Final answer:
Information systems encompass the broad components of collecting, storing, and processing information and may not necessarily involve technology, whereas information technology is specifically tied to the hardware and software for managing and distributing data.
Step-by-step explanation:
The difference between information systems (IS) and information technology (IT) can be summarized by their scope and function. Information systems are an integrated set of components for collecting, storing, and processing data and delivering information, knowledge, and digital products. Thus, an information system does not have to use computer hardware or software; it can be as simple as a pencil and paper system for information management.
On the other hand, information technology is concerned with the development, maintenance, and use of computer systems, software, and networks for the processing and distribution of data. Therefore, IT is inherently bound to the use of hardware and software. It's a broader concept that encompasses the infrastructure, tools, and frameworks that enable the creation, storage, and exchange of digital information. In the context of a company's operations, IT can lead to the invention of new products, efficient management methods, and cost-effective production technologies. Most importantly, it plays a crucial part in the shift towards an information economy, with businesses increasingly depending on digital platforms and global networks.