Who Develops Information Systems?
Traditionally, a company either developed its own information systems, called in-house
applications, or purchased systems called software packages from outside vendors.
Today, the choice is much more complex. Options include Internet-based application
services, outsourcing, custom solutions from IT consultants, and enterprise-wide software strategies.
Regardless of the development method, launching a new information system involves
risks as well as benefits. The greatest risk occurs when a company tries to decide how the
system will be constructed before determining what the system needs to do. Instead of
putting the cart before the horse, a company must begin by outlining its business needs
and identifying possible IT solutions. Typically, this important work is performed by
systems analysts and other IT professionals. A firm should not consider implementation options until it has a clear set of objectives. Later on, as the system is developed,
a systems analyst’s role will vary depending on the implementation option selected.
INFORMATION SYSTEM COMPONENTS
A system is a set of related components that produces specific
results. For example, specialized systems route Internet traffic,
manufacture microchips, and control complex entities like the
Mars Rover shown in Figure 1-7. A mission-critical system is one
that is vital to a company’s operations. An order processing system, for example, is mission-critical because the company cannot do business without it.
Every system requires input data. For example, your computer
receives data when you press a key or click a menu command. In
an information system, data consists of basic facts that are the
system’s raw material. Information is data that has been transformed into output that is valuable to users