Information Systems in Global

Business Today

Aliza Saeed
aliza.saeed@nu.edu.pk
FAST-NUCES CFD
What is Information
System?
• An information system is a combination of
• technology
• People
• Processes
• They all work together to collect, process, store,
and disseminate information to support decision
making, coordination, control, analysis, and
visualization in an organization.
• It typically involves the use of information
technology (IT) to facilitate the handling of data
and information.
Key components

1. Hardware: Physical devices and materials used in information processing. This includes computers,
servers, peripherals, and networking equipment.
2. Software: Programs and applications that process data. This includes operating systems, enterprise
software, specialized applications, and utilities.
3. Data/Information: Core to the system, this is the collection of facts and figures that can be processed to
produce meaningful information. This can range from quantitative data like sales figures to qualitative data
like customer opinions.
4. Processes: Methods and procedures that describe how data is captured, processed, and disseminated. These
are the steps that transform raw data into useful information.
5. People: Users and managers who interact with the system, using the data to support decision making and
other organizational processes. This includes IT professionals who design and maintain the systems, as well
as end-users who input data and use the output.
Examples

1. Transaction Processing Systems (TPS): These are used to record and process daily business transactions. For
example, a point of sale system in a retail store that records sales, inventory levels, and customer purchases.
2. Management Information Systems (MIS): These systems compile data from various sources to provide reports
and analyses that support management decision-making. An example is a dashboard that shows sales, expenses,
and profit margins for a business.
3. Decision Support Systems (DSS): These systems help managers make decisions by providing tools, models, and
data analysis. An example is a financial planning system that analyzes different investment options and forecasts
their potential returns.
4. Customer Relationship Management (CRM) Systems: These systems manage a company's interactions with
current and potential customers. An example is a CRM software that tracks all customer interactions, sales, and
feedback to improve customer service and marketing strategies.
5. Supply Chain Management (SCM) Systems: These manage the flow of goods, information, and finances related
to a product or service from the point of origin to the end consumer. An example is a logistics system that
manages inventory levels, supplier interactions, and delivery schedules.
Examples

1. Knowledge Management Systems (KMS): These systems help organizations facilitate the
collection, recording, organization, retrieval, and dissemination of knowledge. For example, an
intranet portal that allows employees to access best practices, templates, and case studies.
2. E-commerce Systems: These are online systems that support the buying and selling of goods
and services. A common example is an online retail store that manages product listings,
customer orders, payments, and shipping.
3. Human Resource Management Systems (HRMS): These systems manage employee
information, payroll, recruitment processes, benefits administration, and performance analysis.
For example, a system that tracks employee records, skills, job performance, and salary history.
4. Learning Management Systems (LMS): These are used in educational settings to deliver,
track, and manage training/learning activities. An example is an online platform where students
can access course materials, submit assignments, and receive feedback.
 1. Operational Management:
• Transaction Processing Systems (TPS): Handle daily business transactions
such as sales order entry, payroll, shipping, and receiving.
• Supply Chain Management Systems (SCM): Automate the flow of
information between a company and its suppliers, helping to manage inventory,
purchasing, and logistics.
2. Customer Relations:
Information • Customer Relationship Management (CRM) Systems: Help businesses
manage relationships with customers by organizing, automating, and

system in synchronizing sales, marketing, customer service, and technical support.

3. Decision Support:

business • Management Information Systems (MIS): Provide managers with reports and
access to the organization's current performance and historical records.
• Decision Support Systems (DSS): Help managers make decisions by
analyzing data from various sources and modeling different scenarios.
4. Strategic Management:
• Enterprise Resource Planning (ERP) Systems: Integrate all facets of a
business, including planning, manufacturing, sales, and marketing, into a
unified information system.
• Executive Information Systems (EIS): Provide top executives with immediate
and easy access to internal and external information that is relevant to strategic
decision-making.
 1. Marketing and Sales:
• E-commerce Systems: Enable online sales, providing a platform
for electronic transactions between the business and its customers
or suppliers.
• Digital Marketing Systems: Help in managing online marketing
campaigns, analyzing customer data, and optimizing digital
Information marketing strategies.
2. Human Resource Management:
system in • Human Resource Management Systems (HRMS): Automate
the management of human resource functions, like payroll,
business recruitment, and performance evaluation.
3. Business Intelligence (BI):
• Tools that process large amounts of unstructured data in books,
journals, documents, health records, images, files, emails, videos,
and other business sources for strategic decision-making.
4. Knowledge Management Systems (KMS):
• Promote the collection, sharing, and management of an
organization’s knowledge (documented or undocumented).
HOW
INFORMATION
SYSTEMS ARE
TRANSFORMING
BUSINESS
Transforming Business: The Digital Revolution

1. Surge in Mobile Connectivity: Growth in wireless cell phone accounts surpassing

landlines.
2. Rise of Smart Devices: Widespread use of cell phones, BlackBerrys, iPhones for business
communication.
3. Internet Accessibility: Significant increase in mobile Internet users and online shopping.
4. E-Commerce Growth: Millions shopping and researching products online daily.
5. Global Online Presence: Over 99 million businesses with Internet sites.
6. Logistics and Supply Chain Efficiency: FedEx and UPS setting high standards in
fast-paced delivery services.
Adapting to the Digital Age: Business Trends

1. Media Consumption Shift: Decline in newspaper readership and rise in online news and
video consumption.
2. Social Media Explosion: Massive growth of platforms like Facebook and their business
applications.
3. Online Advertising Boom: Google's online ad revenues and the steady growth of Internet
advertising.
4. Data Explosion: New laws spurring enormous growth in digital information storage.
5. Business Responses: Adaptation strategies of businesses to these digital trends.
GLOBALIZATION
CHALLENGES AND
OPPORTUNITIES
Globalization: A World of Challenges and
Opportunities

1. Historical Context: Transition from isolated cultures (1492) to a connected global community.
2. Economic Shifts: Emergence of global trade and the Industrial Revolution as catalysts.
3. Friedman's Perspective: The 'flattened' world reducing economic and cultural gaps (Friedman,
2007).
4. Impact on Developed Nations: Intense competition in jobs, markets, and resources with
emerging economies.
5. Trade Statistics: Over 33% of the U.S. economy and more than 50% in Europe and Asia
reliant on foreign trade.
6. Goods and Jobs Across Borders: Movement of manufacturing jobs offshore; the rise of global
service jobs.
Globalization Intersecting with Management
Information Systems

1. Internet's Role: Transformation into a global communication system, reducing operational

costs.
2. Business Adaptation: Examples of firms adapting to the global environment using information
systems.
3. Global Marketplace: Customers accessing worldwide market data 24/7.
4. Cost Efficiency and Expansion: Global production and low-cost suppliers facilitated by
information systems.
5. Internet Companies: Examples like Google and eBay scaling globally.
6. Enabling Globalization: The pivotal role of information systems in enabling and managing
globalization.
STRATEGIC BUSINESS
OBJECTIVES OF
INFORMATION
SYSTEMS
The Essential Role of Information Systems in
Modern Business

1. Ubiquity in Business Operations: Over 23 million managers and 113 million workers in
the U.S. rely on information systems.
2. Critical for Day-to-Day Operations: Key to conducting business in advanced countries.
3. Foundation of Modern Economy: Necessity for sectors like e-commerce, service
industries, and manufacturing.
Achieving Operational Excellence through
Information Systems

1. Efficiency and Productivity: Information systems as tools for enhancing business

operations.
2. Case Study - Walmart: Use of Retail Link system for supply chain efficiency and
achieving sales superiority.
New Products, Services, and Business Models

1. Enabling New Ventures: Role in creating new products, services, and business models.
2. Case Study - Apple Inc.: Transformation of the music industry with iPod, iTunes etc.
Building Customer and Supplier Intimacy

1. Enhancing Relationships: Using information systems for deeper customer and supplier
engagement.
2. Examples: Mandarin Oriental’s personalized services and JCPenney’s efficient supplier
coordination with TAL Apparel Ltd.
 Improved Decision Making

1. Data-Driven Decisions: Leveraging real-time data for informed decision-making.

2. For instance, Verizon Corporation, one of the largest telecommunication companies in the
United States, uses a Web-based digital dashboard to provide managers with precise
real-time information on customer complaints, network performance for each locality
served, and line outages or storm-damaged lines.
Gaining Competitive Advantage through
Information Systems

1. Achieving Superiority: Information systems as a tool for surpassing competitors in

efficiency, innovation, and customer service.
2. Real-Time Response: Ability to respond quickly to market changes and customer needs.
3. Case Examples: Apple Inc., Walmart, and UPS demonstrating industry leadership through
strategic use of information systems.
4. Enhanced Business Performance: Role of information systems in achieving higher sales
and profits.
Survival in the Digital Age

1. Adapting to Market Changes: Essential role of information systems in keeping pace with
industry innovations.
2. Regulatory Compliance: Necessity for digital record-keeping to comply with laws like
Sarbanes–Oxley Act and Toxic Substances Control Act.
3. Case Study - Banking Industry: Introduction of ATMs by Citibank as an example of
industry-driven necessity for technology adoption.
4. Long-Term Business Viability: Information systems is critical for enduring in a rapidly
evolving business environment