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System Hierarchy Information systems are composed of three main elements: technology, people, and process (see Figure I-9). When most people use the term information system, they actually refer only to the technology element as defined by the organization’s infrastructure. In this text, the term infrastructure refers to everything that supports the flow and processing of information in an organization, including hardware, software, data, and network components whereas architecture refers to the blueprint that reflects strategy implicit in combining these components. Information sys- tems (IS) are defined more broadly as the combination of technology (the “what”), people (the “who”), and process (the “how”) that an organization uses to produce and manage information. In contrast, information technology (IT) focuses only on the technical devices and tools used in the system. We define information technology as all forms of technology used to create, store, exchange, and use information. Many people use the terms IS and IT inter- changeably. In recent years, “IT” has been more fashionable, but that changes as fashions change.
S U M M A R Y
Aligning information systems and business decisions is no longer an option; it’s an imperative for business. Every business oper- ates as an information‐based enterprise. In addition, the explosive growth of smart phones, tablets, social tools, and Web‐based businesses provides all managers with some experience in information systems and some idea of the complexity involved in providing enterprise‐level systems. This highlights the need for all managers to be skilled in managing and using IS.
It is no longer acceptable to delegate IS decisions to the management information systems (MIS) department alone. The general manager must be involved to both execute business plans and protect options for future business vision. IS and business maturity must be aligned to provide the right level of information resources to the business.
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