Describe the importance of understanding the difference between information technology and information systems when trying to
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Describe the importance of understanding the difference between information technology and information systems when trying to create business value from information technology.
In nowadays business environment, everything is based on information and knowledge, thus, information systems and information technology play important roles. Many companies bring in high technology to improve their business performances. The application of information technology can encourage working efficiency and competitive advantage, so that companies existence depend on the assistance of information technology. However, it is essential for companies to realize the difference between information technology and information systems, otherwise the introduction of information technology may be waste.
An information system is a system, which provides useful information about the internal organization and the external environment to the members of a company and its clients. Besides, an information system can support regular work, management and decision-making of a company. There are four elements; people, data, hardware, and software compose an information system. Hence, an information system is a combination of tangible and intangible resources that people collect data then use hardware and software to transfer data into useful information to someone who needs the information. Moreover, information systems can be classified into informal and formal systems, and the latter can be divided into non computer-based and computer-based...