A Business Perspective on Information System

1.1.2 A Business Perspective on Information System
From a business perspective, an information system is an organizational and management solution, based on information technology, to a challenge posed by the environment. It emphasizes the organizational and management nature of information system To understand information system
– to be information system literate as opposed to computer literate – 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
Figure 1.2
The key elements of an organization are its people, structure and operating procedures, politics and culture. An organization coordinates work through a structured hierarchy and formal standard operating procedures (SOPs). SOPs are formal rules for accomplishing tasks that have been
developed over along time. These rules guide employees in variety of procedures. Most of the procedures are formalized and written down, but many others are informal work practices. Major organizational functions are like sales and marketing, manufacturing, finance, accounting and human resources (personnel, research and development. Information System Organizations Management Technology

• Research and development: The research and development department of an organization does two things. (1) it carries out research relating to discoveries to the organizations new and current products. (2) it does product development and tests and modifies new and existing products and services created by the researchers.
• Production: The production department makes the product or provides the services. Ina manufacturing company, it takes the raw materials and has people and machinery convert it into finished goods.
• Sales and marketing: The marketing department oversees advertising, promotion and sales. The people in this department plan, price, advertise, promote, package, and distribute the services and products. The sales representatives use laptops, cellphones, email and faxes in their work while on the road.
• Accounting and finance this department handles all financial matters it handles cash management, pays bills, taxes, issue cheques etc. They also provide financial forecasting and financial budgets.
• Human resource This department finds and hires people, administers leave and retirement matters. It is also concerned with matters of compensation, retirement and employee relations. Managements job is to make sense out of many situations faced by organization and formulate
action plans to solve organizational problems. A substantial part of management is creative work driven by new knowledge and information. Information technology can play a powerful role in redirecting and redesigning the organization. Managerial roles and decisions vary at different levels of the organization.
• Senior managers – make long-range strategic decisions about products and services to produce.
• Middle managers – carryout the programs and plans senior management.
• Operational managers – responsible for monitoring the firm’s daily activities. Information technology is in one of many tools available to managers for coping with change which consists of computer hardware, computer software, storage technology and communication technology. Computer hardware is physical equipments used for input, processing and output activities in an information system. Computer software is detailed, preprogrammed instructions that control and coordinate the work of computer hardware components in an IS. Storage

technology is physical media and software governing the storage and organization of data for use in an IS. Lastly, communication technology is physical devices and software that link various computer hardware components and transfer data for use in an IS. A network links two or more computers to share data or resources such as printer.

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