Importance of People in an Business Organization

The Importance of People in a Business Organization
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The Importance of People in a Business Organization
Part A: Primary Components of an information system
Information systems (IS) play an immense role in modern organizations as it helps them in the collection, processing, and storage of data. An information system is made up of five primary components that include hardware, software, people, data, and process. According to Bourgeois (2014), hardware refers to the physical and tangible part of an information system; it represents the part where one can touch. Examples of hardware include computers, disk drives, flash drives, and keyboards. The hardware components perform functions such as data storage, input, processing, and output (Stair & Reynolds, 2018). Software refers to a set of instructions that directs the hardware on what to do (Bourgeois, 2014). The process of creating software involves programmers typing instructions that control what the hardware does. There are two types of software, the first one being operating system software that coordinates the function and activities of the hardware. The second one is the application software which is made up of programs that help users solve specific computing problems (Stair & Reynolds, 2018).
People are human beings that coordinate almost all the processes of an information system. As informed by Bourgeois (2014), people form an essential part of an information system and include system analysts, support staff, developers, among others. Data can be thought of as “a collection of facts” (Bourgeois, 2014). Pieces of data can include aspects such as one’s address, name, and phone number. Organizations collect different types of data that facilitate decision making. The final component is process, which refers to a series of steps taken to attain a particular outcome (Bourgeois, 2014). Documenting business processes is important in helping an organization control its activities. Of the five components of an IS, I think people are the most important to the success of organizations.
Part B: Why people are the most important component for business success
People are extremely important to business organizations because they determine whether or not a business will fail. While the advancement of technology has been integral in raising the value of hardware, software, and data components, the value of people still remains unshaken. It is important to recognize that it is people that develop the software and hardware parts of a system and they can also play an important role in data collection and coordination of processes. In this sense, one can say that the people component is valuable across other components of an information system. For a business organization, people are involved in all key processes necessary for profitability. People are the center of key business processes such as product development, customer engagement, marketing, leadership, and finance. The functioning of these primary processes in an organization relies to a great extent on the input of people. It is for this reason that scholars have developed vast amounts of literature in areas such as human resource management and leadership.
People are important in organizations because they develop strategies that can help a business succeed. In the modern business environment that is characterized by risks and uncertainty, the input of people in developing winning strategies cannot be underestimated. The management of an organization has to decide the strategies that it can take depending on the situation at hand. Some of the key competitive strategies that management of companie...