Dimensions of Information Systems

From a business perspective, an information system represents an organizational and management solution to a challenge or problem posed by the environment. For example, Uber’s ride-hailing app and Airbnb’s housing rental app represent organizational and management solutions for matching customers with service providers.

Organizational Dimension

An organization is a group of people who have come together for a specific purpose. Examples of organizations include businesses, governments, nonprofits, clubs, and associations. Even though organizations can differ greatly, they have common components. The following are components that are common across different types of organizations.

Structure

An organization can have a formal structure, with a president or CEO and other senior executives, or a more informal structure, in which most members of the group have the same level of power. Businesses typically have a more formal hierarchical structure, as shown in Figure 1.3. Select each of the layers in Figure 1.3 for a brief overview of each.

Figure 1.3 shows the hierarchical structure of business. The three levels are executive, managerial, and operational. The executive level is at the top of the pyramid, the managerial level is in the middle of the pyramid, and the operational level is at the base of the pyramid.

 

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