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Chapter 1

BUS 237 Chapter Notes - Chapter 1: Computer Hardware, Information System, Network Effect

Business Administration
Course Code
BUS 237

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What Is an Information System?
- A system is a group of components that interact to achieve some purpose
- Information system (IS) - a group of components that interact to produce
- Five-component framework - present in every information system, from the simplest
to the most complex
- Computer hardware
- Software - instructions for computers
- Data - recorded facts or figures
- Procedures - instructions for humans
- People - includes those who operate and service the computers, those who
maintain the data, those who support the networks, and those who use the
- Hardware refers to the electronic components and associated gadgetry that
constitute a computer system
- Software is more correctly used to refer only to programs or applications that run, or
operate, on computer systems
- Data are the basic building blocks of information, such as facts and observations
- Procedures are the instructions or processes that you follow to achieve your desired
- People are the actors who want to achieve a particular outcome by interaction with
the system
What Is MIS?
- Management information systems (MIS) - information systems that help
businesses achieve their goals and objectives
- MIS has three key elements: development and use, information systems, and goals
and objectives
Development and Use of Information Systems
- Information systems are designed and created by business analysts and systems
designers at the request of senior managers or entrepreneurs in order to solve a
particular problem or meet a perceived need
How Does an IS Differ from IT
- Information technology (IT) - the products, methods, inventions, and standards
that are used for the purpose of producing information
- IT refers to raw technology, and it concerns only the hardware, software, and data
components of an information system and how these are networked together
- IS refers to a system of hardware, software, data, procedures, and people who
produce information
- IT, by itself, will not help an organization achieve its goal and objectives
- Only when the technology within the hardware, software, and data is
combined with the people and procedure components - that It becomes useful
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