Computers continue to change every aspect of our lives from entertainment to shopping, from the work we do and where we do it, to how we communicate with friends, relatives, and business associates. As you can see from the opening vignette in the text, many businesses are remodeling their products and services to take advantage of expanded channel outlets such as the Internet, cell phones, and even iPod devices.

This chapter gives you an overview of many of the subjects we’ll touch on in this course. It will help you understand how information technology is being used by many businesses worldwide to increase efficiency, save money, and create better relationships with suppliers and customers.
1.1 The Role of Information Systems in Business Today

Ask managers to describe their most important resources and they’ll list money, equipment, materials, and people—not necessarily in that order. It’s very unusual for managers to consider information an important resource, and yet it is. As electronic business and electronic commerce grow in popularity and more firms digitize their operations, having useful information is becoming even more important to the global business community. This chapter will begin to explain why you need to manage your information resources as closely as any other in your organization.

How Information Systems Are Transforming Business

The next time you’re in your workplace or on your school’s campus, even walking down the street, take a closer look at the people around you and observe what they’re doing. Most likely someone will be using a computer or a handheld personal digital assistant. Someone will be using a cell phone, perhaps taking pictures with it or buying tickets to a sports game. Another person will probably have an iPod device, listening to music or a podcast. Chances are most people around you will be engaged in