E/B/54. Components of the Information System

Everyday in our lives, we are exposed to Information Technology (I.T.) in one way or another. From a simple cash withdrawal via the Automated Teller Machine (ATM) or looking through consolidated company reports, they all involve systems. With technology advancement, the business world has been revolutionized. Organizations are increasingly dependent on I.T. developments to help them, not only in running their day-to-day businesses but also to achieve competitive advantage. With globalization, competition increases. Hence, organizations are forced to adopt new business approach to gain market share and increase revenues. This paper explores the four main components of the Information System, namely Hardware, Software, Data Management, Telecommunication and Network Technology, and talks about how each of the components can help organizations in achieving competitive advantage.