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By J. Hall

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Three of the most common approaches include segmentation by: 1. Geographic Location. Many organizations have operations dispersed across the country and around the world. They do this to gain access to resources, markets, or lines of distribution. A convenient way to manage such operations is to organize the management of the firm around each geographic segment as a quasi-autonomous entity. 2. Product Line. Companies that produce highly diversified products often organize around product lines, creating separate divisions for each.

The information system supplies managers with the information they need to carry out their decision-making responsibilities. 3. To support the firm’s day-to-day operations. The information system provides information to operations personnel to assist them in the efficient and effective discharge of their daily tasks. ACQUISITION OF INFORMATION SYSTEMS We conclude this section with a brief discussion of how organizations obtain information systems. Usually, they do so in two ways: (1) they develop customized systems from scratch through in-house systems development activities, and (2) they purchase preprogrammed commercial systems from software vendors.

A system’s ability to achieve its goal depends on the effective functioning and harmonious interaction of its subsystems. If a vital subsystem fails or becomes defective and can no longer meet its specific objective, the overall system will fail to meet its objective. For example, if the fuel pump (a vital subsystem of the fuel system) fails, then the fuel system fails. With the failure of the fuel system (a vital subsystem of the automobile), the entire system fails. On the other hand, when a nonvital subsystem fails, the primary objective of the overall system can still be met.

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