Chapter 1: Information Systems in Global Business Today
1.1 How are information systems transforming business and why are they essential
for running and managing a business today?
E-mail, online conferencing, smartphones and tablet computers have become essential tools
for conducting business. Information systems are the foundation of the fast-paced supply
chains. The Internet allows many businesses to buy, sell, advertise and solicit customer
feedback online. Organizations are trying to become more competitive and efficient by
digitally enabling their core business processes and evolving into digital firms. The Internet
has stimulated globalization by dramatically reducing the costs of producing, buying and
selling goods on global scale. New information system trends include the emerging mobile
digital platform, big data and cloud computing.
Information systems are a foundation for conducting business today. In many industries,
survival and the ability to achieve strategic business goals are difficult without extensive use
of information technology. Businesses today use information systems to achieve six major
objectives: operational excellence new products, services and business models
customer/supplier intimacy improved decision-making competitive advantage
day-to-day survival.
Questions:
• Describe how information systems have changed the way businesses operate and
their products and services.
• Identify three major new information system trends.
• Describe the characteristics of a digital firm.
• Describe the challenges and opportunities of globalizations in a ‘flattened’ world.
• List and briefly describe the six strategic business objectives of information systems.
1.2 What is an information system? Hoes does it work? What are its management,
organization and technology components? Why are complementary assets
essential for ensuring that information systems provide genuine value for
organizations?
From a technical perspective an information system collects, stores and disseminates
information from an organization’s environment and internal operations to support
organizational functions and decision making, communication, coordination, control, analysis
and visualization. Information systems transform raw data into useful information through
three basic activities: input, processing and output.
From a business perspective, an information system provides a solution to problem or
challenge facing a firm and represents a combination of management, organization and
technology elements. The management dimension of information systems involves issues
such as leadership, strategy and management behavior. The technology dimension consists
of computer hardware, software, data management technology and
networking/telecommunications technology (including the Internet). The organization
dimension of information systems involves issues such as the organization’s hierarchy,
functional specialities, business processes, culture and political interest groups.
In order to obtain meaningful value from information systems, organizations must support
their technology investments with appropriate complementary investments in organizations
1.1 How are information systems transforming business and why are they essential
for running and managing a business today?
E-mail, online conferencing, smartphones and tablet computers have become essential tools
for conducting business. Information systems are the foundation of the fast-paced supply
chains. The Internet allows many businesses to buy, sell, advertise and solicit customer
feedback online. Organizations are trying to become more competitive and efficient by
digitally enabling their core business processes and evolving into digital firms. The Internet
has stimulated globalization by dramatically reducing the costs of producing, buying and
selling goods on global scale. New information system trends include the emerging mobile
digital platform, big data and cloud computing.
Information systems are a foundation for conducting business today. In many industries,
survival and the ability to achieve strategic business goals are difficult without extensive use
of information technology. Businesses today use information systems to achieve six major
objectives: operational excellence new products, services and business models
customer/supplier intimacy improved decision-making competitive advantage
day-to-day survival.
Questions:
• Describe how information systems have changed the way businesses operate and
their products and services.
• Identify three major new information system trends.
• Describe the characteristics of a digital firm.
• Describe the challenges and opportunities of globalizations in a ‘flattened’ world.
• List and briefly describe the six strategic business objectives of information systems.
1.2 What is an information system? Hoes does it work? What are its management,
organization and technology components? Why are complementary assets
essential for ensuring that information systems provide genuine value for
organizations?
From a technical perspective an information system collects, stores and disseminates
information from an organization’s environment and internal operations to support
organizational functions and decision making, communication, coordination, control, analysis
and visualization. Information systems transform raw data into useful information through
three basic activities: input, processing and output.
From a business perspective, an information system provides a solution to problem or
challenge facing a firm and represents a combination of management, organization and
technology elements. The management dimension of information systems involves issues
such as leadership, strategy and management behavior. The technology dimension consists
of computer hardware, software, data management technology and
networking/telecommunications technology (including the Internet). The organization
dimension of information systems involves issues such as the organization’s hierarchy,
functional specialities, business processes, culture and political interest groups.
In order to obtain meaningful value from information systems, organizations must support
their technology investments with appropriate complementary investments in organizations
