.

January 27, 2020

Bsit 4B

An Information System is a set of interrelated components that work together to collect,

process, store, and disseminate information to support decision making, coordination, control,
analysis, and visualization in an organization. Information systems are the foundation for
conducting business today. It plays a critical role in increasing productivity and industrial
survival thus making it hard for an organization to continue to exist without extensive use of it.
With information system existence it ensures improved decision making, Operational excellence,
and Competitive advantage, Customer and supplier intimacy and total overall organizational
survival. Information systems may help managers and workers analyze problems, visualize
complex subjects, and create new products.

THREE DIMENSIONS OF INFORMATION SYSTEM. An information system represents a

combination of management, organization, and technology element. To fully understand
information systems, a manager must understand the broader organization, management, and
information technology dimensions of systems and their power to provide solutions to challenges
and problems in the business environment. Hence it incorporates an understanding of the
management and organizational dimensions of systems as well as the technical dimensions of
systems as information systems literacy. Information systems literacy includes a behavioral as
well as a technical approach to studying information systems. Computer literacy, in contrast,
focuses primarily on knowledge of information technology.

ORGANIZATIONAL DIMENSION. Information systems are part of organizations.

Information systems will have the standard operating procedure and the culture of an
organization imbedded within them. The organization dimension of information systems
involves the organization’s hierarchy, functional specialties, business processes, culture, and
political interest groups. In reality today information systems affect a much larger part of the
organization itself, such as organizational products, objectives, and structure. Powerful
computers, software, and networks, including the Internet, have helped organizations become
more flexible, More and more business activities at all levels involve the use of information
systems.

MANAGEMENT DIMENSION OF INFORMATION SYSTEM. Managers perceive

business challenges in the environment, they set the organizational strategy for responding and
allocate the human and financial resources to achieve the strategy and coordinate the work. The
management dimension of information systems involves leadership, strategy, and management
behavior. Information systems supply tools and information needed by managers to allocate,
coordinate and monitor their work, make decisions, create new products, and services and make
long-range strategic decisions. Information system helps to make teamwork and collaborative
work environments Information systems help to drive both daily operations and managerial
strategies. Information systems can help management to obtain periodic reports, These reports
can be obtained from different systems such as sales./marketing systems, Human resource
systems, accounting systems. The systems assist managers in making decision making such as by
having What-if" questions on decision support systems. Also helps senior management to tackle
and address strategic issues and long-term trends both in the firm and in the external
environment.

TECHNOLOGY DIMENSION. The technology dimensions consist of computer hardware,

software, data management technology, and networking/telecommunications technology
(including the Internet). Management uses technology (hardware, software, storage, and
telecommunications) to carry out their functions. It is one of the many tools managers use to
cope with change.

Business Perspective on IS

An information system contains information about an organization and its surrounding

environment. Three basic activities—input, processing, and output—produce the information
organizations need. Feedback is output returned to appropriate people or activities in the
organization to evaluate and refine the input. Environmental factors such as customers, suppliers,
competitors, stockholders, and regulatory agencies interact with the organization and its
information systems. From a business perspective, an information system is an organizational
and management solution, based on information technology, to a challenge posed by the
environment. Examine this definition closely because it emphasizes the organizational and
managerial nature of information.

Melody Pasion January 27, 2020

BSIT 4B
Business Perspective on IS

An information system can be defined technically as a set of interrelated components that collect
(or retrieve), process, store, and distribute information to support decision making, coordination
and control in an organization. In addition to supporting decision making, coordination, and
control, information systems may also help managers and workers analyze problems, visualize
complex subjects, and create new products.