CHAPTER 1: INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY 1
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION 7
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY 14
CHAPTER 8: SECURING INFORMATION SYSTEMS 22
GUEST LECTURE: KPMG (21ST OCTOBER) 28
CHAPTER 9: ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE
APPLICATIONS 29
GUEST LECTURE: AE (28TH OCTOBER) 35
CHAPTER 10: E-COMMERCE: DIGITAL MARKETS, DIGITAL GOODS 37
GUEST LECTURE: BOL.COM (18TH NOVEMBER) 42
CHAPTER 11: MANAGING KNOWLEDGE AND ARTIFICIAL INTELLIGENCE 44
CHAPTER 12: ENHANCING DECISION-MAKING 51
GUEST LECTURE: KPMG LIGHTHOUSE (4TH NOVEMBER) 56
GUEST LECTURE: DELAWARE (2ND DECEMBER) 59
GUEST LECTURE: DELOITTE (9TH DECEMBER) 62
,Chapter 1: Information Systems in Global Business Today
1 Opening case: Premier League: The Power of IT Analytics
Well known football clubs have a large budget to spend on their players or IT, lesser known clubs have
to come through with a smaller budget. Nevertheless, in 2016, a smaller club has won the Premier
League because of the usage of Big Data to improve their revenue and player training.
à Illustrates why information systems are so essential today.
2 How are information systems transforming business, and why are they so essential for
running and managing a business today?
o An increased IT-related spending: from 20% up to 33% of the total investment
- Hardware, software, and telecommunications equipment
- Consulting services: to help their employees with the implementation of IT
o Smartphones and other mobile devices
o Widespread access to the internet: ex. a smart refrigerator
o Online social networks: ex. costumer reviews on Yelp, Google
o Laws requiring organizations to store digital records (GDPR)
The Gartner Hype Cycle can be used to identify interesting technologies that can be used in an
organisation. It shows the maturity and the adoption of these technologies. Digital technologies move
through 5 stages:
1) innovation trigger: a lot of media interest but it is not really
usable yet
2) peak of inflated expectations: there are some success
stories
3) trough of disillusionment: more and more failures
4) slope of enlightenment: a better understanding of the
benefits that the technology could offer to an organisation
5) plateau of productivity: the product will be adopted
2.1 What is new in Management Information Systems
o IT innovations
- Cloud computing: buy a subscription to have infrastructure (you don’t have to own the
hardware). Ex. Office 365
- Big data and the Internet of Things
- AI and machine learning
o New business models
- Online video streaming services for ex. Netflix instead of Telenet or other on-demand
e-commerce services
o E-commerce expanding
- Selling physical products (Zalando)
- Selling services (Netflix, Spotify)
- Selling both (Amazon)
1
, o Management changes
- Managers use social networks, collaboration tools
- Virtual meetings
o Changes in firms and organizations
- More collaborative and teamwork between IT-teams and businesspeople, less
emphasis on hierarchy
- Higher-speed and more accurate decision making based on data and analysis
- More willingness to interact with consumers through social media
- Better understanding of the importance of IT: new employees are used to working
with technology
These digital organizations lead to a globalization with challenges and opportunities. Internet and
global communications have changed how and where business is done:
o Drastic reduction of costs of operating and transacting on global scale. Ex. outsourcing from
another, less expensive, county à the wages are lower à less costs
o Competition for jobs, markets, resources, ideas. Ex. outsourcing à more competition from all
over the world
o Growing interdependence of global economies: more import and export
o Requires new understandings of skills, markets, opportunities to distinguish yourself from
other, cheaper, workers
o Information systems enable globalization of commerce
Because of the impact of IT on organizations, there are more and more digital firms. A digital firm is a
firm where:
o Significant business relationships (relationships with customers, suppliers, employees) are
digitally enabled and mediated
o Core business processes are accomplished through digital networks
o Key corporate assets are managed digitally. KCP = human assets such as employees, financial
assets, …
These digital firms offer greater flexibility in organization and management for ex. time shifting and
space shifting (working from anywhere, anytime).
2.2 Strategic Business Objectives of Information Systems
There is a growing interdependence between:
o The ability to use information technology (information systems)
o The ability to implement corporate strategies and achieve corporate goals (organization)
Firms invest heavily in information systems to achieve six strategic business objectives:
1. Operational excellence 4. Improved decision making
2. New products, services, and business models 5. Competitive advantage
3. Customer and supplier intimacy 6. Survival
2
, 2.2.1 Operational excellence
Improve the efficiency of operations to achieve higher profitability. Information systems and
technologies help improve this efficiency and productivity which in the end will save you a lot of
money. When these new technologies are coupled with changes in the behaviour of employees or the
strategy of the organization, it will be even more efficient.
Ex. Walmart is the most efficient retailer; Colruyt has ‘ugly’ stores, but they can guarantee a low-cost
supermarket; Ikea saves a lot of money by having the costumers assemble their own furniture.
2.2.2 New products, services, and business models
Information systems and technology a major enabling tool for new products, services, and business
models. A business model is how a company produces, delivers, and sells its products and services.
Ex. Uber is a taxi company but it does not need to buy taxis or drivers, because it links already existing
drivers with their own cars to a customer. This is a different business model than a taxi company.
2.2.3 Customer and supplier intimacy
o Customer intimacy: if a customer is treated well, he/ she will come back another time.
Ex. High-end hotels that use computers to track customer preferences (room temperature,
light settings) and then customize the room for each costumer.
o Supplier intimacy: building a close relationship with your suppliers to minimize your costs
Example: Just-in-time (JIT) manufacturing
2.2.4 Improved decision making
Managers can’t always make the best decisions without accurate information. They have to make
forecasts, guesses which can lead to over- or underproduction, a misallocation of resources or poor
response times.
Technology or information systems can help them by enabling informed decision-making. This allows
managers to have the right information at the right time (real-time data).
Ex. Verizon’s web-based digital dashboard to provide managers with real-time data (customer
complaints, network performance, line outages, …)
2.2.5 Competitive advantage
All these strategic business objectives could lead to a competitive advantage. This means that your
company is better at something than your competitors.
This can be achieved through:
- Delivering better performance
- Charging less for superior products
- Responding to customers and suppliers in real-time
Ex. UPS, Walmart
2.2.6 Survival
Businesses may need to invest in information systems out of necessity, just because their competitors
have a technological advantage and your customers expect the same.
Ex. Citibank’s introduction of ATMs.
3
CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION 7
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY 14
CHAPTER 8: SECURING INFORMATION SYSTEMS 22
GUEST LECTURE: KPMG (21ST OCTOBER) 28
CHAPTER 9: ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE
APPLICATIONS 29
GUEST LECTURE: AE (28TH OCTOBER) 35
CHAPTER 10: E-COMMERCE: DIGITAL MARKETS, DIGITAL GOODS 37
GUEST LECTURE: BOL.COM (18TH NOVEMBER) 42
CHAPTER 11: MANAGING KNOWLEDGE AND ARTIFICIAL INTELLIGENCE 44
CHAPTER 12: ENHANCING DECISION-MAKING 51
GUEST LECTURE: KPMG LIGHTHOUSE (4TH NOVEMBER) 56
GUEST LECTURE: DELAWARE (2ND DECEMBER) 59
GUEST LECTURE: DELOITTE (9TH DECEMBER) 62
,Chapter 1: Information Systems in Global Business Today
1 Opening case: Premier League: The Power of IT Analytics
Well known football clubs have a large budget to spend on their players or IT, lesser known clubs have
to come through with a smaller budget. Nevertheless, in 2016, a smaller club has won the Premier
League because of the usage of Big Data to improve their revenue and player training.
à Illustrates why information systems are so essential today.
2 How are information systems transforming business, and why are they so essential for
running and managing a business today?
o An increased IT-related spending: from 20% up to 33% of the total investment
- Hardware, software, and telecommunications equipment
- Consulting services: to help their employees with the implementation of IT
o Smartphones and other mobile devices
o Widespread access to the internet: ex. a smart refrigerator
o Online social networks: ex. costumer reviews on Yelp, Google
o Laws requiring organizations to store digital records (GDPR)
The Gartner Hype Cycle can be used to identify interesting technologies that can be used in an
organisation. It shows the maturity and the adoption of these technologies. Digital technologies move
through 5 stages:
1) innovation trigger: a lot of media interest but it is not really
usable yet
2) peak of inflated expectations: there are some success
stories
3) trough of disillusionment: more and more failures
4) slope of enlightenment: a better understanding of the
benefits that the technology could offer to an organisation
5) plateau of productivity: the product will be adopted
2.1 What is new in Management Information Systems
o IT innovations
- Cloud computing: buy a subscription to have infrastructure (you don’t have to own the
hardware). Ex. Office 365
- Big data and the Internet of Things
- AI and machine learning
o New business models
- Online video streaming services for ex. Netflix instead of Telenet or other on-demand
e-commerce services
o E-commerce expanding
- Selling physical products (Zalando)
- Selling services (Netflix, Spotify)
- Selling both (Amazon)
1
, o Management changes
- Managers use social networks, collaboration tools
- Virtual meetings
o Changes in firms and organizations
- More collaborative and teamwork between IT-teams and businesspeople, less
emphasis on hierarchy
- Higher-speed and more accurate decision making based on data and analysis
- More willingness to interact with consumers through social media
- Better understanding of the importance of IT: new employees are used to working
with technology
These digital organizations lead to a globalization with challenges and opportunities. Internet and
global communications have changed how and where business is done:
o Drastic reduction of costs of operating and transacting on global scale. Ex. outsourcing from
another, less expensive, county à the wages are lower à less costs
o Competition for jobs, markets, resources, ideas. Ex. outsourcing à more competition from all
over the world
o Growing interdependence of global economies: more import and export
o Requires new understandings of skills, markets, opportunities to distinguish yourself from
other, cheaper, workers
o Information systems enable globalization of commerce
Because of the impact of IT on organizations, there are more and more digital firms. A digital firm is a
firm where:
o Significant business relationships (relationships with customers, suppliers, employees) are
digitally enabled and mediated
o Core business processes are accomplished through digital networks
o Key corporate assets are managed digitally. KCP = human assets such as employees, financial
assets, …
These digital firms offer greater flexibility in organization and management for ex. time shifting and
space shifting (working from anywhere, anytime).
2.2 Strategic Business Objectives of Information Systems
There is a growing interdependence between:
o The ability to use information technology (information systems)
o The ability to implement corporate strategies and achieve corporate goals (organization)
Firms invest heavily in information systems to achieve six strategic business objectives:
1. Operational excellence 4. Improved decision making
2. New products, services, and business models 5. Competitive advantage
3. Customer and supplier intimacy 6. Survival
2
, 2.2.1 Operational excellence
Improve the efficiency of operations to achieve higher profitability. Information systems and
technologies help improve this efficiency and productivity which in the end will save you a lot of
money. When these new technologies are coupled with changes in the behaviour of employees or the
strategy of the organization, it will be even more efficient.
Ex. Walmart is the most efficient retailer; Colruyt has ‘ugly’ stores, but they can guarantee a low-cost
supermarket; Ikea saves a lot of money by having the costumers assemble their own furniture.
2.2.2 New products, services, and business models
Information systems and technology a major enabling tool for new products, services, and business
models. A business model is how a company produces, delivers, and sells its products and services.
Ex. Uber is a taxi company but it does not need to buy taxis or drivers, because it links already existing
drivers with their own cars to a customer. This is a different business model than a taxi company.
2.2.3 Customer and supplier intimacy
o Customer intimacy: if a customer is treated well, he/ she will come back another time.
Ex. High-end hotels that use computers to track customer preferences (room temperature,
light settings) and then customize the room for each costumer.
o Supplier intimacy: building a close relationship with your suppliers to minimize your costs
Example: Just-in-time (JIT) manufacturing
2.2.4 Improved decision making
Managers can’t always make the best decisions without accurate information. They have to make
forecasts, guesses which can lead to over- or underproduction, a misallocation of resources or poor
response times.
Technology or information systems can help them by enabling informed decision-making. This allows
managers to have the right information at the right time (real-time data).
Ex. Verizon’s web-based digital dashboard to provide managers with real-time data (customer
complaints, network performance, line outages, …)
2.2.5 Competitive advantage
All these strategic business objectives could lead to a competitive advantage. This means that your
company is better at something than your competitors.
This can be achieved through:
- Delivering better performance
- Charging less for superior products
- Responding to customers and suppliers in real-time
Ex. UPS, Walmart
2.2.6 Survival
Businesses may need to invest in information systems out of necessity, just because their competitors
have a technological advantage and your customers expect the same.
Ex. Citibank’s introduction of ATMs.
3
