Innovation and Its Application
One definition of innovation is the process by which solutions are created for complex problems. Another perspective sees innovation as creating something entirely new that takes situations and people down a path not previously conceived. Read this section, which discusses innovation and several practical aspects of bringing new ideas to fruition, and demonstrates case studies of successful applications.
Learning objectives
- Understand the differences between information systems and information technology
- Be able to identify the four components of information systems
- Understand the relationships between the four components of information systems
- Understand the reasons for having an information system
- Be able to assess the value of information systems from the financial as well as managerial points of view
Introduction
An information system is designed to collect, process, store and distribute information. Although information systems need not be computerized, Information Technology (IT) plays an increasingly important role in organizations due to the fast pace of technological innovation. Today most information systems beyond the smallest are IT-based because modern IT enables efficient operations as well as effective management in organizations of all sizes. This chapter will first define the critical components of modern information systems, and then discuss how organizations achieve higher efficiency, better effectiveness, and improved coordination through their use.