IS vs IT

Information systems vs information technology

Tim Fipps, 21 Nov 2016

1. Introduction
The intensive use of information technology (IT) in helping business firms and organisations
to manage their information systems (IS) has boomed since the 1990s. Today, we can see that
the use of IT in the management of IS has expanded rapidly. Nevertheless, there is still
confusion between what is referred to as IT and IS.

2. Discussion on the differences between IT and IS

2.1. IT and IS landscape
Information system is defined along with information technology, business process and
business strategy:

A firm consists of business processes and operates in a business environment.

The business environment includes the firm itself and everything else that affects the
firm's success, such as customers, competitors, suppliers, regulatory agencies, and
demographic, social and economic conditions.

A business process is a group of related steps or activities that use people, information
and other resources to create value for internal or external customers, based on the
business strategy as identified by the firm's management. Business processes consist
of steps related in time and place, have a beginning and end, and have inputs and
outputs.

Among others, business processes use information.

An information system handles information used in business processes; more

specifically, an information system is a system that uses information technology to
capture, transmit, store, retrieve, manipulate, or display information used in business
processes.

Information technology is the hard- and software that make information systems
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IS vs IT
possible.
Due to the equipment and the business relevance, both IS and IT must put risk management
at high priority, which includes policies for security and use, privacy protection and ethical
compliance.

Fig. 1: Framework for thinking about the firm, its business environment and business
processes, and the information systems that support them.

IS vs IT

Fig. 2: Framework for business process, users, information and technology in the firm.

2.2. Definitely strategic matter

The firm's management defines the business strategy for its organisation, based on its
competences and business environment.
Both IS and IT are concerned with the implementation of information technologies to best
inform and direct business decisions.
Both IS and IT relate to the business strategy, though each in their own unique way.
The business strategy serves to define where the business is going, and why; this covers the
firm's objectives and direction, the major business decisions, planning and change, and it sets
the direction for IS.
The IS strategy serves to define what information is required for the business strategy, for
advancing and expanding the business, for product applications; the IS strategy also defines
the needs and priorities in IT.
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IS vs IT

The IT strategy serves to define how the information requirements can be delivered, in terms
of information infrastructure & services, with required activities, technologies and products.
IS serves to aid decision-making of the business while IT provides & implements the means
so that IS can serve this decision-making.
Hence:

IS answers the question: "What goal do we need to achieve through strategic use of
IT?"

IT answers the question: "Which piece of equipment would best work towards
achieving this goal?"

Therefore:

IS is a business discipline.

IT is an engineering discipline.

2.3. Comparing descriptions

IS focuses on the information, its primary concern is the information itself, while IT concerns
itself more with the computer hardware and software, i.e. the tools, to facilitate the gathering
and processing of information.
IS places an emphasis on how the information provided by the technology can help an
organisation meet its needs, how the users in the organisation interact with each other, with
outside the organsiation and with the IT infrastructure & equipment to achieve the objectives
of the business.
Information systems (IS) are concerned with the information that computer systems can
provide to aid a person, company or other organisation in defining and achieving its goals.
IT deals with the technology involved in the information systems, i.e. technology for transfer,
storage, availability and generation of information.
IT focuses on setting up and maintaining an organisation's IT infrastructure and its
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IS vs IT
components (such as topology, servers, switches, hubs, and VPN technology), hence IT
focuses on the functioning of IT network & components and how they provide the means to
store, network, and process, manipulate and disseminate information.
IT is a set of computer-based tools which can be applied to build and operate an IS, if that IS
is designed with the IT support.
However, there are information systems which do not use any IT tools: for example, IS using
pen, paper and books as in the old times.

IS compared to IT:
Business vs engineering.
Information vs tool.
Impact vs functioning.
What vs how.

2.4. Example
An IS is a collection of platforms/solutions designed to manage a particular information
product, for example a health record system in a hospital. All devices and softwares
connected to each other that are dedicated to storing, maintaining, and disseminating patient
records can be considered part of an IS. Any individual computer and communications
component can be considered an IT system even if it is part of a specific IS. In a business
environment, IT may more commonly refer to anything that deals with the transport and
storage of information, particularly network and telecommunications equipment.

IS vs IT

Information system (IS):

a set of interrelated components that collect, manipulate and disseminate data and
information and provide feedback to meet an objective

collect (input), process, store, analyze, and disseminate (output) information for a
specific purpose

examples: ATMs; airline reservation systems; health record system in a hospital

marketing system, sales & customer management system, inventory system,

payroll system

more than computers: linking organisation, management and technology

Information technology (IT):

abbreviated IT

refers to all computer-based information systems used by organizations and their

underlying technologies

related terms: IT architecture & IT infrastructure

hardware, software, databases, networks, etc, all are used to build information
systems

2.5. Some specific questions and tasks in IS and IT

IS is concerned with the quality of information, how it is captured, stored, organized and
managed, and how it can be retrieved and transmitted, and what are the appropriate means
and methods. This must be done in full consideration with the nature, objectives and context
of the organisation when it is going about its business and projects. Therefore IS acts as the
coordinator - the proverbial bridge - between IT (i.e. the IT department) and the rest of the
organisation.

IS vs IT
IT deals with the (information & communication) technological infrastructure of the
organisation and manages it. This entails being knowledgeable of the currently used
technologies and of technologies that could potentially be used to further improve the
infrastructure.
Alongside management and maintenance of existing information & communication
technologies within the organisation, IT has to ensure integration and that the infrastructure
stays functional to the organisation's needs and also competitive regarding what is available
and practiced.
IS is concerned with:
-

How raw data can be managed and processed in systems to solve business problems
and to create new business opportunities.

What is required to meet objectives of a given business strategy.

Fast analysis of typically high volumes of information to assist businesses in gaining a

competitive edge.

How can IT and business systems provide a foundation for superior organisaional
performance.

Re-engineering business processes.

Bridging the gap between business and technology.

What are systems and processes that govern the efficient use of IT.

IT is concerned with:
-

The implementation of processes whereby IT is used in the most effective and

efficient manner to minimise risk and maximise benefits.

How something can be delivered to meet requirements and achieve objectives of a

given business strategy.

Purchasing the correct hard- and software, and effectively utilising what is already
available.

Involved with anything related to computers and computing technology.

Rotation policy (re-using hardware).

Planning and maintaining an organisation's IT infrastructure.

Maintenance of hard- and software.

Creating an IT framework to fulfil necessity (e.g. an accountant has no use for a 3D

monitor).
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