Why does the difference

between IT and IS matter?

Contents
Introduction to Information technology and
Information system
Learning activity
The difference between IT and IS
Why is the difference important to know?
Learning activity

INTRODUCTION TO IT
AND IS

Information Technology
Information technology is the set of methods,
techniques and tools to provide storing, processing,
transferring and displaying information, which is
oriented towards the increase in labor efficiency and
productivity

IT Example: Wireless Internet

IT in Society (people)
Personal Communication
Conversations (phone, cell)
Messaging (E-mail, SMS)
Video Coms

Entertainment
Web surfing
Downloading video and audio files
Interactive gaming

Day-to-Day living
Buying airline ticket
Ordering books
Electronic banking/ stock market

IT in Society (business)
Internal Communication
Computer network
Corporate website
Video teleconferencing
Messaging (SMS, email)

Electronic Commerce
Call Centres
Electronic transactions
Online sales

Business operations
Factory operation systems
Databases

Information System
Definition: A set of interrelated components which are to collect, process, store, and distribute
information to support decision making and control in an organization

Types of Information System

Advantages & Disadvantages

Advantages:
Increased Productivity
Increased Efficiency
Better Profitability Levels
Disadvantages:
System dependent
Limited functionality, by design
Information overload for some managers
Benefits hard to quantify
High implementation costs
System may become slow, large, and hard to manage
Need good internal processes for data management
May lead to less reliable and less secure data

Learning activity 1

Which type of system?

System

Type of system

System for processing payroll

Office automation system

SAP, Oracle system

Electronic commerce system

Credit card approval analysis

Executive Dashboard

Microsoft Office

Functional area IS

www.samsung.com,
www.apple.com

Enterprise resource planning

Status of sales by products

Expert system

Learning activity 2

Enjoy the following videos and discuss what is/are information

technology and information system

What is the difference between

information technology and information systems?
Information technology and information systems are two closely
related terms.
Information technology refers to the products, methods,
inventions, and standards that are used for the purpose of
producing information.
Information Systems (IS) refers to the assembly of hardware,
software, data, procedures, and people that produces information.
Information technology drives the development of new information
systems.

What is the differencebetween information

technologyand information system? (cont.)

Why does the difference between IT and IS matter?

Information
technology (IT)
1. Products

Information Systems
(IS)

2. Methods

assembly of hardware

3. Inventions

software

4. Standards

data

IT = hardware + software procedures

people that produces information.
+ data

Why does the difference between IT and IS matter?

Avoid a common mistake: Cannot buy an IS
Can buy, rent or lease hardware, software and
databases, predesigned procedures
People execute procedures to employ new IT
Requires training, overcoming employees
resistance, and managing employees who use
system

IS = IT + People + Procedures