Difference between Information Systems and Information Technology
Information Technology (IT) refers to the hardware and software that you interact with directly: devices, networks, operating systems, applications, and the technical infrastructure. In the transcript this includes what’s “sitting in your lap or on your desk,” such as the hardware, software, wireless access points, network cables, switches, and routers.
Information Systems (IS) are how those technologies are employed to support business processes and enable organizational value. IS encompasses the people, processes, data, and applications that use the IT infrastructure to run a business.
Practical distinction highlighted by the speaker: IT is the tech itself; IS is the tech used to make business better. The speaker can teach you tech (IT), but the ins and outs of how to apply it to business problems belong to IS.
Real-world implication: Different roles focus on different aspects—IT may install and maintain systems; IS looks at how those systems enable accountants, HR, sales, developers, etc., to achieve business goals.
IS in Business: Purpose, Competition, and Strategic Relevance
All businesses rely on information systems to operate; even educational institutions like OSU use IS for core transactions (Canvas, Bursar system, class registration, payments) and for analytics in teaching outcomes.
The workplace is changing due to AI: AI is taking over many routine tasks, altering what entry-level jobs look like, and potentially shifting the job landscape in the next 3–5 years.
Strategic takeaway: Understanding the fundamentals of IS and staying current with news and trends will make you more competitive in the job market.
Business perspective vs consumer perspective:
From a business perspective, ask: Why do such and such products exist (e.g., why does Apple sell MacBooks and iPhones, and how do they market/build for a platform)?
From an end-user perspective, you might focus on features; from a business perspective, you focus on platform strategy, ecosystem lock-in, and total cost of ownership.
OSU example: IS is used to run transactions (Canvas, iClicker analytics, Bursar system) and to analyze class performance and student engagement.
Data-driven decision making: Instructors analyze data trends to understand class attendance, homework completion, and predict class size or performance across semesters.
Five-Component Model of Information Systems
The model places five components into a three-layer arrangement:
Bottom layer: Hardware and Software
Middle layer: Data
Top layer: Processes and People
The model emphasizes how hardware/software enable data collection, which supports processes, which are executed by people.
Relationship example: If the touch screen in a fast-food kiosk has problems (data from user interactions is disrupted), the entire process (how customers place orders) and the people involved (workers, managers) are affected.
Difference Between Information Systems and Information Technology (Revisited)
IT is the technical layer: infrastructure, devices, networks, software that runs on devices.
IS is the managerial layer: how the technology is used to run business processes, deliver value, and gain competitive advantage.
“I can install and maintain systems” vs. “I can design how these systems support HR, accounting, sales, etc.”
Competitive Advantage: Types and Examples
IS can be used to achieve competitive advantage in three broad ways: cost leadership, differentiation, and focus (targeting a niche).
Cost leadership (example): Walmart uses its buying power and IS to purchase in bulk, negotiate discounts, and price aggressively to become a cost leader.
Differentiation (example): Apple differentiates through premium design, brand loyalty, and ecosystem, allowing premium pricing for MacBooks and iPhones.
The role of product perception: Some consumers are willing to pay a premium for perceived higher quality or better user experience; this supports differentiation strategies.
Not every product is a unique differentiator—some are commodities (e.g., many books or hardware components) where price competition is intense, and scale can drive cost advantages.
Focused strategies: Companies may target specific market segments (e.g., luxury watches vs. mass-market watches, Timex vs. Rolex) to capture value from a particular customer base.
Process vs. Procedure: How Change Impacts an Organization
Process: A high-level sequence of activities to achieve a goal (e.g., implementing a new accounting system) that changes how work gets done across the organization.
Procedure: The step-by-step instructions to perform a specific task within a process (e.g., logging into an application, selecting options, finalizing an order).
When you implement new systems, you may need to update processes, procedures, and even the organizational structure.
Structural implications of new IS:
Some roles may be eliminated or reallocated (e.g., fewer managers needed for a streamlined process).
Roles, titles, and authorities may shift as tasks are automated or redistributed.
Example narrative: Changing from a manual or semi-automated ordering system to a fully automated system may reduce headcount in certain areas, reallocate talent to higher-value tasks, or trigger retraining needs.
Five-component model interaction: A new process may require different data capture, new hardware/software, or new people with specific skills; this could necessitate organizational restructuring or retraining.
Value Chain: From Inputs to Higher-Value Outputs
Value chain concept: Input → Transform → Output, with the aim of increasing value at each stage.
In the class context, student knowledge or outcomes can be viewed as the output of a value chain: students enter with varying knowledge; the course (lectures, readings, assignments, exams) transforms that knowledge to a higher level by graduation.
OSU as a value chain: OSU is a system of value chains across programs, moving students from incoming freshmen to graduates, with value added through coursework, research, and support services.
Value chain for hardware/software: The components of a MacBook or PC involve numerous manufacturers, suppliers, and assemblers; software development adds another layer of value through applications and services.
General insight: Value is created by transforming inputs (raw materials, data, skills) into outputs (finished products, educated graduates, usable information systems) that have greater value than the inputs alone.
Formal framing: Input
ightarrow Transform
ightarrow Output and the added value is a function of efficiency, quality, and usefulness of the transformation.
Strategic Planning, Organizational Change, and Risk-Reward Considerations
Strategic planning aims to align mission, vision, and values with market opportunities and anticipated consumer preferences.
It involves evaluating how new tools and technologies can benefit the organization while meeting regulatory guidance and risk considerations.
Real-world OSU example: Planning for campus capacity and facilities (dorms, dining, electricity, plumbing) to accommodate growth; example figures include planning for 6{,}000 students by 2032 and budget considerations like a $150{,}000{,}000 project for new dorms.
Risk vs. reward: Strategic choices involve balancing potential benefits against costs and potential downsides.
Certifications and career progression: Certifications can support career advancement, compliance with industry standards, or regulatory requirements, and they span accounting, information security, IT, HR, sales, marketing, and management.
Roles, Certifications, and Career Paths in Information Systems
Analyst roles:
Systems Analyst: translates business needs into system requirements for IT teams.
Business Analyst: focuses on business processes and requirements across departments.
Technical roles:
Software Developers / Programmers: build and modify software.
Other software-related roles exist under various nomenclatures; the general category is IS/IT work.
Leadership and executive roles:
CIO (Chief Information Officer): interacts with CEO and other C-suite leaders to set technology strategy, select tools, manage data security, and address regulatory concerns.
CAO (Chief Analytics/Administrative Officer) or AI-focused roles: exploring how to implement AI to benefit the organization and manage data governance.
CISO (Chief Information Security Officer) / CSO (Chief Security Officer): responsible for information security and risk management; breaches can lead to job termination.
Other pathways and certifications: many industry certifications exist (e.g., accounting, information systems security, HR, sales, management) to advance careers or meet regulatory or employer requirements.
Certification rationale: certifications can lead to higher earnings or more job opportunities; however, they should reflect genuine skills and the requirements of the target role, not just be pursued for the credential alone.
Career advice: Titles vary by organization; focus on job descriptions and required capabilities rather than specific job titles.
Entrepreneur and consulting paths: IS knowledge is valuable for starting