As discussed in the book “Business Fundamentals,” people think that information systems (IS) and information technology (IT) are the same. However this is not the case at all. IT is the technology is anything related to computer technology. This includes “networking, hardware, software, the Internet, or the people that work with these technologies” (Tech Terms, 2014). IS actually is a two part system. One part social, the other part technical.
First let’s discuss the first subsystem, which is referred to social. The social subsystem is the “people” and the “organizational” structure. Starting with people, these are individuals’ managers who define the system. These individuals bring “skills, knowledge, interests and traits” that are needed when creating an IS. Sometimes the system can fail due to a lack of training and time needed to negotiate such a system. (McCubbrey, 2009)
The second subsystem of social is the organizational structure. This could even be compared to a human resources aspect as the organizational structure has a “hierarchical and reporting structure.” Rewards systems are included as well. What is interesting is if individuals are resistant to change or the design of the system, it can fail. Hence the reward system is created to create an incentive for performance atmosphere. (McCubbrey, 2009)
Next is the second subsystem is technical. The technical subsystem deals with “process” and “technology” systems. Process is basically the key actions that a business does. It could be compared to a map from start to finish on any specific job that an individual completes. An example given in the book “Business Fundamentals” discusses what a grocery manager does when restocking inventory in a store. Items such as checking inventory, calling suppliers, getting the best price, soliciting the order and receiving the items to stock are all part of what is considered the process. (McCubbrey, 2009)
The technology subsystem involves the “hardware, software, and telecommunication equipment” that assists the business in assimilating and processing the business’ information. Hardware is the computer, modems, servers and wireless technologies that are needed to assist the business’ needs. Software are the programs that “directs the hardware” to complete specific tasks and the telecommunication systems is the network to drive the information to the world. (McCubbrey, 2009)
In closing, each piece of the information system (IS) is critical for a business to compete in this face paced world. It is important to remember that these four pieces must work in unison in order for a business to be successful. An organization must be ready to invite the technology into their business and make sure people are properly trained so the system does not fail. That is why the information system (IS) is so important to any business.
McCubbrey, D. (2009). Business Fundamentals. In D. J. McCubbrey, Business Fundamentals (pp. 222-226). Open Space .
Tech Terms. (2014). IT. Retrieved from Tech Terms: http://www.techterms.com/definition/it