Chapter 1

An overview of information systems

1.1 Introduction

Throughout business, entertainment, media and design, information systems are

used to support the distribution, processing, management and evaluation of data
and information. In a global world, where businesses and corporations operate, it is
important that they understand why information systems are so essential to the
business they conduct.

Put simply, an information system is a collection of hardware, software and people

that work together to collect, store, sort and process information. In this chapter, we
will discuss how information systems affect businesses in terms of their relationship
to the global world. You will also get an understanding of the essential components
that make up an information system, how these components interact with each
other, and what effect such interactions cause.

This chapter also provides an overview of the management, organisation and

technology components of information systems. An explanation is given of how
these components are formed and used.

In the second half of this chapter, we will define the assets a business has that
complement the effective use of information systems. Well trained staff ensure that
information systems provide real business solutions (rather than becoming merely
hardware and software investments).

Essential reading

Laudon and Laudon, Management Information Systems Managing the Digital Firm, Chapter 1.

Additional reading

"In Search of Simplicity" (Beyond the Search for Excellence) Information Management Tools: Their Future and Their
Potential Impact on the Corporation, Grulke, Wolfgang E. This article was published in 1987 and won the NACCA
award for the best business article of the year. See how accurate Grulke’s predictions proved to be. Available at
http://www.futureworld.org/Archives/tlksimpl.html.