Scribd
Upload
50 views26 pages

Information Systems in Global Business Today: Presented By: Maria Luz La Madrid-Jimenez

This chapter introduces information systems and their role in modern businesses. It discusses how investments in information technology have increased significantly over time due to higher returns. It also summarizes how information systems are transforming businesses through increased wireless technology, web usage, cloud computing, and mobile platforms. The chapter then covers the strategic objectives of information systems in achieving operational excellence, developing new products/services, improving customer relationships, decision making, and gaining competitive advantages.

Uploaded by

Malu La Madrid Jimenez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
50 views26 pages

Information Systems in Global Business Today: Presented By: Maria Luz La Madrid-Jimenez

This chapter introduces information systems and their role in modern businesses. It discusses how investments in information technology have increased significantly over time due to higher returns. It also summarizes how information systems are transforming businesses through increased wireless technology, web usage, cloud computing, and mobile platforms. The chapter then covers the strategic objectives of information systems in achieving operational excellence, developing new products/services, improving customer relationships, decision making, and gaining competitive advantages.

Uploaded by

Malu La Madrid Jimenez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 26

Chapter 1:

Information Systems in
Global Business Today
Presented by: MARIA LUZ LA MADRID-JIMENEZ
Objectives:
• Explain the role of information systems in businesses and organizations;
• Illustrate the emerging digital firm, and the new perspectives of
information system with the new global challenges; and
• Appreciate the role of information systems in the global business and the
real-world.
1.1 THE ROLE OF INFORMATION SYSTEMS IN
BUSINESS TODAY

● Capital investment in IT,


hardware, software,
communication equipment,
grew from 32% to 52% of
all invested capital between
1980 and 2009 because of
better ROI (return on
investment).
How Information Systems are transforming business
● Increased wireless technology use, web sites
● Increased business use of web 2.0 tech
● Cloud computing, mobile digital platform allow more distributed work,
decision making, and collaboration
● Mobile phones, e-mail, online conferencing

Why are more parcel distributed?


● Just in time production, lean production, as little inventory as possible
● Respond to rapidly changing customer demand
● Get to market faster, reduce overhead costs
How Information Systems are transforming business
A lot of digital information to store and handle:
● Get news online, reading and writing blogs, social networking
● Connect employees, customers, managers worldwide
● Internet advertising and e-commerce continue to expand
● Laws requiring to store this data for several years
What’s new in Management Information Systems?
Technology
● Cloud computing platform emerges as a major business area of innovation
● Big data
● A mobile digital platform emerges to compete with the PC as a business
system
Management
● Managers adopt online collaboration and social networking software to
improve coordination, collaboration, and knowledge sharing
● Business intelligence applications accelerate
● Virtual meetings proliferate
What’s new in Management Information Systems?

Organizations
● Social Business
● Telework gains momentum in the workplace
● Co-creation of business value
Globalization Challenges and Opportunities:
A Flattened World
● Internet has drastically reduced costs of operating on global scale
● Communication is instant and virtually free (e.g. price information 24/7)
● Presents both challenges and opportunities (outsourcing, offshoring, low
wages, fight for jobs and products, but expanding employment in IS,
accelerated development of new IS)
● “The world is flat – The globalized world in the 21st century” by
Thomas L. Friedman
The Emerging Digital Firm
● Business relationships are digitally enabled and mediated
● Core business processes are accomplished through digital networks
○ Business processes = logically related tasks/behaviors developed over
time to produce specific business results, e.g. creating a marketing plan
● Key corporate assets (property, financial, human assets) are managed
digitally

Greater flexibility in organization and management (time shifting = 24/7, space


shifting = global workplace) = anytime/anywhere, flexibility
Strategic Business Objectives of Information Systems
Strategic Business Objectives of Information Systems

Six strategic business objectives


1. Operational excellence (efficiency, productivity)
2. New products, services, business models (how a company produces,
delivers and sells)
3. Customer and supplier intimacy (engaging -> returning)
4. Improved decision making (right information, right time instead of
forecasts/luck)
5. Competitive advantage (faster, cheaper, superior, real time responses)
6. Survival (necessity)
1.2 PERSPECTIVES ON INFORMATION SYSTEMS
What is an Information Technology (IT)?
● All the hardware + software to achieve business objectives

What is an Information System (IS)?


● Set of interrelated components;
● Collect, process, store, and distribute information; produce new information;
● Support decision making, coordination, control;
● Solve tasks automatically, create new products, analyze problems
● Information about significant people, places, things
What is an Information System?

Data vs. Information


● Data are streams of raw facts
● Information is data shaped into
meaningful form
What is an Information System?

Function of an IS
● An information system contains information about an
organization and its surrounding environment. Three
basic activities—input, processing, and output—
produce the information organizations need. Feedback
is output returned to appropriate people or activities in
the organization to evaluate and refine the input.
Environmental actors, such as customers, suppliers,
competitors, stockholders, and regulatory agencies,
interact with the organization and its information
systems.
Dimensions of Information Systems

1. Organizations
2. Management
3. Technology
Dimensions of Information Systems cont.
1. Organizations
● IS = integral part
● Key elements: people, structure, business
processes, politics, culture
● Different levels/specialties, hierarchy or
pyramid structure
● Senior Mgt.: long-term strategic decisions,
financial performance
● Middle Mgt.: carries out programs and
plans
● Operational Mgt.: monitoring daily
activities
Dimensions of Information Systems
1. Organizations
● Separation business functions
● Unique business processes with formal rules, developed over time to
guide employees (IS automate many business processes)
● Unique culture = fundamental set of assumptions, values, ways to do
things
● IS come out of organizational conflicts
Dimensions of Information Systems
2. Management

● Make decisions, formulate action plans, solve organizational problems


● Perceive business challenges, strategy to respond, allocate resources
● Creative work driven by knowledge and information (new products, recreate
organization)
Dimensions of Information Systems cont.
3. Technology
● Computer hardware (input, processing, output several linked devices)
● Computer software (details, preprogrammed instructions to
control/coordinate)
● Data management technology (software governing organization of data and
storage media)
● Networking and telecommunications technology (devices and software
linking hardware and transferring data)
○ Network links computers to share data and resources (e.g. printer)
○ Internet = network of networks (technology platform)
○ WWW = service provide by Internet
● All these technologies = resources = IT infrastructure
● IT infrastructure = foundation to build IS (carefully design and manage)
It Isn’t Just Technology: A Business Perspective on
Information Systems
● Investment because IS (instrument) = real economic corporate value to the
business
● ROI will be superior to other investments (buildings, machines etc.)
● Increases in productivity, revenues (-> stock market value), long-term
strategic positioning (-> future revenues)
● Decreases costs because of information for better decisions, better execution
of business processes.
It Isn’t Just Technology: A Business Perspective on
Information Systems
The Business Information Value Chain
● Raw data acquired and
transformed through stages that
add value to that information
● Value of information system
determined in part by extent to
which it leads to better
decisions,greater efficiency, and
higher profits
Complementary Assets: Organizational Capital and the
Right Business Model
● Some firms achieve better results with IS than others
● Invest great deal or little a amount, receive low or much returns
● IT investments alone are not enough
● Organization and Management: supportive values, structures, behavior patterns (=
complementary assets)
● Adopt right business model that suits the new technology
● Complementary assets = assets required to derive value from a primary investment ->
receive superior returns
Complementary Assets: Organizational Capital and the
Right Business Model cont.
● Investment in organizational and management capital
○ Organizational assets, e.g.
■ Appropriate business model
■ Efficient business processes
○ Managerial assets, e.g.
■ Incentives for management innovation
■ Teamwork and collaborative work environments
○ Social assets (not by company, society in general) e.g.
■ The Internet and telecommunications infrastructure
■ Technology standards
1.3 CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMS

● Multidisciplinary field
● IS = sociotechnical systems (machines,
devices, physical tech, social,
organizational, intellectual investments
Technical Approach
Emphasizes mathematically based models
● Computer science (computability, data storage + access)
● Management science (models for decision-making and management practices)
● Operations research (transportation, inventory control, transaction costs)

Behavioral Approach
Behavioral issues (strategic business integration, implementation, design..)
● Psychology (human perceive and use)
● Economics (production, dynamics market)
● Sociology (groups)
Approach of This Text: Sociotechnical Systems
● Optimal organizational performance achieved by jointly optimizing both social and
technical systems used in production
● Helps avoid purely technological approach
● Mutual adjustment of both technology and organization

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy