Section 2.4: Bullet Text Study Guide
The Information Systems Function in Business

In all but the smallest of firms, the information systems department is the formal organizational unit responsible for information technology services. The information systems department is responsible for maintaining the hardware, software, data storage, and networks that comprise the firm's IT infrastructure. The information systems department suggests new business strategies and new information-based products and services, and coordinates both the development of the technology and the planned changes in the organization.

The information systems department consists of specialists, such as:

  • Programmers: technical specialists who write the software instructions for computers

  • Systems analysts: the principal liaisons between the information systems groups and the rest of the organization

  • Information systems managers: leaders of teams of programmers and analysts, project managers, physical facility managers, telecommunications managers, or database specialists

In many companies, the information systems department is headed by a chief information officer (CIO), a senior manager who oversees the use of information technology in the firm. End users are representatives of departments outside of the information systems group for whom applications are developed.

Small companies may not have a formal information systems group. Larger companies will have a separate information systems department, which may be organized along several different lines, depending on the nature and interests of the firm, such as:
  • Decentralized arrangement: Each functional area of the business has its own information systems department and management that typically reports to a senior manager or chief information officer.

  • Separate department: In this arrangement, the information systems function operates as a separate department similar to the other functional departments with a large staff, a group of middle managers, and a senior management group.

  • Divisional groups: Very large "Fortune 1,000"-size firms with multiple divisions and product lines might allow each division (such as the Consumer Products Division or the Chemicals and Additives Division) to have its own information systems group. All of these divisional information systems groups report to a high-level central information systems group and CIO.