CMIS 526 Exam 1 Study Guide

Globalization and societal issues in the digital world. - Answer- The rapid rise of a new middle class in developing countries has enabled established companies to reach millions of new customers. Tremendous decrease in communications costs has increased the use of outsourcing. Rapid urbanization has led to 50% of the worlds population now living in cities. The global shift in economic power and climate change are other influencing factors. The past decades have seen major global changes influencing individuals, businesses, economics, and societies well into the future. Examples of globalization include: • Being able to ship wine from Australia to Europe costs only a few cents • People can make voice or video calls around the globe for free using Skype, Google Hangouts, or • The streaming movie provider Netflix is available in almost every country With the decrease in communication costs, companies can now draw on a large pool of skilled professionals from all over the globe. Key Reasons for outsourcing - Answer- - To reduce or control costs. - To fee up internal resources. - To gain access to world-class capabilities - To increase the revenue potential of the organization - To reduce time to market - To increase process efficiencies - To be able to focus on core activities. - To compensate for a lack of specific capabilities or skills. In addition to the help information systems give to outsourcing other business processes, information system processes are also subject to outsourcing. • Information systems outsourcing is done for the same reasons for as other business processes. • The prime driver for information systems outsourcing is also cost reduction, just like for other types of outsourcing. • Other drivers include outsourcing to more effective companies and allowing a business to focus on its core business activities. Challenges of operating in the digital world - Answer- Government - Political instability - Regulatory laws, standards, individual freedoms Geo-economic - Infrastructure differences - Demographics - Welfare - Worker's expertise Cultural - Language differences, beliefs, attitudes, religion, life focus There are new challenges to operating in the digital world as well as new opportunities. In addit