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Summary Book: Management Information Systems - managing the digital firm
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- Nyenrode Business Universiteit (Nyenrode)
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Summary Book: Management Information Systems:managing the digital firm.
Laudon, K.C. and J.P. Laudon (2022) - Digitization in Business and Society
CH1: Information Systems in Global Business Today ............................................................................... 2
CH2: Global E-business and Collaboration .............................................................................................. 9
CH3: Information Systems, Organizations, and Strategy ....................................................................... 17
CH5: IT Infrastructure and Emerging Technologies ............................................................................... 27
CH6: Foundations of Business Intelligence: Databases and Information Management ....................... 39
CH7: Telecommunications, the Internet, and Wireless Technology ...................................................... 50
CH8: Securing Information Systems ...................................................................................................... 61
CH9: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications ................... 73
CH11: Managing Knowledge and Artificial Intelligence ........................................................................ 80
,CH1: Information Systems in Global Business Today
Use leading-edge innovative information technology to provide new ways of drawing buyers into
physical stores and making the in-store buying experience more efficient, safe, and pleasant.
1.1 How are information systems transforming business, and why are they so essential
for running and managing a business today?
MIS= Management Information Systems.
Five changes of importance in the continuous change in technology, management, business
processes:
1. IT Innovation.
a. Examples: the emergence of cloud computing, the growth of a mobile digital
business platform based on smartphones and tablet computers, big data and the
Internet of Things (IoT), business analytics, machine learning systems, the use of
social networks by managers to achieve business objectives.
b. These innovations enable entrepreneurs and innovative traditional firms to create
new products and services, develop new business models, and transform day-to-day
conduct of business.
2. New Business Models.
a. Examples: the emergence of online video services for streaming or downloading,
such as Netflix, Apple TV Channels, and Amazon.
3. E-commerce Expansion.
a. Examples: Facebook, and other social networking sites such as YouTube, Twitter,
Tumblr, along with Netflix, Apple Music, and many other media firms.
, b. E-commerce is changing how firms design, produce, and deliver their products and
services. It reinvented itself again, disrupting the traditional marketing and
advertising industry and putting major media and content firms in jeopardy.
4. Management Changes.
a. Examples: with new mobile smartphones, high-speed wireless Wi-Fi networks, and
tablets, remote salespeople on the road are only seconds away from their managers’
questions and oversight. Management is going mobile.
b. The growth of enterprise-wide information systems with extraordinarily rich data
means that managers no longer operate in a fog of confusion but instead have online,
nearly instant access to the really important information they need for accurate and
timely decisions.
5. Changes in Firms and Organizations.
a. New fast-growing twenty-first-century business firms put less emphasis on hierarchy
and structure and more emphasis on employees taking on multiple roles and tasks
and collaborating with others on a team. More emphasis on competency and skills,
higher-speed and more-accurate decision making based on data and analysis. More
aware of: changes in technology, consumer attitudes, and culture. Use social media
to enter into conversations with consumers and demonstrate a greater willingness to
listen to consumers. Better understanding of the importance of information
technology in creating and managing business firms and other organizations.
A digital firm is one in which nearly all of the organization’s significant business relationships with
customers, suppliers, and employees are digitally enabled and mediated. Core business processes are
accomplished through digital networks spanning the entire organization or linking multiple
organizations.
Business processes: refers to the set of logically related tasks and behaviours that organizations
develop over time to produce specific business results and the unique manner in which these
activities are organized and coordinated.
Key corporate assets: (intellectual property, core competencies, and financial and human assets) are
managed through digital means.
In digital firms, both time shifting and space shifting are the norm.
- Time shifting: refers to business being conducted continuously, 24/7, rather than in narrow
‘work day’ time bands of 9 a.m. to 5 p.m.
- Space shifting: means that work takes place in a global workshop as well as within national
boundaries.
There is a growing interdependence between a firm’s ability to use information technology and its
ability to implement corporate strategies and achieve corporate goals.
Business firms invest in information systems to achieve six strategic business objectives: operational
excellence; new products, services, and business models; customer and supplier intimacy; improved
decision making; competitive advantage; and survival.
, Business model: describes how a company produces, delivers, and sells a product or service to create
wealth.
1.2 What is an information system? How 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?
Information technology (IT): consists of all the hardware and software a firm needs to use in order to
achieve its business objectives.
Information system: can be defined technically as a set of interrelated components that collect (or
retrieve), process, store, and distribute information to support decision making and control in an
organization. Information systems help managers and workers analyse problems, visualize complex
subjects, and create new products.
Information systems contain information about significant people, places, and things within the
organization or in the environment surrounding it. Information: data that have been shaped into a
form that is meaningful and useful to human beings. Data: streams of raw facts representing events
occurring in organizations or the physical environment before they have been organized and arranged
into a form that people can understand and use.
Three activities in an information system produce the information that organizations need to make
decisions, control operations, analyse problems, and create new products or services:
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