Unit 1.2: Why Study Information Systems? | IT 233 Course Notes

Learning Objectives

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

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

Why is Studying Information Systems Crucial?

Figure 1: IS Knowledge is Essential for Modern Business Professionals

In today’s digital economy, a foundational understanding of Information Systems (IS) is no longer just a requirement for IT professionals—it is a vital skill for every business manager, entrepreneur, and employee. Studying IS is crucial for several key reasons:

mindmap
  root((Why Study IS?))
    Business Functions
      Marketing CRM
      Finance ERP
      HR Systems
      Operations SCM
    Career Advantage
      Digital Literacy
      Leadership Opportunities
      Strategic Thinking
    Innovation
      New Business Models
      Digital Transformation
      Process Automation
    Decision Making
      Data Analytics
      Business Intelligence
      Real-time Insights

Figure 2: Key Reasons for Studying Information Systems

1. Integral to All Modern Business Functions

Information systems are the backbone of contemporary business. Every functional area, from marketing and sales to finance and human resources, relies on IS to manage daily operations, report on performance, and execute long-term strategies.

• Marketing: Uses Customer Relationship Management (CRM) systems to track customer interactions and manage campaigns.
• Finance: Relies on Enterprise Resource Planning (ERP) systems for accounting, financial reporting, and regulatory compliance.
• Operations: Uses Supply Chain Management (SCM) systems to manage inventory, logistics, and procurement.
• Human Resources: Employs Human Resource Information Systems (HRIS) for payroll, recruiting, and managing employee data.

Without a functional understanding of these systems, managers cannot make effective decisions or lead their teams efficiently.

2. Foundation for Data-Driven Decision-Making

The popular concept of “data-driven decision-making” is brought to life by information systems. IS provides the tools to collect vast amounts of data, process it into meaningful information, and present it through dashboards and reports that support strategic choices. By understanding how these systems work, you can ask better questions, interpret data more accurately, and contribute to more intelligent business outcomes.

3. A Source of Competitive Advantage in Your Career

Regardless of your chosen career path, digital literacy is a key differentiator. An employee who understands how to leverage information systems to improve a process, analyze data, or manage a project is significantly more valuable to an organization. This knowledge can lead to better job performance, faster career advancement, and opportunities to lead strategic initiatives.

4. Enabler of Business Innovation and Transformation

New business models and disruptive innovations are often born from the clever application of technology. Companies like Uber, Netflix, and Airbnb did not invent new products; they used information systems to create entirely new ways of delivering services. Studying IS helps you understand the principles behind this innovation, enabling you to identify opportunities for digital transformation within your own organization or industry.

5. Enhancer of Communication and Collaboration

Modern information systems include powerful tools for communication and collaboration, such as email, instant messaging, video conferencing, and shared digital workspaces (e.g., Microsoft Teams, Slack). Understanding how to use these tools effectively is essential for working in today’s distributed teams and global organizations. A formal study of IS provides insight into the best practices for using this technology to foster productivity and teamwork.

Summary

Studying Information Systems provides essential knowledge that transcends the IT department. It equips future business leaders and professionals with the skills to understand and leverage technology for operational excellence, strategic decision-making, and innovation. In a world where business and technology are inseparable, IS literacy is a prerequisite for success.

Key Takeaways

• IS knowledge is essential for all business functions, not just IT.
• Understanding IS is 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.

Discussion Questions

1. Think of a non-technical job role. How would knowledge of IS benefit a person in that role?
2. How has a company like Amazon used information systems to gain a competitive advantage?
3. Can a small business survive today without leveraging at least one type of information system? Discuss.