Unit 1.2

Why Study Information Systems?

IT 233: Business Information Systems

Chapter Learning Objectives

By the end of this chapter, you will be able to:

✅ Explain why IS is crucial for all business professionals.
✅ Identify how IS supports different functional areas of a business.
✅ Describe the role of IS in data-driven decision-making and innovation.
✅ Recognize the value of IS knowledge for personal career growth.

The Core Question

In today's digital economy, understanding Information Systems is no longer just for the IT department.

It is a vital skill for every business manager, entrepreneur, and employee.

Key Idea: IS literacy is a prerequisite for success in modern business.

1. IS is Integral to All Business Functions

Information Systems are the operational backbone of every contemporary business department.

Marketing 🎯

Uses CRM systems to track customer interactions and manage campaigns.

Operations ⚙️

Uses SCM systems to manage inventory, logistics, and procurement.

Finance 💰

Relies on ERP systems for accounting and financial reporting.

Human Resources 👥

Employs HRIS for payroll, recruiting, and managing employee data.

2. The Foundation for Data-Driven Decisions 📊

The concept of "data-driven decision-making" is brought to life by information systems.

IS provides the tools to collect vast amounts of data.
It processes that data into meaningful information.
It presents insights via dashboards and reports.

Understanding IS helps you ask better questions and interpret data more accurately for smarter business outcomes.

3. A Source of Career Advantage

Regardless of your chosen career path, digital literacy is a key differentiator.

An employee who can leverage IS to improve a process, analyze data, or manage a project is significantly more valuable.

This knowledge leads to:

Better job performance
Faster career advancement
Opportunities to lead strategic initiatives

4. Enabler of Business Innovation ⚡

New business models and disruptive innovations are often born from the clever application of technology.

Companies like Uber, Netflix, and Airbnb didn't just invent new products—they used IS to create entirely new ways of delivering services.

Uber / Pathao

Used IS to connect drivers and riders, disrupting the taxi industry.

Netflix

Used IS for streaming and recommendations, disrupting media distribution.

Airbnb

Used IS to create a marketplace for lodging, disrupting hospitality.

Practical Application: IS in Nepal 🇳🇵

Example: Digital Wallets like eSewa & Khalti

These companies leveraged information systems to create a powerful digital payment ecosystem in Nepal.

Simplified mobile top-ups and utility bill payments.
Enabled e-commerce by providing a trusted payment gateway.
Collected transaction data to understand consumer behavior and offer new services.

Result: They transformed how many Nepalis handle financial transactions, reducing reliance on cash and driving digital literacy.

5. Enhancer of Communication & Collaboration

Modern information systems provide powerful tools for teamwork, essential for today's distributed and global organizations.

Core Tools Include:

Email & Instant Messaging (e.g., Slack, Microsoft Teams)
Video Conferencing (e.g., Zoom, Google Meet)
Shared Digital Workspaces (e.g., Google Drive, Notion)

A formal study of IS provides insight into the best practices for using this technology to foster productivity.

Key Takeaways 🔍

IS knowledge is essential for all business functions, not just the IT department.
Understanding IS is the key to making effective data-driven decisions.
Digital literacy and IS skills provide a significant career advantage.
IS is a primary driver of business innovation and new service models.

Thank You

Any questions?

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Chapter 3: The Components of Information Systems

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