Introduction

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An information system is designed to collect, process, store and distribute information. Although information systems need not be computerized, Information Technology (IT) plays an increasingly important role in organizations due to the fast pace of technological innovation. Today most information systems beyond the smallest are IT-based because modern IT enables efficient operations as well as effective management in organizations of all sizes. This chapter will first define the critical components of modern information systems, and then discuss how organizations achieve higher efficiency, better effectiveness, and improved coordination through their use.