Unit 2.1
Unit 2 Intro: Information Systems in Business
IT 231: IT and Application
Learning Objectives
By the end of this unit, you will be able to:
- ✅ Define the "Information Age" and explain why data is a critical business asset.
- ✅ Differentiate between Information Technology (IT) and Information Systems (IS).
- ✅ Describe the evolution of technology's role in business, from operational support to strategic tool.
- ✅ Identify the major types of business information systems, including enterprise systems and e-business.
Welcome to the Information Age 💾
We've fundamentally shifted from an industrial economy to one driven by information.
- In this new era, the ability to gather, process, and analyze data is paramount.
- Data is no longer just a record of what happened; it's a key asset used to predict the future and make strategic decisions.
Key Idea: Companies that effectively leverage data and information systems gain a significant competitive advantage.
IT vs. IS: What's the Difference?
These terms are often used interchangeably, but they have distinct meanings.
Information Technology (IT) 💻
Refers to the tools: hardware, software, and networks that enable information processing.
- Servers & Computers
- Operating Systems
- Databases & Networks
Information Systems (IS) 📊
A broader concept that includes IT, people, and processes working together to manage information.
- University Enrollment System
- E-commerce Website
- Hospital Management System
The Strategic Role of IS 🎯
Information Systems have evolved from a back-office utility to a core strategic driver.
Then: Operational Support
- Automating basic tasks
- Record keeping (accounting)
- Improving efficiency
Now: Strategic Weapon
- Creating new products/services
- Informing critical decisions
- Enhancing customer relationships
- Gaining competitive advantage
A Spectrum of Business Systems 🔍
Businesses utilize a range of information systems tailored to different needs and scales.
Departmental Systems: Serve the specific needs of a single department, like Marketing or HR. They are often isolated in "silos."
Enterprise Systems: Integrate data and processes across the entire organization, breaking down silos and providing a unified view.
E-Business Systems: Use the internet to connect with external stakeholders like customers, suppliers, and partners.
Focus: Enterprise Systems
Enterprise systems act as the central nervous system for a modern organization.
Goal: To create a "single source of truth" by integrating all major business functions into one unified system.
- Example 1: ERP (Enterprise Resource Planning)
Manages core business processes: finance, HR, manufacturing, supply chain, etc.
- Example 2: CRM (Customer Relationship Management)
Manages all interactions with current and potential customers.
The Rise of E-Business ⚡
E-Business is more than just selling things online (e-commerce).
Definition: The use of internet technologies to conduct business, including internal processes and external connections with customers and partners.
It has revolutionized how companies:
- Interact with customers (24/7 support, personalized marketing)
- Collaborate with suppliers (real-time inventory management)
- Manage internal operations (employee portals, remote work)
IS in Action: The Nepali Context
Information Systems are transforming business and daily life in Nepal.
Digital Payments & E-Commerce
Companies like eSewa and Daraz rely on complex IS for secure transactions, inventory management, and logistics, enabling a thriving digital economy.
Ride-Sharing Services
Pathao and inDrive use integrated systems combining GPS, user data, driver management, and real-time payment processing to deliver their services.
Banking and Financial Services
Core Banking Systems (CBS) are large-scale enterprise systems that allow banks like Nabil Bank or NIC Asia to offer services like mobile banking and inter-branch transactions seamlessly.
Key Takeaways
Let's summarize the core concepts from this introduction.
- Data is the New Oil: We are in an Information Age where data is a primary asset for business success.
- IT vs. IS: IT are the tools; IS are the systems of tools, people, and processes that create value.
- From Silos to Integration: The trend is moving from isolated departmental systems to integrated enterprise systems for a holistic business view.
- E-Business is Transformative: The internet has fundamentally reshaped business operations, customer interactions, and partnerships.