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Business Fundamentals was developed by the Global Text Project, which is working to create open-content electronictextbooks that are freely available on the website http://globaltext.terry.uga.edu. Distribution is also possible viapaper, CD, DVD, and via this collaboration, through Connexions. The goal is to make textbooks available to the manywho cannot afford them. For more information on getting involved with the Global Text Project or Connexions email us atdrexel@uga.edu and dcwill@cnx.org.
Editors: Donald J McCubbrey (Daniels College of Business, University of Denver, USA) and Garry Woods (CommerceNext LLC, USA)
Reviewer: Richard A Scudder (Daniels College of Business, University of Denver, USA)
Before we begin our discussion of IS tools for a start-up organization, it is important to note that it may not be necessary to use a computer-based information system when you first go into business. You may be able to satisfy your information processing and record-keeping needs with manual systems. However, as the price of computers drop you’re your business expands, you may find it wise, as many small business owners do, to invest in computer-based information systems. Many people use Information Systems and Information Technology as if they meant the same thing. They are different, and it is important for you to understand the difference between them. As illustrated in [link] , an Information System is comprised of two sub-systems, a Social sub-system and a Technology sub-system.
The discussion of the four components of an Information Systems as well as [link] above has been extracted from another book in the Global Text library ( Information Systems 2008).
An information system may not need the use of computers to make the accumulation, organization, and reporting of information easier, faster, or more reliable. In your organization early stages, you may find it simple enough to just keep paper records and communicate face-to-face or by telephone rather than use email. However, modern organizations increasingly rely on information technology as the core of their information systems and part of the reason is that the cost of using computers has decreased as technology improves. We define information technology to include hardware, software and telecommunication equipment that is used to capture, process, store and distribute information.
Hardware is the physical equipment—such as a personal computer, a laptop, a portable computing device, and even a modern cell phone—used to process information. Software is the set of coded instructions (programs) that direct the hardware to perform the required tasks. A typical example is Google Docs—a word processing program designed to instruct a computer to create text documents. Telecommunication systems are the networking equipment enabling users and devices to communicate. An example of a telecommunication system is a telephone network, which allows two callers to interact by voice over a distance.
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