Ever-changing information systems are crucial to the increased success and profitability of modern businesses. If companies do not keep up with current trends, changing technology, and consumer needs, they will most likely suffer decreased revenues. Information systems are not a new thing, but only recently have been getting recognition because of the money highly efficient information systems can save. In Illinois, since implementing electronic medical data records, “…the share of primary care providers using a basic electronic health record has gone from under 20 percent to nearly 30 percent". [1]
It is important to have a system that can streamline activities within companies, while having the ability to change the system accordingly. Information systems are comprised of four main components. Input is what goes into the system, usually comprised of raw data. Processing takes the data and makes it into something useful. Output is what comes out after the data is processed. The book uses the example of hours worked being processed into a paycheck. The final aspect is feedback, which I feel is the most important aspect of an information system.
Feedback helps the person or people who use or create the information system learn how to fix or make better the system being used. “Generally experts (but also simple examples from everyone's life) indicate that no learning would occur if some kind of feedback was not available.”[2] If systems did not provide a mechanism for how to improve how it is running or being used, there would be no point in having the information system.
Having a helpful information system isn’t just enough to help a business succeed. As we have seen in the book, it is very important that employees accept the technology. Companies need to have high technology diffusion rates for new systems to succeed. “Installing automation simply for the sake of having it guarantees it'll be a just an ordinary (and expensive!) business possession, but grasping an understanding of the ways it can be used is the real value.”[3]
[1]http://articles.chicagotribune.com/2011-04-11/news/ct-biz-0412-medical-records-20110411_1_health-care-concerns-about-patient-privacy-medical-information/2
[2]http://www.economicswebinstitute.org/glossary/feedback.htm
[3]http://www.helium.com/items/853154-maximizing-information-systems-to-gain-a-competitive-advantage
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